August 18, 2018

Lower Overhead

Do you work in an open office? I do. 

Moved from a partial cubical row with tall walls between rows and overhead storage to a small room with low walls. More audio and visual interruptions / distractions. Less productivity per employee.

Less personal and less storage. Lets be honest, engineers love having samples in our cabinets. Lets us look at the designs we are trying to improve. Room for pictures, calendars and personal items so office felt like home. Now minimized, have 5 drawers in roll around cabinets.

Why are businesses going to open offices if not for productivity? Less floor space per employee equals less cost. 

The average office space per employee has shrunk from 225 sq. ft. in 2010 to 150 sq. ft. in 2017. Saving 75 sq. ft. times $50 annual building cost per sq. ft. times 500 employees would save $1,875,000 per year.  That is a lot of savings for any company. [Credit Erik Rood for analysis]

The easiest way to improve business results is to lower overhead costs, especially real estate costs. Cost reduction is easier than getting more customers, expanding profit margins per sale, or improving productivity. 

Our job is to be productive no matter our workspace. What works for you? Library rules, noise canceling headphones, more email / messaging, or more meetings to discuss projects. 


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