Mistake No. 1: Seeing the workspace as a cost, rather than an investment
By Anetta Pizag and Bostjan Erzen
Photo Martin Metelko
WHY THIS IS IMPORTANT
Creating a new work environment always costs a significant amount of money; however, the results can define the future of the organization. A well-designed workspace can support ongoing business performance, reduce operational costs and contribute to profits, yielding high returns on investment.
Unfortunately, many business leaders see workplace change projects as a cost, and go for cheap and quick fixes instead of a well thought-out solution. This can prove to be a costly decision.
Organizations that opt for lower quality solutions to achieve small savings in the short term may end up with a workspace that turns out to be very expensive in the long run.
WHAT YOU NEED TO KNOW
A high quality work environment can contribute to a company’s financial performance in several ways:
- Profits can increase due to improved work efficiency and effectiveness, increased engagement and loyalty of staff, and more satisfied clients and customers. In addition, the organization will be able to attract better talent as well as better business opportunities.
- Staff costs can be reduced due to lower staff turnover, absenteeism and presenteeism. Due to increased productivity, the same amount of work can potentially be completed by fewer staff members than before. Furthermore, the company will not need to compete for talent based on salary.
- Operational and real estate costs can be reduced due to better utilization of space, lower maintenance requirements and lower utility usage. You dont need an excessive budget to create a well designed space. To keep costs low, the key is to explore your options carefully, and make well-founded decisions throughout the design process.
HOW KRAGELJ CAN HELP
We are experts in developing workplace strategies that increase the organizations bottom line, year after year.
Kragelj has developed a research and analysis process, called Workplace PotentialTM, which incorporates a suite of tools that help maximize the short- and long-term financial results of workplace change projects.
As part of this process we perform a cost-benefit analysis to forecast returns on investment, and choose the most cost-effective design solutions, helping you minimize expenses without compromising the quality of the project.
This process also includes a feasibility study, assisting clients to understand risks and likely outcomes before deciding about investing in large projects.
We can also help you negotiate beneficial financial deals with suppliers, contractors and real estate representatives, and thus obtain high quality products and services at the best prices.
A well-designed workspace can support ongoing business performance, reduce operational costs and contribute to profits, yielding high returns on investment.