As companies navigate the post-pandemic workplace, with its hybrid models and varying mandates, they are still trying to determine the best practices for real estate success and effective use. One commonly used measure has been space utilization rates.
However, according to a recent CBRE article titled “Companies Now Prefer Metrics that Measure Effectiveness, Rather than Efficiency,” space utilization alone is not an accurate measure of effectiveness. The article states that 79% of CBRE clients aim for a utilization rate of 65% or higher but in reality, actual usage only reaches 38%, which is only a slight increase from last year.
Moreover, while 73% of occupiers claim to have an effective workplace environment, only 46% actively track their effectiveness through metrics such as employee sentiment or retention rates. The article suggests that companies who solely rely on space utilization as their metric are less likely to report having an effective workplace compared to those who also consider interpersonal data.
It’s Not Just About Occupancy
There is more involved in creating an efficient workspace than just tracking how many employees show up at any given time. While measuring occupancy rate remains important , employee satisfaction and sentiment rank highest among CBRE clients’ preferred metrics for determining effectiveness. In fact,the percentage of organizations using employee satisfaction as a measure has increased significantly from just eight percent in2023to14percentin2024.This shift highlights the growing emphasis on prioritizing morale and happiness within the workforce as critical factors for overall business success.
Ontheotherhand,traditionalmeasureslike design densityandpeople densityhave declined overthepastfouryearsascompaniesfocusonoptimization,costsavings,andofficeutilization—allmetricsalignedwithCBREclients’trackinggoals.However,it’simportanttonotethat96%oforganizationsalreadyhaveworkplacepoliciesinplacetoaddressissuesliketheroleofremoteversusfull-timework.These policies play a crucial role in establishing workplace efficacy as they ensure that objectives are aligned with the company’s overall goals.
The Key to Success
In order to successfully implement workplace policies, it is essential for companies to align their objectives and targets with their communicated policies. This not only contributes towards achieving set goals but also fosters trust, transparency, consistency,andproductivityintheworkplace.Thearticleemphasizestheimportanceofcorrelationbetweenobjectivesandpoliciesinordertocreateaneffectiveandefficientworkenvironmentforbothemployeesandemployers.
Overall,theCBREarticleshowcasesthatwhilespaceutilizationratesremainimportant,it’sessentialforcompaniestoconsiderothermetrics,suchasemployeehappinessandsentiment,inordertocreatethebestpossibleworkplaceexperience.
