HumanSpace ROI: Measuring Human Capital in the Workplace
Have you ever considered installing a pool in your backyard? Or what about finishing your basement to become that long desired man cave? What stopped you? Let me guess….. is the cocktail in hand while lounging on a raft worth the financial investment? Will you recoup costs for the sport-fested, beer indulgent male sanctuary? If only it were easy to put a price tag on personal prosperity we’d be able to put our mind at ease while making these difficult decisions.
"Business leaders struggle with the same decision when it comes to their office design."
Business leaders struggle with the same decision when it comes to their office design – how will the investment in workspace features impact human capital benefits? Fortunately, there is a way to measure just that. HumanSpace is a unique application that connects a company’s investment in workplace design with outcomes in the effectiveness of knowledge workers expressed in financial terms. HumanSpace offers directional advice on the best balance of workspace costs with employee and organizational performance gains. It models the impact of workspace and technology features on three performance outcomes:
- Business Process Efficiency (time)
- Work Accuracy (rework time)
- Employee Retention (replacement cost)
So how does it work?
Consider this case study. A 4,000 employee company wants to redesign their 12 story workspace environment to better support their workplace culture and improve employee engagement. They sampled a population of 370 employees with HumanSpace to generate data for a pilot project. Initially, employees participated in a Workspace Well-Being Survey for baseline assessment of satisfaction. Once the pilot space was completed, employees provided input on the design of their new office space including population data, design features, and associated up-fit costs. ROI models were then developed. Three months after the move to the new space, employees again took the Workspace Well-Being Survey. Here’s what the HumanSpace application revealed:
- 18% improvement in ratings of workspace effectiveness
- $1.2 million annual improvement
- 6.64% increase on investment in compensation in workforce effectiveness
- Guidance on workplace strategy for the remaining floors
- Improved management’s confidence in the project
- Identified “top 3” workspace features for best performance
18% improvement in ratings of workspace effectiveness
$1.2 million annual improvement
Now that’s a true price tag. Understanding the potential ROI and the ability to assess employee satisfaction before embarking on a costly space design is a game changer. In a matter of several months, business leaders are equipped with useful insight based on data driven metrics to make financially sound decisions about the future of their company’s work environment.
In this cut throat, competitive marketplace, an organization’s bottom line depends on employee retention, top talent acquisition and operational efficiency. A company’s workspace design is a major influencer that can inhibit or support these business drivers. To achieve rapid insight on the best ways to improve workforce experience through strategy and design, HumanSpace analytics will deliver solutions that uniquely connect investment in office features with workplace effectiveness.
If you are interested in learning more about how to align your workspace strategy with human capital outcomes, check out the page below.
We'll also be hosting a discussion with Dr.Mike O'Neill, Humanspace Inventor, in Raleigh on April 12th.
Details by clicking the link below.