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Office Space Utilisation:
The Secret to Cost Savings

Office space utilization - cost savings

Office space utilisation is a crucial aspect of office management, which involves analysing and optimising how space is being used to maximise productivity and minimise wasted space and resources. According to JLL’s occupancy planning trend report, 55% of prominent real estate teams aim to utilise office space between 70-89%. However, the current average utilisation rate across various industries is approximately 60%. Regularly monitoring and implementing effective strategies can provide insights into office utilisation. Identifying areas of improvement can lead to cost savings, increased productivity, and an enhanced workplace experience for employees.

Why Office Space Utilisation Is Essential for Businesses?

Office space utilisation refers to the efficient and effective use of space within a facility or workplace. It is a crucial aspect of space management and involves analysing and optimising how space is being used to maximise productivity and minimise wasted space and resources.


In today’s modern workplaces, where space is often at a premium, it’s more important than ever to ensure that every square foot of space is being utilised to its fullest potential. Some companies use space utilisation data to identify areas that are underutilised or overutilized to make informed decisions about how to allocate space and resources more effectively.

 

Some strategies for improving space utilisation include implementing flexible work arrangements, such as desk sharing or remote work, which can reduce the need for dedicated workspaces and office space. Another approach is to implement activity-based workspaces, which are designed to support specific work activities and enable employees to move freely between different types of areas throughout the day.

 

Smart technology can also be used to improve office utilisation, with sensors and occupancy tracking systems providing real-time data on how spaces are being used. This data can be used to optimise the use of space, identify areas that need improvement, and make better decisions about how to allocate resources.

The Why – main reasons

Efficient utilisation can lead to cost savings for the organisation. Unused or underutilised space represents wasted resources that could be better allocated elsewhere. By optimising the use of office space, organisations can reduce their real estate costs and improve their bottom line.

Well-designed office space can positively impact employee productivity. By creating an area that is comfortable, functional, and conducive to collaboration, employees are more likely to be engaged and productive. Additionally, optimising the use of space can reduce distractions and create a more focused work environment, further improving productivity.

More flexibility – as organisations change and grow, their space needs may also evolve. Efficient office space utilisation allows organisations to adapt to these changes more easily. By optimising the use of space, organisations can accommodate new employees, new teams, or changing work patterns without the need for expensive renovations or office move.

Efficient utilisation of office space can also have environmental benefits. By reducing the space needed, organisations can reduce their carbon footprint and contribute to a more sustainable future.

How to Utilise Office Space?

1|  Evaluate your current office space utilisation

Assess the layout, design, and functionality of your office space. Identify areas that are frequently used and those that are underutilised. Consider the needs and preferences of your employees and how much office space is required per person.


2|  Reconfigure your space

Once you have identified underutilised areas, consider how to reconfigure the space to suit your needs better. You may want to rearrange furniture, create new workstations or collaborative spaces, or repurpose areas currently being used for storage.


3|  Implement hot-desking or flexible seating

Hot-desking or flexible seating is a system where employees don’t have an assigned desk but rather use any available desk when they come to the office. This can reduce the amount of space needed per employee and increase collaboration.


4|  Make use of technology

Implementing technology solutions such as desk booking systems or meeting room booking systems can help ensure that space is being used efficiently. These systems can also provide valuable data on space usage, allowing you to make informed decisions about space allocation.


5|  Consider remote work options

Allowing employees to work from home or other remote locations can reduce the number of employees in the office at any given point in time. With more employees working remotely, you may have excess office space that is not being used effectively. By understanding how remote work affects your office space utilisation, you can make informed decisions about downsizing your office space or optimising it for a hybrid work environment.

How to Measure Office Space Utilisation?

Conduct an occupancy survey

Conducting an occupancy survey is the first step in measuring office utilisation. This survey will help you understand how many people use your office space and how often. You can conduct this survey manually or using technology like sensors, cameras, or software tools. Analysing desks, meeting rooms, and other space occupancy will help you understand which areas are underutilised and which are in high demand. You can use this information to optimise your office layout and better allocate your resources.

 

Measure foot traffic

Measuring foot traffic is another effective way to determine space utilisation. You can track foot traffic using sensors installed in different office parts or by analysing data from security cameras. This will help you understand which areas of your office are frequently used and which areas need to be more utilised.

 

Exploit the office space utilisation metrics

There are several key metrics you can use to measure office utilisation, like:

  • Occupancy Rate calculates the percentage of available office space employees use. It is calculated by dividing the number of occupied workspaces by the total number of available workspaces.

     

  • Desk Utilisation – determine how frequently individual workstations are occupied. It is calculated by dividing the total number of hours each workstation is occupied by the number of available hours during a given period.

     

  • Meeting Room Utilisation measures how often meeting rooms are being used and is a key factor in understanding office space utilisation. It is calculated by dividing the total number of hours that meeting rooms are booked by the number of available hours during a given period.

     

  • Footfall Traffic – the number of people entering or exiting a specific area, such as a lobby or entrance. It can help to determine peak hours and identify areas that may need more or less space.

     

  • Facility Costs – calculate the cost per square foot of office space, including rent, utilities, and other related expenses. Comparing this cost to the occupancy rate can help identify potential areas for cost savings.

How to Optimise Office Space Utilisation Using a Desk Booking Solution?

desk booking solution is software that enables employees to reserve a workspace online in advance, tracking the space utilisation and giving insights. Here are some ways to utilise office space using desk booking:


1|  Implement a hot-desking policy

With a desk booking solution, you can implement a hot-desking policy where employees are not assigned to a specific desk but can reserve a desk as and when needed. This ensures that desks are kept and occupied while employees work from home or on vacation.


2|  Introduce flexible work arrangements

By allowing employees to reserve desks in advance, you can enhance office space utilisation and you can introduce flexible work arrangements like staggered work hours or remote work, which can reduce the number of employees in the office at any given point in time. This will help you save on office space and reduce your overhead costs.


3|  Optimise space allocation

Desk booking software can provide data on how often different areas in the office are being used. This can help you optimise the space allocation and ensure you use the available space efficiently. For example, if specific areas are being used more frequently than others, consider reallocating the space or introducing new amenities to make those areas more attractive.


4|  Manage meeting rooms and other shared spaces

With a desk booking solution, you can also manage the office’s meeting rooms and other shared spaces. This ensures that these spaces are not left unused and that they are available when needed. You can also track how often different meeting rooms are being used and optimise their allocation accordingly.

Office space utilisation plays a vital role in office management, as it helps businesses optimise productivity, reduce costs, and create a sustainable workplace. By evaluating and maximising the use of space, implementing technology solutions, and allowing remote work, organisations can reduce real estate costs, enhance employee satisfaction and productivity, and create a more functional workplace. Therefore, by continuously monitoring and improving space utilisation, businesses can create a more efficient and productive workplace that benefits both the employees and the organisation.

FAQ

Office space utilisation refers to how effectively an organisation uses its physical workspace to optimise productivity and reduce wasted resources. Efficient utilisation helps businesses save money on real estate costs, improve employee engagement, and adapt to changing workforce needs, making it crucial for organisations aiming for sustainability and growth.

To measure office space efficiency, track metrics such as occupancy rate, desk utilisation, and meeting room usage. Using technologies like occupancy sensors and space tracking systems provides valuable insights into how well the space is being utilised, helping identify opportunities to improve efficiency.

Strategies for improving office space utilisation include:

  1. Implementing flexible seating or hot-desking policies.
  2. Reconfiguring the layout for activity-based workspaces.
  3. Using space optimisation technology to track space usage and adjust allocations.
  4. Promoting remote work to reduce the in-office space needed.

Remote work can significantly impact office space utilisation by reducing the number of employees in the office. By allowing flexible work arrangements, companies can optimise space usage and even downsize office space, making it more cost-effective and sustainable.

Technology plays a key role in optimising office space by offering solutions like desk booking software, space management systems, and occupancy sensors. These tools provide real-time data, helping organisations allocate space more efficiently and reduce wasted areas.