How an office makeover can boost productivity: ‘Your physical space conveys credibility’

The design of an office space can significantly influence employee productivity, according to research by property management company Mitie. In the UK, employees waste an estimated 68 minutes each week dealing with unproductive tasks related to their workspace, costing employers around £485 million per week. These tasks include finding a room with reliable Wi-Fi, waiting on poorly maintained building services, and searching for spaces for collaboration.

Bukky Oyedeji, an assistant professor of strategy and entrepreneurship at London Business School, stresses the importance of physical office spaces for facilitating interdependent teams, enabling onboarding, knowledge sharing, and decision-making. She notes that organisations should create spaces that allow for effective communication and collaboration.

For startups, the office space is more than just a location for work; it conveys credibility and competence to external stakeholders such as clients and investors. A well-designed workspace directly impacts productivity, shapes idea generation, collaboration, and employee wellbeing. Oyedeji emphasizes that happy employees are more likely to perform their best work.

However, the conversation around hybrid work often focuses on where work should take place rather than how it should be executed. Managers should consider the specific environments that suit various tasks, as collaborative interactions require an office setting, while remote work is ideal for individual tasks.

Developing 'unwritten skills' such as interpersonal relationships and office etiquette is crucial for employees, as these skills can't be easily taught in a remote setting. Observation plays a significant role in skill development, allowing employees to learn by watching senior colleagues interact with clients. The cost of seeking information decreases as face-to-face interactions increase, enabling managers to informally offer mentorship and guidance when employees are visible to leadership.

While open-plan offices can facilitate easy face-to-face interactions, they also risk creating distractions, with only 11% of office workers unaffected by workplace noise. Space demarcation, using plants, shelving, and furniture placement, can help create distinct areas for different teams while avoiding distractions. Business leaders must observe employee behaviors and compare them to desired outcomes, such as increased innovation, faster problem-solving, and more efficient outcomes. Not all objectives matter equally to every company; some may prioritize efficiency over innovation.