The rules of employee retention have changed.
While competitive salaries remain important, a seismic shift has occurred in what truly motivates today’s workforce.
For the first time in 22 years, work-life balance has eclipsed salary as the top priority for global talent, according to Randstad’s Workmonitor. This isn’t just about flexible hours; employees are demanding a holistic work experience, craving community, purpose, and a workspace that reflects their values.
This shift presents both a challenge and an opportunity for businesses: adapt to this new workplace baseline, or risk losing top talent.
“With the sharp rise in depression and anxiety, workplaces have a powerful opportunity to foster community and positively transform people’s lives.”
– Gemma Daskalou (Senior Associate at Concept)
The ROI of a Strong Workspace:
Investing in the built environment isn’t just an expense; it’s an investment in your people.
The benefits can be significant:
- Reduced Turnover Costs: Replacing employees is expensive, both in terms of direct costs (e.g., recruitment, training) and indirect costs (e.g., lost productivity, decreased morale). Investing in a workspace that encourages retention can save significant money in the long run.
- Increased Productivity: When employees are comfortable and engaged in their work environment, they’re more productive. This translates to better business outcomes and a stronger bottom line.
- Improved Employee Morale: A positive work environment can boost employee morale and create a sense of pride in the company. This can lead to increased engagement, better teamwork, and a more positive company culture.
- Enhanced Employer Branding: A well-designed workspace can be a powerful tool for attracting top talent. It shows potential employees that the company values its people and is committed to creating a positive work experience.
“Think of your office as an employee—when designed with intention, it works for you, driving productivity, fostering collaboration, and helping you achieve your business goals, attracting and retaining the right staff.”
– Gemma Daskalou (Senior Associate at Concept)
What Makes a Workspace Retention-Worthy?
Creating a built environment that attracts and retains employees goes beyond simply having nice furniture (although our designers do agree this does help). It’s about considering a strategic and considered approach and addressing the needs of your workforce.
Key elements include:
- Business Objectives: Understand who you want to retain and attract—whether it’s young, highly talented, energetic staff or more introverted, focused individuals. By deeply understanding your people, you can design a space that supports them now and into the future, allowing the environment to do the work for you.
- Comfort and Well-being: This is paramount. Creating a space people feel safe in and are also different to their homes, amenities they may not have. Starting with the basics: ergonomic furniture, good air quality, comfortable temperatures, and access to natural light. These factors directly impact employee health and comfort, reducing stress and improving overall well-being. No one wants to spend their days in a stuffy, poorly lit office.
A bright and inviting workspace designed and built for MAB in Richmond.
- Functionality and Efficiency: The workspace should be designed to support the work that needs to be done. This includes providing appropriate workspaces for different tasks (e.g., quiet areas for focused work, collaborative spaces for team meetings), easy access to technology, and efficient layouts that minimise wasted time and effort. A Concept, we have our 4 C philosophy to divvy up workspaces into Concentration, Contemplation, Celebration and Collaboration areas. Watch the full video here for more details.
- Aesthetics and Design: A visually appealing workspace can boost morale and creativity. Consider incorporating elements of biophilic design, such as plants and natural materials, to create a calming and inspiring atmosphere. A well-designed space shows employees that the company cares about their experience. Check out some of our favourite beautifully-designed spaces here.
- Flexibility and Choice: Offering employees a variety of workspaces to choose from can be a big plus. This might include hot desks, private offices, collaborative zones, or even outdoor workspaces. Giving employees control over their environment can increase their sense of autonomy and ownership.
- ‘Third spaces’ (Amenities and Perks): While not strictly part of the “built environment,” the amenities offered within it can significantly impact employee satisfaction. Think about things like on-site gyms, cafes, End-Of-Trips, etc. These perks can make the workplace more enjoyable and contribute to a positive company culture.
End of Trip at 287 Collins St
- Sense of Community: With the sharp rise in depression and anxiety, workplaces have a powerful opportunity to foster community and positively transform people’s lives. The built environment can play a role in fostering a sense of community and connection among employees. Design spaces that encourage interaction and collaboration, such as shared kitchens, lounge areas, Booths or even informal meeting spaces.
Informal lounge areas and meeting spaces at Concord Music Publishing
Making the Investment:
Investing in the built environment doesn’t have to be a massive undertaking. Start by assessing your current workspace and identifying areas for improvement. Talk to your employees about their needs and preferences. Even small changes can make a big difference.
Need some guidance on how to make the most of your workplace investment?
Our 90-minute Elevate strategy session quickly pinpoints your unique needs and goals. We’ll collaborate with your key stakeholders to define business objectives, understand team needs, and clarify cultural goals using a rapid-diagnosis approach.
Contact us today for a FREE consultation.
References:
Work-life balance tops pay: randstad’s workmonitor reveals new workplace baseline. | Randstad
