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Why the Next Workplace Challenge Is Measuring What Matters

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For years, workplace discussions have centered on where people work. Hybrid schedules, return-to-office policies and shifting expectations for flexibility have reshaped how organizations use office space. As companies reconsider location, size and design, a more important question is emerging: Does the workplace deliver the business outcomes they need?

The question carries significant financial and strategic implications. After talent, the workplace represents one of a company's largest investments. According to a Savills analysis of 50 publicly listed multinational companies, workplace costs average 8.4% of revenue and 12.5% of operating costs. Yet the workplace is more than a cost center. It can drive value across key business priorities, including culture, collaboration, innovation, employee development, client experience and organizational connection. The challenge is demonstrating that value in measurable terms.

New research from Savills and CoreNet Global, based on a survey of more than 240 corporate real estate and workplace professionals worldwide, reveals a significant disconnect between how much organizations value the workplace and their ability to measure its impact.

Nearly two-thirds of respondents said their executive leadership teams view the workplace primarily as a driver of culture and collaboration or as a source of competitive advantage. Only 13% said leadership views it primarily as a cost to manage. Yet only 36% expressed confidence in their ability to measure whether the workplace is achieving those objectives.

 

The gap is particularly evident in the areas organizations value most. Nearly all respondents recognized the workplace's role in supporting culture and collaboration, but only 38% said that contribution is highly measurable. Similarly, 99% identified innovation and idea generation as sources of workplace value, yet only one-third considered that impact clearly quantifiable.

Moving Beyond Traditional Workplace Metrics

Today, many corporate real estate teams rely on established measurement tools. Employee engagement surveys are used by 73% of teams, and 65% use workplace utilization or occupancy data. Both provide important insights into how employees experience the workplace and how space is being used, but they tell only part of the story.

Only half of respondents use financial or business performance measures, while 33% track employee retention and 22% examine connections to productivity or performance. Only 13% directly assess collaboration or innovation, despite the importance organizations place on these outcomes.

To develop a more complete picture, corporate real estate leaders need to draw on data from across the organization. Utilization metrics can reveal patterns in occupancy and demand, while employee sentiment can indicate whether the workplace supports how people work. Retention rates, mentoring participation, project delivery times, client retention, error rates, billable hours and revenue trends can provide additional context.

No single metric can capture the full value of the workplace. Together, these measures can help organizations better understand how their workplace strategy supports business priorities and where adjustments may be needed.

Measuring What Matters in an Evolving Workplace

As hybrid work evolves, the need for more meaningful measurement will only grow. Artificial intelligence adds another dimension, changing how work gets done and placing greater emphasis on the human interactions that technology cannot easily replicate.

Creativity, judgment, relationship-building and knowledge exchange will remain critical to organizational performance. Workplaces that support these activities can help businesses adapt and compete. But understanding their impact requires looking beyond desk utilization and attendance data to assess whether the workplace is delivering the outcomes it was designed to support.

For corporate real estate leaders, this presents an opportunity to elevate the workplace conversation from cost management to value creation. By connecting relevant data across the enterprise, they can give leadership a clearer view of which environments support collaboration, which experiences drive engagement and where workplace investment can deliver the greatest impact.

The next phase of workplace strategy will be shaped by this shift. Organizations increasingly recognize the office as a strategic business asset. The priority now is to develop measurement frameworks that demonstrate its value and continually improve performance.

By combining workplace and broader business data, organizations can better understand how people work, how they experience their environments, and how those experiences contribute to business results. For corporate real estate leaders, that insight can turn workplace measurement into a more powerful tool for strategic decision-making.

 

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