1

How to

Unlock Productivity and Engagement

Through Workplace Design and Facilities

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Employee engagement mattersResearch shows that highly engaged employees are 38% more likely to have above average productivity1. Moreover, companies with engaged employees are proven to outperform those without by 202%2.

However, Gallup’s recent global research3 finds only 13% of employees worldwide are engaged at work. Only 24% of employees in Australia say they feel engaged.

Employee engagement goes beyond happy workers; Kevin Kruse, speaker and author of Employee Engagement For Everyone, defines employee engagement as the emotional commitment the employee has to the organisation and its goals. Engaged employees are the people who go the extra mile, work with passion, and feel a profound connection to their company. They will drive innovation and move your business forward.

Employers are recognising that (beyond salary) both psychological and social fulfilment are important elements in maintaining employee engagement, and they are implementing strategies to help people feel connected and a part of something bigger4. At the heart of this movement is the need to create workplace facilities that are agile, collaborative and interactive5.

This encompasses everything from office layout, ergonomic furniture and lighting, to what’s in the kitchen. Workplace design can be activated to broadcast organisational goals and values, provide spaces for effective collaboration, and show workers that their employer appreciates them.

ENGAGEMENT OF EMPLOYEES AT WORK 13%

GLOBALLY

24%IN AUSTRALIA

1 Workplace Research Foundation

2 Dale Carnegie Training, http://www.dalecarnegie.com/employee-engagement/engaged-employees-infographic/

3 Gallup, ‘State of the Global Workplace’, 2013

4 https://www.forbes.com/sites/sylviavorhausersmith/2013/08/14/how-the-best-places-to-work-are-nailing-employee-engagement/#6ae034f45cc7

5 Workplace Environment: people, the built environment, technology, and processes. Dr Scott Drake, Faculty of Architecture, building and planning, University of Melbourne

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One of the major advances of modern workplace design has been, the increased interaction between employees as a result of less hierarchical office arrangements, greater use of ergonomic furniture and increased informal spaces such as the kitchen and break out areas. The result from this new-found collaboration can spark ideas that may never have arisen from within a silo environment, thus creating new opportunities for employees to share and use information. It also helps workers feel more connected to their colleagues and company, allowing them to build meaningful and rewarding relationships.

Furthermore, advances in technology, most notably the increased portability of work devices such as laptops and smartphones, have improved worker mobility and unlocked better communication. This has opened the door for organisations to embrace new philosophies and strategies in workplace productivity.

However, improving productivity and engagement doesn’t solely come from workplace layout and ergonomic furniture; an emphasis also needs to be placed on holistic wellness in the workplace. By combining dynamic flexible design with better work-life support, organisations are improving satisfaction and energy levels amongst existing employees while also becoming more attractive to prospective talent.

The greatest advantage of employee satisfaction is the reduction in staff turnover. The higher the churn rate, the higher the costs related to hiring, training and disruption to remaining staff. And in any industry where companies are battling for top talent, the ability to attract prospective staff is highly beneficial. Studies show employees prefer workplace wellbeing to material benefits6. Recent research by Gallup7 also shows that Millennials (born 1982-2000) actively choose to work for organisations that show commitment to wellbeing. Nearly six in ten members of this generation say that work-life balance and wellbeing in a job are “very important” to them – and it’s worth noting here that millennials make up a growing proportion of the workforce.

This smart paper will explore the latest concepts, thinking and practical strategies on how to promote employee productivity and engagement through workplace design and facilities.

HIGHLY ENGAGED EMPLOYEES ARE

38%MORE LIKELY TO HAVE ABOVE AVERAGE PRODUCTIVITY8

ENGAGED EMPLOYEES CAN

BOOST A COMPANY’S BOTTOM LINE BY UP TO

20%9

20%

6 https://www.aat.org.uk/about-aat/press-releases/britains-workers-value-companionship-recognition-over-big-salary

7 http://www.gallup.com/businessjournal/196985/millennials-jobs-promote.aspx

8 Workplace Research Foundation

9 Towers Perrin, ‘European Talent Survey: Reconnecting with Employees: Attracting, Retaining and Engaging,’ 2004.

10 Carnegie Mellon/CBPD Building Investment Decision Support (BIDS), ‘High Performance Buildings,’ 2004 and 2012.

Benefits of Smart Design Addressing employee engagement and productivity through smart design can help organisations:

• Attract and retain talent

• Improve morale

• Increase profit

• Promote collaboration

• Increase innovation

• Reduce costs of absenteeism

GOOD BUILDING DESIGN CAN IMPROVE OVERALL PRODUCTIVITY AND PERFORMANCE BY AS MUCH

AS 12.5%10

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The workplace as an engagement tool and productivity enablerThe quality of the workplace has long been acknowledged as having an impact on employee morale and attitude. Now, more employers are recognising the role of the functional workplace in affecting behaviour too. As a result, they are actively looking at ways to unlock its potential to support or represent various work groups, encourage interaction between staff, provide a sense of involvement, and facilitate those activities necessary for effective contribution to company goals.

Optimise the functional environmentThe way a building ‘works’ and the way its occupants ‘work’ are interconnected11. With the goal to create a user-friendly environment that promotes high interactivity and improved communication, a growing number of organisations are reducing departmental silos and focusing on a more open, flexible workplace.

To achieve an optimised, functional environment, it’s critical to start with a proper assessment and application of the following principles:

Incorporate solutions for worker diversitySupporting and managing multiple generations is critical in the workplace today. It’s especially important to consider the shift towards Millennials, who will represent close to 75% of the global workforce by 203012. These highly collaborative “digital natives” are bringing a more holistic view of themselves into the workplace and have a need to belong and connect. Therefore, thought must be given to connectivity, workplace mobility and other collaborative, flexible solutions that will tick their boxes.

However, balance is needed in order not to compromise the satisfaction of the more established Generation Y (1978-1997), Generation X (born 1966-77), and Baby Boomers (born 1946-65). Research into generational preferences of the workplace13 shows Generation Y rates the importance of having an “engaging workplace” highest, and “quality of meeting rooms” lowest. Conversely, Baby Boomers rate these two features in an almost opposite way, instead ranking “acoustic privacy” and “quality of meeting rooms” as the most important features and “engaging workplace” as the least important. And while Generation X typically values a clear separation or balance between work life and personal life, Millennials are often more comfortable flowing freely between work and personal activities.

11 Workplace Environment: people, the built environment, technology, and processes. Dr Scott Drake, Faculty of Architecture, building and planning, University of Melbourne

12 Deloitte Touche Tohmatsu Limited, UK. 2014, ‘Big demands and high expectations: Deloitte Millennial survey’

13 Knoll, 2010, ‘Generational Preferences: A Glimpse into the Future Office’

By focusing on getting these principals right, workforce participation, engagement and motivation can dramatically improve.

• Skeletal design

• Spatial layout

• Material selection

• Ergonomic furniture (sit-to-stand desks)

• Lighting

• Air quality

• Noise

• Employee mobility through technology (Wi-Fi, power points)

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Stimulate productivity and satisfaction through wellness strategies and employee benefitsEmployees can spend 54% of their waking hours at work14, with many sitting at their desks on average about five hours every day. The negative impact of sedentary jobs and poor workplace design has been well publicised, with research putting the spotlight on employee injuries such as muscle strain and chronic back pain.

But the negative impact doesn’t end with employees’ physical health; the interrelationship between the home and workplace environment is having an effect on employees’ emotional and mental health too. Home and family stresses combined with an unrelenting demand to work harder and longer are leading to employee burnout and growing risks to mental health15.

Introducing a simple wellness strategy that encompasses health-promoting activities can lead to benefits for both the organisation and its employees:

14 Sodexo, Workplace Trends 2014

15 https://www.worksafe.qld.gov.au/injury-prevention-safety/health-and-wellbeing-at-work/health-and-wellbeing/health-and-wellbeing-articles/benefitting-from-a-workplace-wellbeing-program

Regardless of the organisation’s size and the benefits it can offer, it’s important to recognise that the most basic wellness strategy can have the most positive impact.

Employer benefits• Fewer sick days

• Decreased employee turnover

• Improved satisfaction

• Reduced compensation costs

Employee benefits• Improved mental and physical health

• Higher satisfaction levels

• Greater camaraderie with co-workers

• Better work-life balance

• Higher energy levels

• Happier

• More engaged with organisation

ON AVERAGE

EVERY DAY

EMPLOYEES SIT AT THEIR DESKS

5HRS

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Trends in workplace kitchen design

Supercharging productivity and attracting high calibre talent For generations, the workplace kitchen was hidden out of sight and seen as an unloved amenity with a single service function achieved by a refrigerator, kettle and some storage.

Research shows three in four employees view the workplace kitchen as more than a place to get coffee – it represents a place for impromptu meetings, a space to help keep energy levels high and to enjoy a well-earned break16. Employers are catching on too, and the reinvention of kitchen design, functionality, appliances and consumables is rapidly being identified as an essential strategy for any organisation aiming to maintain a competitive advantage through improved collaboration and innovation17.

The following trends in workplace kitchen design demonstrate its growing role in the efforts to supercharge productivity and attract high calibre talent.

16 https://www.staplesadvantage.com/sites/workplace-index/

17 http://www.pressherald.com/2015/01/28/recipe-employee-productivity-can-include-office-kitchen/

BUT WHAT IF THE

KITCHEN WAS ALSO A PLACE WHERE YOU COULD

WORK?

SHARE IDEAS?

MAKE CONNECTIONS?

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Social CapitalThere are significant benefits to be gained by looking beyond the functional aspects of a kitchen and approaching it as a strategic tool to improve social capital. Based on the premise that social networks have value, “social capital” refers to the collective value of all “social networks” (who people know) and the inclinations that arise from these networks to do things for each other (“norms of reciprocity”)18.

The value of this for organisations is in bringing employees together, providing support and making them particularly resilient. In this way, social capital is especially important during times of high stress and change. However, these relationships can only be built with interaction and communication, and that takes time. By creating a kitchen “hub” and nurturing a break-friendly culture, employees have the time needed to build these relationships and realise their potential.

Kitchen as a ‘Hub’How can an organisation create a kitchen hub that will promote wellbeing and productivity and build social capital? It comes down to their ability to think beyond the kitchen as a functional place to prepare and eat food, and reinvent it as a social hub. In the “kitchen hub”, employees benefit from “casual collisions” where they can get to know each other and build the trust that leads to new ideas, better problem solving and more empowered decision-making.

The Swedish concept of fika is an ideal example of the benefits a kitchen hub can bring to an organisation. Technically the Swedish term for a coffee break, a fika is actually more about socialising and taking a brain break than drinking coffee and eating sweet treats. Unlike a coffee break, there is an important social foundation to fika that makes it a valuable addition to workplaces. It is about getting together and informally having a chat with colleagues and new acquaintances. Employees have a chance to talk things through with workmates, and find out what they are up to. These informal chats over a coffee can lead to conversations, which in turn leads to problem solving and outcomes that would take far longer through the formal channels of emails and meetings.

18 https://www.hks.harvard.edu/programs/saguaro/about-social-capital

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Practical strategies to optimise kitchen facilities Create a kitchen hubIn a survey by Staples Inc.19, more than three in four employees said they would unwind and relieve more stress at work with a well-stocked and comfortable break area. In fact, four in ten workers surveyed said they only use the kitchen to store food. As a result, Australian businesses lose an estimated $6 billion a year because of delays caused by employees leaving the building for lunch20.

In addition to becoming a social hub, the kitchen still needs to be an inviting space that provides a healthy, stress-free everyday space to enjoy breaks, socialise and eat lunch. It’s also worth rewarding those employees who choose to bring their own lunches by stocking the kitchen with basic spices and seasonings. After all, these employees are more likely to return to their work on time, as they are not venturing out for lunch21.

Tips to make the kitchen a multi-purpose hub:

• Provide counter space for multiple users during peak periods and for workspace needs.

• Offer plenty of power outlets to allow for appliances or connections to portable devices, such as laptops.

• Install a TV or screens to communicate company news and allow presentations.

• Add a whiteboard to enable casual get-togethers, idea sessions, catch-ups and productive stand-up meetings.

• Provide the right appliances that allow for greater convenience of food preparation to encourage employees to eat well without having to leave the building.

• Encourage social interaction with a range of seating options that create a flexible space for dynamic, collaborative conversation, as well as a meaningful place to recharge. Break out tables with comfortable chairs are a good choice for kitchens as they can be reconfigured depending on the task.

In a survey by Staples Inc.22, almost two-thirds of workers said that adding complimentary snacks and beverages to the kitchen would make them feel more appreciated.

19 Staples Inc. online survey of office workers across the US and Canada, 2014

20 http://www.stuff.co.nz/business/better-business/76136417/Workplace-hygiene-Is-your-office-kitchen-dangerous

21 http://www.pressherald.com/2015/01/28/recipe-employee-productivity-can-include-office-kitchen/

22 Staples Inc. survey, 2014

Offer healthy snacks and beveragesWhat employees eat and drink has an impact on their physical health, concentration, mental wellbeing and performance at work. Offering nutritious foods, such as fresh fruit, muesli bars and trail mix, is a simple and cost-effective way to encourage healthy snacking, while also making employees feel valued.

Start with the basicsProvide a wide range of consumables and condiments and ensure they are well stocked: milk, tea, coffee and sugar are a great place to start, then consider more items such as mineral water, snacks, biscuits and more.

Provide the right utensilsSupply sufficient cutlery, tableware, bottle openers for the number of employees.

Encourage a clean kitchenProvide the appropriate cleaning supplies, such as wipes, cloths and disinfectant. Research shows that Australian office workers take almost two days’ sick leave each year due to unhygienic workplaces23. Kitchens are the worse culprits, with dishwashers, refrigerators, sinks, benchtops and sponges acting as breeding grounds for disease-causing germs and fungi.

Reinforce employee tidinessProvide food storage options such as plastic wrap and sealable bags for leftovers.

Kitchen Hub Essentials

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Create a break-friendly culture There’s no doubting that the Australian work landscape has changed over the past few decades to become more fast-paced, pressured and demanding. This has had a significant impact on employees, with employees saying they feel overworked and stressed24. And while taking a break would seem to be an obvious antidote, research from The Australia Institute and beyondblue found that 3.8 million Australian workers regularly skip lunch breaks, with one in two reasoning they are ‘too busy’25.

However, there are many positive benefits to stepping away from the desk and switching off on a regular basis:

• More than a quarter found work to be less stressful after they took a full lunch break

• 1 in 3 said they could concentrate better after a break

• 1 in 4 believed they were more productive after a break

• 80% of workers in large companies believed taking a break make them more productive

23 Research commissioned by hygiene specialist Initial Hygiene, and conducted by the Centre for Economics and Business Research

24 Staples Employee Index 2016

25 http://www.tai.org.au/content/hard-get-break-1

What happens when employees fail to take a break?

Physical, mental and emotional effects include:

• Mental tiredness

• Muscular fatigue

• Inability to concentrate

• Increased anxiety and stress

• Feeling overwhelmed

• Eyestrain for employees on computers

• Negativity and poor morale

• Increased risk of human error and injury

• Lower productivity

• Higher absenteeism

• Serious health and safety implications

• Higher staff turnover

CONCENTRATE BETTER AFTER A BREAK

1 3 SAID THEY COULD

OUT OF

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Align with health and wellbeing strategies Workplace facilities should be designed to align with health and wellbeing strategies as a more holistic approach, ultimately creating a culture where employees choose to be more active and healthier, and motivate others to do the same.

Practical elements of health and wellbeing strategies:

Provide adjustable, ergonomic furnitureErgonomic office chairs can help workers maximise back support and maintain good posture while sitting, and height-adjustable workstations can be moved from sitting to standing. Incorporate adjustable furnishings into collaborative spaces and kitchens too.

Ensure a supply of the basicsProvide a wide range of consumables and condiments and ensure they are well stocked: milk, tea, coffee and sugar are a great place to start, then consider more items such as mineral water, snacks, biscuits and more.

Offer healthy snack alternativesPromote healthy eating in the workplace and acknowledge employees’ busy lives by offering nutritious cereals, fresh fruit, fresh milk, “grab and go” breakfast bars, trail mix and snacks to fuel workers and optimise cognitive performance. In a survey by Staples Inc.22, almost two-thirds of workers said that adding complimentary snacks and beverages to the kitchen would make them feel more appreciated.

Invest in a range of appliancesProvide microwaves, fridges, kettles and toasting appliances as a minimum, and explore juicing machines to allow workers to create and share their own antioxidant-packed, stress-busting smoothies with fresh fruit and vegetables.

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The value of an onsite coffee solutionResearch show it takes around 20 minutes, on average, for an employee to find coffee outside the workplace when it’s not available inside. Multiply this by the number of workdays in a year and that’s around 80 hours of lost productivity per employee, per year. Then, consider the average salary being $50 per hour per employee and employees going out for coffee is costing businesses around $4,000 per employee, per year.

Now think about how many employees drink coffee and it amounts to potentially hundreds or thousands of hours and dollars the organisation could save by adding an onsite coffee solution to its kitchen hub.

Beyond cost-saving benefits, there are other notable advantages to providing an onsite coffee solution. For one, it shows how much an organisation values its staff. For many employees, coffee tops the list of workplace perks, so investing in good coffee is an inexpensive way to boost morale and loyalty. And the rewards go both ways – Massachusetts Institute of Technology researchers discovered that communal coffee breaks increase productivity and collaboration26.

When it comes to providing an onsite coffee solution, there are two key options to weigh up:

1. Invest in a coffee machine This is the most cost effective way to maintain employee productivity and satisfaction. Organisations can choose from a wide range of coffee machines, from a pod or automated machine to a full-sized café-style coffee machine. Pod and automated coffee machines provide the benefits of being quick and easy to use, while providing a premium, personalised coffee experience.

2. Stock up with good quality instant coffeeInstant coffee has come a long way in the past decade. Today there is a wide choice of good quality instant coffee that will satisfy discerning Australia coffee drinkers. Organisations can create a “coffee station” in the kitchen hub by adding milk, sugar, cups and stirrers.

26 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1586375

EMPLOYEES GOING OUT

FOR COFFEE IS COSTING BUSINESSES

PER

YEAR

PER

EMPLOYEE

AROUND

$4,000

SummaryDisengaged employees offer perhaps the greatest untapped opportunity for businesses in Australia, and globally, to improve their performance and profitability. With only 24% of Australian employees feeling engaged, increasing engagement should be a strategic priority for any organisation aiming towards sustainable long-term growth.

Workplace engagement is a complex issue and simply redesigning a workplace is not going to solve it. However, rethinking workplace facilities is an effective strategy for energising and inspiring workers to do their best work. Recent research shows that high workplace satisfaction is positively correlated with high employee engagement, meaning the physical workplace can be used as a strategic asset to improve engagement and productivity27.

This smart paper has outlined strategic actions on how to promote productivity and engagement in the workplace, from nurturing a break-friendly culture to providing an onsite coffee solution. But key amongst these is the need for organisations to rethink the role of the kitchen.

The business case for a “kitchen hub” is compelling. With a purposeful design, amenities and location, the workplace kitchen has untapped potential to improve collaboration and build social capital. It can also reduce burnout and boost productivity, simply by becoming a place that employees want to spend time in.

However, the kitchen hub is not a solution that works in isolation; it forms part of the wider concept of ABW, which combines kitchen, furniture and technology solutions specially selected to support how employees work, learn and thrive.

Staples Advantage makes it easy for businesses of all sizes to promote workplace wellbeing and productivity. From one online ordering site, you can choose from a wide range of kitchen and facility products as well as business furniture and technology solutions to meet the unique needs of your people and achieve your goals.

For more information on how Staples can support your organisation please visit www.staplesadvantage.com.au/what-we-offer/products-and-solutions/kitchen-supplies or contact our Kitchen Specialists on 13 26 44.

Staples Australia Pty Limited. ABN 94 000 728 398 Phone: 13 26 44 Web: staplesadvantage.com.au

27. Steelcase, “Global Employee Engagement Workplace Comparison Report”, 2016

THE BUSINESS CASE FOR A

“KITCHEN HUB” IS COMPELLING