The power of smart buildings on human performance: the ROI of working in a better building

We spend most of our time indoors: in Europe we are inside our homes, offices and public buildings about 90% of the time. The quality of the indoor environment can, therefore, have significant impacts on our health and wellbeing. We try to make our homes as comfortable and functional as possible, but what about our workspaces? Put simply, employers should consider the quality and comfort of their offices and the impacts these physical spaces have on employees and other building users.

It stands to reason that offices with good air quality, lighting and climate control can lead to more comfortable and calming work spaces, allowing employees to be happier and more productive. In this article we will discuss some of the research that has been done in this area and the potential return on investment (ROI) of working in better buildings.

What is a “Better Building”?

What do you think of when you hear the term “better building”? For most cities and governments, this term has come to encompass buildings with improved energy efficiency. While this is certainly important and has obvious environmental and economic benefits, the BEST buildings will go above-and-beyond energy improvements to also optimize indoor environmental quality, flexibility, resilience, health and safety and connectivity (among other factors). This means that the best buildings are not only sustainable, but also smart. These improvements can have economic benefits as well!

Impact of the Building Environment on Employee Satisfaction & Well-Being

While we are seeing a trend towards sustainability features in the built environment, the belief that investing up-front in well-designed, smart, and energy efficient offices is expensive with a low ROI persists in the industry. The economic contribution of the employees working in the building is not typically considered in these calculations, but can have a significant impact on investment returns.

The quality of the indoor environment can have a profound effect on how we feel: air quality, ventilation, temperature, lighting, noise...think about how each of these factors can affect your ability to work, whether you need to concentrate in silence or brainstorm with colleagues in a stimulating environment. It is therefore no surprise that indoor environmental quality and occupant satisfaction are so closely connected. In research conducted on the effect of the office environment on employee health it has been found that occupants of high performing buildings had 30% fewer symptoms of “sick building syndrome” and scored 26% higher on cognitive tests than those in conventional buildings (Macnaughton et al. 2017). When it comes to employee satisfaction, occupants self-report as more satisfied in buildings/workstations with lower background noise, higher light levels and better air quality, specifically lower levels of particulate matter (Newsham et al. 2013).

Attaching a monetary value to these types of health and wellness benefits of better buildings is much more difficult than measuring direct savings associated with energy efficiency, for example. However, given that 90% of typical business operating costs is staff, even the slightest improvement in employee health and productivity would represent a significant financial gain for employers (World Green Building Council, 2014).