Winning the war for talent starts with the workspace

There’s been a lot of press coverage recently about skills shortages – most notably in the hospitality, care and logistics sectors. But employers across all industries know that attracting skilled people – and retaining them – is an economy-wide issue. And the war for talent begins with the workspace, especially as we move into the new world of “hybrid working”.

Most companies regard workspace purely as an overhead, a deadweight on the bottom line. And yes, it can be. But addressed imaginatively, I would call it an investment: a powerful recruiting/retention tool that will save you money in the longer term.

Why? Well let’s look at the alternatives…

For every employee taking up – say 100sq ft – you might typically be paying from ￡1,500 to ￡4,000 a year in rent, depending upon your location, plus of course heating, lighting and maintenance costs. But how does that compare with the cost of recruiting a new employee onto the payroll? Of course, the figure will vary depending upon the paygrade and whether or not you try and do it yourself or go down the recruitment agency route, but the average figure often touted is around ￡3,000.

Then, of course you have to on-board that new member of staff. Almost certainly they’ll need training, as well as mentoring until they get up to speed. Again, different circumstances apply, but another “rule of thumb” stat for how long it takes for someone to be fully productive is around a year… how much is THAT setting your business back?

It's payback time

Moreover, if it takes that long for them to be really earning their corn, you’d hope they were going to hang around long enough for you to start getting payback. However, a survey published in HR Review several years ago found that Millennials (people born between 1981 and 1996) entering the workforce since 2010 were staying on average just 1.1 years, compared with up to 5.7 years for those starting work in the 1960s. The “Gen Z” that has followed has all the hallmarks of being even more fleet footed.

So, your occupational costs can pale in comparison to constantly having to recruit and train up new staff... and my argument is that, if you invested just a little more money into your workplace you might not only attract talented people but retain them for longer.

Of course, if you’re an employer who doesn't recognise this as a problem, then you must be doing an awful lot of things right… but if you regularly get exasperated because of staff turnover, then the next few paragraphs might just prove helpful.

Retention, retention, retention…

Staff retention is an issue close to my heart, having been involved in the hospitality and care sectors over the last few decades… industries where getting the right people and hanging onto them is business-critical, but complicated by widely-held perceptions that these are low-skill, low pay sectors. It shouldn't need saying, but I learned long ago that looking after your staff – providing competitive pay, training and promotion opportunities and decent working conditions – can give you a hell of an advantage by earning you employee loyalty… something which is hard to put a value on.

The “decent working conditions” element is something else I’ve focused on in my other role as a business space developer. Over the last decade and more we’ve seen up-and-coming companies in the creative and tech sectors seek out working space that is not only quirky and appealing to creatives, but also conducive to productivity and wellbeing. Employers in other sectors are now following suit, recognising that bog-standard offices with no view, little natural light and a fading pot plant in the corner have little appeal for Millennials and Gen Zs.

Tuning in to hybrid working

Today’s workspaces also need to be geared towards the hybrid working practices that employees of all generations are starting to expect: if they are going to work from home for part of the week, they’ll need dedicated space for collaborating with their colleagues when they are in the office, and places where they can break away from their desk to work or just to think.

So the ideal workspace in today’s business environment is not serried ranks of desks, but a mix of work hubs, “chill spaces” and collaborative areas – ideally with some green space to look out on or (even better) walk out into from time-to-time to maintain wellbeing. Biophilia – our innate need to connect with green spaces – is now shaping workspaces all over the world.

And if you think this is going to mean spending more on your occupational space, think again: hybrid working means you don’t need so many desks, and if are going to reduce your overall office footprint, maybe you can afford to invest in better quality space…

Now add all of this together. If a prospective or existing employee has a choice of jobs with equal pay and future prospects, and where one means working in an old-style office, the other in a well-designed workspace which is enjoyable to be in, sparks their imagination and is conducive to their wellbeing – which are they going to plump for?