How workplace design directly impacts business performance

Is your workplace just a collection of desks and meeting rooms? Think again. In today's hybrid working world, thoughtful workplace design has become a critical factor in driving business success. 

In our most recent episode of the On the Up podcast, Dan Marshall from Moneypenny, spoke with workplace psychologist Becky Turner from award-winning interior design firm Claremont, who explained how well-designed spaces can significantly impact everything from talent acquisition to productivity and innovation. 

Does your workplace help or hinder talent acquisition? 

One of the most immediate ways workplace design affects your business performance is through its influence on recruitment and employee retention. 

"Very directly, it [workplace design] can be a great tool for talent acquisition and retention," explains Turner. 

In a competitive job market, your workplace environment can be a deciding factor for potential employees. When candidates visit your office, they make decisions based on both reason and emotion – and often, "emotion overrides" logical factors like proximity to home or salary. 

This is backed by research from global architecture firm Gensler, whose 2023 Workplace Survey found that: 

• 79% of employees would choose an exceptional workplace over an average workplace with exceptional amenities nearby 

• Employees who are satisfied with their workplace are 33% more likely to be engaged with their work 

Are your spaces purpose-built for productivity? 

Beyond attracting talent, thoughtfully designed workplaces directly impact how effectively your team can perform their jobs. Turner highlights the limitations of traditional office designs: 

"Historically, you go to the office and you're in this new world of work and you've got a desk, you've got a meeting room, and senior people might have an office, and you go to carry everything out from there." 

This one-size-fits-all approach simply doesn't align with how people actually work. Instead, Turner advocates for spaces that support different types of activities: 

"Now we're actively creating these tools in these spaces that support productivity and cater for different activities... you've got your focus spaces where you can get your head down and really concentrate." 

Employees working in activity-based workspaces consistently report higher satisfaction and performance compared to those in traditional office environments. 

The science behind environment and performance 

The impact of workplace design on performance goes beyond the obvious. Even seemingly minor details like temperature, humidity, and lighting can significantly affect productivity. 

"By making people happier and healthier... even just creating healthy buildings that have good airflow, air quality, humidity levels, temperature, lighting, all of that indirectly is going to make people more productive," Turner notes. 

Cornell University found that offices too cold for comfort can increase errors by 44% and reduce typing output by 74%. 

Turner's team at Claremont takes these factors seriously, conducting their own research on environmental factors to understand the impact on how people feel and how it affects their productivity. 

Can your workplace spark creativity? 

Beyond basic productivity, workplace design can either enhance or hinder creative thinking and innovation. Turner references attention restoration theory: 

"This is the thought that actually to be really creative and come up with a creative solution, detaching from the problem is a really good way to do it." 

By designing spaces that allow for this mental detachment, you can foster more innovative thinking. "Create environments that cater to that," Turner suggests. "They're not corporate branded. They might look and feel completely different. They're not formal. They might not even have a desk." 

Organisations with dedicated spaces for creative collaboration consistently report higher innovation output compared to those without such spaces. 

Why inclusivity matters for performance 

An often overlooked aspect of workplace design is inclusivity, which has direct implications for your business performance. Turner emphasises that "there's no neutral opposition to inclusion. If you're not including people, they're excluded." 

This isn't just about ethics—it directly affects your company's ability to attract and retain diverse talent. 

"Why are you excluding some real talented people by not making it accessible for them in whatever way, shape or form that might be?" Turner asks. 

Inclusive workplace design that accommodates diverse needs is essential for capitalising on these performance advantages. 

What does the future of workplace design hold? 

As we look to the future, workplace design will continue to evolve as a strategic business tool. Turner predicts that with increasing digitalisation and AI, "creating spaces for connection" will become even more critical. 

The most successful organisations will view their workplaces not as mere expenses but as performance-enhancing investments. By creating environments that support various work activities, promote wellbeing, foster creativity, and embrace inclusivity, you can leverage workplace design as a powerful driver of overall performance. 

As Turner summarises, "It all works together." When you recognise the multifaceted relationship between workplace design and performance—addressing everything from basic comfort to psychological needs—you position your business for sustained success. 

Listen to the full conversation with Becky Turner on Spotify for more workplace design insights. Or alternatively, explore the complete library of On the Up episodes for more business growth insights.