New study highlights how high performing buildings save millions
It’s often said that the case for known productivity gains in relation to high performing buildings remains unsettled. However, a new study from CitySwitch Green Office suggests otherwise.
A high performing building is defined as having (as a minimum) a 5 star Green Star rating, a 4.5 star NABERS Energy rating and possessing good indoor environment, efficient lighting and being within good proximity to amenities. So, how do these features correlate to both the human factor and bottom line?
CitySwitch reviewed numerous local and international market surveys, case studies and academic research publications exploring the total cost of occupancy savings derived from leasing office space in high performing buildings and found that on average, the available human resources savings in fact dwarf the energy efficiency saving opportunities.
CitySwitch took an average of the savings indicated by the studies — across the measures of energy savings, reduced absenteeism, employee retention and productivity increases — and found that a hypothetical professional services company with a 5000 square metre tenancy in a high performing building could save almost $5 million a year.
Esther Bailey, CitySwitch national program manager, states: “The savings seem high, but with recruitment and training costs, replacing one staff member can cost around 150 percent of their salary, so if people are the core of your business, it costs a lot to replace them.
“The studies showed up to 50 percent greater employee retention and 11 percent increased productivity from occupying a great building, all of which has a massive impact on the bottom line, but companies don’t always join the dots. The IPD surveys have established the business case for investors and owners, but it’s great to be able to demonstrate the benefits to tenants too.”
For more information on this study visit cityswitch.net.au/choose, and a range of free energy saving tools and case studies can be found in the CitySwitch resource hub: cityswitch.net.au/resources.