ROI: Attracting & retaining talent
Green labels and high-performance design elements help attract and retain talent and increase staff productivity and wellness by providing a compelling and safe workplace.
Building design choices can have major effects on health. The World Health Organization constitution from 1946 defined health as “a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.”
Losing a good employee can cost a business between $50,000 to $150,000. With turnover typically averaging 10%–20% per year, even a 5% reduction could justify the cost of green building features.*1
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High-performance design & staff
In light of COVID-19, individuals are more attuned to their safety, health, and happiness in indoor spaces. High-performance design strategies reduce absenteeism and promote well-being, which can help employers recruit and retain employees.
Key productivity and wellness talking points:
- A study found that improving the health and well-being of building occupants was one of the top reasons to build green, and the benefits to health can be used to recruit and retain employees.*1
- By improving the indoor air quality, acoustics, and other green building environmental qualities in a London office building, employee turnover fell by 27% and absenteeism decreased by 58%. Together, these two elements saved the company approximately £200,000 a year.*2
- A post-occupancy survey at the Plantronics office in the Netherlands found that the new high performing office space improved employee perception of the health and productivity of their workplace, including ability to focus, reduction of noise and improved indoor air quality, by 6.6 points compared to the previous space.*2
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Green labels and certifications (e.g., LEED, WELL, Living Building Challenge) can improve a property’s marketability and desirability. According to European researchers, the economic advantages of high-performance buildings include their “longer economic lives, lower marketability risk, and a lower risk of technical and regulatory obsolescence”.*1
Key green labeling attraction and retention talking points:
- Buildings labeled as high-performance or green can not only help companies attract and retain employees but also help owners attract building tenants.*2
- Especially among young professionals, social responsibility is an increasingly important factor in choosing which companies to work for. In one survey, 92% of respondents said that if a company is environmentally friendly, they are more likely to work there.*3
- A survey conducted by Deloitte found that 93% of companies that implemented a green retrofit reported an increase in the ability to attract talent, and 81% reported an increase in the ability to retain talent.*3
References:
- Reichardt, A. Fuerst, F., Rottke, N., Zietz, J. "Sustainable Building Certification and the Rent Premium: A Panel Data Approach." Journal of Real Estate Research. 2012.
- O'Mara, M. & Bates, S. "Why Invest in High-Performance Green Buildings?" 2012.
- Deloitte & Lockwood, C. "The Dollars and Sense of Green Retrofits." 2018.
Key marketing and recruitment talking points:
- A 2021 Deloitte Global survey found that companies say their customer satisfaction has improved, as much as 8% compared to the previous year's survey, as a result of their environmental sustainability efforts, and executives are seeing a greater measurable impact on the environment.*1
- Companies have seen noticeable improvements in employee recruitment and morale, indicating that environmental sustainability efforts are becoming core tenants of organizational culture and brand identity.*1
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How to use these talking points
These talking points are intended for use in your conversations with clients, potential clients, civic leaders, vendors, contractors, and other architects. This helps demonstrate that architects are trusted partners in strengthening society, designing solutions, and transforming communities.
This is one chapter in AIA’s series ROI of High-Performance Design. Access the full resource below.
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Contributed by Peter Piven, FAIA, and Bradford Perkins, FAIA. Excerpted from Architect’s Essentials of Starting a Design Firm
Chapter 7.02 Financial Management Systems
Grasping key financial terms and