The largest expense that a business has is its people. The second largest is its real estate expenses. While slashing salaries and working in squalor to save on rent are options to keep both of these budgets in check, there are more favorable methods.
A recent Pittsburgh Business Times Article by Stephanie Sikora mentioned several studies that show a correlation between wellness programs and employee productivity. In a study by the American Journal of Health Promotion, wellness programs lead to a 25% reduction in both absenteeism and health costs. Other studies cited a 16% productivity jump in companies that adopt green practices and a 10% jump in productivity for companies that had better indoor air quality.
Poor ventilation, humidity, lighting and temperature were all listed as factors in the article that caused distraction among workers and thus decreased productivity. Ergonomic workstations, on-site fitness center access, increased ventilation and increased employee access to windows and natural lighting were all listed as positive factors in creating a healthy and productive work environment.
So next time you renew your lease or relocate to a new facility, remember to consider how your second largest operating expense can impact your largest.