| O.K., so I need to move. But I'm still apprehensive about disrupting my office and about the higher cost of new space. How can I justify spending more money on office space?
According to an article in NATIONAL PRODUCTIVITY REVIEW, Summer 1985, office workers now comprise 70% of the total operating cost of a typical office. So first of all, it's important to recognize the enormous investment your company has in its personnel. To view that investment another way: the yearly cost of office personnel, including salaries and benefits falls in the range of $200-$300 per square foot for an average office.
Compared to that figure, the one-time cost per square foot for setting up and furnishing new space is quite small. (ADMINISTRATIVE MANAGEMENT, November 1985). The obvious conclusion is that one-time expenditures of a few more dollars per square foot in the building or leasing stage is a wise investment.
Companies simply can't afford the high cost of low productivity.
Consider this scenario: Your office workers are operating at 5 % below their optimum productivity due to inadequate space. That's a loss of $10-15 per square foot per year. Multiply that by the number of square feet you presently occupy, and if your space is inadequate, you can't afford not to move.
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