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The hidden cost in the office – How a cheap workspace can become expensive in the long run

Many companies know exactly what new furniture costs. Far fewer consider the cost of a workspace that causes disruptions, reduces productivity and ultimately becomes expensive for the business.  
"Healthy, satisfied employees lead to better results" says Elisabet Nilsson, Product Manager at AJ Products.
The hidden cost in the office – How a cheap workspace can become expensive in the long run

A chair that is uncomfortable to sit in, a desk that can't be adjusted, or a work environment with too much noise, too many distractions and inefficient workflows might seem like minor issues. But when these frictions recurs every day, they can affect concentration, efficiency, well-being and, ultimately, business performance.

"If an employee loses just a few per cent of their efficiency each day, the cumulative cost can quickly outweight the investment in a better working environment" says Elisabet Nilsson, Product Manager at AJ Products.

A cheap solution can become expensive  

When reviewing their workplace, many companies focus on the purchase price. It is an obvious cost that's easy to see and compare. What is significantly harder to measure is what poor working habits, unnecessary movements, disruptions, and improper physical strain cost in terms of lower performance.  

The consequence go beyond momentary frustration. Frequent interruptions, poor posture/strain, high noise levels and a lack of space for focused work can all affect concentration, job satisfaction and performance. If these problems escalate to sickness absence, additional costs arise from absenteeism, staff cover, training and lost output.  

a meeting room that offers comfort and durability by AJ Products

"Many people probably just accept that 'this is how things are.' They might not always consider that daily frustrations also have long-term consequences. But time spent looking for the right material or equipment, or meetings that don't go as planned, are also things that come at a cost" says Elisabet Nilsson.

Research from Linköping University suggests that just over half of the productivity loss associated with sickness abscence occurs while the person is still at work - before or after the sick leave itself - rather than during their absence. This highlights that the largest cost often lies in reduced daily performance; that is, when people work while experiencing pain, fatigue or poor concentration and therefore cannot perform at their usual level.  

"Ergonomics is an important part of the solution, but you have to look beyond the purchase price", she says. 

Why buying cheap isn't always enough

Many companies focus on direct costs because of the way budgets are structured. The cost of equipment is easy to see, record, and compare. The cost of inefficient workflows and lost productivity is much harder to spot.  
office employees having a conversation in a relaxed office setting

"You measure the cost of equipment, but many companies don't measure the path leading up to productivity loss or what it costs to train new staff" she says.

This makes a cheap solution easily appear economically wise, even though it may become more expensive for the business over time. A more relevant perspective, she argues, is to flip the question: what does it cost to keep things the way they are now?

How the right work environment can improve business performance

 The goal should be to make it easier for people to concentrate, reduce unnecessary interruptions and create better conditions for both collaboration and recovery. This, in turn, can help reduce the small, everyday losses in productivity that add up.

"Many companies underestimate how significant the daily work environment is when it comes to attracting people to join them or retaining them and maintaining performance over time" says Elisabet Nilsson. 

However, creating a better workplace requires more than just buying new furniture. Acoustics, lighting, workflows and access to the right equipment also affect how efficiently people can work. 

"Start by looking at how the workplace actually functions and identifying what causes disruptions or makes everyday tasks more difficult. Talk to employees and try some simple changes first. Better ergonomics, fewer distractions and more variety throughout the working day can make a big difference" she says. 

an employee working while pedaling a desk bike and talking to a colleague with a smile in his face