CREJ - Office Properties Quarterly - March 2016
The average workday for U.S. full-time employees is now 8.7 hours, with nearly 75 percent of that time spent at their place of employment. That means that work and work-related activities take up the same approximate time as a person sleeps, eats and drinks each day. Therefore, for a majority of workers, their workplace has a real impact on the choices they make to maintain a particular lifestyle. Because corporate real estate professionals often are responsible for designing, delivering and maintaining these spaces and the programs and services offered at many organizations, there is an opportunity for CRE professionals to make a positive impact. To be successful, organizations need to think strategically and fully understand the implications of executing these initiatives in comprehensive and cost-effective ways. Wellness programs will be a mandate for many organizations as the competition for talent continues to intensify, according to a research report from CoreNet Global, “How Well Do You Know Wellness?” As it pertains to corporate real estate, wellness is tied to the workplace in the built environment and associated physical amenities through many factors including, but not limited to, air quality, cleaning materials, healthy food options, lighting, physical space design and dedicated physical activity spaces. Other elements involve environmental and organizational culture, such as preventative health monitoring and treatment. Fostering an engaged workforce through encouragement and support – personally and professionally – is an essential part of a holistic approach that creates a productive and fulfilled workforce. Real world examples cited in the report provide evidence that wellness programs positively impact the corporate bottom line. After implementing a wellness program in the mid-1990s, Johnson & Johnson estimated that wellness programs saved the company $250 million on health care costs over a decade, with a return of $2.71 for every dollar spent between 2002 and 2008. Effective wellness programs increase morale, reduce health care costs and increase productivity – through decreasing both absenteeism and “presenteeism,” defined as a situation when employees show up for work but underperform once they are there due to illness or stress. Additional evidence is building that wellness and the physical workspace – combined with the services and programs offered – are increasingly connected. One organization exploring the relationship between workspaces and people is Delos, which is bridging this gap through its WELL Building Standard. The standard focuses on human health and wellness for structures and sets performance requirements in seven categories that are relevant to occupant health in the built environment: air, water, nourishment, light, fitness, comfort and mind. The first such commercial structure to be certified as a WELL building is CBRE’s corporate headquarters in Los Angeles. The building has more than 120 “well” features ranging from lighting designed to reflect natural circadian rhythms, hydration stations, live plants, exercise opportunities, sit/ stand workstations and desks built on treadmills. But even the most well-designed, healthiest workplace can still be a toxic place to work if it is managed poorly. Ineffective programs can simply raise costs without a noted improvement in the health or well-being of employees. Organizations such as the Society for Human Resource Management Foundation are leading the way by promoting employee well-being and strategies to improve the health of employees through practical tools, techniques and resources. A differentiator in this approach is recognizing wellness programs as a strategic objective for the business, not simply an added benefit to employees. In real estate terms, many associated wellness with the “green movement” of over a decade ago, asking whether wellness a long-term trend that will become an accepted and expected element of the corporate real estate landscape. We believe it’s real. Wellness has moved beyond a concept and fad and into the consciousness of our everyday vocabulary. A CoreNet Global survey of its membership in 2015 found that 80 percent of respondents believe corporate wellness initiatives represent a “significant trend,” while only 20 percent indicated they were a “passing fad.” Further, the survey found that 62 percent of the participants reported that their companies had instituted wellness initiatives in the last six months. Another CoreNet Global/ Johnson Controls study in 2014 found that an overwhelming 97 percent believe a strategy on health, wellness and well-being brings additional value for the business. This study found that increased productivity, employee satisfaction and engagement are the main business values for wellness. In the business universe, corporate real estate is uniquely positioned due to its role in providing facilities and designing and delivering the workspaces that nurture and promote health and well-being. Understanding the role and responsibility that employers have for their employees’ overall wellness is the first step in creating a synergetic relationship that builds trust and loyalty. That is why now is the time for CRE professionals to pick up this torch and light the way for their organizations.