What is an occupancy rate?
An occupancy rate is the ratio of used space to the total amount of space that is available. You can calculate it by dividing the total number of rooms or space occupied by the total number of rooms or space available. However, this calculation may not always be as simple as it sounds.
Considering office occupancy alone is not enough. Understanding what people do when they come to the office and how they do it is equally important. There are many elements to keep in mind such as operating hours, the number of employees and the types of workplaces. For example, meeting spaces show lower rates of occupancy than workstations; however, these spaces are used for different tasks, which explains the discrepancy.
The largest investments organisations make are usually related to the workforce (employment) and office space. Measuring the impact of a large investment such as changes in office space is of high importance. Yet, it is becoming more difficult to measure occupancy rates because of the increased flexibility and mobility of employees.
Why should you measure office occupancy?
There are several reasons to measure office occupancy; the most common reasons include understanding work patterns, cost reduction and determining space requirements.
Gaining insights into your office occupancy can help answer questions such as:
- Can we cut costs?
- Do we need more (or less) office space or meeting rooms?
- Are employees regularly coming to the office?
- Are there enough workplaces for everyone?
Understanding workspace patterns allows facility managers to realise two things. Firstly, which parts of the office are being used and secondly, which of these occupied spaces could be used more efficiently.
Knowing and understanding occupancy rates allows you to make more educated decisions about real estate and workspaces. This often results in cost savings. More detailed information about office occupancy contributes to a better distribution of ventilation, lighting, heating and air-conditioning. Ultimately, this creates a more comfortable and productive environment for employees.
Additionally, occupancy can differ based on job function or industry. Considering the position of a sales executive, for example, who is most likely working remotely and often visiting clients. Versus the position of an IT employee, usually working from a fixed desk within the office.
These two departments, even within the same company, would have vastly different occupancy rates due to their different working patterns. Therefore, having a better understanding of working patterns within different sectors can allow managers to make better estimations in workplace allocation. This understanding allows both employees and managers to have better planning for daily tasks and meetings.
How do you measure workplace occupancy?
There are two types of measurements: direct measures and indirect measures. Direct measures, such as square meters, area and volume are based on the property itself. Indirect measurements, such as GDP or energy consumption, rely on a formula to calculate them instead of physically measuring the space.
There are two ways to calculate the occupancy rate in the workplace:
1) Occupancy ratio = Occupied seats / (Total number of seats)
2) Occupancy rate = (Occupied seats) / (Total number of seats) x 100%
The occupancy rate is the most commonly used indicator to measure workplace occupancy. It is defined as a ratio of the number of occupied seats to the total number of seats in a room. The occupancy ratio is a measurement of the number of people who occupy a given space. It is an important metric for workspace and facility managers, to determine if more space is needed in the future.
Which method you use depends on several factors such as the type of organisation or the workplace model in place.
To conclude, understanding and measuring office occupancy rates is crucial for optimizing workspace usage in today’s flexible work environment. By accurately tracking how space is utilized, organizations can make informed decisions that lead to cost savings, better resource allocation, and improved employee satisfaction.
Knowing your occupancy rate allows for more efficient use of office space, contributing to a more comfortable and productive workplace. In a world where hybrid work is becoming the norm, effectively managing office occupancy is more important than ever.
