ATLANTA—As skilled workers weigh employer reputations and workplace experiences when making job choices, companies are working harder to cultivate their brand as a recruiting and talent-retention tool. Occupancy cost is the second-largest expense after payroll at most firms. Savvy employers—not just tech and creative firms—can draw double duty from their real estate by molding the workplace into an extension of their culture.
Transwestern vice presidents Sara Maffey Duncan and Randy Beavers focus on the human side of real estate when advising clients on site selection and placement. Beyond the typical “space and place” requirements of their clients seeking an office location, the duo helps these companies visualize, assess, and secure workplaces that motivate and encourage productivity and happiness.
According to Duncan and Beavers, the key is to look beyond the office layout. They help companies identify the elements of their corporate culture to develop a unique setting that speaks to employees and potential hires to ultimately: (1) create social cohesion; (2) support efficient output; and (3) promote stickiness for the desired labor set.
“As unemployment remains low in Atlanta and a millennial workforce with different expectations and work styles from preceding generations grows, companies must develop corporate brands to aid in the recruitment and retention of modern skilled workers,” Duncan tells GlobeSt.com. “A company's real estate from macro-level location decisions to workplace design is now a statement of its culture and major tool in attracting the specific talent they seek.”
Payroll is generally a company's largest financial expense, followed by real estate, Duncan says. The opportunity cost of unsuccessfully recruiting and retaining a productive and happy skilled workforce can be equally as expensive. Therefore, she concludes, Chief Human Resource Officers are more often included in real estate strategy discussions and firms are placing more value on the lifestyle their neighborhood and workplace can support.
“We are seeing the need to address workplace branding at the very beginning of real estate advisory when a company can envision its ideal workplace environment without the constraints of a particular city, submarket, or floorplate,” Beavers says. “This involves looking beyond the physical office layout, identifying the cultural elements and characteristics that create social cohesion, support productivity, and promote stickiness for the desired employees.
Beaver's conclusion: Assisting tenants in putting this level of thought into their workplace design and strategy is becoming non-negotiable. By deeply understanding clients' cultural and operational needs, real estate advisors can provide valuable business solutions through real estate.
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