Office overheads in the 21st Century - space management

| 0 Comments

 

HotDesking.jpg2014 has ushered in another year of angst for most organisations in South Africa. However, while cost containment remains high on many Exco’s agendas, the costs associated with staff continue to increase relative to the wage bill, says Alan Low of Purchasing Index (PI), in this month’s SmartProcurement.


In the 1970s office overheads as a proportion of salaries were as low as 35%; now associated overheads can be as much as 2 or 2.5 times employment costs, notes Low.


Space management can be summed up as trying to get as many staff into as small a space as possible while maintaining morale, increasing productivity, considering the changing nature of the workplace, facilitating collaboration and communication; and attracting talent.


This is a very complex set of requirements and it is no wonder that it has attracted a lot of comment both here and internationally.


Research has shown that the average space per staff member dropped 33% between 2010 and 2013 and may be as little as 9 square meters by 2018.


Factors driving a change in space management
 

The work-from-home movement, hot-desking and other initiatives aimed at improving work efficiency and reducing facilities costs are starting to gain momentum internationally and domestically, says Low.


“Demands for faster communication and improved productivity are leading to more managers sitting in open-plan offices. Furthermore, an appreciation of the importance of all staff members is resulting in creative ways to make it easier for them to work and to be creative: organisations are trying to encourage spontaneity through their space layouts, recognising factors like peoples’ longer working hours, etc., and showing, through their space management (amongst other things) that they care about their staff and the environment.”


The fact that staff members are using multiple types of technology in their work must be considered by the work space, notes Low.

 

SpaceManagementFramework.jpgIn 2013 PI undertook some interesting market research on space management, using the framework alongside.


Owing to the interest shown by many organisations in different industry sectors, PI is launching an annual benchmark around this vital function covering such issues as:
• comparative space and space usage;
• standardisation on workspace usage, size, layout, etc.;
• charge–back methodologies;
• office churn in each organisation – incl. resources, the churn process, re-stacking, costs and extent;
• remote working and hot-desking;
• future strategies;
• ongoing challenges; and
• other issues pertinent to the organisations participating in the benchmark report.


Over the next few years these issues and measurement of their success will be incorporated into PI benchmark reports.


If you would like to discuss benchmarking space management and other facilities management related spend categories, please contact alan@pibenchmark.co.za.
 

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the