The business case for investments in a healthier workplace

The physical work environment plays a role in a broad spectrum of indicators of employee mental health at work, such as concentration, stress, mood, fatigue, engagement, and others. As a (mentally) healthy workforce is a vital aspect for an organization’s success, it is important to optimize physical working conditions within the corporate real estate (CRE). Investments in employee mental health through improving the physical workspace are however not very common, since little is known on the organizational benefits that result from these investments. This study used a systematic literature review to identify all proven relations between the physical work environment, 10 indicators of employee mental health and typical KPI’s of organizational performance. Next, this information was used to develop a business case tool indicating the potential added organizational value of changes in the physical work environment that could improve mental health. The business case tool allows CRE managers to assess both the current workspace and design alternatives on their impact on employee mental health. Results of the 133 selected empirical studies indicated that respectively light & daylight, office layout & office design, and temperature & thermal comfort affect most mental health indicators concepts, particularly with respect to the concepts stress and productivity. In turn, enhanced mental health+ mainly affects the internal business processes of an organization (absenteeism, communication, job satisfaction, performance, presenteeism and staff turnover) together with employee growth (innovation and flexibility). In the long term, these improvements might lead to higher customer satisfaction, revenue growth and reductions in healthcare and recruitment costs. By providing first insights in the potential added organizational value of a healthier workforce, the business case tool presented in the current research enhances the transition where workspace interventions are no longer perceived as expenses but as an investment in the organization’s success.