Measuring What Matters – Rethinking KPIs for the Workplace

Workplace strategy has always relied on numbers. Square metres per employee. Desk occupancy rates. Cost per head. These metrics have long been the currency of decision-making in corporate real estate. They are easy to measure, simple to compare, and they speak the language of budgets. Yet they also tell only part of the story. In a world where the workplace is expected to drive culture, collaboration, innovation, and wellbeing, traditional measures are too narrow to guide meaningful decisions. The result is strategies optimised for efficiency rather than effectiveness.

The shift to hybrid work has made this gap even more visible. Occupancy rates may look low, but that does not necessarily mean a workplace is underperforming. Teams may be using the office more intentionally, coming together for collaboration and connection rather than daily routine. Cost per desk may be down, but if employees feel less engaged or less connected to the organisation, the long-term cost to productivity and retention could far outweigh the savings. In short, if we are not measuring what truly matters, we risk making the wrong calls.

Rethinking workplace KPIs starts with asking better questions. Instead of “how many desks are full”, the question should be “how is this space enabling our people to do their best work”. Instead of “what is our cost per square metre”, we should ask “how is our workplace contributing to business outcomes like innovation, customer satisfaction, or talent retention”. The answers require a broader set of measures that link space performance with organisational performance.

A more holistic approach to workplace metrics combines three dimensions: operational, experiential, and strategic. Operational measures track efficiency and utilisation, ensuring resources are used wisely. Experiential measures capture how people feel about and interact with their workplace – from sense of belonging to perceived productivity. Strategic measures link workplace outcomes to business goals, providing a direct line between investment and impact.

One example is the inclusion of collaboration quality as a KPI. This can be measured through surveys, observational studies, or digital analytics. It shifts the focus from counting meeting rooms to understanding whether those rooms are enabling the kind of interactions that drive value. Similarly, employee wellbeing can be tracked not just through absence data but through regular pulse checks on stress levels, workload balance, and the availability of spaces that support different modes of work.

ESG priorities also demand new metrics. Workplace strategy can directly influence environmental impact through energy efficiency, materials selection, and commuting patterns. It can contribute to social goals by fostering inclusion, accessibility, and community engagement. These are no longer “nice to have” measures for annual reports — they are central to how organisations are judged by investors, employees, and customers alike.

Technology is making it easier to collect and analyse these broader measures. Sensors, booking systems, and collaboration tools generate real-time data on how spaces are used. Surveys and feedback apps capture sentiment and experience. AI can combine these inputs to identify patterns, predict needs, and recommend adjustments. But technology alone is not the answer. The real value comes from interpreting the data in context and acting on it quickly.

One of the most significant barriers to better measurement is organisational mindset. Many leaders are comfortable with established KPIs because they are predictable and familiar. Expanding the KPI set means confronting more complex, and sometimes less flattering, realities about how the workplace is performing. It requires courage to look beyond efficiency metrics and measure outcomes that are harder to control, such as trust, engagement, and innovation.

The reward for this shift is a strategy that is genuinely aligned with organisational priorities. When leaders can see how the workplace is helping them attract and retain talent, foster innovation, meet sustainability targets, and deliver customer value, they are more willing to invest in it. It also creates a stronger business case for continuous improvement, as changes can be tracked against outcomes that matter to both people and performance.

Organisations that lead in this space tend to do three things well. First, they co-create KPIs with a cross-section of stakeholders, ensuring that measures are relevant and supported at all levels. Second, they balance leading and lagging indicators – measuring not just what has happened, but what is likely to happen next based on current trends. Third, they embed measurement into the culture, making it a regular, visible part of decision-making rather than an annual exercise.

The way we measure the workplace is more than an operational choice – it is a statement about what we value. If we measure only cost and occupancy, we send a signal that efficiency outweighs everything else. If we measure collaboration, wellbeing, inclusion, and innovation alongside efficiency, we show that we value the workplace as a driver of organisational success. This mindset shift is the foundation for strategies that are not just efficient, but effective, resilient, and inspiring.

As the workplace continues to evolve, so too must the way we assess its value. The organisations that get this right will have a competitive edge, able to adapt their environments quickly to changing needs and opportunities. They will see their workplace not as a fixed cost to be minimised, but as a strategic asset to be optimised. And that begins with measuring what matters.