Facility Management KPI Examples For The Modern Workplace

The way we work has changed dramatically in recent years. Since the pandemic, it’s changed even more. But for many organizations, facilities management key performance indicators (KPIs) don’t always reflect the modern workplace.

As a workplace leader, it’s up to you to ensure you’re properly monitoring what’s most meaningful and using the right metrics to measure your success.

The first of this two-part series explains why it’s time to re-evaluate facility management KPIs and offers five examples to help you get started.

Why facility management KPIs need to change

In previous decades, facilities leaders focused mainly on measuring workplace occupancy rates. To keep real estate costs down, facilities professionals focused on maximizing occupancy and assigned each employee a dedicated workstation. If someone was out-of-office for any reason, their spot remained empty and unused until their return. And, unless they were on vacation, sick, or traveling for work, all employees were expected to be in the office every day. The number of occupied desks became a crucial KPI for measuring the ROI of your real estate.

But in a modern, flexible work environment, this no longer makes sense.

Many companies have been moving away from assigned seats for years in favor of more agile practices — including remote work, activity-based working, and desk hoteling.

These trends make it easier to maintain distance between workspaces during the pandemic, but they’re likely to last long after the threat of COVID-19 has dissipated.

Research shows most employees want the option to split their time between home and the office.

This new approach makes sense from a financial perspective, too.

It makes it easier to consolidate underutilized office space, which can result in significant savings.

Today, facilities management is less focused on occupancy rates and more concerned with how employees use the space available to them. The quality of the space — and how well it supports productivity, innovation, and employee health and wellbeing — is more important than ever.

To measure the effectiveness of your organization’s FM efforts, you need to consider KPIs that reflect these goals and new ways of working.

Keep track of what matters with our facility management KPI scorecard.

5 facility management KPI examples for the modern workplace

Here are a few facility management KPI examples to help you determine the best methods for measuring your success:

1. Building condition

Facility maintenance goes beyond meeting necessary safety regulations. It also means creating a space that’s comfortable and inviting. Burnt-out lightbulbs, broken or damaged equipment, faulty technology, and other seemingly minor facility concerns can quickly become obstacles to employees’ productivity and job satisfaction. Additionally, to help reduce transmission of COVID-19, it’s essential spaces are regularly sanitized — especially shared equipment and common areas.

How to measure this: The best way to determine building condition is to monitor daily facility maintenance, preventive maintenance, and asset management.

For example:

• What percentage of work orders are completed on time?
• What percentage of repairs are reactive maintenance compared to preventive maintenance?
• Are maintenance costs trending upward or downward?
• Are you preparing to replace assets before they reach their end-of-life cycle?
• Are workstations and common areas regularly sanitized, and is there a way to track and request cleanings?

See how our facility management software integrates with sensors for more efficient cleaning.

2. Cost optimization

For most organizations, real estate is the second-largest expense (behind payroll), so it makes sense that it’s under the most scrutiny. As a facilities leader, you’re accustomed to seeking new ways to stretch your dollar farther. But how would you grade your performance when it comes to optimizing costs?

How to measure this: Focus on improving space utilization instead of occupancy rates. You can calculate space utilization using desk hoteling software or sensor data. This shows you which areas of your workspace are most active and which are underutilized.

You might find that some desks aren’t being used at all and that square footage could be better repurposed as a conference room, huddle room, or a set of phone booths.

3. Workplace experience

One of the keys to retaining top talent is making your organization the type of place people want to work. Much of the workplace experience can be attributed to your company’s culture, including its values, beliefs, and social environment. But as a hub for collaboration, the physical workplace is still an important part of that overall experience.

How to measure this: Like cost optimization, space utilization can also be used to monitor workplace experience. A few facility management KPI examples include:

• How often people choose to come into the office
• The most frequent service requests
• Which rooms or desks employees reserve most often
• Which ones are rarely used

For example, you might notice some conference rooms are never booked. If you investigate further, you might find that the temperature in these rooms is uncomfortable, or maybe they receive too much or too little sun at certain times of the day. Or perhaps some workstations are too close to common areas, where there’s too much noise to concentrate. It’s also useful to ask employees for feedback. Run workspace satisfaction surveys each quarter to determine whether the efforts you’re making truly enhance the workforce’s experience.

4. Customer satisfaction

In addition to your employees’ experience, it’s essential you focus on providing the best possible customer and visitor experience. From the moment they enter your facility, they should feel welcome and comfortable.

This typically begins with a smooth and seamless check-in process and continues with user-friendly digital signage and wayfinding. The way clients and guests feel in your workplace will leave a lasting impression of your organization and its competence.

How to measure this: In addition to reading customer reviews, you can look at the way visitors use your space as KPI examples. For instance:

• Are they moving through the check-in process quickly?
• Are they able to easily find their way through your building, or do they need to constantly stop and ask others for help?
• How quickly is the average response time when they request service or tech support?

5. Energy efficiency

Reducing your energy consumption will not only help you reduce costs; it also improves your brand perception among prospective customers and employees. In fact, over 70% of people are more likely to want to work for an environmentally responsible organization, according to data from Solar Builder.

How to measure this: The best way to track energy efficiency is to monitor the ROI of your green investments. For example, measure the reduction in utility bills after upgrading to smart light bulbs and thermostats. Monitor space utilization and respond accordingly. Invest in products designed to last longer to reduce your organization’s waste, and use glass walls or partitions to make the most of your building’s natural light.

How to use technology to track KPIs

As we reshape the workspace environment, it’s critical we’re also rethinking how we measure success. As a facilities leader, it’s up to you to track your efforts in ways that not only reflect new goals, but also help you communicate your success to senior decision-makers. Start by evaluating where you are today and setting benchmarks for each new facility management KPI. Then, as you shift your focus toward new initiatives, you’ll have a yardstick for your progress.

The right technology — including dashboards — makes this much easier. Our next post will offer more facility management KPI examples and how to track them using maintenance software.

Ready to learn more about measuring success in 2020 and beyond? Check out our newly updated resource, 8 Facilities Management Metrics You Need to Know.