Investing in a new workplace: the CFO’s perspective

Still buzzing from being awarded Finance Team of the Year at the Australian CFO Awards 2023, we chatted to Sheldon’s finance team about the type of workplace that allows a business to thrive, and the cost-benefits of investing in a new workplace that often go overlooked.

“It’s a no-brainer for accountants,” says Sheldon’s CFO Andrew Mooney on the financial investment of a new fitout. “Anything that keeps your talent happy and motivated reduces your attrition rate – that reduces the time and money you spend on hiring replacement staff, training them and giving them the time to become fully productive.”

For over 30 years, Sheldon has designed and constructed workplaces for corporates, developers, government agencies, and financial firms including Finclear, Ironfish, Experian, Thinktank, Novo Nordisk and more. With diverse internal divisions including workplace strategy, design, project management, partitioning, electrical/technology and furniture manufacturing, Sheldon offers a streamlined approach to creating innovative and engaging offices.

Ironfish’s incredible boardroom views in North Sydney.

What’s the return on investment of an office fitout?

“If you look at any great company, one thing they have in common is a great culture. Culture is made up of many integral parts, and one is having a motivated workforce that enjoy going to work,” says Mooney.

“One of the main reasons people like going to work is the space that they work in.”

On the other hand, an outdated, cold and unattractive workplace won’t attract the best team to join the company and stay for long.

Let’s break it down.

For example, a $1.5 million office fitout of 1000sqm, for 100 staff over a 5 year lease is an investment of $3000 per employee, per year, (or $1500 over a 10 year lease). Compare this to staff retention and running costs such as recruitment fees that can reach as high as $35,000 for one person. A 100 person company annual wages bill alone can reach $15 million.

The Australian HR Institute estimated that the cost of replacing someone is approximately 1.5 times their annual salary[1]. Add to this an average of 6 months ‘payback period’ to regain the initial investment put into hiring someone. This makes the fitout cost per person pale in comparison.

An office fitout is a vital factor in supporting workplace culture, which is key to retaining staff: the investment opportunity is clear. Providing a great workplace shows that a company values its existing staff, and helps attract the best future talent.

Furthermore, a new office does not always require a relocation. By refurbishing an existing space, companies can provide flexible and future-focused workpoints, whilst repurposing elements from the previous fitout.

A sustainable office design improves its energy efficiency, a win for the environment and finances. Refurbishments that prioritise the reuse of materials save on average $234/sqm and 16kg CO2-e/sqm for Sheldon’s clients. As we know, ESG requirements are increasingly important for corporate workplaces.

[1] https://www.ahri.com.au/ahri-assist/recruitment-and-retention/retention/the-role-of-hr-in-improving-retention

This fitout at 55 Clarence St reduced carbon emissions on this project by 48%, and reduced costs associated.

You’re ready to invest in your team and upgrade your office. What kind of workplace is ideal?

A flexible workspace

A combination of open workstations, private focus rooms and collaboration spaces is critical in today’s world of hybrid and flexible work. Providing a choice of work settings caters for diverse staff requirements for productivity and comfort.

Sheldon designed a quiet corridor at Ironfish, where meeting rooms and pods line a corridor, and act as a quiet zone within the workplace. Marking the whole space as a quiet zone ensures staff respect this space and know what is expected.

Up-to-date technology

As Mooney states, “we spend a majority of each day sitting and looking at screens. Too much of either is not good for you, so we really like the Sit-to-Stand workstations as it allows us to change our posture and stretch while continuing to work.”

A finance team knows the importance of a tech-enabled workspace, high-speed wifi, quick and easy meeting room technology. It’s critical to ensure that anyone working from home can easily integrate into meetings and teamwork.

“Quality monitors that are correctly calibrated are also key to ensure that you don’t suffer from eye strain,” says Mooney.

Location, location, location

There’s no denying that a central location surrounded by amenities is a drawcard. Ironfish boasts enviable views of the Sydney Harbour Bridge, which is sure to impress clients, and is an additional benefit for staff. With CBD and business hubs now filled with coffee shops, gyms and supermarkets, these are all important factors to consider when deciding on a location and whether to move office.

Ironfish’s breakout area with enviable views.

A space for wellbeing and socialisation

At Experian in North Sydney, a pool table is front and centre in the breakout area, within a relaxed environment separated from the workstations. Whether a pool table or massage chair, all teams benefit from some relaxation and entertainment at work. Furthermore, spaces to socialise facilitate human connections which further enhances employee engagement.

Developing a sustainable workplace culture and a business with engaged and happy staff, with a low attrition rate, is directly tied to the quality of a workplace fitout. Think it’s worth the investment?

Experian’s entertaining breakout area.