LARGER companies with poor space configurations are losing millions annually through reduced productivity, says Michael Schirnig, head of Corporate Real Estate Services at Old Mutual Properties. Schirnig, whose division looks at real estate as a vital vehicle in corporate strategy, says it's reasonable to expect that where current space configuration is impeding communication and deflating staff morale, this will result in 30 minutes of lost productivity per day, per employee. In an eight-hour day, employees would lose 6% of their time.

And if the employee's total cost to company was R250 000, the productivity loss would be more than R15 000 a year. In the case of higher salaried employees who generate revenue, the lost productivity comes with a much greater price tag.

"On the other hand, consider the nominal investment of moving individual staff to other locations - a one-time cost of R1 000 to R2 000 per work station." Schirnig says empty, unstructured space can become a liability when it creates an inefficient, demotivating environment.

"In addition to the changes in space, business drivers and goals change. In response to these changes, companies need to be proactive; they need to reshuffle their space."