Poorly designed and managed workplaces costing the UK over £70 billion a year, report claims

A new report suggests that the quality of workplace environments could have a significant impact on the UK’s economic performance. According to a new report published by facilities management company MITIE, ineffective workspaces may be costing the economy up to £71.4 billion in GDP each year. The study claims to highlight how various physical and environmental workplace factors can affect employee productivity.

On average, UK workers estimate they lose over an hour each week to workplace frictions such as finding a meeting room with a stable Wi-Fi connection, navigating slow lifts, or searching for appropriate spaces to collaborate. For full-time employees, this figure rises to 74 minutes, which MITIE calculates could represent a combined weekly salary cost of £485 million across the national workforce.

The findings come at a time when the UK continues to struggle with low productivity growth. Official figures for Q1 2025 show a 0.2 percent year-on-year decrease in output per hour worked. Compared with other G7 nations, the UK currently ranks fourth, behind the United States, Germany and France, in GDP per hour worked.

The report also explores the link between workplace satisfaction and employee retention. It suggests a strong correlation between satisfaction with the physical environment and overall job contentment. According to the data, 89 percent of employees who are happy with their workplace are also satisfied with their employer. This contrasts sharply with those unhappy with their work environment, only 23 percent of whom report being satisfied with their employer.

Workplace safety, access to appropriate tools and technology, and comfortable office design were all cited as key contributors to job satisfaction. Conversely, 51 percent of respondents identified poor building maintenance as a major cause of dissatisfaction.

Interestingly, the survey challenges the assumption that social amenities are a primary draw for office attendance. Only 29 percent of workers said features like gyms or breakout areas contributed to their satisfaction, while 55 percent valued opportunities to socialise with colleagues. These figures suggest that functional and supportive environments may carry more weight than lifestyle-oriented perks when it comes to improving workplace experience.