The influence of Smart Buildings upon the
wellbeing and productivity of office workers
Version 01, 18th June 2020
Prof. Dr. Michael Krödel

IGT - Institut für Gebäudetechnologie GmbH
Alte Landstrasse 25, 85521 Ottobrunn, Germany
www.igt-institut.de  info@igt-institut.de

The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers

Contents
Contents .......................................................................................................................... 2
1

Introduction................................................................................................................ 3

2

Employee productivity and the working environment ...................................................... 5
2.1

2.1.1

Air quality .......................................................................................................................... 5

2.1.2

Light .................................................................................................................................. 5

2.1.3

Thermal comfort ............................................................................................................... 6

2.1.4

Modern office environments ............................................................................................. 7

2.1.5

Personalised services and indoor navigation .................................................................... 8

2.2
3

4

The influence of the working environment upon employee satisfaction .............................. 5

The influence of employee satisfaction upon productivity ................................................... 8

Conclusions ................................................................................................................ 9
3.1

The influence of Smart Buildings upon employee wellbeing ................................................ 9

3.2

Smart Buildings need timely planning.................................................................................. 9

Sources ..................................................................................................................... 10

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers

1

Introduction

For office-based businesses, the cost of labour represents the largest
operating cost by far. For knowledge-based companies, it represents
approx. 90% of the budget compared with approx. 1% spent on energy(Illustration 1).
Therefore it goes without saying that employee productivity is theforemost priority. Next to personnel management, working
atmosphere and remuneration, the quality of the workplace emerges
as a key factor . A study involving more than 7.000 people from 12
nations indicates that more than 50% of those interviewed stated thatthe quality of their workplace has a direct effect upon theirproductivity [JLL 2017]. Smart Buildings can make a significant
contribution by providing optimal air quality, lighting, thermal comfort
and flexible interaction with a modern office environment. Scientificresearch demonstates that cognitive employee performance is clearlyenhanced when compared with, for example, environments where
ventilation and illumination are not regulated [Wargocki et al. 2000].

Illustration 1: operating costs ofknowledge-based companies[WGBC 2014]

A Smart Building is much more than just a resource-optimised facility.
„Smart Building“ is often used to indicate that a building uses less energy
and lowers operating costs. This is correct – building automation pays for itself in the space of a few years
and generates appreciable savings in running costs [Merz et at 2016]. However, the main benefit of such„Smart Buildings“ lies elsewhere – in the positive effects upon employee productivity, employee loyalty
and employer attractiveness for new talents.
In 2009 Prof. Dr. Derek Clements-Croome from Reading University (UK) claimed that an „intelligent
building“ should benefit energy efficiency and human wellbeing alike: „an intelligent building caters forthe needs of its dwellers, organisations and society alike. It must be sustainable in terms of energy andwater consumption, with reduced emissions and waste – a healthy and functional environment for those
who live and work there“ [Clements-Croome, Yang 2018].

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers
Smart Buildings can make an important contribution towards the wellbeing and productivity of those whowork there. These aspects can therefore be expected to play a central rôle in the planning process for
future commercial real estate projects [Xie et al. 2017].
We shall now more closely explore these parameters:Which opportunities exist for enhancing employee productivity and wellbeing within a Smart
Building context?
Which scientifically proven findings support such scenarios?
What must be taken into account when planning a Smart Building?

Smart Buildings have far-reaching, positive effects. Motivated employees bring satisfied customers.
Illustration 2 shows – on the one hand – the relationship between employee satisfaction, personal
productivity and corporate success. On the other hand, employee satisfaction generates customer
satisfaction and fosters trust between the customer and the employee’s company. Interestingly, researchshows that a dissatisfied employee has a direct, negative impact upon customer satisfaction – but not theother way around. A dissatisfied customer has a lesser impact upon employee satisfaction [Jeon&Choi
2012].

Illustration 2: Effects of employee satisfaction [Jeon&Choi 2012]

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers

2

Employee productivity and the working environment„The workplace is more than just a piece of real estate.
It’s a living organism that enables people and companies to bring life and work together
in a positive and constructive way.“ 1This chapter illustrates the many possibilities offered by a Smart Building for enhancing employee
satisfaction whilst improving productivity and customer satisfaction.

2.1

The influence of the working environment upon employee satisfaction

2.1.1 Air quality
The importance of adequate air quality and its relevance to human wellbeing has been known for a longtime. In 1858, Dr. Max von Pettenkofer published his book titled „Über den Luftwechsel von
Wohngebäuden“ („Ventilation in residential buildings“) and wrote that adequate air quality requires
carbon dioxide levels – defined as carbonic acid at the time – below 1/1000 parts. In modern terms, that
equates to a CO2 concentration of 1.000 ppm (parts per million). This so-called „Pettenkofer-Number“
was used for a long time as key criterium for the quality of the air within closed spaces.
"These tests prove that air does not become us well when breathing and perspiration raise carbonic acidlevels beyond 1 part to a thousand. We can rightfully claim that air is unsuitable for constant breathing
when breathing and perspiration raise carbonic acid levels beyond 1 part to a thousand.“ 2The direct effects of indoor air quality upon human health have been thoroughly analysed. Studies
conducted in 2006 and 2008 have shown that performance (defined as speed of work at a standardised
error rate) increases by between 8 % and 14 % when the fresh air intake rate is doubled (e.g. increased
from 17 m³/h to 34 m³/h) [Wargocki 2008].
A survey canvassing more than 1.200 workplaces revealed that there is a direct relationship between thequality of office air and employee satisfaction. A CO2 threshold value of 582 ppm was identified – mostemployees complained of bad air quality with carbon dioxide loads exceeding this value [Park et al. 2019].
2.1.2 Light
Light has a significant impact upon the human psyche. It influences the „inner clock“ and directly affects
performance and wellbeing. In 2002, researchers discovered that the known retinal light receptors in thehuman eye are complemented by retinal ganglion cells containing melanopsin. These cells influence theproduction of melatonin, also known as the „sleep hormone“. This interaction is known as the melanopic
effect. This explains why we are more active/restless in the presence of „cold“ light and more relaxed in
the presence of „warm“ light. Constant exposure to stress-provoking types of light can lead to healthdamaging conditions – therefore, the question arises: which is the most suitable type of light for specificworking conditions?

1
2

Dr Marie Puybaraud, Global Head of Research, JLL Corporate Solutions
Dr. Max von Pettenkofer

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers
The angle of incidence of the light falling upon the photosensitive retina is of primary importance for themelanopic effect. The ganglion cells (containing melanopsin) are situated in the lower section of theretina. Ideally, light should enter the eye at an angle between 0° and 45° when the eye is looking straightahead (Illustration 3). Light can be emitted directly from electric lights, or be reflected by walls and officefurniture.

Illustration 3: Angle of incidence of light required for the melanopic effect [www.trilux.com]

The spectral range of white light - defined as „colour temperature“ and measured in Kelvin (K) units ranges from „warm white“ (e.g. with 2.700 K) to „cold white“ (with over 6.000 K). Ideally, artificial lights
can be individually adjusted to obtain the appropriate colour temperature. This technical feature isnormally titled „tunable white“. When this feature is used to adjust colour temperature throughout the
day in order to enhance human wellbeing, we speak of HCL (Human Centric Lighting) or, less specifically,
biologically effective lighting.
Altogether, workplace lighting influences wellbeing in the office as well as the quality of sleep at home.
Restful sleep is an important factor for fitness and working performance, and fundamentally important
for workplace safety. A lack of natural light and excessive exposure to artificial light, especially „cold“
light, can lead to disturbed sleep and fatigue as well as as poor concentration which, in turn, can increase
the risk of accidents as well as depression and cardiometabolic illness [Kantermann et al. 2018].
Of course, office space lighting plays a partial rôle upon employee wellbeing – after work, otherconditions in public and private spaces prevail. Still, the quality of artificial lighting over a period of many
hours every working day is a prominent factor.
2.1.3 Thermal comfort
Thermal comfort as defined by the DIN 1946-2:1994 norm implies that air temperature, air humidity, air
circulation and solar warming is perceived to be ideal without having to resort to additional warm, cold,
dry or humid air.
Thermal comfort depends upon several influencing factors. One’s own body heat plays a rôle, anddepends upon the type of task being performed. Here, the possibility of dissipating heat must be taken
into account. Here, several factors play a decisive part: air temperature, temperature of boundary spaces,
air speed, air humidity and clothing worn. These variables mean that there is no such thing as a single

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers
ideal condition. A comfort zone has been defined where most persons claim to feel comfortable. Taking
temperature and humidity into account, this comfort zone can be defined using the so-called „h,x
diagram“ or „Mollier diagram“ (Illustration 4) [Dentel&Dietrich 2006]. In simple terms, thermal comfort isgiven when air temperature ranges from 22°C to 26°C with relative air humidity levels between 35% and65%.

Illustration 4: Thermal comfort relative to air temperature (in °C) andrelative air humidity (in %) [Dentel&Dietrich 2006]

The temperature of walls and ceiling should not differ greatly from ambient air temperature in order toavoid subjective discomfort. Rooms should be heated in such a way as to avoid appreciable differences inthe temperature of walls, ambient air and the surfaces of heating appliances such as radiators.
Thermal comfort plays a decisive rôle in workplace wellbeing and employee productivity. Research
conducted in 1986 supplied evidence that there is a clear relationship between rising temperature andsinking physical and psychological performance. At 28 °C, physical performance drops by 50 % whilst
psychological performance suffers a 20% loss [Dentel&Dietrich 2006], [Wyon 1986]. Further researchdemonstrates that a rise in temperature from 23 °C to 26 °C increases efficiency by 50%. As of 29 °C – i.e.
at excessive ambient temperatures – efficiency drops to the same levels experienced at 23 °C [Wyon et al.
2001].
2.1.4 Modern office environments
Another important factor is the flexible use of office space within Smart Buildings, with varying officefurniture configurations as well as a mix of large open-plan areas and meeting rooms, plus communal
spaces. Evolving work processes (team structures, procedures etc.) call for ongoing optimisation. A Smart
Building can monitor and evaluate the utilisation of available spaces and supply data enabling the smart
management of limited resources.
Only a true „smart building“ can adapt itself to the real needs, preferences and evolving user behaviour of
its occupants. Be it through „smart“ facility management systems or, indirectly, by gathering occupancyrelated data that can supply a solid base for space and equipment planning.
When Smart Building facility users have more influence upon their workspace environment, e.g. by
adjusting climate and lighting according to personal preference, this invariably leads to better workplacesatisfaction and higher productivity [WGBC 2014].

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers
2.1.5 Personalised services and indoor navigation
The enhanced gathering and evaluation of facility-related data will result in more and more personalised
services being offered. Employees can express personal preferences and generate a workplace profile(e.g. the vicinity to restrooms, lifts, communal areas and technical facilities). In combination with indoor
navigation systems, employees enjoy better insight into the facility’s structures and can reach theirdestination in unfamiliar locations far more quickly and comfortably. This is especially relevant in anenvironment where workspaces are continually being re-allocated to match changing requirements(especially in large corporations with many locations and where teamwork is subject to constant change).
Personalised services offer a wealth of enjoyable and useful features. At the same time, individual privacy
must be protected. The balance between the corporate analysis of person-related data and the rights of
the individual, or those of an organisation, must be taken into account. This is a challenge that must be
met and constantly borne in mind, project by project.

2.2

The influence of employee satisfaction upon productivity

Illustration 2 in Chapter 1 shows the relationship between employee satisfaction and productivity. This is
supported by the findings of many studies. The complexity of the interaction between many variables
makes a quantification difficult, but there is clear evidence of the direct influence of employee
satisfaction upon productivity.
A study conducted in 2000 [Clements-Croome&Kaluarachchi 2000] concluded that employee satisfaction
can enhance productivity by up to 15%. In addition, a study involving two buildings was conducted. The
findings revealed that a good workplace led to fewer illness-related absences and increased productivity.
It became apparent that the employees who were most dissatisfied with their workplace were also those
who suffered most from environment-related and task-related illness.
The connection between air quality and employee productivity has already been shown – doubling the
fresh air intake rate in office facilities typically improves productivity by between 8 % and 14% (seeSection 2.1.1).
A study commissioned by Steelcase Inc., Grand Rapids (USA) and conducted by the market research
institute Ipsos S.A. (Paris) with more than 12.000 participants in 17 nations determined that theconnection between employee commitment and employee satisfaction is one of the 5 key findings of thestudy. In detail, conclusive evidence of this link was supplied; enhancing workplace conditions was
identified as key measure for fostering employee commitment. Most of those interviewed (still) work in
individual, non-open-plan office spaces with fixed workspace allocation. However, the clear trend towards
flexible workspace allocation means that the employee-friendly assignment of changing workspaces will
gain increasing importance.
The „Human Spaces Report“ indicates that a modern building can positively influence employee
satisfaction by up to 15% and enhance productivity by 6% [HumanSpaces 2015]. Although these
improvements can vary from building to building, it’s clear to see that there is a tangible link between
employee satisfaction and productivity.

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers
These findings are confirmed by another survey conducted 2002 in The Netherlands. This data quantifies
various parameters and clearly shows their impact upon productivity and absences from work (Table 1).

Good interior fittings
Clean air
Adequate rate of air exchange
Adjustable room temperature
Adequate room temperature

Higher productivity
10 % - 15 %
3%-7%
1%-2%
2%-3%
ca. 7 %

Reduced absences
2,5 %
1,5 %
0,5 %
0,5 %
n.a.

Table 1: Impact upon productivity and absences from work (extract from [Leijten 2002])

3

Conclusions

3.1

The influence of Smart Buildings upon employee wellbeing

All in all, it can be clearly demonstrated that a Smart Building fosters employee satisfaction and enhances
productivity. Many factors influencing employee wellbeing – e.g. ambient air quality, intelligent lighting,advanced thermal comfort and the features of a modern office environment – give the Smart Building aclear advantage.
A mentioned earlier, knowledge-based companies spend approx. 90 % of their budget on their personnel.
Therefore, a Smart Building not only contributes towards energy efficiency – it makes a large contribution
towards overall corporate success.

3.2

Smart Buildings need timely planning„Some people plan in order to avoid failure. Others fail because they don’t plan.“ 3A further conclusion: Smart Building requirements must be taken into consideration at the planning stage.
The main criteria which are relevant to employee satisfaction in a Smart Building context arestraightforward in substance, and can be reliably taken care of without incurring large expense.
Unfortunately, most builders still tend towards doing things „the good old way“, e.g. using empirical data
and methods from past experience. Such thinking sees additional requirements as a disturbance, despite
the ease with which they could be taken into consideration.
Building contractors, investors and tenants in need of a modern office facility require innovation-friendly
planners. They are not hard to find. A key criterium for the birth of a new Smart Building is the early
integration of such planning experts within the project team context.
Another key aspect is the timely planning of the necessary sensor networks. They supply the Smart
Building with essential data on occupancy patterns as basis for real-time building management andcontrol, as well as for analytical purposes.

3Peter E. Schumacher, publicist

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4

Sources[CIB 2018]

CIB Commission W098; Intelligent and Responsive Buildings; 2018

[Clements-Croome 2018]

Clements-Croome D.; Creating the Productive Workplace (3rd Edition);
2018[ClementsCroome&Kaluarachchi
2000]

Clements-Croome, D., Kaluarachchi Y.; Assessment and measurement of
productivity; 2000

[Clements-Croome&Yang
2018]

Clements-Croome D., Yang T.; CIB Commission W098 - Intelligent andResponsive Buildings Roadmap; 2018

[Dentel&Dietrich 2006]

Dentel, A., Dietrich, U.; Thermische Behaglichkeit – Komfort inGebäuden; 2006

[Ghaffarianhoseini et al.
2016]

Ghaffarianhoseini A., Berardi U., Al Waer H., Chang S., Halawa E.,
Ghaffarianhoseini A., Clements-Croome D.; What is an intelligent
building? Analysis of recent interpretations from an international
Perspective; 2016

[HumanSpaces 2015]

Human Spaces; The Global Impact of Biophilic Design in the Workplace;2015[Jeon&Choi 2012]

Jeon H., & Choi B.; The relationship between employee satisfaction andcustomer satisfaction (Journal of Services Marketing); 2012

[JLL 2017]

JLL Corporate Solutions; Global Report on „Workplace powered byhuman experience”; 2017

[Kantermann et al 2018]

Kantermann T., Schierz C., Harth V.; Gesicherte arbeitsschutzrelevante
Erkenntnisse über die nichtvisuelle Wirkung von Licht auf den Menschen.
Verein zur Förderung der Arbeitssicherheit in Europa e.V. (VFA); 2018

[Leijten 2002]

Leijten J.; Binnenmilieu, productiviteit en ziekteverzuim (The insideenvironment, productivity and sick leave); 2002

[MacNauthon et al 2018]

MacNaughton P., Cao X., Buaoncore J., Cedeno-Laurant J., Spengler J.,
Bernstein A. Allen J.; Energy savings, emission reductions, and health cobenefits of the green building movement; 2018

[Merz et al. 2016]

Merz H., Hansemann T., Hübner C.; Gebäudeautomation (Hanser Verlag);
2016[Park et al. 2019]

Park J., Loftness V., Aziz A., Wang T.; Critical factors and thresholds foruser satisfaction on air quality in office environments; 2019

[Steelcase 2016]

Steelcase Global Report; Mitarbeiterengagement und Arbeitsplätze inaller Welt; 2016

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The influence of Smart Buildings upon the wellbeing and productivity ofoffice workers[Wargocki et al 2000]

Wargocki P., Wyon D., Sundell J., Clausen G., Fanger P.; The
effects of outdoor air supply rate in an office on perceived air
quality, Sick Building Syndrome (SBS) symptoms and productivity.; 2000

[Wargocki 2008]

Wargocki P.; Improving indoor air quality improves the performance ofoffice work and schoolwork; 2008

[WGBC 2014]

World Green Building Council; Health, Well-being & Productivity in
Offices; 2014

[Wyon 1986]

Wyon, D.P.; The effect of indoor climate on productivity andperformance, revised version of a Swedish publication in VVS & Energy;
1986[Wyon et al. 2001]

Wyon, D.P., Andersen J., Lundquist G.R.; The effect of moderate heatstress on mental performance, Chapter 16 in Indoor Air Quality
Handbook; 2001

[Xie et al. 2017]

Xie, H., Clements-Croome, D., & Wang, Q.; Move beyond green building:
A focus on healthy, comfortable, sustainable and aestheticalarchitecture; 2017

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