National Insurance Company Measures the Actual Use of Space and realizes $35MM in Real Estate Savings
A large, national insurance company with more than 80,000 employees prepared to open a new headquarters building in New York City and saw an opportunity to save a lot of money in real estate costs by taking advantage of a flexible workplace program with employee mobility. Instead of simply assigning desks that would be underutilized they introduced a program called Work Smart in which employees share desks on a scheduled basis.
The company brought AgilQuest in nearly a year before the roll out of their program to configure OnBoard to precisely match their specifications. They implemented the OnBoard Workplace Management system to measure the actual use of every workspace and produce the business intelligence necessary to support space planning, building consolidation and lease analysis. Following a workplace utilization study, the company found that the average workspace was in use less than 50 percent of the time while costing nearly $20,000 per workspace per year.
The roll out of their flexible workplace program began with their headquarters and established $10MM a year in reduced real estate costs. Additionally, the company rolled out this program across several other buildings, generating an additional $25MM more in annual savings, for a total to date of $35MM annually.