Editor’s Note: Want to better understand why traditional workplace metrics no longer serve the evolving built environment—and what modern approaches are replacing them? ThinkLab’s latest research delves into how workplace strategy is shifting in response to hybrid work, productivity demands, and increased decision-making complexity.
For six months, ThinkLab engaged directly with end users, workplace strategists, and leaders across corporate, healthcare, education, and real estate sectors. The findings reveal an industry reckoning: outdated metrics like people per square foot are rapidly losing relevance, forcing a pivot toward more nuanced benchmarks.
ThinkLab is sharing our insights in Season 6 of Design Nerds Anonymous. Below, we highlight Episode 5: Why Traditional Workplace Metrics Are Obsolete, where Rob Sadow, CEO and co founder of Flex Index, breaks down what this means for the future of the workplace.
The Fall of People Per Square Foot
For decades, people per square foot served as a key benchmark for workplace planning. It offered a simple, one-size-fits-all approach to determining space needs. It was relatively simple math. However, as hybrid work gains traction, corporate leaders are recognizing that this metric is becoming less relevant. This was another top frustration expressed by corporate leaders in ThinkLab’s research: Lack of data. But truthfully, it’s lack of relevant data.
“Today, workplace planning has become exponentially more complex,” explained Sadow. “It’s not just about how many people fit into a space, but how and when they use it.”
Variables like daily attendance, peak occupancy, and desk-sharing ratios now play a central role in understanding space utilization.
Shifting the Focus to ROI
One of the most striking changes is the growing demand for clarity around the return on investment (ROI) of office space. Corporate real estate is often a company’s second-largest expense, and hybrid work has put pressure on executives to prove that their spaces are delivering measurable value.
“Executives are asking questions they never asked before,” Sadow noted. “How does office usage impact productivity, engagement, and retention? What’s the real cost of underutilized desks? These questions demand data that goes far beyond traditional metrics.”
To address these challenges, tools like Flex Index offer granular data on workplace policies, attendance patterns, and space utilization, empowering companies to make more informed decisions.
Like Salary Benchmarking, But Different
In the episode, Sadow draws a compelling parallel between the future of workplace benchmarking and the evolution of salary benchmarking. Decades ago, companies had little visibility into compensation practices, relying on guesswork or internal data to set salaries. Over time, the introduction of industry-wide salary benchmarks revolutionized hiring and retention strategies, giving organizations confidence in their offers and reducing inefficiencies.
Sadow believes workplace metrics are following a similar trajectory. “Today, we’re at the early stages of workplace benchmarking,” he explained. “By combining internal data with market insights, we can approach decisions about space allocation, attendance policies, and ROI with the same level of precision we now use for compensation.”
This shift promises to transform how companies assess and optimize their real estate strategies, offering a clearer picture of what works—and what doesn’t—in the modern workplace.
If this interests you, dive deeper into these findings by listening to episode 5 of season 6 of Design Nerds Anonymous, “Why Traditional Workplace Metrics Are Obsolete,” and if you would like to be included in ThinkLab’s next research study, join ThinkLab’s research community to share your perspective and help shape future insights. Sign up here to contribute your expertise and stay connected.