Office chair accident. Credit: Giannis Vasilottos, Shutterstock
Inefficient and poorly designed workplaces are costing the UK economy over £71 billion (€84 billion) a year, according to new research published by Mitie on July 15, 2025.
The report reveals that time wasted due to workplace issues – such as slow lifts, bad Wi-Fi, and lack of collaboration space – amounts to a £485 million (€572 million) weekly loss in salary costs alone.
How UK workspaces are failing employees
A nationwide survey by Mitie, the UK’s leading facilities transformation company, found that nearly nine in ten (88 per cent) employees said having a safe working environment and access to the right technology is crucial for both satisfaction and productivity.
The study suggests that employers who fail to invest in well-maintained, high-performing office spaces risk not only disengaging staff but also harming the wider economy.
“Employers have a real opportunity to improve workspaces so they increase employee engagement, actively fuel productivity and drive innovation in a way that benefits the multi-generational workforce,” said Mark Caskey, Managing Director of Projects at Mitie.
The average UK employee reportedly loses 68 minutes a week to unproductive tasks caused by poor workplace conditions. For full-time workers, that figure climbs to 74 minutes, equating to £485.2 million per week in wasted salary.
These inefficiencies include:
- Searching for a meeting room with decent Wi-Fi
- Coping with broken building services like lifts
- A lack of collaborative or quiet workspaces
When scaled across the workforce, this adds up to an annual GDP loss of £71.4 billion, reinforcing the UK’s struggle with lagging productivity.
In Q1 2025, UK productivity was 0.2 per cent lower than the same period last year. Compared to other G7 countries, Britain ranks fourth in GDP per hour worked, trailing the US, Germany, and France.
Workplace satisfaction impacts staff retention
The physical work environment doesn’t just affect productivity; it’s directly tied to how employees feel about their jobs.
- 89 per cent of employees satisfied with their workplace are also happy with their employer.
- In contrast, among those unhappy with their workplace, just 23 per cent said they were satisfied with their job.
Key workplace features boosting satisfaction include:
- Safe environment: 88 per cent
- Access to tools/technology: 83 per cent
- Comfortable, well-designed space: 75 per cent
Despite widespread assumptions, perks like gyms and social areas don’t move the needle much. Just 29 per cent said these contribute to satisfaction, and only 55 per cent cited opportunities to socialise as a motivator for coming into the office.
“When workplaces are designed with people in mind and managed effectively, they become powerful enablers of collaboration and transformation… People thrive, and communities benefit,” added Mark Caskey.
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