Improving Organizational Productivity with Building Automation Systems BOUTIQUE MULTI-CLIENT RESEARCH PROJECT CABA AND THE FOLLOWING CABA MEMBERS FUNDED THIS RESEARCH: CABA IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS 1 Improving Organizational Productivity with Building Automation Systems: Phase 1 How better building strategies benefit organizational productivity metrics: a review and framework for evaluation Guy R. Newsham, Jennifer A. Veitch, Meng Qi (Nikki) Zhang, Anca D. Galasiu, Ian S. Henderson, Alexandra J.L. Thompson National Research Council Canada, Construction Portfolio 1200 Montreal Rd., Building M24, K1A 0R6, Ottawa, ON [email protected]; (613) 993-9607 IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS © CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION 2017 2 CABA IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS Acknowledgements We have many people to thank for the development and success of this project. Greg Walker, and Ron Zimmer (both from CABA), and Mark Stoochnoff, Trevor Nightingale (both from NRC) were instrumen- tal in developing a structure for this project with the CABA research framework, and then in identifying and securing the funding partners from among the CABA membership. In addition to financial sup- port, these funding partners also provided valuable guidance, commentary and input to the project and deliverables as they developed via the Project Steering Committee. Steering Committee Distech Controls, An Acuity Brands Company Pella Corporation Trevor Palmer Larry Ehlinger Charles Pelletier Philips Intel Corporation Sanae Chraibi Christine Boles Meg Smith Taimur Burki Bianca van der Zande David Sapoznikow Sunita Shenoy Schneider Electric Mary Jane McCraven National Research Council (NRC) Guy Newsham United Technologies Research Center Jennifer Veitch Catherine Thibaud-Erkey Mark Stoocknoff Craig Walker We are also grateful for additional financial support from the Conservation Fund of the Independent Energy System Operator (Province of Ontario). IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS © CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION 2017 CABA IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS 3 TABLE OF CONTENTS Executive Summary ................................................................................................................................. 7 ES.1 Project Background and Introduction ...................................................................................... 7 ES.2 About This Report ...................................................................................................................... 7 ES.3 Role of the Steering Committee ................................................................................................ 7 ES.4 About CABA ............................................................................................................................... 8 ES.5 About NRC ................................................................................................................................. 8 ES.6 Project Overview ........................................................................................................................ 8 1. Linking Building Systems to Organizational Productivity ...............................................................14 1.1 Introduction ............................................................................................................................. 14 1.2 Linking Building Systems to Organizational Productivity ..................................................... 14 2. Review and Analysis Framework .......................................................................................................22 2.1 Establishing Values ................................................................................................................. 22 2.2 Scope ........................................................................................................................................ 23 2.3 Definition of KPIs ..................................................................................................................... 25 2.3.1 Absenteeism .............................................................................................................. 25 2.3.2 Employee Turnover ................................................................................................... 25 2.3.3 Self-assessed Performance ........................................................................................ 26 2.3.4 Job Satisfaction .......................................................................................................... 26 2.3.5 Health and Well-being (symptoms) .......................................................................... 27 2.3.6 Health and Well-being (overall) ................................................................................ 27 2.3.7 Complaints to Facility Manager ................................................................................ 27 2.4 Definition of Corporate Strategies ........................................................................................... 27 2.4.1 Better Buildings ......................................................................................................... 27 2.4.2 Office Type ................................................................................................................. 28 2.4.3 Workplace Health Programs (WHP) .......................................................................... 28 2.4.4 Bonuses ...................................................................................................................... 28 2.4.5 Flexible Work Options ............................................................................................... 28 2.5 Literature Search Strategy ....................................................................................................... 29 3. Results and Discussion ......................................................................................................................33 3.1 Absenteeism............................................................................................................................. 34 3.2 Employee Turnover ................................................................................................................. 40 3.3 Self-assessed Performance ...................................................................................................... 43 3.4 Job Satisfaction ........................................................................................................................ 47 3.5 Health and Well-being (symptoms) ........................................................................................ 52 3.6 Health and Well-being (overall) .............................................................................................. 53 3.7 Complaints to the Facilities Manager ..................................................................................... 57 4. Discussion and Possible Next Steps ...................................................................................................59 5. Conclusions ........................................................................................................................................66 Appendix A: References .........................................................................................................................68 Appendix B: Supplementary Absenteeism Data ...................................................................................73 Appendix C: Supplementary Employee Turnover Data .......................................................................76 Appendix D: Translating various study results for intent to turnover to common 0-100 scale .........79 Appendix E: Supplementary Job Satisfaction Data ..............................................................................81 Appendix F: Translating various study results for job satisfaction to common 0-100 scale ..............82 Appendix G: Engagement ......................................................................................................................87 Appendix H: Glossary of Terms .............................................................................................................88 IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS © CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION 2017 4 CABA IMPROVING ORGANIZATIONAL PRODUCTIVITY WITH BUILDING AUTOMATION SYSTEMS FIGURES Figure ES.1 Project Steering Committe ..................................................................................................... 8 Figure 1. The costs associated with an office workplace over a 10-year period ................................ 15 Figure 2. Schematic diagram illustrating major contributors to the costs of running an organization ......................................................................................................................... 16 Figure 3. One possible detailed conceptual model showing how the physical environment created by a BAS system could affect job satisfaction and organizational productivity (Thompson et al., 2014). .............................................................................................................................. 18 Figure 4. The two fundamental pathways by which BAS can improve organizational productivity .........................................................................................................................