The Hidden Secret of Sustainable FM Partnerships Selecting an Expert (Trusted Advisor) vs. a Supplier In today’s war for top talent, companies are looking for ways to attract and retain the best employees. They are doing this by providing enriched workplace experiences that make their company a great place to work and encourage creativity, collaboration and enhanced productivity. One of the key focus areas for these companies to investigate is within their facility services and how those services are delivered. In the article, It Is Time To Talk Value , it states, “ Reducing operating expenses is not the only benefit of outsourcing. It’s not even the biggest benefit. Even small productivity can increases in employee contribute significantly more to the company’s
bottom line than big improvements in occupancy costs.”(Nagarajan, 2016).
This is illustrated by the graphic on the left, The Tip of the Iceberg . (Brill & Weidermann, 2001). From this, we see when we focus on reducing operations and maintenance costs, we are focusing on making a change to 3% of the lifecycle cost of the building versus making an impact on people, which is 87% of the spend. To tap into improvements in the workplace
experience, the client should look to outsource facility services to a provider that has the expertise to create great workplace experiences. This will accomplish the goal of driving value through improved facility services. Ultimately the provider must become a partner and trusted advisor to guide the client toward the best value combination of services to enhance the workplace environment and meet corporate cost goals.
Value vs. Lower Cost
"Value" is broader than simply lowering cost. Addressing cost reductions alone can save money up front, but potentially place at risk some key factors regarding the quality of the workplace experience, service flexibility, and compliance. We see lower cost as just one outcome in the larger value equation. A better definition of value is aimed at delivering a much broader spectrum of beneficial outcomes for companies, as outlined below: Workplaces that enhance employee engagement Attention and care for employees as service users, supporting their productivity and driving higher satisfaction levels Support for company talent retention and recruitment strategies Commitment to understanding and directly supporting their business operations, efficiency and growth Cost leadership with a continuous strategy for cost control
The Hidden Secret of Sustainable FMPartnerships By: Glenn Hodge | Eurest Services
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