Office chair accident. Credit: Giannis Vasilottos, Shutterstock
According to a new study published by Mitie on July 15, 2025, inefficient and undesigned workplaces have exceeded £71 billion (euros 84 billion) per year in the UK economy.
The report reveals that when work issues such as slow lifts, poor Wi-Fi, lack of collaboration spaces are wasted, they lose £485 million (EUR 572 million) a week on pay costs alone.
How UK workspaces are failing employees
A national survey by the UK’s leading facility transformation company, Mitie, nearly nine in 10 (88%) employees say that a safe working environment and access to appropriate technology is essential for both satisfaction and productivity.
This study suggests that employers who fail to invest in sustained high-performance office space risk not only freeing staff but also damaging the wider economy.
“Employers have real opportunities to improve their workspaces, increasing employee engagement, proactively fueling productivity and driving innovation in ways that serve a multi-generational workforce,” says Mark Caskey, managing director of Mitie’s projects.
The average UK employee reportedly loses 68 minutes a week for unproductive tasks caused by a decline in workplace situations. For full-time workers, that figure rises to 74 minutes, equivalent to £485.5 million a week on wasted salary.
These inefficiencies are:
- Find a meeting room with decent Wi-Fi
- Addresses broken building services like lifts
- Lack of a joint or quiet workspace
If it expands across the workforce, this will bring annual GDP losses to £71.4 billion, strengthening the UK’s struggle against productivity delays.
In the first quarter of 2025, UK productivity was 0.2% lower than in the same period last year. Compared to other G7 countries, the UK ranks fourth in GDP per hour, chasing after the US, Germany and France.
Workplace satisfaction affects staff retention
The physical work environment doesn’t just affect productivity. It is directly linked to how employees feel about their work.
- 89% of employees who are satisfied with their workplace are also satisfied with their employers.
- In contrast, only 23% of people who are unhappy with their workplace said they were satisfied with their job.
The key workplace functions will be improved as follows:
- Safe environment: 88%
- Access to Tools/Technology: 83%
- Comfortable and properly designed space: 75%
Despite extensive assumptions, perks like gyms and social areas don’t move the needle much. Only 29% contributed to satisfaction, and only 55% cited opportunities to socialize as motivation to enter the office.
“When workplaces are designed with people in mind and effectively managed, they become powerful enablers of collaboration and transformation… People thrive, and the community benefits,” added Mark Caskey.
View all business news.
