Beyond the Bottom Line: Increasing Productivity and Value in Facilities Management

As the new year approaches, creating productivity enhancements is at the forefront of everyone’s mind in the facility maintenance industry. Facility managers have long faced the challenge of balancing quality and service with limited resources, but now, rising operational costs and tighter budgets make this balancing act even more challenging. According to Watco, 60% of facility managers report up to 25% budget reductions over the past year, and an additional 20% grappling with cuts between 26-50%. In JLL’s recent The State of Facilities Management, they reported that in 2024, Facility Managers were already doing more with less. With these constraints, the question is, how can facility managers rise to the challenge of enhancing productivity while creating value and driving efficiency?

Balance Your Workforce

When budgets are tight, looking at all possible avenues for cost reduction and opportunities for efficiency is natural, and labor is often evaluated. Reducing the workforce, however, isn’t a decision to take lightly. Increasing staff productivity can be a viable cost-saving solution. A smaller, skilled, highly motivated team can reduce expenses, but balancing this with productivity needs is vital to avoid potential impacts on service quality and employee morale. Studies show that businesses with engaged employees report 23% higher profitability than those with a disengaged workforce. This data highlights that building and maintaining a motivated team is a powerful asset in increasing productivity, especially when working with limited resources.

Engaged employees are also less likely to leave, helping reduce turnover, a hidden cost many businesses overlook. Replacing employees can be incredibly expensive. According to the Society for Human Resource Management (SHRM), the average cost per hire is around $4,700 when factoring in recruiting, training, and the time invested by managers and peers. Your people matter and can help keep costs at bay.

 Evaluate The Scope of Your Program

As work models evolve, facility managers should adapt their programs to optimize space utilization and resources. Having the right number of staff and skills is crucial, but just as important is reviewing and adjusting the scope of your program to align with operational needs and occupancy levels.

Recent data from Owl Labs reports that 62% of employees work full-time in the office, while 27% operate in hybrid environments. Facilities that follow the trend of hybrid working can tailor services and schedules, such as cleaning and maintenance, to align with building use. For example, if office attendance is higher on Monday and Tuesday, focus on full-service cleaning while scaling back on quieter days. Occupancy-based scheduling helps avoid unnecessary costs while ensuring people have a clean, well-maintained space. Consolidating employees in designated building areas and closing or subleasing unused spaces can also improve maintenance budget efficiency. A flexible program scope is ideal, meaning scaling operations up or down based on demand.

Invest in Energy & Waste Efficiency

Energy costs are one of the most significant expenses for facilities. The Environmental Protection Agency (EPA) reported that approximately 35% of a building’s energy costs are attributed to lighting alone. Facility managers can use energy audits to identify opportunities to reduce usage through LED lighting, smart thermostats, or HVAC optimizations. In a study highlighted by Facilities Management Advisor, data found that energy audits can identify potential energy savings of 5-30%. Minor adjustments, including an “economize mode” for lighting overnight and scheduling heating to align with building occupancy, can noticeably impact energy bills. Reducing energy consumption is a direct way to cut costs and promote environmental responsibility.

Looking closer at waste management expenses can also reveal small changes leading to substantial savings. For example, if composting is a significant part of your facility’s waste management strategy, explore ways to reduce the use of costly compost liners. Instead, use unlined bins that can be washed and reused, or only use compost liners after the waste has already been sorted. Additionally, examine the different waste streams in your facility and the costs associated with managing each type. You might discover that employees place recyclable material in general waste bins, driving up disposal costs. To address this, engage and train staff on cost-conscious, eco-friendly practices.  Empowering employees to be mindful of resource use can pay off over time.

Facility managers can maximize value and achieve cost savings by focusing on energy and waste efficiency, staff engagement, and flexible programs. As a last note, make sure to review utility bills for any discrepancies or surprises, which can help point facility managers in the right direction to cut costs.  In a time when “doing more with less” is more than just a goal but a reality, these strategies can help teams adapt and thrive.

At Service by Medallion, we discover opportunities to make facility services more efficient and effective. Then, we go beyond ideas to deliver proven solutions tailored to your needs, so you achieve the results you desire. This practical approach to innovation has made us industry leaders. By reassessing maintenance needs, we have saved companies 5-40% of their budget.