FacilityBlog from Today's Facility Manager: The First Facility Management Blog

Tuesday, May 27, 2008

New Research Shows Employers Offering More Amenity Options

Companies are offering employees a wider range of amenities than in years past, according to results from a recent International Facility Management Association study. When compared to similar data from 2004,the most common amenities are still break rooms and coffee bars, but employers are increasingly providing Internetcafés , outdoor recreation areas, and employee health facilities as well, according to the report,"Benchmarks V: Annual Facility Costs."

While previous IFMA studies have shown employee workspace size decreasing—middle manager office space, for example, has shrunk from an average of 151 square feet in 1994 to 121 in 2007, a decline of nearly 20%—the variety of amenities being offered is on the rise. This increase in employee amenity options could be attributed to companies wanting to attract and retain the best employees while compensating for reduced workspace size.

“As companies reduce personal workspace, employees place greater importance on in-house amenities that simplify and enrich their work day, such as lunch-hour yoga at the company fitness center,” said AngieEarlywine, workplace strategist for HOK Advance Strategies. “Employees benefit from feeling refreshed and relaxed as they return to the remainder of their day, and employers benefit from the increase in afternoon productivity.”

Headquarter and educational facilities are the most likely to offer the majority of
employee amenities, according to the report, and while some amenities are being offered by fewer companies than in 2004, the emergence of new alternatives is pronounced. Multi-purpose space, for example, has become a popular feature, being offered by 35% of survey respondents. Other popular amenity options found by the new study include exercise parks, cot rooms, and nursing/lactation areas.

Based on a survey of 1,032 facility professionals from across North America, the
new report covers a variety of costs associated with employee amenities. The costs are broken down by industry, facility type, and geographic region. Companies on the West Coast, for example, annually spend an average of 30 cents per square foot to operate and maintain amenities, while those in the Midwest spend only 4 cents.

IFMA annually conducts a benchmarking survey of its members in an effort to
collect data that allows for easy comparisons of built environment costs and practices. These reports allow facility professionals to gauge their performance against similar facilities—whether in the same industry or a different one. This year’s report includes data from more than 1,000 facilities and isIFMA’s largest benchmarking study to date, with many survey respondents supplying information from multiple facilities.

To learn more about the "Benchmarks V: Annual Facility Costs" survey results and methodology, or to order a copy of the report, visit www.ifma.org/tools/research/benchmarks_v.cfm.

What amenities have you added to your facility in the recent year? What are employees looking for when it comes to amenities? Post a comment below and share your thoughts with other facility managers.

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Thursday, May 15, 2008

IFMA Research Report Shows Energy Consumption Declining While Utility Costs Continue To Rise

Led by a dramatic increase in utility costs, the overall cost of running a facility is 10% higher than it was just four years ago, according to results from a recent International Facility Management Association (IFMA) research report. The study, Benchmarks V: Annual Facility Costs, shows that utility costs, which include electricity, gasoline, fuel oil, steam water, and sewage, have jumped 19% compared to similar data from 2006.

While the increase in utility costs may come as no surprise to some, it is happening at a time when energy consumption is down. When compared to IFMA's 2006 benchmarking figures, average electricity consumption, measured in kBTUs per square foot, has dropped from 93 to 81, while gas consumption has remained constant at 35 kBTUs per square foot. This decrease in energy usage could be attributed to companies implementing energy conservation practices, lighting improvements, and equipment upgrades at their facilities.

''In recent years, many organizations have invested in their electrical and mechanical systems to make them more energy efficient,'' said IFMA Associate Director of Research Shari Epstein. ''Performing simple measures such as installing occupancy sensors, adjusting heating and air conditioning controls, and performing preventive maintenance checks to keep equipment running efficiently can make a measurable impact in reducing energy consumption.''

Based on a survey of 1,032 facility professionals from across North America, the new report covers a variety of costs, including lease, maintenance, housekeeping, security, environmental, recycling, waste disposal, and space planning. The costs are on an annual basis and are displayed as dollars per square foot. Many of the costs are further broken down by industry, facility type, and geographic region.

This year’s report reveals that expenses associated with environmental initiatives are also starting to increase. For example, the cost of recycling has doubled in the past four years. While facility managers today are spending an average of four cents per square foot on recycling, they were spending two cents per square foot in 2004, according to a previous IFMA benchmarking study.

''In years past, organizations could generate a little income from recycling paper, cans, and cardboard materials,'' Epstein said. ''With the current emphasis on sustainability, more organizations are stepping up their recycling efforts even though it comes at an increased operational cost.''

IFMA annually conducts a benchmarking survey of its members in an effort to collect data that allows for easy comparisons of built environment costs and practices. These reports allow facility professionals to gauge their performance against similar facilities, whether in the same industry or a different one. This year’s report includes data from more than 1,000 facilities and is IFMA’s largest benchmarking study to date, with many survey respondents supplying information from multiple facilities.

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Monday, April 28, 2008

Common Floor Area Measurement Definitions Announced

The International Facility Management Association and the Building Owners and Managers Association International have published A Unified Approach to Measuring Office Space, a report outlining common definitions for floor area measurements as well as major revisions to IFMA and BOMA’s respective area measurement standards. These common definitions will be incorporated into the standards supported by each organization, with the primary goal being to clarify building measurement and industry comparisons based on floor area measurements.

Currently, IFMA recognizes The ASTM Standard Classification for Building Floor Area Measurements for Facility Management, while BOMA supports The ANSI/BOMA Standard Method for Measuring Floor Area in Office Buildings. Together, the two standards form the foundation for benchmarking and best practice. They are commonly used by facility professionals and building owners and managers to measure floor area in office buildings.

IFMA and BOMA appointed a working group comprised of key members of both organizations to develop these common definitions. The professionals included had extensive experience in floor measurement issues.

Their mandate was to develop commonly agreed upon definitions to be contained in each floor measurement standard as well as commentaries with parallel definitions that elaborate on the floor area measurement process. The definitions and commentaries are available in the new joint publication, and are meant to be uniform and easily understood by non-technical readers.

“We’ve known that the members of our community need a common communication protocol. They need one set of measurements and one methodology,” said Lynne Blair, IFMA chair of the working group and president of LY Blair Associates in Ottawa. “It’s important to help them save time, effort and money, and with this new unified approach, we can do that.”

“The major benefit of this publication is that it establishes common terms and approaches for measurement that each organization will use as they revise their respective standards,” said Kent C. Gibson, CPM, BOMA chair of the working group and vice president of Zions Securities Corporation in Salt Lake City. “This allows both organizations to be consistent in going forward in the development of their standards. Part of the foundation has been laid.”

A Unified Approach to Measuring Office Space is currently being offered by IFMA and BOMA.

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Tuesday, April 15, 2008

Salaries Up, but New Fms Down

For those looking to break into the facility management profession, there’s no better time than now. An International Facility Management Association (IFMA) salary survey shows that the facility management industry is experiencing an aging workforce and a jump in salaries for those entering the field, factors that bode well for the up-and-coming facility manager.

The Profiles 2007 Salary Report, based on a survey of 4,600 facility professionals, showed that the base salary for those with less than four years experience rose nearly 13% since the previous salary report, from $56,000 in 2004 to $63,000 in 2007. This, combined with the fact that the median age of facility managers continues to rise — from 47 in 2004 to 49 this year — points to a workforce that is moving toward retirement and in need of young professionals.

“To enter this field and potentially be looking at a $63,000 salary speaks volumes about the value of the industry and what it can offer younger professionals,” said IFMA Associate Director of Research Shari Epstein. “Facility management is a growing field, yet there aren’t enough young workers to fill in for the larger group of facility managers who plan to retire in the next few years. This is good news for those considering entering the profession, as starting salaries are beginning to rise significantly.”

The age gap outlined in the report is striking. Workers 45 or older increased from 62% in 2004 to 68% this year, with those 55 and older increasing from 20% to 25% during the same period.

While the average age of facility managers is on the rise, the number of young workers entering the field is on the decline. Workers 35 to 44 years old decreased from 30% in 2004 to 25 percent in 2007, with the number of workers younger than 35 also declining, from 9% to 7%. Only 2% of facility managers surveyed were 29 or younger. The number of workers whose first job was in facility management, however, grew from 5% in 2004 to 7% in 2007.

Though the number of young workers is declining, the majority of young people in the field are women. Eleven percent of female survey respondents were younger than 35 years old, compared to only 6% of their male counterparts. Similarly, 28% of women surveyed were 35 to 44 years old, as opposed to 24% of men.

As the workforce ages, younger workers are enjoying increased salaries, but they aren’t alone. While the data suggest substantial diversity in survey respondents, a typical facility management practitioner reported a total compensation of $86,000 in 2007, an increase from $77,505 in 2004.

As with previous surveys, education level and the Certified Facility Manager (CFM) designation also have a large impact on compensation. Survey respondents with a master’s degree or higher reported earning an average base pay of $96,750, up from $87,000 in 2004. Those with a bachelor’s degree reported a base pay of $82,000, an increase from $75,000 in 2004.

Similarly, facility managers with the CFM designation reported earning $14,000 more per year than their counterparts without the designation. Those with the CFM designation reported a base pay of $92,000 in 2007, up from $79,450 in 2004.

Additional analysis of the salary data showed that each year a facility manager spent in the field added $779 to the individual’s salary. The number of years an individual spent with their current employer had a lesser impact on salary, adding $362 per year.

Geographic location also played a role in compensation. Those living on the West Coast reported earning on average $13,107 more than their counterparts, while those on the East Coast reported earning an average of $6,297 more.

For the complete 64-page document, contact the IFMA Bookstore at (713) 623-4362.

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