How Office Design Impacts Productivity in the Hybrid Work Era

As hybrid work becomes the new normal, organisations are rethinking what makes a productive workplace. One surprising insight? It’s not the ping pong tables or open-plan lounges that matter most—it’s control.

In a recent episode of the Economics Explored podcast, award-winning American architect Kevin Kennon told Adept Economics Director Gene Tunny that what people truly value in an office is the ability to shape their working environment. “We all want greater control over our environment,” Kennon explained. That desire for autonomy, he argued, has a more profound impact on productivity than any trendy workplace perk.

Kennon’s experience designing large, complex buildings—from corporate headquarters in Manhattan to adaptive reuse projects—gives him a unique perspective. He emphasised that productivity-boosting design isn’t about adding bells and whistles, but about providing workers with environmental control over temperature, lighting, space, and air quality.

One key issue is thermal comfort. Office workers often complain about offices being too hot or cold—rarely right. Kennon argued that this stems from overly centralised heating and cooling systems. Smarter design allows different zones within an office to be independently adjusted, allowing occupants to fine-tune their surroundings to suit their needs. This flexibility can reduce discomfort and distraction, enhancing concentration and well-being.

Lighting is another factor. Access to natural light is known to support circadian rhythms and reduce fatigue. Kennon suggested designing workspaces that maximise daylight exposure and enable users to adjust lighting levels within their immediate environment. These adjustments, though small, can cumulatively improve focus and reduce workplace stress.

Beyond lighting and temperature, the layout of office spaces also plays a critical role. In hybrid settings, where not all employees are present daily, offices must offer a mix of quiet zones, collaborative areas, and shared desks. Giving workers a choice of where and how they work within the office helps replicate some of the autonomy they enjoy at home, making them more willing to return.

This flexibility extends to building infrastructure, too. Kennon highlighted that operable windows or semi-outdoor spaces in some climates can enhance comfort and reduce air conditioning costs. Such designs can also help reconnect workers with nature, an increasingly important consideration in post-pandemic office design.

According to Kennon, from an economic standpoint, these features are not luxuries—they’re investments in productivity. When workers are comfortable and empowered, they perform better. Businesses benefit from higher output, and decision makers should take note. As Kennon observed, architects can offer valuable insight into how people interact with space, and should be included in conversations about workplace design and economic performance.

Recent research from Japan reinforces the importance of thoughtful office design on worker productivity and well-being. A 2023 study published in Building and Environment by Japanese researchers analysed data from 1,644 workers across 29 Tokyo office buildings to quantify the economic benefits of optimised office environments. The researchers found that interior furnishings, airflow, and overall building sanitation had the most substantial impact on perceived work efficiency, while desk lighting was most strongly associated with reducing presenteeism–that is, where employees are physically present at work but are not fully productive due to illness, injury, stress, exhaustion, or other health-related or personal issues. Their findings suggest that improving—or even just removing negative elements of—the office environment can generate substantial economic gains, with benefits exceeding ¥200,000 (approx. AUD 2,000) per employee annually in some cases. These results align closely with Kevin Kennon’s observations on Economics Explored, further highlighting that investing in user-focused design is not just about comfort—it’s also good economics.

In short, better design leads to better business outcomes. As hybrid work reshapes how we think about offices, thoughtful architectural design prioritising user control, comfort, and flexibility can help bridge the gap between home and office—and ultimately, support higher productivity.

Listen to Kevin Kennon’s full interview with Gene Tunny on the Economics Explored podcast:

Published on 2 May 2025. For further information, don’t hesitate to get in touch with us via contact@adepteconomics.com.au or by calling us on 1300 169 870.

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