Facility management KPIs: an essential resource for CRE managers

Facility management KPIs play a vital role in ensuring office buildings' efficiency, maintenance, and cost-effectiveness. To measure and track the performance of office space management, facility leaders rely on these metrics. It helps them gauge the level of achievement of specific business goals and provide a roadmap for continuous improvement.

The role of facility managers is not easy and often requires overseeing a wide range of tasks, from keeping the building running to ensuring that employees are happy. As we will discuss, technology and automation are central to the success of future workplaces. 

In this article, we will explore various facility management KPIs, distinguish them from other metrics, and delve into the most important ones to track. By understanding these KPIs and their impact on office space management, detecting areas of improvement, reducing costs, and enhancing employees' overall value and satisfaction become more relevant.

What are facility management KPIs?

Definition of facility management KPIs

Let’s begin by defining facility management and KPIs separately.

First, facilities management is the process of managing the efficiency and general functioning of property and buildings. This includes a wide range of responsibilities, such : 

• maintenance of the building and its resources;
• technology integration in the space;
• the assurance of comfort and safety. 

Second, KPIs, or key performance indicators, are a type of metric used to measure the success of certain business goals. Depending on the organization, they are often measured during a certain time frame, like quarterly or yearly. Therefore, they can be used to track the progress of long-term objectives or quantify the progress of a certain short-term task. Additionally, they often serve as a roadmap for future progress, keeping the organization on track for greater success. 

Putting these two terms together, facility management KPIs, in turn, measure the performance of the building and facility-related activities.

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The difference between KPIs vs. metrics 

While KPIs are a type of metric, they should be defined interchangeably. Every KPI is a metric, but not every metric is a KPI. The key difference is that KPIs are assessed during a set time period, while metrics are simply a unit of measurement. 

KPIs are more specific and are set with the intention of analyzing the performance of a specific goal. This is why each team, or even individual, has their own set of KPIs. In this regard, it is equally important for facility managers to measure their performance against objectives that are pertinent to their team's success. 

What are the most important facility management KPIs to track?

People-focused facility management KPIs

One of the major goals of facility management is to serve the needs of employees and ensure they are satisfied with their work environment. Therefore, setting some employee-centric KPIs is key. Let’s explore a few of them. 

Employee satisfaction score represents: 

• how satisfied a person is with their job; 
• how happy they are with their workplace;
• how well their expectations are being met; 
• if their role aligns with what their ideal job would look like. 

If you would like to measure your own employee satisfaction score and don’t know where to start, our employee satisfaction questionnaire is a great jumping-off point. 

Another important measurement is the space occupancy rate. This is how much of the office is being occupied versus how much total space there is in the office. This is fundamental for employee centricity as it ensures everyone has a place to sit or work when they come on-site.

Additionally, understanding the average time to completion, or how long it takes for the team to complete a task, is crucial for creating a people-focused workplace. It serves as a reference point for operational efficiency. So, if something can be done more quickly, such as a repair, facilities managers know where to improve. 

Finally, reactive response time indicates how fast problems are solved and measures the reaction time to issues that need urgent resolution. The faster things are resolved, the happier employees and customers will be.

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Building-related facility management KPIs

The next set of KPIs are those we most often refer to with facility management, the goals that are related to the building itself. 

One such measure is operation cost per square meter (or square foot) which is how much it costs for the building to run as it should. This includes maintenance, repairs, and insurance. 

Similarly, utility costs per square meter (or square foot) are an important metric. They are incurred by the use of electricity, water, and heating which often come with the day-to-day operation of any building. 

Additionally, cleaning costs per square meter (or square foot) must be measured. If the building is being used on the daily, it needs to be cleaned regularly, which is the responsibility of the facility manager. 

A building also needs security. So security costs are another expense to consider. Whether this is an automated system or a physical person, knowing how much is spent on this is important for overall budget management. 

Finally, equipment downtime, or how long the equipment is not being used, is important for overall facility management. The key here is understanding why this downtime is taking place. Is it because it is not functioning properly and needs to be replaced, or because it is not useful for your business?

Other facility management key performance indicators

First, the work order backlog is the work that has not been completed by the due date and is quite common in building maintenance. With multiple repair and maintenance requests happening simultaneously, it is natural for work to get backlogged. However, set a KPI to keep this to a minimum and prioritize the more critical tasks.  

Another important KPI for facility managers is reactive vs. preventive maintenance. This distinction is between completing maintenance when it happens and taking preventative measures to keep it from happening in the first place. The latter is generally more cost-effective. Therefore, measuring what percentage of requests fall into either category helps with knowing how much is being saved and how to ensure minimal cost in the long run.

Finally, the Employee Net Promoter Score represents how happy employees are about the physical work environment and how likely they are to recommend it to someone else. Therefore, businesses can adjust the space accordingly. 

How do facility management key performance indicators help with office space management?

Detect areas of improvement

By understanding key metrics, facility managers can improve every element of the workplace. Measuring satisfaction, calculating costs, and being attuned to project timelines are all ways of creating a more efficient, sustainable, and cost-effective office. 

Let’s take the measurement of the employee satisfaction score, for example. To recap, it summarizes how satisfied employees are in their role. This is based on how well their expectations are being met and how happy they are generally in the workplace. If the employee satisfaction score is measured and turns out to be low, managers can facilitate deeper research to pinpoint where improvement is needed. This, in turn, will create a more productive workforce. 

Reduce office costs

A large part of facilitating management is understanding costs, which encompasses everything from rental costs to maintenance and utilities. By measuring KPIs such as operation, utility, cleaning, security costs, and equipment downtime, facility managers can get a bigger picture of where the most money is spent. Thus, they know which expenses can be reduced based on the needs of the workplace.

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Add value to the office space

Added value in the office comes from meaningful improvements that take place after analyzing relevant KPIs. For example, an office that has the correct occupancy for the number of workers who need it creates a more comfortable working environment. Additionally, the more quickly maintenance is taken care of, and requests are fulfilled, the more suited the workplace will be.

Contribute to greater employee satisfaction and productivity

Understanding the Employee Net Promoter Score contributes to greater employee satisfaction as it reveals how happy employees are about the physical work environment. This helps create suggestions for improvement, ultimately leading to greater overall productivity. 

How to measure your facility management KPIs?

Analyze the data provided by your smart building technology

To name a few, it is crucial to analyze the data provided by your smart building technology, such as: 

• building automation systems;
• desk booking software;
• energy management systems. 

By examining the data generated, you can gain insights into energy consumption, space utilization, and other important metrics that impact facility management. 

For example, the deskbird app provides data about:

• office occupancy; 
• desks and meeting rooms utilization
• the employees who comes to the office;
• the most popular days for on-site work. 

Ask your staff for their opinion and feedback

In addition to relying on technology, it is important to seek input from your staff. Asking for their opinions and feedback provides valuable insights into their satisfaction with the work environment. It also helps identify areas for improvement to boost their productivity. 

Engage with your employees to understand if the physical workplace fosters their well-being and detect any gaps that need to be addressed to enhance their on-site experience. Moreover, gather their thoughts on making the office greener and consider their ideas for creating a more enjoyable and sustainable work environment.

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Invest in a facility management software

Investing in facility management software can facilitate KPI measurement. It streamlines various processes and provides a centralized platform to monitor and track specific metrics. 

For example, it can automate tasks, generate reports, and offer analytics to assess performance. With the right facility management software in place, you can streamline your KPI measurement process. This enables you to efficiently monitor the progress and effectiveness of your facility management strategies. 

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Facility management KPIs are essential for commercial real estate (CRE) and facility managers alike. By measuring and analyzing these KPIs, leaders can detect areas of improvement, reduce costs, add value to the office space, and contribute to greater employee satisfaction. 

Furthermore, gathering staff feedback and investing in facility management software are effective approaches to collecting and tracking these KPIs. By prioritizing the use of these metrics, business leaders can enhance operational efficiency and create a conducive work environment.

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