Press Release

21 July 2025

Poor workplaces are costing the UK economy £71 billion a year, reveals new survey

  • New research from Mitie finds that UK employers currently lose over £485 million each week to time wasted due to workplace inefficiencies
  • The research highlights how physical workplace factors are central to colleague satisfaction, talent retention and boosting productivity levels
  • Almost nine in ten (88%) employees said a safe working environment and access to technology contributes most to their satisfaction and productivity

Mitie, the UK’s leading facilities transformation company, has found that employers could help boost the country’s productivity levels by investing in well-designed and high performing workspaces. The financial implications of not doing so could be huge, the research reveals, with poorly designed and maintained workplaces potentially costing the UK economy £71.4 billion in gross domestic product (GDP) every year.

If employers want to get the best out of their workforce, they must put more emphasis on curating and shaping high-performance settings. The findings show that UK employees estimate they lose 68 minutes every week to unproductive tasks, for example finding a room with good Wi-Fi connection for a meeting, poorly maintained building services such as slow lifts, or a lack of spaces for collaboration. This rises to 74 minutes for full time workers. Scaled across the workforce, this amounts to a weekly salary cost of £485.2m to employers.

Britain’s productivity puzzle

The findings come as Britain battles with low productivity rates – specifically output per hour worked. Despite pockets of progress, the UK continues to lag behind its peers. In Q1 2025, productivity was estimated to be 0.2% lower than a year ago. According to the latest data from the OECD, the UK was rated the fourth highest out of the G7 countries on GDP per hour worked behind the US, Germany and France.[1]

Better workplace experience means better outcomes

The research also reveals how physical workplace factors are central to how people feel about their employer and whether they are happy to stay. In fact, nine in ten (89%) workers who are satisfied with their workplace are also satisfied with their employer. This compares to people who are dissatisfied with their workplace environment of whom, less than a quarter (23%) say they are satisfied with their employer.

The survey also highlights the relationship between physical workplace factors and job satisfaction. Over half of people (51%) say a poorly maintained workplace is a top cause of their job dissatisfaction. Almost nine out of ten (88%) survey respondents said a safe working environment, contributes to their satisfaction while access to the right technology and tools, and a comfortable and well-designed office also contribute to job satisfaction for 83% and 75% of the respondents respectively.

Contrary to popular belief, the research also finds that employees are less likely to be lured in to the office by opportunities to socialise (55%) with less than a third (29%) of respondents saying recreational amenities like gyms and social breakout areas contribute to their overall satisfaction.

Mark Caskey, Managing Director, Projects, Mitie, said:

“Employers have a real opportunity to improve workspaces so they increase employee engagement, actively fuel productivity and drive innovation in a way that benefits the multi-generational workforce.

“Currently, across the UK, there are a number of friction points within office environments that adversely impact employee satisfaction which directly impacts productivity. But all is not lost, some are within the employer’s control, for example, ensuring that the right spaces for the right tasks are readily available, from collaborative through to quiet spaces, and that any tech is in full working order.

“When workplaces are designed with people in mind and managed effectively, they become powerful enablers of collaboration and transformation, high in both productivity and satisfaction. People want to spend more time in them. People thrive, and communities benefit leading to a workforce that ultimately helps the economy gain critical momentum.”

[1] https://commonslibrary.parliament.uk/research-briefings/sn02791/


Notes to editors

Methodology

For full methodology please see: The Productivity Reset: Why the Workplace Must Change

About Mitie: "Better Places; Thriving Communities"

Founded in 1987, Mitie employs 76,000 colleagues and is the leading technology-led Facilities Transformation company in the UK.  We are a trusted partner to around 3,000 blue chip customers across the public and private sectors, working with them to transform their built estates, and the lived experience for their colleagues and customers, as well as providing data-driven insights to inform better decision-making.

In each of our core services of engineering (hard services) and security and hygiene (soft services) we hold market leadership positions.  We also deliver projects capabilities in the areas of power and grid connections, building fit outs & modernisation, decarbonisation, fire & security and telecoms infrastructure.  Our sector expertise includes central government, critical national infrastructure, defence, financial services, healthcare & life sciences, local government & education, retail & logistics, manufacturing & media and transport & aviation.

We hold industry-leading ESG credentials, including a place on the CDP Climate change A List, and we have received multiple industry awards recently including B2B Marketing Team of the Year, Best Low Carbon Solution and Net Zero Carbon Strategy of the year. Targeting Net Zero by the end of 2025, our ambitious emissions reduction plans have been validated by the Science Based Targets initiative (SBTi).  We have been recognised as a UK Top Employer for the seventh consecutive year and Most Admired Company in the Support Services sector. Find out more at www.mitie.com