MSc in Mechanical Engineering from USP/EESC (Brazil), holding LEED AP BD+C, LEED AP O+M, LEED Green Rater and EDGE Expert credentials. 12 years of experience in LEED certification consulting.
Most of the cost of running an office is people, not the building. A five-step method for HR and Finance to estimate the return on a health certification together.
When a company considers certifying its office with WELL or Fitwel, the conversation usually centers on what the building costs. But the building is the small part of the equation: in a typical services company, the vast majority of operating spend goes to salaries and benefits, far above rent or energy. The World Green Building Council has highlighted this in its reports on health and productivity in offices.
That changes the math. A small improvement in how well people perform and how long they stay is worth more than almost any energy saving. In this article we propose a method to build that business case with your own company's data.
The link between indoor environment and performance is well documented. Harvard University's COGfx study, for example, found that people scored significantly higher on cognitive function tests when working in offices with better ventilation and fewer pollutants. Other studies link daylight, thermal comfort and noise control to absenteeism and job satisfaction.
There is also a strategic effect: the return to the office. Companies asking people to come back need a better argument than "it's the policy". A health certification turns that policy into a fact verified by a third party: the office is a better place to work. We explore this in WELL certification for offices.
Replacing an employee has a cost that is often underestimated: recruiting, selection, onboarding and the time until the new hire reaches the previous person's performance. For specialized roles, that cost can equal a significant share of annual salary.
Better air quality, safe water and spaces that support rest can reduce sick days, especially those linked to respiratory issues.
This is the hardest lever to measure and, at the same time, the one with the greatest potential impact, because it applies to the entire payroll.
Voluntary turnover over recent years, average replacement cost by role and absence days per person.
Annual payroll including benefits and payroll taxes, and the estimated certification budget, including fees, consulting, verification and upgrades.
Assume small improvements: one point less turnover, a modest drop in absenteeism and a minimal productivity effect. The formula is simple:
A business case that works on prudent assumptions persuades; an inflated one falls apart at the CFO's first question. If you want to show an optimistic scenario, present it separately, never mixed with the base case.
Divide the total investment by the certification's three-year validity and compare it with the estimated annual benefit. In many cases, the turnover lever alone covers a good part of the cost.
Use occupant surveys before and after certification (WELL builds them into the standard) and track turnover and absenteeism at the site. Measuring turns the business case into a proven result for the next decision.
If you are unsure, read WELL vs Fitwel vs LEED: which to choose, and to understand how the budget is built, what WELL certification cost includes.
In markets such as Mexico, Colombia and Chile, competition for talent in Mexico City, Bogotá or Santiago turns the office into a retention tool. See WELL in Mexico, WELL in Colombia and WELL in Chile.
If you like, we can build the model with you using your company's data. Contact us.
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