Strategy

Goldman is moving its top executives to open offices — but the science says it'll be a catastrophe for productivity and health

David Solomon
Goldman CEO David M. Solomon. Reuters
Read in app

Goldman Sachs leaders are ditching stuffy cubicles for an open floor plan — for better or worse.

Goldman Sachs CEO David Solomon told New York employees that executives like himself will adopt open offices instead of ones walled with glass, Business Insider's Dakin Campbell reported. Solomon said the move would allow executives greater ability to interact directly with workers.

While the move is one of many modern culture changes Solomon ushered in, open floor plans might lead his workers to resent him.

Years worth of scientific research suggests an open floor plan leaves workers stressed, burned out, dissatisfied, and overall worse at their jobs.

Here's why.

The open office will make you less satisfied with your work, research finds.

man stressed
Jetta Productions Inc/Getty Images

Back in 2002, a study in the journal Environment and Behavior tracked employees in a Canadian energy company as they transferred from a traditional office to the open plan. As Julie Beck reports for the Atlantic, the results were grim: people reported that they felt worse about their work environment, their co-worker relationships, their performance, and their satisfaction with work after moving into the open office.

The open office takes away your privacy.

Office
Photo by Oli Scarff/Getty Images

If you don't have what a psychologist calls "architectural privacy," or the ability to shut your door to the office, then you won't have "psychological privacy," the ability to control whether you're accessible to the group.

Psychological privacy, Beck says, leads to higher performance and satisfaction. The lack of privacy also means you'll be treated to a constant buzz of background noise. While the bustle of a coffee shop has been found to increase creativity, Scientific American reports that background noise disrupts concentration, impairs memory, and aggravates stress-related illness like migraines or ulcers. 

Open offices lead to more physiological stress.

woman headache park
Oli Scarff/ Getty Images

Why do coffee shops aid productivity and open offices hinder it? There's a scientific answer.

UC Berkeley cognitive neuroscientist and workplace productivity consultant Sahar Yousef said human beings are "tribal," meaning they tend to form emotional relationships with their social group.

In an open office, people constantly interact with coworkers with whom they have emotional connections to, Yousef said. Psychologically, humans can become more engaged with the "tribe" around them instead of work tasks.

In a coffee shop, however, humans don't have an emotional connection with anyone around them, meaning they can focus better on work.

"The human brain isn't designed to be in a massive open space," Yousef said. "You're physiologically more stressed out. It's like trying to get work done at a daycare center."

The open office can cheapen your conversations.

Male coworkers discussing during meeting in office - stock photo
Morsa Images/Getty Images

Conversations do happen more frequently in open offices. But they're usually "short and superficial," Time reports, "precisely because there are so many other ears around to listen." 

Plus, open offices can cause tension between people sitting near each other. Talking loudly on the phone — a common practice among bankers taking calls from clients — annoys everyone within earshot, says Lynn Taylor, a national workplace expert and the author of "Tame Your Terrible Office Tyrant: How to Manage Childish Boss Behavior and Thrive in Your Job."

"Many employees need quiet time built into their day, and without it, their productivity can suffer," Taylor told Business Insider's Jacquelyn Smith. "Someone handling complex data, financials, or writing an in-depth strategic document is often best served to find a private conference room for those tasks, assuming the employer has built that into the space."

The open office especially aggravates introverts.

Goldman Sachs
Chris Hondros/Getty Images

Introverts need privacy the most. 

Research suggests that background noise distracts them more than extroverts. Hans Eysneck, a psychologist who did formative work in the study of intelligence and personality, once remarked that solitude leads to people being more creative, since when you're all by your lonesome, you're "concentrating the mind on the tasks in hand, and preventing the dissipation of energy on social and sexual matters unrelated to work."

But where is the introvert to go in the open office? Into a nice set of headphones, for one.

The open office can make you feel exhausted.

burnout tired work office
Cecilie_Arcurs/Getty Images

Switching between your work and helping coworkers surrounding you — the "spontaneous collaboration" open offices were designed to foster — actually makes you worse at your job

This is because it takes a huge amount of mental effort to switch between helping your buddy and reacquainting yourself will the complexities of the task at hand. It takes time for the brain to focus on one task, so the body exerts extra energy constantly switching between two jobs. The time wasted in switching between tasks is called a "switch cost," neuroscientist Yousef said.

In effect, always being available to your colleagues means that you're always on the verge of being distracted. As the Wall Street Journal reports, it takes 27 minutes to get back into the flow of a task once you finally get a chance to resume it. 

The open office exposes you to other people's germs.

holding your breath after someone sneezes or coughs
Jonathan Ernst/Reuters

Stockholm University researchers found that people who work in open offices were more likely to take sick leave than folks who worked in private offices, since working so close to your colleague may increase the spread of infection. 

The open office tends to bake you beneath fluorescent lights.

lightbulbs
Jeffrey Greenberg/Universal Images Group via Getty Images

Many open offices have a sea of desks arranged in the interior of the building, away from windows.

This is terrible for many reasons: people exposed to natural light are more alert than their fluorescent-lit peers. Another study shows that people who work without windows get 47 fewer minutes of sleep a night than those who sit next to windows.

The artificially lit workers also get worse sleep overall — and if you get crappy sleep all the time, you'll get sick more often, get mad more easily, and remember less

Read next

Drake Baer was Business Insider's editor-at-large, working across the newsroom to help produce ambitious journalism. For two and a half years before that, Baer served as deputy editor, overseeing a team of 20+ reporters and editors who cover the future of work, real estate, and small business. The fast-paced team was behind some of Insider's major packages in the last few years, including a state-by-state look into unemployment during the first year of the pandemic and in-depth profiles of "niche famous" characters such as real estate media tycoon Brandon Turner and HR icon Johnny C Taylor. They shed new light on big names, like Joe Biden, America's imperfect leader. He also cultivated thesis-oriented ideas journalism, whether it be on why "'diversity' and 'inclusion' are the emptiest words in corporate America" or why it's actually a horrible time to buy a house. (No, really, it is.) Before editing, his byline as a reporter was on the masthead for Fast Company and New York Magazine, covering the many intersections of social science, business, and economics. Baer has interviewed some our time's leading minds, including philanthropist Bill Gates, FiveThirtyEight founder Nate Silver, NBA champion and investor Steph Curry, "growth mindset" psychologist Carol Dweck, the rapper Q-Tip, Nobel laureate Daniel Kahneman, and the man who gave a name to "disruptive innovation," the late Clay Christensen.Baer has published two books, the most recent being Perception: How Our Bodies Shape Our Minds, with Dennis Proffitt. In 2014, New York Times bestselling author and Wharton professor Adam Grant highlighted his first book, Everything Connects, as one of the 12 business books to read that year. He has been featured as a speaker at the Aspen Ideas Festival, presented at TedX Princeton, and moderated many panels.  
Allana Akhtar was a senior health reporter for Insider, where she covers the emerging wellness industry and general health topics. During the COVID-19 pandemic, Allana wrote extensively about nurses, mask mandates, the vaccine rollout, and disparities in access to health. Her articles include features on nurses needing to re-use PPE in the early days of the pandemic, ones who struggled to get paid time off after getting COVID-19, and those who left bedside care after grueling pandemic working conditions. Allana also spoke to flight attendants and retail workers who faced violence as they enforced mask mandates, and community health workers who said they struggled to receive equitable vaccine access during the initial rollout. Allana now reports on emerging trends within the wellness industry, including the Westernization of indigenous medicine and dangerous wellness trends spread through social media. She also writes about plastic surgery, racial disparities in healthcare, and breaking health news. Allana has won numerous awards for her work, including the Best News Story by the Michigan Press Association in 2015, Best Reporter Covering Nurses in 2019, and the Morris and Lola Wasserstein Award for her contribution to the the University of Michigan's student paper as an Honors student. Before Insider, Allana wrote for USA TODAY, US News & World Report, Money Magazine, Health Magazine, Jalopnik, and more. You can email her at aakhtar@bjinnox.com, call/text her at (646) 376-6058, or follow her on Instagram, TikTok, Twitter, and LinkedIn. Secure tips line: Signal # 248 760 0208'We're grossly unprepared': Nurses share their frustration as the coronavirus spreads with little direction from the government or hospitals on how to mitigate it'Sexy nurse' costumes demean one of the most in-demand professions in American life — and they're a bestseller on Amazon right nowFlight attendants describe 'unprecedented' violence as travel returns and passenger aggression soarsG/O Media fired a queer employee of color who wore crop tops, shorts, and heels to work, violating a brand-new dress code that others say they routinely violated without being punishedContractors at controversial startup Rev say they worked long hours for little pay, feared they could lose their job at any time, and had to transcribe interviews with sexual-abuse survivors without warning