What Is Facilities Management? (Types, Importance & Careers)

Facilities management involves the strategic coordination of physical assets, infrastructure and personnel to optimize operations, safety and sustainability within a company. It addresses a broad spectrum of areas, ranging from maintenance and security to space utilization and environmental management.

Done right, facilities management (FM) extends asset lifespan, regulatory compliance and cuts operating costs by optimizing resources. Read our guide on how to turn your FM strategy into a genuine competitive advantage.

Key Facilities Management Tasks & Responsibilities

Facilities management encompasses a range of responsibilities, tasks and personnel. A few of its key responsibilities include:

• Maintenance and operations: The upkeep and repair of physical assets — such as buildings, equipment and utilities — to ensure they operate efficiently and safely
• Space planning and utilization: Optimizing space within facilities — including office layouts, storage areas and common spaces — to enhance productivity and efficiency
• Health and safety compliance: Implementing measures for emergencies and disasters, such as fire safety, as well as adhering to building codes and environmental standards
• Security management:Accessing control systems, surveillance, emergency response protocols and implementing cybersecurity measures such as firewalls, encryption and session hijacking prevention strategies to better protect people, data and physical assets
• Environmental sustainability: Managing energy consumption, waste reduction and implementing sustainable practices
• Budgeting and financial planning: Developing and managing budgets for maintenance, renovations and operational expenses
• Vendor and contract management: Coordinating with external service providers, contractors and suppliers for various facility-related services as well as ensuring contractual obligations are met

These different areas of facilities management span a variety of industries, including healthcare, education, commercial real estate, hospitality, manufacturing, government and retail:

• Healthcare: Maintaining medical equipment and patient rooms
• Education: Managing classrooms, laboratories, dormitories and recreational spaces
• Commercial real estate: Managing sites such as office buildings and retail spaces
• Hospitality: Cleaning, repairing and maintaining guest rooms, restaurants, recreational facilities and landscaping
• Manufacturing: Maintaining production equipment and complying with safety protocols and regulatory standards
• Government: Managing administrative buildings, public spaces and infrastructure as well as ensuring accessibility and security
• Retail: Maintaining store facilities, lighting, HVAC systems, parking lots, conversational AI in retail technologies, and a clean and safe shopping environment
  

Types of Facilities Management Functions

There are two approaches to facilities management: hard facilities management (hard FM) and soft facilities management (soft FM).

Hard Facilities Management

Hard facilities management is the management and maintenance of a facility’s physical infrastructure and assets. It typically involves tasks that are directly related to the establishment, and it assures the proper functioning, safety and efficiency of the facility’s structural and mechanical components.

Examples of hard facilities management tasks include:

• Routine maintenance: Regularly inspecting HVAC (Heating, Ventilation and Air Conditioning), plumbing, electrical and fire safety systems to prevent breakdowns and ensure optimal performance
• Repairs and renovations: Addressing structural issues, repairing equipment malfunctions and undertaking renovations or upgrades to improve the functionality and appearance of the facility
• Space planning and utilization: Optimizing the layout and use of physical space within the facility to accommodate organizational needs efficiently
• Asset management: Tracking and managing physical assets such as machinery, equipment and infrastructure components to ensure their proper functioning and longevity
• Health and safety compliance: Implementing measures to comply with building codes, safety regulations and environmental standards to maintain a safe and healthy working environment

Using maintenance software like Coast can streamline the tracking and management of hard facilities management tasks such as scheduled maintenance, work order management, asset tracking, inventory management, and reporting and analytics to improve asset performance and improve operational efficiency.

Soft Facilities Management

Alternatively, soft facilities management is the management of non-physical aspects of a facility. Unlike hard facilities management, which deals with tangible assets like buildings, equipment and systems, soft facilities management focuses on the people, processes and services that support the overall functioning of a facility. Examples include:

• Administrative services: Managing reception services, handling mail and courier services, leasing inquiries, managing access control systems and providing customer support services
• Cleaning and janitorial Services: Planning and execution of cleaning schedules, maintaining cleanliness standards, waste management and ensuring hygiene across the facility
• Security services: Implementing security protocols, monitoring surveillance systems, managing access control, conducting security patrols and ensuring the safety of occupants and assets
• Catering and hospitality services: Managing cafeteria services, vending machines, catering for events, and the cleanliness and hygiene of food preparation areas
• Pest control: Managing pest control services to ensure the facility remains free from pests that could disrupt operations or pose health risks to occupants
• Landscaping and grounds maintenance: Maintaining outdoor areas, such as landscaping, gardening, lawn care, snow removal, and pathways and parking lots
• Health and safety compliance: Ensuring compliance with health and safety regulations, conducting risk assessments, implementing safety measures and providing training to employees on safety protocols
• Space management: Optimizing the use of space within the facility, including space planning, allocation and reconfiguration to meet the evolving needs of the organization
• Tenant services: Providing services to tenants or occupants of a building, such as handling service requests, addressing complaints and facilitating communication between tenants and management
• Environmental sustainability: Implementing initiatives to promote environmental sustainability, such as energy efficiency programs, waste reduction, recycling initiatives and promoting eco-friendly practices among occupants

Why Is Facilities Management Important?

Facilities management is integral to the overall success and sustainability of businesses by fostering environments that promote productivity, safety and well-being. Its benefits include:

Productivity

Cleanliness, proper functioning, and regular maintenance of facilities directly impact productivity by creating a conducive environment for work. Extensive research suggests that well-maintained and organized workspaces can lead to a significant increase in productivity.

Compliance

Reduced risks and liabilities by ensuring compliance with safety regulations, building codes, and industry standards. Non-compliance may result in fines, legal actions and reputational damage. For example, according to the Occupational Safety and Health Administration (OSHA), workplace injuries cost U.S. employers $171 billion in 2019 in expenses associated with workers’ compensation, medical costs and lost productivity. 

Reducing Operating Costs

Potentially significant cost savings through various means, such as:

• Energy management: Lighting upgrades, HVAC optimization and smart building technologies contribute to a reduction in energy consumption. The U.S. Department of Energy suggests that using new lighting technologies can reduce lighting energy consumption by 50 to 75 percent.
• Technology optimization: Leveraging technology for facility management, such as computerized maintenance management systems (CMMS) and building automation systems (BAS), streamlines operations, improves resource allocation and reduces manual intervention, thereby cutting costs.
• Maintenance and asset lifespan: Proactive maintenance practices extend the lifespan of equipment and assets, reducing the frequency of repairs and replacements. According to a study from the U.S. Department of Energy, implementing proactive maintenance can result in a 12 to 18 percent savings compared to reactive maintenance.
• Better inventory control: Increased efficiency in the areas of inventory management, minimizing waste and optimizing inventory levels directly impacts operating costs.

Leading Capital Projects

Facilities managers often oversee capital projects such as renovations, expansions or equipment upgrades. Proper planning, budgeting and execution of these projects are essential for maintaining and improving the facility’s functionality and value. Effective project management can ensure that projects are completed on time, within budget and meet quality standards.

Customer Satisfaction

For businesses that have customer-facing facilities such as retail stores, restaurants or hotels, facilities management directly impacts customer experience and satisfaction. A well-maintained, clean and aesthetically pleasing environment enhances the overall customer experience and encourages repeat business. One study even shows that a 5 percent increase in customer retention can lead to a profit increase of 25 to 95 percent.

How Is a Facilities Management Team Structured?

Facilities management teams can vary significantly in structure depending on the size and complexity of the organization. For example, the duties and responsibilities of a facilities management team will most likely have a wider scope than a team at a smaller company.

In a small organization, a facilities manager would be responsible for overseeing all aspects of facilities management, with tasks including:

• Overseeing all aspects of budget management
• Handling minor repairs or maintenance tasks directly
• Ensuring compliance with health and safety regulations
• Maintenance activity and schedule coordination (i.e., with external vendors, in-house maintenance technicians or other departments like building maintenance)
• Small team management or overseeing tasks directly

If a maintenance technician or assistant were reporting to the facilities manager or there were other members of the facilities management team, their responsibilities might look like:

• Reporting all updates and important information to the facilities manager
• Performing routine maintenance tasks, such as repairing equipment and conducting inspections
• Assisting with other facility-related tasks as needed

In larger organizations, the general hierarchy of a facilities management team remains the same, with a few differences depending on the size of the team. For example, there may be a Director of Facilities Management, who would head the department, set goals and objectives for the team, oversee budgeting, planning, and resource allocation, and report to senior management. 

A facilities manager would report to the director but oversee more of the day-to-day facility operations, coordinate with various teams and departments, and supervise the rest of the facilities management team, including maintenance technicians and administrative staff.

What Skills Do Facilities Managers Need?

Facility managers regularly employ a wide range of skills to oversee the operations and maintenance of buildings and facilities. These include:

• Communication is paramount for effective discussions with staff, vendors and management.
• Leadership and management abilities involve directing teams, delegating tasks and resolving conflicts. 
• Strong financial management skills are also recommended, particularly for managing budgets, forecasting expenses and allocating resources efficiently.
• Organizational skills aid in managing multiple tasks, projects and priorities, ensuring smooth facility operations.
• A customer service-oriented mindset is also important for understanding occupants’ needs, addressing concerns promptly and maintaining positive experiences. 

To become a facility manager, individuals typically pursue relevant education, such as a bachelor’s degree in facilities management or a related field. They gain experience through entry-level positions in facility management or related roles, progressing to positions of increasing responsibility.

Professional development is key, which may involve further programs, training courses and certifications. Facility management certifications, such as the Certified Facility Manager (CFM) offered by the International Facility Management Association (IFMA), demonstrate proficiency and expertise in the field. Other prestigious certifications include the Facility Management Professional (FMP) by IFMA and the Certified Manager of Facilities (CMF) by the Building Owners and Managers Institute (BOMI). 

These certifications typically require a combination of education, experience and passing a certification exam, providing valuable credentials for career advancement and professional recognition in facility management.

In-House Facilities Management vs. Outsourcing 

A business may or may not have an in-house facilities management team. Outsourcing is an alternative route that a company may take to meet their facilities management needs, though each approach has its own unique considerations.

In-House Facilities Management

In-house facilities management involves building and maintaining an internal team of staff responsible for managing all aspects of facility operations. This team typically includes facility managers, technicians, engineers and administrative staff. Some key characteristics and considerations of in-house facilities management include:

• Control and flexibility: With an in-house team, the organization has direct control over facility management processes, allowing for greater flexibility and customization to meet specific needs and priorities.
• Alignment with organizational culture: In-house facility management teams can be more closely aligned with the organization’s culture, values and objectives, fostering a sense of ownership and commitment among staff.
• Cost considerations: While in-house facilities management may offer greater control, it can also entail higher overhead costs, including salaries, benefits, training and infrastructure investments.
• Expertise development: Building an in-house team allows for the development of specialized expertise tailored to the organization’s unique requirements, potentially leading to higher quality and efficiency in facility management.

Outsourcing

Outsourcing facilities management involves contracting with external service providers or vendors to deliver specific facility management services. These vendors may offer expertise in areas such as maintenance, cleaning, security or specialized technical services. 

Key characteristics and considerations of outsourcing facilities management include:

• Cost savings: Outsourcing can often lead to cost savings compared to maintaining an in-house team, as organizations can leverage the economies of scale and expertise of external service providers.
• Access to specialized expertise: Outsourcing allows organizations to access specialized skills and expertise that may not be available internally, particularly for niche services or technical areas.
• Focus on core activities: Outsourcing non-core facility management functions allows organizations to focus resources and attention on their core business activities, potentially improving overall efficiency and competitiveness.
• Risk transfer: outsourcing certain facility management services can transfer risks and liabilities to the external service provider, reducing the organization’s exposure to issues such as compliance violations or equipment failures.

Choosing Between In-House and Outsourced Facilities Management

The decision between in-house and outsourced facilities management depends on various factors, including:

• Organizational objectives and priorities
• Budgetary constraints and cost considerations
• Available resources and expertise
• Complexity and scale of facility management needs
• Regulatory requirements and compliance considerations
• Desire for control and flexibility versus potential cost savings and access to specialized expertise

Ultimately, organizations should evaluate the pros and cons of each approach in the context of their specific circumstances and strategic goals to determine the most suitable option for managing their facilities effectively. Additionally, some organizations may adopt a hybrid approach, combining elements of both in-house and outsourced facilities management to optimize efficiency and effectiveness.

What Technology Do Facility Managers Use?

Facility managers may use many different types of technology to streamline operations, improve efficiency and enhance decision-making processes. Some key technologies commonly used in facility management include computerized maintenance management systems (CMMS), computer-aided facility management (CAFM), enterprise asset management (EAM) systems and Internet of Things (IoT) sensors.

Each type of technology comes with its own set of benefits, such as: 

Computerized Maintenance Management Systems (CMMS)

• Maintenance planning: A CMMS helps facility managers plan and schedule preventive maintenance tasks, reducing the risk of equipment breakdowns and extending asset lifecycles.
• Work order management: CMMS streamlines work order management processes by allowing facility managers to create, assign and track maintenance tasks efficiently.
• Asset tracking: The best CMMS software provide a centralized repository for tracking assets, including equipment details, maintenance history and warranty information, facilitating better asset management and decision-making.

Computer-Aided Facility Management (CAFM) Software

• Space management: CAFM software enables facility managers to visualize and manage space usage effectively, including floor plans, occupancy data and allocation of resources.
• Facility maintenance: CAFM systems help streamline facility maintenance processes by centralizing information on building assets, maintenance schedules and work orders.
• Resource optimization: By providing insights into space utilization and occupancy patterns, CAFM software helps facility managers optimize resource allocation and improve operational efficiency.

Enterprise Asset Management (EAM) Systems

• Asset lifecycle management: EAM systems support the entire lifecycle of assets, from acquisition and installation to maintenance, repair and disposal, enabling facility managers to maximize asset performance and ROI.
• Predictive maintenance: EAM software leverages data analytics and predictive maintenance algorithms to identify potential equipment failures before they occur, minimizing downtime and optimizing maintenance schedules.
• Compliance management: EAM systems help ensure regulatory compliance by maintaining accurate records of asset inspections, certifications and maintenance activities, reducing the risk of penalties or fines.

Internet of Things (IoT) Sensors

• Real-time monitoring: IoT sensors provide real-time data on various facility parameters such as temperature, humidity, air quality, energy usage and equipment performance, enabling proactive decision-making and rapid response to issues.
• Predictive analytics: By collecting and analyzing data from IoT sensors, facility managers can identify trends, patterns and anomalies to predict potential maintenance needs, optimize energy usage and improve operational efficiency.
• Enhanced safety and security: IoT sensors can be used to monitor security systems, access control and environmental conditions, helping facility managers ensure a safe and secure environment for occupants and assets.

Overall, these technologies empower facility managers with valuable insights, automation capabilities and decision support tools to optimize facility operations, enhance asset performance and improve the overall efficiency and effectiveness of facility management processes. By leveraging facility management software effectively, facility managers can achieve cost savings, minimize downtime and deliver better experiences for building occupants.