The Psychology of Space: How Design Shapes Employee Behavior

May 21st, 2025

“Decision makers do not make choices in a vacuum. They make them in an environment where many features, noticed and unnoticed, can influence their decisions. The person who creates that environment is, in our terminology, a choice architect.”

Richard H. Thaler, 2010

Thaler’s concept of choice architecture reminds us that our surroundings can shape our behavior in powerful, often unconscious ways. In the context of office design, this means every decision – from the layout of a space to color selection – can have a profound influence on how we think, act and interact.

In your workspace, the architecture of choice is already at work. The question is whether you’re using it to your advantage.

Why Behavioral Science Belongs in the Workplace

Behavioral science doesn’t demand a wholesale shift in design thinking. It simply asks designers and business leaders to look more closely. Every layout decision, lighting plan, or material palette carries implications for how people feel, think and work.

Informing your workspace strategy with behavioral understanding can create a more effective space. It can foster a culture of intentionality, using employee insights as a foundation to guide their day-to-day experience. The goal isn’t to design for aesthetics alone, but to support those employees in a space that nurtures them.

At a practical level, this requires active listening. While active listening has traditionally fallen under the remit of change management, it has now evolved into a design imperative. Today, it can help bridge behavioral insight with lived experience, creating spaces that deliver for the people who work in them.

Spatial Layout and the Art of Intention

One of the most powerful levers in behavioral design is built architectural layout. Open-plan workspaces, for instance, were initially embraced to encourage collaboration. However, as we discussed in a previous article, they can have a detrimental effect when not designed with intent.

Designing for behavior requires intent.

Let’s take a closer look at what we mean by intentional design. For instance, deliberately placing decentralized seating areas and casual huddle zones near coffee points can foster unplanned collaboration. Similarly, providing high-backed seating, transitional buffer zones and tucked-away quiet areas sends a clear psychological signal that focus is encouraged. Both examples point to how behavior can be gently guided through proximity, adjacency and flow.

Acoustics, Control, and Cognitive Clarity

Noise remains one of the most common sources of workplace dissatisfaction. According to the Leesman Index, over 76% of employees report that poor noise control disrupts their ability to work effectively.

From a psychological perspective, this makes sense. Background noise can increase cognitive load, affecting memory retention and task-switching performance.

Behavioral science points to a solution rooted in the concept of perceived control. When employees have some level of control over their environment – whether by choosing a quieter space, adjusting acoustic settings or scheduling around high-traffic hours – they report significantly greater satisfaction. Your design choices should accommodate this autonomy.

Facilitating cognitive clarity is key. For example, intentional design choices such as acoustic zoning, sound-absorbing materials and retreat areas can act as behavioral enablers, supporting deeper focus and lowering stress.

Materials, Texture and Emotional Influence

The tactile experience of space can also exert an effect on mood and cognition. Studies have shown that natural materials like timber are linked with lower heart rates and increased parasympathetic nervous system activation, supporting relaxation and openness to collaboration.

Beyond comfort, these sensory cues signal the culture of the company. A workspace outfitted in cold, reflective materials might evoke sterility or precision, while one layered with texture and warmth could suggest creativity, hospitality or human-centeredness.

In either case, the materials you choose can speak volumes about what behaviors are expected, supported or discouraged.

Lighting and the Circadian Conversation

Lighting design may be one of the most underappreciated behavioral design strategies. The influence of light on circadian rhythms is well documented, and workplaces that leverage daylight can dramatically improve their employees’ energy levels, sleep quality and focus during work hours.

Behaviorally, lighting also steers interaction. Brighter, cooler light can stimulate alertness and task-oriented behavior, while warmer, lower light may invite casual conversation or reflective work.

Consider lighting as a psychological cue: one that can be adjusted zone-by-zone, depending on the behaviors you want to promote.

Color Psychology and Cognitive Framing

Color is one of the most instinctive tools in the behavioral designer’s toolkit. According to research published in the National Library of Medicine, specific color environments can influence behavior, memory recall and decision-making.

For example, blues are known to support concentration and analytical thinking, while warmer tones such as red and orange can elevate energy and drive.

The key is moderation. Overstimulation can be counterproductive, especially in environments intended for extended periods of focus. Strategic use of color – through furnishings, accent walls, and zoning – can clarify a space’s purpose without overwhelming it.

Bring Behavioral Insight Into Your Next Workspace

If you’re ready to move beyond aesthetics and create a workplace that truly supports how your people think, feel and work, our consultants can help. Formcraft’s team brings behavioral insight into every stage of the process – from early strategy to final delivery – helping you design a space that engages your teams, strengthens culture, and drives performance. Speak to us today about how you can apply the science of human behavior to your next workspace.