Once solely used by freelancers and startups, coworking spaces have become the go-to work space for individuals and corporations alike. Even industry giants such as Heineken, Pepsi and Microsoft are making a shift from private offices in favour of coworking spaces. And not without good reason; coworking spaces are proven to encourage productivity and motivation, leading to more successful and profitable businesses.
With coworking spaces delivering better results than traditional offices for businesses of all sizes, we’re looking at the factors that are driving corporations away from their offices and into coworking spaces.
- Collaboration and innovation in relation to business growth
Coworking spaces are designed with collaboration in mind. Instead of stuffy cubicles, closed doors and desk separators, users are encouraged to sit around desks together and engage with one another. This allows individuals from different sectors to interact and offer advice or support on projects. Engaging with other successful businesses and entrepreneurs can lead to your business’s next innovative idea.
The social element of coworking is fantastic for networking. After all, you never know who the person you are sat next to could be. You can make invaluable industry connections that can grow your business. Even better, if you ever need a service that’s outside of your business’s expertise, you can hire someone from within your coworking space and make outsourcing much more simple and time efficient.
Coworking spaces are often centrally located in city centres and close to public transport. This means you can host meetings or entertain clients in an easily reached, professional setting rather than trying to direct clients to a private office space that is located out of town or a city cafe.
- Overhead costs
Using coworking spaces greatly cuts your business’s overhead costs. You pay an all-in-one charge to cover your office space and all amenities for as long as you need them. You aren’t tied into an expensive, long-term contract and don’t need to worry about additional fees such as utilities, internet, purchasing computers or buying specialised technologies. When you don’t need to use an office space, you simply don’t have to pay, which greatly reduces your overall costs.
Carrying on from that last point, coworking spaces also offer you much more flexibility. If you find that your business is likely to need office space in one city for a few weeks, you can simply book your space, and then when your contract is up or your business needs to relocate, you can pick up and move on, no questions asked. It gives you the freedom to follow the money, so to speak, and place your business in the most profitable, central location rather than being tied to one city. On top of that, you can rent a coworking space to send a team that are going to be out of town for a while to ensure that their productivity isn’t affected.
- Productivity rate
Studies have shown that coworking spaces make individuals more productive. This is because they are surrounded by other successful entrepreneurs, which acts as an incredible motivating factor. For a corporation, higher rates of motivation among individual employees can dramatically increase the business’s overall productivity and make the business more profitable.
- The environment
More and more corporations are trying to reduce their carbon footprint, and coworking spaces are a fantastic way to do so. Coworking spaces are more economical in terms of physical space and utility bills so contribute less to environmental damages than individual offices. However, some coworking spaces are more eco-friendly than others as every coworking space develops its own values and culture. For example, CoCoon in Hong Kong value sustainability greatly. If sustainability is a core value of a business, then features like commercial solar panels may be of importance to some corporations more than others.
- Work environment
Employees respond well to external stimuli. If employees work in a pleasant environment, they are more likely to feel positive about their job, and therefore be more motivated and engaged. Coworking spaces provide affordable, attractive office space that can contribute to employee happiness. As well as that, coworking spaces are often free from the workplace dramas that can develop in a single-use office. This means they are a more pleasant place to work and employees can concentrate more on their work instead of being distracted by the latest office gossip.
- Private office space pitfalls
Perhaps one of the biggest factors driving corporations to coworking is the ease of it all. When corporations use traditional offices, they are typically in charge of maintaining and repairing the condition of the office and equipment. If something goes wrong, the corporation needs to fix it. This uses up human resources that can be put to better use and often, repairs come with a costly price tag. With a coworking space, there’s a designated office manager to take care of the problem, meaning your employees can get on with their work.