No Comments

Top 9 Reasons Why Corporate Companies Choose Shared Offices

Top 9 Reasons Why Corporate Companies Choose Shared Offices

The rise of flexible workspaces that we see today had been predicted by experts years ago. The higher adaptability towards shared spaces by emerging businesses is seen in many regions globally. According to the latest reports, the Asia Pacific region leads in the number of coworking spaces

 Shared workspaces not just simplify the way we work but also impact the way companies invest. The aim of digitization in any field is to cut down the physical aspect of things- space, objects, and manpower. The new age-shared workspaces are successfully meeting this requirement of the growing workforce.

As companies are planning to go as cost-efficient as possible while also keeping employee happiness at the forefront, shared workspaces are now emerging as a go-to option. 

There are many ways in which coworking spaces benefit companies, however, we have listed the top reasons why companies choose flexible/shared workspaces over traditional offices. If you are a business owner, read on to know whether this kind of workspace will work for you or not. 

  1. Highly cost-efficient 

For any company, the biggest investment falls into physical space and the cost of maintaining it with manpower. When you opt for a shared working space, the biggest advantage is that it reduces liabilities in terms of space cost and manpower to manage various facilities like the cafeteria, IT support, parking, administration, etc. 

There are almost no extra charges to be incurred for maintenance and additional services. The contracts are short-term and can be terminated in a much easier manner. Also, in case there’s a temporary extension of the workforce, this model works best. Notably, there are no long-term contracts or penalties for early termination. 

  • Flexibility

As there are multiple shared spaces like the meeting rooms, conference rooms, cafeteria, parking, lounges, there is a lot of flexibility for employees. They have the freedom to choose to work in privacy or a space that lets them be with others. For example, work as you lounge in the cafeteria with a cup of coffee. 

Switching to new places like the lounge for work can be a positive distraction. It helps employees to get rid of a monotonous environment. It can also be a productivity booster. 

  • Optimum usage of space

In a traditional office, often there are spaces that are underused or equipment that lie useless after a certain time. However, all this still adds to the cost of the company. Often, there are meeting rooms that are underused and alteration of any kind is an additional cost. 

On the other hand, in shared spaces, you only pay for the space you use. You can add or reduce spaces when required as your team grows. Since, meeting rooms, conference halls, cafeteria, parking, and lounges are shared spaces, there’s no additional uncontrolled expenditure. 

  • Expand your network

It’s rightly said that in today’s age, one’s network is their biggest strength. In coworking spaces, people working under the same roof, get the opportunity to interact and network amongst themselves. This opens up new opportunities to collaborate, explore possibilities of business expansion, and much more. This is a crucial benefit for not just companies but employees who look for their career expansion. For teams like sales and marketing, this is a huge plus point as they are always looking to expand their connections. 

  • Direct impact on employee productivity

The most important strategy behind the designing of shared offices is to create an extremely likable place which also adds to the motivation and productivity of employees. Factors like lighting, fresh air, creatively stimulating colors, and designs- are all taken into consideration. Therefore, employees of all ages often find these spaces productivity-enhancing. 

In addition, facilities like the cafeteria, printers/xeroxes, and housekeeping are mostly up to date about which companies don’t have to worry about. These up-to-date facilities help employees and management to just focus on work and stay productive. 

  • Attract top talent

A major number of employees in leading companies are millennials. They have high adaptability towards digitization and prefer the vibrant ambiance of coworking spaces. In fact, reportedly millennials choose companies according to what they offer in terms of office space. And so having great facilities and ambiance as in shared spaces contribute to employer branding and help in attracting as well as retaining talent. 

  • Highly suitable for GenZ entrepreneurs

There’s a rising startup culture among the millennials which also means they need the freedom to experiment. Investing minimum and flexibly in working spaces lets them focus on growth solely. Freelancing, solopreneurship, and remote working is also quite popular amongst this generation, all of which require lots of financial flexibility that are not provided by traditional workspaces. For these reasons, shared spaces are the first choice of millennial entrepreneurs. 

  • Avoid the risk of long term contracts

In traditional office spaces, there are lease contracts that are mostly long-term and in case of early termination, the company has to pay a penalty to the property owner. This can be a huge loss especially in a crisis like the pandemic when physical offices became a liability for most companies. For a company in the early growth stage, this is highly undesirable. 

  • Lesser stress and higher work-life balance

In large-scaled shared workspaces, there are numerous opportunities created for employees to zone out from work in a healthy way. There are recreational activities, team building, and training programs, also gyming and board games to let oneself loose and enjoy. This reduces work stress and gives employees reasons to bond over things other than work. In turn, this boosts work-life balance. 

Conclusion: 

Amidst all these benefits, there are also a few drawbacks. When companies have their own office, there is immense scope for branding and imbibing a sense of belongingness among employees. Whereas, in shared spaces, this bonding and belongingness are missing. To add to it, if the workforce is seated in a scattered way (which happens at times), employees can feel misaligned and distracted. 

However, looking at the brighter side, with digitization, we need fewer people at places like the cafeteria, visitor management desk, parking area, etc. An occurrence like the pandemic has sped up digital adoption. Owing to these, more and more companies are choosing flexible workspaces over traditional offices. 

Comments (0)