Large Companies Follow the Trend towards Coworking Spaces

Coworking spaces may have been largely the domain of freelancers, start-ups and remote workers since their inception in 2005, but big business has finally cottoned on. The number of coworking spaces available globally rose from a meagre 8,900 in 2015 to a healthy 26,300 in 2020. A massive increase of 158% is expected by 2024. Much of this is coming from large companies exploring ways to provide flexible work arrangements for staff and seek new opportunities for collaboration and innovation

Caption: Coworking spaces are delivering opportunities for collaboration, innovation and flexibility to employees of big businesses (Photo by Lala Azizli on Unsplash)

Big brands are using coworking spaces

Professionals from all walks of life have utilized coworking spaces for more than a decade. Thanks to the global pandemic and a push for more flexibility from employees, large companies such as Microsoft, Alibaba and Samsung Electronics are among some of the big brands turning to coworking space solutions.

While tech businesses are certainly more likely to utilize these sorts of resources, Gensler, the workplace research institute, found advisory and management services, finance, and media businesses were also increasing their use of coworking spaces. Price, flexible working solutions and the opportunity to interact with upcoming innovative start-ups are among the reasons these brands are moving away from traditional corporate office facilities.

Increasing productivity

In many cases, coworking spaces are being used as an alternative workspace rather than the primary place of work. By providing this choice to employees, businesses are seeing productivity across their workforce increase. Interestingly, the increase does not directly correlate to the time spent in coworkspaces, simply providing access to them appears to be the key.

Reducing overheads

One of the top benefits of plug and play workspaces is the instant infrastructure they come with. Employees simply need to power up their computers and log into established internet and cloud-based systems to get to work. Businesses don’t need to concern themselves with utility bills, facilities management or furniture expenses – the coworking space proprietor takes care of the details and costs, reducing overheads dramatically and delivering savings directly into the hands of businesses. Facilities are billed on a weekly or monthly basis and charged on usage. The average cost of coworkspace desks on Australia’s east coast in 2019 was around $600 per month.

Flexibility and innovation

If innovation is key to growth, flexibility is vital for employee satisfaction. Large companies are satisfying both needs with coworking spaces. Employees are able to attain a better work/life balance by choosing working spaces closer to home, or social engagements outside workhours. While doing so they are often working alongside budding entrepreneurs and innovators. The subsequent collaboration and relationships that are forged deliver an advantage to large businesses with opportunities to acquire disruptive ideas and technologies. It’s an undeniable win/win for big brands.

Since the pandemic disrupted the traditional 9 – 5 office life, there has been an increase in interest and a shift towards shared workspaces. Longer term contracts for corporations looking to downsize central office locations and move towards a hub and spoke arrangement in support of flexible and hybrid working arrangements are also on the rise. The shift in working behaviour initiated by COVID-19 is only set to spread.

Get in touch to take advantage of WerkedgE facilities today.