Why Big Corporations Are Moving into Coworking Spaces
Before the pandemic hit, businesses of all shapes and sizes were adopting coworking space. And while many believe coworking space is solely a phenomenon for solopreneurs and small businesses, the data shows that isn’t necessarily the case. Over one-third of workers in coworking space are corporate workers. 14% of corporate workers use coworking space regularly. Nearly a half of corporate workers indicate they would consider working from a coworking space nearer to their home provided by their company a few days a week—versus a permanent office location.
Hybrid Work and Coworking Space
As corporations adapt to the new pandemic normal, many are embracing hybrid work arrangements. In an interview with CNBC, JPMorgan’s COO indicated that he saw zero percent chance of 100% of people going back to the office 100% of the time. Some of it is being driven by actual workers who are concerned about safety (71%) and reduced flexibility (78%). Businesses also see significant benefits from hybrid work scenarios—from increased worker productivity to lower capital expenditures tied to real-estate leases. In this instances, coworking space is certain to play an important role.
Reasons Big Corporations Are Using Coworking Space
Following are some of the key reasons big corporations are turning to coworking space:
Lower Real Estate Costs
Real estate for large companies incurs a lot of cost. Many businesses closed their offices during COVID-19 and their workers shifted to working at home for the past year. One recent study revealed that 68% of large companies plan to downsize their office space once they reopen. Another study of Fortune 500 CEOs found that 74% of them expect to reduce their office space. But this doesn’t mean that workers will be able to go without professional workspace. On-demand coworking space is a great alternative, as much as 20% to 40% less costly.
Coworking space is full of entrepreneurs with great business ideas. Having corporate workers in the same coworking space creates opportunities for ideation and innovation. The social and collaborative element of coworking space makes it possible to have productivity interactions with startups and entrepreneurs with industry-changing ideas.
Recruit New and Top Talent
It can be hard to recruit to talent. Big corporations can vet and hire talent in a coworking space. They can also identify and assess startups—both their people and technology—and target those that make sense for acquisition. Plus, with the majority of workers indicating they do not want to commute to and sit in a permanent workspace five days a week, coworking space gives big corporations the ability to get employees together once or twice a week with other team members.
Improve Worker Productivity
Work productivity for employees working from home increased during the pandemic—both the number of hours worked and the efficiency of work. Some cracks appeared earlier this year, indicating that some employees need some in-person interaction with other professionals and colleagues. Some workers are more motivated when they see others working hard and generating great ideas. A coworking space is a great option—even if employees go there once a week.
Many employees are not enthralled with the idea of returning to a big corporate office—from the time spent commuting to the regular interruptions that typically come with a permanent, big office. For those corporations that are attempting to force their employees back into the office to pre-pandemic arrangement, they are experiencing significant pushback from workers. The flexibility they experienced while working from home during the pandemic is something they do not want to lose when the pandemic finally dissipates.
Tackle New Projects
Skunkworks projects and other critical initiatives in big corporations typically involve numerous departments and teams. They may even include contractors and third-party vendors. In these instances, reserving and managing corporate space before COVID-19 was already overly complex. Coworking space—along with the option of rented meeting rooms—reduces these complexities and the time, effort, and resources needed for the project.
Expanding into new regions or geographies can be expensive and time consuming for a big corporation. One of the reasons is that permanent office space is difficult to find and expensive to procure. Coworking space can be discovered and booked in a matter of a few minutes. Plus, the worry of managing visitors, office supplies, internet service, video conferencing, and much more is offloaded to the coworking space provider.
Use of Coworking Space by Big Corporations Expected to Grow
Even before the pandemic, coworking space through providers like Davinci Meeting Rooms was delivering great business outcomes for more than just freelancers, startups, and small businesses. Big corporations were a significant user of coworking space, and experts believe their adoption rates will grow post-pandemic. Workers like the flexibility coworking space affords, and businesses see significant positive benefits as well.