Why People Thrive in Coworking Spaces
Like many business segments, coworking space experienced its share of economic turmoil during the pandemic. With remote work-from-home arrangements widespread for solopreneurs to large businesses, one would assume that pre-pandemic coworking space growth rates slowed. Leading up to 2020, coworking space was growing at an annual rate of 20%.
Coworking Space Growth Accelerates Coming Out of the Pandemic
All of the pandemic factors aside, the latest data indicates the amount of coworking spaces will still grow 2.21% in 2021. With many businesses selling or cancelling leashes for workspace real estate and opting for hybrid workplace environments, the future of coworking space has turned very rosy. One recent study forecasts a compound annual growth rate (CAGR) of 12% through 2025.
The vast majority of the workforce does not want to return to fixed workspace arrangements five days a week, eight hours a day. A study conducted by Flexjobs earlier this year found that almost two-third of workers indicate they want to keep working from home, and 58% of them revealed they will look for a new job if they are promoted to return to the office.
Coworking Space in a Hybrid Workplace Model
But while a very small percentage of these workers will work from home all of the time, most of them will adopt what is known as the hybrid workplace. Some workers may spend most of their time working remotely. Others may work remotely a few days a week, and others will spend the remainder of the week. Some organizations have retrofitted—or are in the process of doing so—their offices for this hybrid workplace model. Others see on-demand coworking space as a better option. And there are veritable reasons that include lower capital expenses, collaborative innovation, and enhanced productivity.
Why Workers Thrive in Coworking Spaces
Coworking spaces are viewed positively by most workers. One study found that workers thrive at a rate of 6% to 7% higher in coworking space than usual workspaces. There are a number of reasons professionals and businesses thrive in coworking space environments.
Workspace and Schedule Flexibility
Professionals and businesses are not tied to one location for work with coworking spaces. They can work from home some days, and from a coworking space the rest of the time. And they aren’t tied to one coworking space—they can shift between coworking spaces based on proximity for team members, clients, and meetings. Additionally, coworking space extends flexibility when it comes to work schedule—no more fixed 9-to-5 workdays that impede work-life balance. Research shows that only 30% of professionals prefer to work only between 9 and 5.
Enhanced Network Opportunities
Expanding and building networks and interacting with other professionals is important for career growth. For professionals stuck in a permanent corporate workspace, networking is limited to digital channels or after-hour events. But for those in a coworking space, networking is something that happens throughout the workday.
More Creativity and Innovation
Sitting in the same workspace day after day can inhibit out-of-the-box thinking and creativity. Workers can even become disillusioned and struggle to remain focused and motivated. In contrast, coworking space provides workspace variation and peer interactions that foster collaborative innovation.
Improved Work-Life Balance
Coworking space offers professionals better work-life balance. Greater flexibility in managing work schedules enables them to exercise, attend to their children, and take care of aging parents. They also are less likely to work extended hours, as often happens in permanent workspace arrangements. All of this contributes to improved health; 70% of professionals working in coworking space indicate they feel healthier than when working in traditional workplaces.
Professionals are more productive working from coworking spaces than at home and permanent workplaces. They minimize distractions and give workers a workspace from which they can work at their convenience rather than 9 to 5. Nearly two-thirds of workers indicate they are better able to complete tasks on time versus when working from a coworking space.
The opportunity to network with other professionals and tap them for guidance in areas where they excel can help professionals hone their skills and learn new ones. For example, a recent study found that 69% of professionals in a coworking space said they have been able to acquire new skillsets, while 68% indicated they were able to acquire new skills.
While working from home has numerous positive outcomes, some professionals suffer loneliness that can create unproductivity and lead to burnout. About one out of five remote workers cite loneliness as a challenge. To counteract these issues, professionals and businesses need to ensure they have the right technologies in place that reduce isolation and promote collaboration. This is where coworking spaces can play a role, with workers spending most of the week working from their home office but one or two days in a coworking space where the boundaries of isolation are removed.
Thriving in Coworking Space
It will take some time for solopreneurs and businesses to sort through the dynamics of work in a post-pandemic environment where the virus remains a threat. One of the certainties is the fact that coworking spaces, which can be procured through Davinci Meeting Rooms, will continue to grow in numbers and utilization. With many embracing hybrid work arrangements, coworking spaces offer numerous benefits. And when compared to the cost of a permanent workspace, on-demand coworking space creates business advantages that are difficult to ignore.