Coworking space is well-known for the various benefits it provides to a company’s culture and work environment. However, flexible office space creates advantages that reach far beyond improved culture and camaraderie. In fact, even those traits viewed as qualitative benefits like an improved employee experience and better engagement have a big impact on a company’s financials also .
Coworking space gives companies a good range of advantages that traditional office space cannot match, first and foremost on their financial statements. We’re getting to take a better check out seven key economic benefits of coworking space that folks love and see how they positively affect a company’s top-line performance and productivity.
1. Flexibility & Scalability
A dynamic business environment means companies need the power to flex with the marketplace. Coworking space provides that flexibility with terms starting from month-to-month to 2 years long . Companies can use that flexibility to expand and contract as required without a long-term lease constraining them. For rapidly growing companies, this flexibility also means they will quickly scale, ready to easily pivot to larger space, or maybe enter new markets without the barriers to entry caused by cumbersome traditional leases.
2. Fees
Fees during a coworking space are often significantly less than a standard lease during a comparable space. Of course, the quantity of savings depends on factors just like the length of agreement and number of desks but, for the foremost part, companies should expect to pay less. Ancillary costs in traditional office space like moving expenses, furniture, utilities, a high-speed internet connection, maintenance, et al. only amplify the savings with coworking space. Together, these different cost efficiencies make upscale locations attainable for enterprises that would not otherwise afford them.
3. Community
The sense of community within coworking spaces provides a measurable economic benefit for companies in several ways. First, sharing space with other companies, often from a spread of industries, drives an innovative spirit. It helps employees think and consider concepts from different angles that, when funneled into operations, can drive growth. Also, simply being near other organizations increases networking opportunities also as potential strategic alliances with like-minded companies.
4. Collaboration
A direct product of community, collaboration features a way of providing an energy and spark to an office and its employees. instead of the sometimes narrow mindsets of a siloed team, a collaborative environment boosts people’s engagement with both their work and coworkers. consistent with recent research, highly engaged teams display over 40% less absenteeism and 17% higher productivity than non-engaged teams. Naturally, both of those statistics speak well of coworking spaces and their inherently collaborative environments.
Highly engaged teams display over 40% less absenteeism and 17% higher productivity.
5. Furnishings
Many companies overlook or underestimate the economic impact of furnishing office space. the typical startup spends $21,000 on office interiors, including furniture and decor. For smaller teams, startups, and bootstrapped enterprises, such an expense can have a big effect on their income . That’s money better spent on operations, talent, technology, or any number of other areas. Since coworking spaces come fully furnished, that’s one less worry and expense that a corporation must address when occupation .
6. Amenities
Coworking spaces provide a variety of amenities that help drive everything from employee satisfaction to streamlined operations. Some are more employee perks like an onsite cafe serving locally brewed coffee, beer on tap, kitchen facilities, and exercise equipment, but others help make a corporation more productive and effective. as an example , soundproof phone booths are often a definite advantage for a salesman that relies on phones to follow-up on leads. Amenities like meeting rooms wired for video conferencing, printing facilities, and a receptionist all help make a corporation more efficient and, therefore, more productive. Also, given the recognition of the many common amenities, they will be a valuable tool in both attracting and retaining key talent.
7. Event Space
An amenity in its title , event space is another often overlooked benefit to coworking spaces that enterprises can use to their advantage. Having a delegated space within the property which will function an outsized room for bigger meetings and gatherings are often a big advantage that traditional leased office space doesn’t afford. apart from housing conferences and meetings, companies also use such spaces for networking events, customer appreciation events, and office parties for special occasions. All of those examples correlate with potential improvements in top-line performance, either directly or through greater employee satisfaction and engagement.