By Kristen Herhold
In 2019, there are nearly 19,000 coworking spaces and more than three million coworking employees around the globe. Traditional offices are no longer mandatory for successful companies.
For many, coworking spaces bridge the gap between traditional offices and remote workforces, providing a strong sense of community plus an unparalleled opportunity for growth.
How do you know if a coworking space is right for your business?
In this article, we explore the effects of coworking on businesses and their employees:
- What advantages do coworking spaces provide tenants?
- How do coworking spaces benefits employees?
You can use the information to understand what types of companies use coworking spaces and if leasing a coworking space is right for your business.
Are Coworking Spaces Good for Business?
Growing businesses of all sizes can benefit significantly from coworking spaces.
Businesses with few workers can enjoy a professional environment without the need to invest in or commit to a traditional office space.
Additionally, coworking spaces often provide more features and perks than small office buildings can offer, such as:
- Lounge/break areas
- Private meeting rooms
- Private offices
- Small collaboration rooms
- Recreation area
As businesses grow and expand their workforce, coworking spaces provide employees the opportunity to move from open space areas to cubicles, private offices or suites.
Coworking spaces aren’t just for companies with small workforces, however.
Enterprise-level businesses benefit from flexible environments that allow them to:
- Test partnerships
- Hire new teams
- Provide staff with more flexibility
Coworking spaces provide excellent opportunities for any-size business wanting to grow, test and develop their companies and workforce.
Do Coworking Spaces Benefit Employees?
Coworking spaces offer workers an advantage over work-from-home and remote working situations, according to a study by the University of Michigan, because they offer several benefits:
- Networking opportunities
- Lounge and recreation areas to de-stress
- Strong sense of community
One report by the Harvard Business Review (HBR) states that workers benefit from coworking spaces more than traditional offices.
Claiming improved levels of flexibility and a stronger sense of community, HBR also reports several professional advantages over remote working:
- Sense of professionalism
Workers also benefit from the sense of community present in many coworking spaces.
When working next to employees from other companies, workers enjoy being able to explain who they are and what they do, providing the opportunity to receive positive feedback, which helps build their professional identity.
Many coworking spaces go beyond providing work areas and offer resources for growing businesses and professional development opportunities for employees.
Examples of what a coworking space can offer include:
- Collaborating with in-house experts
- Access to onsite events such as TedX
- Happy hours
Coworking spaces give employees advantages that may be a challenge for companies to offer on their own, including social, community and professional opportunities.
Coworking Spaces Benefit Growing Companies
If your business is new, expanding, or experimenting, a coworking space may help you cut expenses while improving employee productivity and work-life balance.
Each coworking space has a unique layout, personality and culture. Before deciding whether to house your staff in a coworking space, try visiting two or three different spaces to see if one fits well with your vision for the company.
Kristen Herhold is Clutch’s commercial real estate content and research lead. Clutch helps companies make informed decisions about partnering with business services and technology solutions providers.