The Era Of Coworking: Why Are Big Corporations Moving In Coworking Spaces?
Updated October 6, 2023
Originally, coworking spaces were created for freelancers, start-ups and small businesses, however, now it is larger companies that make up the majority of coworking clients. An increasing number of corporate clients are looking at flexible workspaces as an alternative to their offices. What is the phenomenon of coworking spaces in the 21st century, and why flexible offices are attracting big corporations, we are going to explain in this article.
Certainly, the impact of the pandemic on the development of coworking spaces is worth noting. Nevertheless, the demand continues to grow even after the pandemic, driven largely by the spread of built-to-suit office coworking, whereby the coworking space is designed specifically for the particular company. Therefore, let’s try to look at the reasons behind the move of big business into coworking spaces, determined not only by the current context, but also by the global trends in the labor market.
1. Minimum investment
The larger the company is, the more employees there are and the greater is the need for office space, that means higher expenses. Coworking prevents unnecessary expenses, since flexible office space is already set up with maintenance already being included in the cost, thereby saving on personnel costs. Expenses related to technology replacement, cosmetic repairs and office maintenance are also eliminated.
One of the biggest advantages of coworking spaces for large businesses is definitely flexibility. Instead of paying for meters, the owner pays for the number of workstations. This way, when an employee goes on holiday or quits the job, there is no need to pay for their space. In times of economic instability, it is often necessary to downsize projects, reduce the number of staff or move some employees to remote locations, which makes it very sensible to replace the office with a collaborative workspace. Workspaces can be quickly reduced or added in a coworking space, whereas in an office, changing leases can take months.
Every large company aims to expand internationally and to have several locations in different parts of the world. Therefore, in the process of exploring new markets and relocating employees, coworking spaces come in handy. With technology development, it is now possible to register on the website of coworking spaces and find them across the globe with the option of renting space whenever you need it.
4. Project based management
In large companies, particularly those operating in the digital sector, project teams and project-oriented recruitment are becoming increasingly common, making it possible to work more flexibly, reduce costs and be more efficient overall. Therefore, coworking spaces are perfectly suitable for such temporary project teams.
5. The development of digital technologies
The development of digital communication tools for remote work, messengers, video call apps and time tracking systems have also helped large companies to move into coworking spaces. Now the number of people working in the office isn’t equal to the total number of employees in the company, and many specialists prefer to work in a mixed format and come into the office only once or twice a week.
6. The millennial generation
Today, the millennial generation is becoming the world’s main workforce. Their behavioral profile can be characterized by a desire for mobility and flexibility, a search for work-life balance, as well as the rise of the ‘digital nomads’ movement, within the new generation making coworking centers a good fit.
7. Coworking as a space for inspiration
The target audience of coworking spaces differs in many ways from classic workplaces because of their informal surroundings and space for free thinking. Having an inspiring environment, networking opportunities and an informal atmosphere among people with a common vision is an essential value for modern large companies. This is why there is an increasing tendency for companies to form their office as a coworking space where employees from different departments can easily gather and exchange ideas.
Offices are no longer just a place to work; they need to fit a person’s working principles and needs, to be a comfortable and cozy place to meet, to collaborate and to generate new ideas. For this reason, coworking spaces are an ideal match for this concept.