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Why Large Companies Are Turning to Co-Working?

A few years ago, entrepreneurs used to go broke by paying their recurrent high office rents. It is not a surprise that so many businesses have to shut down due to the lack of adequate office spacing. However, with the emergence of coworking office spaces, the idea of renting and fully equipping an office appeared futile to many business owners.

According to the Global Coworking Unconference Conference (GCUC), the number of co-working spaces is estimated to double in the year 2022. High-profile giants like Microsoft and IBM have pledged millions of dollars in co-working office spaces. Major corporations of the world like Salesforce, Facebook, and Starbucks are investing in a coworking space provider like WeWork or FoundersBei.

The transition from the traditional offices to co-working spaces throve right under our nose, but it did not happen in the nick of time. There is valid evidence behind the increase in productivity of offices over the past years due to a marginal shift to coworking spaces, and we can help you understand it.

Monetary Budget

If you can envision it, you can create it. The believers in this ideology weren't interested in the excuse of neglecting a brilliant startup idea due to the lack of funds. The first entrepreneurs who shifted to co-working were either startups or freelancers. The main advantage that co-working spaces provided these individuals is a relaxation from the tension of having a huge budget. To begin operations in a coworking space, companies only required membership and they could share mutual resources.

How it helped large companies?

From the viewpoint of Multinational Corporations (MNCs), who hire thousands of employees, it was beneficial for them to invest in an office space of mutual resources. They could not only save hundreds of thousands of dollars on utilities but also provide their employees with easy access to highly-productive offices. Let's take the example of Microsoft who adapted, and understood the concept of coworking very well. According to a deal between Microsoft and WeWork, Microsoft is providing a substantial discount on Office 365 to WeWork in exchange for access to 30 coworking spaces for its 300 sales employees. As a result, now Microsoft's sales employees have a choice between 30 corporate offices all-around New York City. They can select the office they think is the best from a business perspective, and Microsoft saved a hefty sum on office spaces. As per info by the famous business magazine Inc., Microsoft is even providing WeWork memberships to its 3,000 employees.

Flexibility and Community

In a traditional office, there are some regulations that employees have to follow. In a frank manner, you can conclude that there is no employee in this world, who has never complained of having a hectic schedule. When co-working spaces were on the rise, the flexibility they provided tempted freelancers, and entrepreneurs a lot. Not to mention, the chance to analyze the workflow of already established companies helped them improve their business intelligence.

How this helped large companies?

To understand how co-working spaces surged the productivity of large companies, we need to understand the importance of business connections and flexibility for them.

For solo working freelancers, flexibility might mean freedom of time and the opportunity to be their own boss. For business giants, this flexibility is a broad term. It can be challenging to manage a whole workforce of employees, but when working in coworking spaces, companies can deploy small teams. These teams might work distantly, and not require any support in operating, but the managerial authority can still exert its control anytime.

With the availability of co-working spaces, large companies can also be flexible in deploying their employees across the globe without making discernible cuts in their budget. It is a better option to increase their geographical field without buying or renting any fully-equipped offices.

In the communal prospects, every company requires more connections, so do employees. Working in coworking spaces provides companies a chance to form friendly relations with other firms and companies. Their employees get an opportunity to interact with people of experience and develop psychologically. The companies who provide the option to work from home, find it more suitable to send their employees in coworking spaces where they can work free from distractions. They can be a part of a unique business community that is different from the office-environment of the employee company. This distraction-free environment full of people with all sorts of experiences and the business intelligence of different companies fosters better growth and productivity.

The economic benefits and increased productivity due to the reasons mentioned above are the all-inclusive factors behind the preference of large companies to coworking spaces. In any prospect, whether to establish a name, welcome higher profits, or spread across the globe, coworking spaces are a much better option.

                                                                                                                             Pooja Pooja

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