Reasons why larger corporations are moving into coworking spaces

reasons why larger corporations are moving into coworking spaces

When people started finding out the ways for making their business more profitable, the major cost-cutting was found to be made possible in the leases of their office space.

Rents, office amenities all were found to be much more expensive and didn’t find a way of returns, which is why the startups and businesses that started opting for coworking spaces.

While the notion that the coworking spaces are only to be used by digital nomads, freelancers, and startups are breaking on its own, the widespread usage of coworking spaces by large enterprises has been noticed widely. coworking in HSR Layout is being loved by the large enterprises for the advantage it has over leased office space or owning a space of their own. 

It has been said that 14% of the corporates use coworking space regularly.

15% of the workers are not satisfied with their working environment, which forces them to seek out other alternatives like coworking spaces.

25% of the income for the coworking spaces are coming from companies that have more than 10,000 employees.

The layout of offices has been undergoing constant changes over the past decades and the corporate world has accepted the people-centric designs to be more powerful in bringing out the best in their workers. 

Reasons why large enterprises choose coworking spaces

The innovation factor

The growth factor is always dependent on the input and resources. After you give a certain input, the growth improves and it reaches a state of saturation after a point of time. Variations brought in the input can only bring a peak from the saturated state.

The same happens in a company too. Changes and innovations are the inevitable factors for a company that has already grown and established.

Usually, large companies have their way of getting things done and the routine is stuck with the places they work too.

Coworking spaces have strong entrepreneurial energy that gives companies new ideas, innovative motivation, etc by knowing Millennials, and the Z-generation at the closest.

The collaborative nature of coworking spaces helps the corporates in this.

Productivity scale increases

When employees of corporations work in coworking space, it gives them the added advantage of working in a more productive mode than in the normal office spaces.

This is due to the productivity-oriented design and architecture of coworking spaces in contrast to the traditional office spaces.

Also, having a relatively less queue at the printer and cafeteria will keep employees more calm and cool, making them fall in love with the amenities they get at their coworking space.

The increased remote worker culture

A large enterprise deciding to expand to a new city or to have extra resources from different places do not often want them to work in their own offices now.

The large companies being able to negotiate the remote working for the real talents have brought them to a situation to promote people working outside the traditional office building.

Such remote workers, or the prior office camp set up before expansion, or even a whole sister ranch itself are loaded at a coworking space as a part of the corporate business to bring order and discipline to the work they do even when they are far from the office building. Co-working space in Pune provides them with the standards their employees must work to meet the high functional speed and capabilities at which the rest of the company works.

The cost-effectiveness corporates only can deal

Coworking spaces indeed save around 20-40% of the costs when it comes to using them instead of an office. But, most of the corporates have their buildings and their own sophisticated offices, which at times might be saturated to accommodate new employees.

Especially, when the employees have to work from places other than the company offices, they can rely on the coworking spaces, and they will not even have to pay for that by providing the coworking spaces with the products and services corporates render.

It is nothing, but symbiosis, a relation that can only be made possible by the corporates, whereas SMEs would find it difficult to provide the services for the coworking spaces at this scale.

Dynamics in the corporate business

Business always involves changes and the businessmen must keep up with the trend and changes that happen in the respective field.

And, as a part of this, expansion is quite frequent and impromptu. Eg: a Research and development team might be summoned suddenly and might need to work as soon as possible.

Coworking spaces might be the best option for this, as they need not be sufficiently within the office premises unless required, and be provided with a more productive and capable environment to work.

Marketing and accounting benefits

A company headquartered at a place, if found to have a customer base in another country, might find it difficult in setting up the office in a speck of time.

Also, the trending fluctuations are easily captured by the corporates than anyone else at the fastest. The same fluctuations and trends will also reflect in the real estate market, which makes it difficult for corporates to take over space for an office.

Coworking spaces do not put the corporates in this difficulty and they can take up the spaces that they already have a connection with, or with the place, they find suitable for their works.

Also, with the land on lease, the budget and accounting must include the land lease for 1 year, (as it comes under the long term) under the liabilities of the company.

Coworking spaces provide you with the pay as you go facility, due to the short term lease, making it easier on their balance sheet too.

Benefits for the corporates from coworking spaces

  • The difference from the monochromatic office lives can bring more colorful impacts on the efforts the workers put in.
  • The hidden talents and more inclusivity will be made sure when workers work from coworking spaces.
  • The engagement factor would be more improving the morale among the workers to work for the corporate company.
  • Amenities at the coworking spaces will match the requirements they want, and that too, in the most cost-effective way possible.
  • Branding and customizations to your working space and working style.
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