Here’s why large companies turning to coworking

Corporate culture, as we know it, has changed; as has the workforce. Millennials, those born between 1981 and 1996, and Gen Z or post-millennials, those born after 1996, make up the bulk of the workforce today, perhaps explaining the rise of the Coworking Space. But is a paradigm shift in employee attitude the only reason why coworking spaces are mushrooming around the world today?

Of course, there are several economic benefits of coworking spaces. First, organizations don’t have to buy expensive real estate in prime locations to build their offices. They can simply rent out coworking spaces according to the number of employees they have. This is, in fact, a great benefit when organizations ramp up their workforce, making rapid expansion an effortless endeavour.

Second, it saves massive costs in terms of interior design, furniture, electricity bills, office equipment, food and beverage, technology and connectivity, etc. Everything that a functional office space needs is taken care of in coworking spaces. The interior design is specially tailored to align with the aesthetic preferences of the young and dynamic workforce, with open-plan layouts, flexible workspaces, collaborative areas, and breakout spaces.

Coworking spaces also prioritize activity areas and informal spaces like cafeterias and lounges when employees can connect socially, and network with employees of other organizations. Another interesting design feature is the generous inclusion of green spaces and indoor plants, a very millennial obsession.

All these features not only make coworking spaces appealing to the workforce but also make excellent business sense for organizations looking to attract the top talent. It also helps that these design and functional features come as a package-deal and organizations do not have to shell out a fortune to curate and maintain them in the long run.

An interesting subset of the coworking-space phenomenon is the rise of women-only spaces. While there was initially some scepticism around the concept, more and more women entrepreneurs, freelancers, and remote workers are benefitting from the niche segment. For too long women have been operating in spaces that aren’t typically designed for them, and women-only coworking spaces present the opportunity for a do-over.

Besides being a safe space for women to work, without the fear of male gaze and judgment, women-only coworking spaces provide necessary but often overlooked amenities like nursing rooms and day-care services for working moms. Additionally, for conservative groups and minority communities, women-only spaces are often a gateway to financial independence and empowerment. The fact that women-only coworking spaces are piquing the interest of venture capitals and increasingly getting picked up for funding is a great sign, validating the movement as much more than a passing trend.

Whether it has a chic warehouse vibe or a soft, feminine aesthetic, well-designed office spaces are known to fuel creativity and improve productivity. They save organizations considerable costs, give employees a sense of community and wellbeing, as well as convenience and flexibility. Clearly, coworking spaces have several benefits that are far too attractive for organizations to pass up on. But, most importantly, coworking spaces resonate with the work ethic of millennial and Gen Z employees, who value collaboration over competition, and actively seek a healthy work-life balance without compromising on efficiency.