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The Economics of In-Firm Coworking

As I have suggested recently, the key drivers behind the growth of corporate coworking have been for the most part real estate drivers. The economics of this simply make sense, despite the skeptics. If one looks only narrowly at the price per square foot for a workstation in a private office in a coworking space (such as WeWork), the ‘cost’ of coworking at first appears astronomical. With a closer look, though, the math of coworking is quite interesting.

Some Comparisons

Consider, for example, a market where the price per sq ft for Class A office space is $45/yr. If we use a total sq ft per worker of 183 sq ft (much smaller than even a decade ago when it was closer to 250-300 sq ft), this comes to a per worker/yr cost of $8,235. Note that this is inclusive of the common spaces allotted per person, assuming an actual workstation footprint of between 80-100 sq ft.

By contrast, in the same market, the per month membership fee at a WeWork will range from $700/mo/person (for a 1 person office) to as low as $450/mo/person in a larger office with 8 or 10 people. Using an average of $575/mo/person, the annual cost of that worker is $6,900.

If one focuses, as some coworking critics do, on the cost per sq ft of just the workstations within a WeWork, there is indeed a potential for sticker shock. If one is looking at a 1 person office at a WeWork, the price per sq ft can reach as high as $180 sq ft. But this is precisely the wrong way to look at it, as it is more or less comparing apples and oranges.

The Coworking Disruption

Among other disruptions around the social norms of sharing workspaces with people from different companies, coworking is also consistently putting pressure on the size of the footprint per workstation across the office industry. In some coworking spaces, a workstation can fit within 40 sq ft, which is a half or a third of a workstation footprint even in a dense open-plan office (not to mention the massive amount of sq ft allotted in yesterday’s corner offices).

Workstations in conventional corporate offices are slowly shrinking in this era of the shared workspace, yet there is still a norm/practice of lavishing massive amounts of (often underutilized) space on knowledge workers. This is due, in large part, to the legacy systems and practices of asset owners, brokers, and corporate real estate professionals.

The awkward truth is that the “system,” such as it is, is designed to lease more space to tenant companies than they (will ever) need. Under the warning/scenario that “you wouldn’t want to be short on space if you grow and need to add staff,” companies enter into long leases on floor plates they will utilize (most likely) at around 50-60%.

And the world turns. The REITs feed dividends to shareholders, brokers receive their commissions, and CRE professionals receive their kudos. Looking at these industry dynamics from a 35,000 ft perspective, it is perhaps not too extreme to say that commercial (office) brokers may easily go the way of the travel agent. But that is for another article…

Coworking Economics Inside the Company

The first step in re-calibrating what an office is and what a workstation is, in the spirit/economics of coworking, is to deal straight on with the Great Utilization Dilemma. In this era of cloud computing, worker mobility, and cloud officing, it is no longer the case that people need to go to ‘their’ office every day. By definition that means tons of empty workstations everyday. We know this from the coworking world. People come into the space some days, but not others. It depends on what they are working on. Flexibility and choice are largely what coworking is about. This is the stuff of the 40% space utilization rates that are commonly reported across the office industry.

What follows here is a brief what if scenario that asks:

If a company in a specific city with a specific number of staff members is looking for an officing solution, how would an in-company coworking model compare, financially, with a traditional leasing model?

The purpose of the comparison is to help bring about a shift in thinking. Rather than viewing coworking strictly as a 3rd party alternative to the (same as it ever was) officing norm, I am suggesting that coworking, in some form, can become a new norm.

The Basics:

  • Acme Company has a staff of 600 people
  • The cost of Class A office in their market is $45/yr

Note that in the comparison below, I bake in the inevitable poor utilization rates that most companies experience into the coworking model, and account for workstations for only 60% of the staff. This assumes that many people work from different locations (office, home, coffee shops, vacation, etc) in a given week. Granted, these are extreme comparisons, but that is the point. The stark contrast is intended to be illustrative of the potential disruptive economic advantage of the in-firm coworking model.

Traditional Officing Model

  • Space for- All 600 staff
  • Sq ft/Person (total)- 183
  • Sq ft/Workstation- 90
  • Total Sq Ft Required- 110,000
  • Cost/Worker/Yr- $8,235
  • Lease Cost/Yr- $4,950,000

Coworking Officing Model

  • Space for- 360 (60% of staff)
  • Sq ft/Person (total)- 85
  • Sq ft/Workstation- 45
  • Total Sq Ft Required- 30,600
  • Cost/Worker/Yr- $3,825
  • Lease Cost/Yr- $1,377,000

This is indeed a simple and crude comparison, and is presented in the spirit of provocation. There are numerous institutional forces that will never want to see the economic model of coworking applied to everyday officing solutions in companies. At the same time, though, I would think that when (tenant) companies begin to look closely at the numbers, they might be intrigued.

Operations & Transitions

Finally, simply allocating space according to coworking principles is likely not enough. Coworking works because of the many soft and squishy things (operations, events, programming, etc) that differentiate it from activity based working. For corporate coworking to take off as a viable, long-term officing model, some level of intentional programming and operations will need to be included.

Incorporating coworking operations and programming will inevitably add some costs back into the coworkng model. Even still, on the whole, in terms of both the costs and the effectiveness, the coworking office, in our opinion, will soon prove to be an attractive strategy for companies interested in coworking but who also want to keep their employees together under one roof.

 


This article was originally posted on LinkedIn by OpenWork Agency Partner, Drew Jones, PhD.

Corporate Coworking: On Campus or 3rd Party?

Twenty five percent of WeWork’s members are ‘corporate coworkers,’ and the company now boasts that 22% of the Fortune 500 companies have employees who work in their spaces. At the current rate of growth, some 40-50% of coworking members will be corporate users within five to seven years. With firms such as GE, Samsung, Microsoft, Dell, HSBC, Accenture, Unilever, Amazon, Salesforce, Google, and IBM leading the coworking headlines, large firms are turning out to be enthusiastic adopters. It would seem that the corporate adoption of coworking is at least part of the story behind WeWork’s eye-popping $35B valuation.

The growth in the corporate coworking market provides exciting new opportunities for all operators, not just for WeWork, and is one of the driving forces behind the maturation of the industry. It is likely that many operators, or at least those whose infrastructure can support corporate usage, will benefit from the rising tide. From the operator side of the equation, it is difficult to find a down side.

The Why and the What

For tenant companies, though, these are still relatively early days of coworking adoption, and the process is perhaps not as straightforward as may appear at first glance. First is the question of why companies are buying employees memberships and allowing them work offsite at 3rd party coworking spaces (such as WeWork).


  1. Often, companies make the plunge into coworking when they are in transition between leases or purchased properties, using the spaces essentially as temporary office space (similar to the case with Regus over the years).
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  3. In other cases companies are opting to shrink their fixed real estate footprints (and costs) by embracing a more modular and mobile approach to officing. Recognizing that utilization rates are consistently quite low (between 40-60%), coworking represents an approach to ‘right sizing’ a company’s officing usage.
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  5. In yet other cases, there is some evidence that some companies are embracing coworking in order to attract and retain top talent. As Millennials and Gen Z become more prominent in organizations, demands for greater choice and autonomy in workplace practices are being baked into companies’ employment value propositions (EVP).

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Then there is the question of what the other benefits are for those companies who have employees coworking in 3rd party spaces?

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  1. First is the increase in interaction and collaboration with knowledge workers from other companies and industries. The thinking here is that these serendipitous encounters will lead to innovation (in the form of new products and services) for the companies whose employees are engaged in such interactions. Surely there have been tangible examples of this type of innovation over the past several years, but until sufficient academic research validates this, such claims remain anecdotal.
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  3. Another benefit lies in the sheer freedom that a coworking membership provides a coworker (corporate or freelancer), where an individual can work more or less when and where she chooses. Building a culture of choice, empowered by coworking, seems to be a no-brainer in terms of nudging company culture in that direction.
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Challenges & Requirements of 3rd Party Coworking

While these benefits may or may not be material for participating coworking companies, it is nonetheless the case that there are significant problems and challenges for companies that embrace 3rd party coworking. There are individual and team level practical/tactical issues, and there are much deeper cultural level challenges that present themselves as well.

Tactical/Practical Issues


  1. Individual employees and teams must adapt to not having much (if any) ownership over their physical environments. Within cramped ‘private offices,’ individuals have less privacy and ownership than they probably did in their previous open-plan office. Pictures of your dogs and cats might need to go onto your phone from here on out.
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  3. Individuals need to amp up their powers of concentration, as the relative levels of chaos can be extremely high. With hundreds of workers from dozens of companies milling about and doing their own things, the skill of focusing on one’s own work comes at a premium.
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  5. Individuals need to develop skills of digital collaboration, as only a handful of company colleagues might be physically co-present in the space. From project management, to simple communication, to storage and document management, one’s “office” more or less shifts to the cloud.
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  7. For managers whose team coworks, they need to once and for all move past ‘line of sight management,’ and also embrace the full suite of digital management tools. The old notion that ‘how do I know that my people are working if I can’t see them working’ has to go out of the window.
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  9. In parallel to this, managers must also further develop their abilities to clearly communicate company vision and strategy to keep team members aligned with strategy and rowing in the same direction. Coworking necessitates new types of communication skills that are fit for purpose.

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Cultural Issues

Over the past several years Yahoo!, Bank of America and IBM reversed years of remote working policy and have called employees back to the office to work co-present with their colleagues. The idea, simply, is that when colleagues spend more time collaborating and working together, there is an increase in social bonds and cultural cohesion. Social ties not only build trust and enduring relationships (i.e. the stuff of culture), they also allow for more opportunities for cross-functional, cross-departmental collaboration. If one is working in relative isolation (from the bulk of one’s colleagues) in a coworking space, then such broader collaboration opportunities are more difficult to achieve.

If insufficient attention is paid to a company’s cultural health, then several critical areas of company life can be undermined:

  1. Community: Community is an everyday thing. It is made up of mundane and unrehearsed interactions. Take these away and a company’s overall sense of community weakens.
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  3. Communication: How companies communicate, both formal and informal messaging, varies widely. While technology can relatively easily replace formal communication, informal communication is still best accomplished face-to-face.
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  5. Collaboration & Innovation: The opportunities to work with colleagues from different parts of the company can be easily sacrificed if teams are plucked out the the hub and paced among strangers. From a collaboration and innovation perspective, it makes sense that creativity benefits from proximity and density.
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  7. Cultural Identity: There is no question that coworking spaces have their own cultures, and that members can become a part of those cultures. From a company perspective, though, this does little to reinforce its own values and goals among its employees.

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Coworking on Campus

To date, much of the impetus behind the growth of corporate coworking has been real estate driven. As discussed above, these reasons are clear and straight forward. In other areas of company life, such as the ‘people and culture’ dimension, the consequences and challenges of 3rd party coworking have been insufficiently addressed.

This is not to suggest, in any measure, that coworking is a poor officing choice for companies. Rather, it is a question of where. Elsewhere we have discussed the deeply positive aspects of coworking, and we anticipate that more (not fewer) companies will eventually embrace coworking as a modality of work as part of their overall workplace strategies. We think that coworking on-campus is a logical next step in the evolution of corporate coworking.

On-Campus coworking (to be discussed in greater detail in Part II of this series), has the potential to address the real estate issues at the heart of the first phase of corporate adoption, while at the same time it can address the ‘people and culture’ issues that are currently being mismanaged.

Still in its early days, coworking as a mode of working remains associated with 3rd party operators such as WeWork (and the thousands of others). Over time, though, it is likely to become more and more just the way that companies work. At that point in time, the ‘co’ might just dropped away and become ‘working.’


This article was originally posted on LinkedIn by OpenWork Agency Partner, Drew Jones, PhD.

Coworking in a Holistic Perspective

As long-standing participants in the coworking industry, the partners at OpenWork Agency have seen the industry evolve since the beginning. What was once a social movement is now a sure enough industry. Depending on what your vantage point is, though, coworking is different things to different people. In this article I reflect on some of these different perspectives, and suggest that an exogenous and holistic perspective can help make better sense of what is happening than any of the endogenous perspectives that are out there.

The CRE Perspective

Currently the loudest voice in the industry is coming from corporate real estate professionals. CRE professionals around the world are tuning in to see how coworking (and the shared workspace industry generally) will impact their strategy and bottom line. Much of our business is working with real estate firms that are trying to figure out how and if they want incorporate coworking offerings in their portfolios. The starting questions are understandable, but often the questions indicate the limitations of an endogenous view of the scene.

The starting questions are understandable, but often the questions indicate the limitations of an endogenous view of the scene.

From the CRE perspective, the challenge is often framed this way: How can we leverage the “cool and young” vibrancy of coworking as an amenity in our buildings to drive up higher rent rates in the rest of the building or development?Implicit in this and related questions is the notion that coworking is an approach to working that is separate and discrete from the mainstream world of work inside large companies. A kind of Cartesian dualism prevails here, where “real work” (fixed work stations in large offices within long-term leases) takes place inside large firms, while fun and whimsical start ups and freelancers are busy working in the ‘funky’ environments that are associated with coworking. And never the two shall meet.

A kind of Cartesian dualism prevails here, where “real work” (fixed work stations in large offices within long-term leases) takes place inside large firms, while fun and whimsical start ups and freelancers are busy working in the ‘funky’ environments that are associated with coworking.

The CRE industry has been slow to come around to the reality (and it is a reality) that many large firms are now embracing coworking in various ways (on campus and off-campus). This is puzzling, since the large firms that are their tenants are in fact the drivers of this type of coworking adoption. We assume that this blind spot is due to the profound challenge that this represents to their business model. Large, highly credited tenants signing long term leases makes their work much easier. The idea that leasing will dissolve into tons of little micro leases is an absolute nightmare. We get that.

We assume that this blind spot is due to the profound challenge that this represents to their business model. Large, highly credited tenants signing long term leases makes their work much easier. The idea that leasing will dissolve into tons of little micro leases is an absolute nightmare.

The Enterprise Perspective

Meanwhile, facilities managers and HR managers in large firms are witnessing deals such as the IBM/WeWork deal, where WeWork will manage IBM’s entire new Manhattan campus. What to make of this? We know that dozens of large companies are already sponsoring employees to be members at places like WeWork and Industrious, but that is largely an outsourcing process. What will the long-term effect of this be when more and more company employees don’t actually work at the company? This is the kind of question that we ask at OpenWork.

Oddly, it seems that this enterprise embrace of outsourced coworking is being somewhat lost on their CRE partners. As large firms rethink their real estate strategies, they are seeing massive advantages in coworking. It would seem that as some of these companies approach the end of their leases, they will begin to rethink how much real estate they need under their own management. When firms make the decision to shrink their footprint, the real losers will be their CRE clients who are witnessing the shrinking demand for their traditional products. We see this as the elephant standing in the middle of the room!

When firms make the decision to shrink their footprint, the real losers will be their CRE clients who are witnessing the shrinking demand for their traditional products. We see this as the elephant standing in the middle of the room!

We have recently launched a new service that helps firms rethink their long-term relationship with coworking, both on and off campus. But this article is not so much about that. Here I am interested in the intersection between CRE and Enterprise.

A Single Perspective

Of course, all of these changes in workplace are interrelated. Coworking is not just for kids anymore, as the recent corporate adoption of coworking demonstrates. Large firms, as we see it, will continue to open up their work environments, sending some people off campus to cowork while designing their own campuses to be more open and fluid to keep up with the changing generational demands for choice, flexibility, and mobility. In our estimation, this is the single largest driver of change in the whole world of work. Many of us like to cite the figure stating that 40% of the workforce will be freelancers by 2020, and this is indeed a staggering statistic. However, this is a drop in the bucket compared with the massive shift towards new ways of working that will be driven by large firms. This IS the world of work, not some adjunct to it.

For CRE, this is the lesson that needs to be learned. That is, coworking is no longer just an adjunct, or an amenity; rather, it is an early warning signal of what WORK will be in the near future. Yes, this challenges existing leasing practices, as well as the level of TI allowances that they will need to contribute at the beginning of a lease cycle. However, the idea that they will be able to hold on to their conventional leasing process with large firms forever, while playing around the edges of their business model with coworking, is a bit risky.

An Example

We recently toured a forward-thinking Brookfield design experiment in Houston, called DesignHive. Design hive invites local architects to design ‘spaces of the future’ with the idea being that the buildings will come pre-designed and furnished, and that corporate tenants can then say, “I’d like option B.” These spaces were all very much like coworking spaces designed for companies. Now, of course, the question is: Who pays for these up-front build outs? This is no small question, but the small scale and modularity of these spaces feel like the future of corporate offices to us. That is, they feel like coworking spaces. One company might lease one of the spaces, while another will lease a space down the hall, both sharing the same floor. Quite interesting.

Operators

Of course the other node in this process are the operators. As has been the case since the beginning of the industry, these folks have proven to be nimble and adaptive. Many operators have already seen this intersection of CRE and Enterprise and are offering their services directly to enterprise. This is additional pressure on CRE. In this respect, we feel quite confident that the innovative operators will jump on the moment and continue to grow their businesses and thus the industry as a whole.

As relative upstarts and champions of disruption, coworking operators have had a holistic perspective from the beginning. Unlike their CRE and Enterprise counterparts, who are often limited by endogenous worldviews, coworking operators are doing important work in pushing the world of work into the future. As Will Ferrell might put it, “coworking is kind of a big deal.”

OpenWork Agency is a workplace and culture consultancy that helps companies and real estate developers leverage coworking solutions within their offerings.

Coworking and Company Culture

Marc Andreessen once famously said that ‘software is eating the world,’ and that if your business can’t be boiled down to a simple (software) solution it probably doesn’t have much of a chance. Or at least, in his world of venture investing, if your startup isn’t predicated on an elegant piece of software, then your business will be challenged. While some people took offense to Andreessen’s sweeping comment, I think it is even more profound than people might think.

Take, for example, the corporate culture consulting industry. Since the early 1980’s management consultants have made small fortunes helping large firms ‘engineer’ their cultures to be “stronger.” By stronger, we all understand that what is actually meant here is greater profitability and higher share prices. Enron had a strong culture, but that didn’t turn out so well. However, in light of the fact that some 70% of all corporate change programs actually fail, it is worth questioning what the actual value of culture consulting is and why so many existing efforts fail? And, to what extent will culture itself be boiled down to a piece of software?

However, in light of the fact that some 70% of all corporate change programs actually fail, it is worth questioning what the actual value of culture consulting is and why so many existing efforts fail?

For us at OpenWork Agency, this is where design and design thinking are so important. Typically, culture consultancies use typologies to classify companies within one type of company or another, and then help them transition to a new ‘type’ of culture. The whole process remains in the realm of values, beliefs, and behaviors, which tend not to ever change because very little else in the company changes. That is, words are cheap and easy.

Coworking as Design Intervention

In our estimation, what is needed are tangible, material interventions in the flow of peoples’s day-to-day work. By shifting people to the open and fluid mode of work that is coworking, the day to day interactions of employees themselves are changed. Without talking about culture, per se, the elements of coworking- communication, learning, etc- and thus culture itself is changed over time. But only slowly and organically. This is a critical difference.

By shifting people to the open and fluid mode of work that is coworking, the day to day interactions of employees themselves are changed. Without talking about culture, per se, the elements of coworking- communication, learning, etc- and thus culture itself is changed over time.

Thus, we have recently launched a new culture change initiative premised on coworking. We might be fifteen minutes early, but we know what impact coworking has on people, how they work, and on the social interactions between people who cowork together. Of course the proof will be in the pudding, but we are quite confident that as more companies embrace coworking (as many, such as Microsoft, IBM, HSBC, Dell, Samsung, Amazon, Merck, GE, just to name a few, have already done), those companies will in fact change, culturally, over time.

There are no magic bullets, we understand that. Company policies will have to shift accordingly, and will have to allow for the choice and flexibility that is at the heart of coworking. Without this accompanying level of change, coworking will be as ineffective an approach as previous generations of change programs. And finally, to return to Andreessen’s earlier point, the coworking-as-change-management-platform is grounded in a technology platform that allows employees to collaborate effectively and managers to monitor and understand what is going on in real time.

However, software won’t ever replace the value of human interaction and the importance of that for building community and culture. Thus, in the end, with respect to the workplace, Andreessen’s maxim was only partially true.

However, software won’t ever replace the value of human interaction and the importance of that for building community and culture.

Enterprise Coworking

WeWork + IBM

It was recently announced that WeWork, the global coworking chain, has signed a deal to manage an entire office building for IBM in Manhattan. Up to 800 employees will work in the building, which WeWork will manage as a single shared office environment.  At first glance this looks like it is just an extension of its recent strategy of providing work spaces for employees of large firms, but it might also signal something much bigger.

Concurrent with this news was the announcement of a new Enterprise division within WeWork.  While it is unclear what the specific terms of the IBM deal will be, it seems that these enterprise deals might signal the beginning of a lease-free model, wherein the value-add of the company is in the management of the space.  We are seeing lots of ‘management fee’ arrangements in lieu of straight leases, and it would make sense that this is what the company is aiming for.  It seems like only a matter of time before the weight of SO many leases becomes a heavy burden.

But that isn’t the main point here.  Rather, what is interesting (and important) about the WeWork announcement is the shift towards enterprise.  Retail coworking, which is for the most part what the world has seen thus far, is just the first iteration of a much large shift from old ways of working to ‘new ways of working.’   All of those brave pioneers who made coworking what it is today, such as Alex Hillman and Tony Bacigalupo, have opened up the floodgates for a new wave of adoption to follow the retail coworking phenomenon.

Three years ago, before we began working primarily with real estate developers seeking retail coworking solutions, we set out to do enterprise coworking. For us, the big opportunity has always been the potential to ‘convert’ large firms to the culture and flow of coworking.  Not only is this a big business opportunity, it would seem, but it also potentially can serve to liberate corporate employees from uninspiring spaces and rigid workplace policies.   

 

coworking together: employees and independents

Workplace Strategy: Coworking for company employees: What/Why/How

Workplace Strategy Insight: In these times of innovation, coworking is emerging as the new office.

Coworking has been the preferred office of choice for the independent worker since the community office trend began to emerge in 2006, catalyzing the disruption of the traditional workplace strategy model.  Since then, the coworking phenomenon has grown at an accelerated rate in parallel with rise of the independent workforce. Today there are 50 million+ people in the USA working independently who office from home, a coffee shop, or a coworking space. Work has truly become an anytime/anywhere affair. As the coworking industry continues to mature and the corporate environment innovates, the two worlds are forming a symbiotic, albeit experimental relationship. Companies and employees have both begun to hear the buzz around coworking and have been curious how they may ‘do coworking.’

coworking-stat2Even so, most company employers don’t know how to integrate coworking into their workplace strategy and most company employees are not aware that HR department rules on workplace flexibility are quickly evolving, making it common practice for companies to encourage mobile working.

As more companies test out coworking it’s causing the industry to evolve to support them.   In fact, as reported in the latest 2016 research by Deskmag, this is the first year on record where company employee members (51%) outnumbered independent worker members (49%) at American coworking spaces.

How companies can test out coworking as part of their workplace strategy

corporate-coworking-strategyOption One: External Coworking Strategy

Sponsor company employees to work in existing coworking spaces. Companies that have embraced ‘external coworking’ include: G.E., PwC, The Guardian, AirBnb, Pinterest, Red Hat, Automattic, PepsiCo, Microsoft, Merck, Heineken, KPMG, among others.

Picking the Right Coworking Spaces

Picking the right coworking space to match the specific needs of your mobile employees can be a challenge. Different spaces are tailored to different uses. As many cities have numerous coworking options, picking the right one can be a project in and of itself. As the awareness (and demand) for coworking has increased among large firms, it has become common for some spaces to create membership models specific to company needs. Some companies choose to send all their mobile employees to one coworking space in private offices. And some companies allow each employee to choose where they want to work.

Embracing a Culture of Experimentation

Coworking for companies should be looked at as an experiment  One of the things that makes coworking spaces so appealing is their no risk, short term obligations. All coworking spaces offer month-to-month memberships. Ask your employees if they would like to have coworking as an option and if they say yes, offer to buy them a short term membership to test it out.

Option Two: Internal Coworking Strategy

Instead of sending your employees out to external coworking spaces, some companies opt to build their own internal coworking solution. Companies that have embraced an ‘internal coworking’ strategy include: Macquarie Bank, BankWest, Rabobank, Microsoft, ERA Contour, Achme Insurance, KPMG, GLG

Start with a Pilot Coworking Space

Take between 5,000-15,000 sq ft of space and repurpose it into a coworking space.

Empower it with data-driven Key Performance Indicators (KPI)

While testing out your pilot coworking space, you must find a way to measure the impact. How do you measure an increase in employee productivity, creativity, innovation, engagement, among other things? These are the KPI’s that will dictate whether or not you should expand the pilot to an entire floor, your building, or company campus.

Why/how does coworking work?

Data demonstrate that engaged employees are more productive employees than their disengaged counterparts, and the data on employee engagement is abysmal.  According to a 2014 Gallup poll, less than one-third (31.5%) of U.S. workers were actively engaged in their work, meaning well over half of American employees were not 3ps-openworkpsychologically committed to making positive contributions to their organizations.  These figures, according to Gallup, have only declined recently.

To the contrary, data from coworking spaces underscore that engagement, productivity, and energy are ‘through the roof.’  Two recent Harvard Business Review articles speak directly to this.  Coworking spaces bring together the 3 P’s of the ‘Open Organization’- people, place, and purpose– where employees work according to their own rhythms on work that is meaningful to them.

It’s all about culture.

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The coworking ethos has become the workplace culture of choice in the sharing economy. Yet, the culture of most large firms does not reflect the culture that Millennials are co-creating and want to be part of. Workplace strategies and HR policies are evolving, though, as innovative company leaders embrace the modern workforce and the future ahead.

Interested in digging in further?
Read our white paper, Why Companies Need Coworking.

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Get in Touch to learn how the transition can work for your company.