Hybrid Workplace Model and its impact on the Coworking Space Demand

Hybrid Workplace Model and its impact on the Coworking Space Demand

The pandemic has created an unprecedented dilemma for workspace solution platforms. It has resulted in a dynamic transformation in the workplace concept, and as a result, coworking networks have regularly modified and curated their services to meet the changing demands and preferences of businesses and employees.

Early phase shift to remote working saw multiple benefits pouring in for both the workforce and organization. According to Awfis, 29 percent of respondents said working from home saved them Rs 3,000-5,000 per month, which they would have spent on commuting, clothing, food, and other expenses. As a result of working from home, an employee currently saves 1.47 hours of travel time each day on average. In a year, this corresponds to 44 more working days.

However, the benefits didn’t last long and this euphoria was replaced by fatigue. 27 percent of employees believe they don't have enough opportunities to interact with coworkers and build strong networks. In addition, 43% of employees say they are unable to establish a work-life balance while working remotely. Moreover, burnout and the feeling of isolation have left employees struggling with productivity issues, other psychological problems, and a lack of innovative ideas.

How can coworking spaces help solve this Gap?

The Hybrid Model essentially is an amalgamation of WFH, Corporate offices, and even a “third space” known as a workstation.

According to most polls, only 15% of employees want to work from home every day of the week, 29% prefer to work from home 2-3 days a week, and 56% want to work from home for one day or fewer. So, despite what many people have claimed for months, it appears that office spaces are not doomed to disappear.

Moreover, managers are keener on democratizing working and replace ‘Work from Home’ with ‘Work from anywhere’. Companies can reduce 40-50% of OPEX (operating expense) with the WFO (work from office) plus WFH (work from home) model.” Companies usually have their offices in the suburbs or even the city Centre. This proves to be a disadvantage for employees who do not stay near the office or could not afford the housing in the location. Moreover, the companies can't have multiple offices in Tier 1 cities or at least one office in Tier 2 and Tier 3 cities.

In a hybrid paradigm, it appears that having a new and additional workspace, separate from home and the official office that is closer to the employee's home but not at home, makes sense. This is referred to as "third space." Therefore, coworking spaces or other social spaces with suitable infrastructure and amenities may be a great ‘Third Space’ option, addressing both company’s and employee’s needs.

Benefits for "Third Space" Coworking Model:

For Employees

● Spaces could be closer to their homes thereby saving time and expenses of commuting.

● A specific space for working apart from their home devoid of all distractions.

For Companies

● Flexible and predictable cost (pay per use model).

● Can be considered part of the variable retribution.

Can Coworking Spaces open up some real opportunities by being a ‘Third Space’?

Harsh Binani, Co-Founder, Smartworks, foresees an increase in demand for flexible workspaces as compared to traditional office spaces. He said, “In these uncertain times, co-working spaces can prove to be a convenient and cost-effective option for organizations that are looking for a distributed and hybrid working model.”

Amazon, Google, Facebook, Apple, Swiggy, Urban Company, and a majority of others have already announced this shift to Hybrid Workplace Model. Flexibility and convenience are key elements in this new reality. Two aspects that demand coworking and offices are strong control in the operational side to be efficient and address the actual needs of users for enhancing their experience. Once again, technology has a role to be played.

Flex spaces will be able to manage the situation more efficiently if they employ technology to oversee the use of the space and evaluate people's activity inside the coworking area. Technology, for example, will:

● Allow coworkers to make online bookings for workstations and meeting rooms before visiting the area, due to real-time information on how these spaces are being used.

● Let coworkers know how congested the room is so they may select which spaces are most convenient for them.

● Allow dynamic administration of desks and meeting rooms in coworking spaces, or even use a "yield management" approach to bookings.

 ● Assist coworking spaces in identifying underutilized areas and altering their design or use to improve performance.

If you are offering coworking space, it is crucial to understand the technology and the changes in corporate demands. This has to be matched with the current scenario.


#marketing #businessintelligence #startups #coworking #workforce #sales #hybridworkplace #backtoffice #remoteworking #WFH



Kuganathan Rajashekar

Managed Office Spaces | P&L | Core Operations | Sales & Marketing | Real Estate Management | Commercial Leasing | Co-Working Spaces | Business Centre | Commercial Real Estate (CRE) | Property Management |

2y

a good article Punni S.

Like
Reply

Nice article...well articulated and true to the depth !

Like
Reply

Good analysis, it does make sense. Good job Punni.

Like
Reply
Ramesh Dasary

CHRO & People & Organization Performance Consultant

2y

A great article Punni S.. The fabric of any organization is people and people practices and not offices. A healthy work-life balance is important in the WFH structure to avoid burnout. Coworking spaces act as an additional space for them to get out of their space and feel more productive.

Like
Reply

To view or add a comment, sign in

Insights from the community

Explore topics