The post-pandemic era has turned the world upside down for both employees and employers with day-to-day activities of travelling long distances to offices daily and acquiring large office spaces for the long-term soon becoming a thing of the past. The new world order is being characterised by the proliferation of co-working spaces and remote mode of working allowing greater flexibility and cost benefit to both employees and employers.
Today, employees want to maintain a work-life balance and demand an office space which shuns the old world practice and in line with it, employers are also looking for office spaces which are open and build a collaborative environment.
According to reports by the international property consultants, 69%of organisations have already introduced, or will introduce hybrid mode of work. This is driving the need for flexible workspaces across the key cities and as a testament to its increasing adoption, over 7 million square feet of space was leased by co-working operators in 2022. This is the highest-ever for a calendar year, accounting for about 14 per cent share in total commercial real estate leasing. Therefore, it would be safe to assume that the fate of remote working and co-working spaces are intertwined with each other and will be crucial for their success.
Co-working forms the foundation of hybrid work
In the economics of business, fixed costs including renting or leasing of office spaces, their maintenance and allied services constitute a significant proportion of their expenses. For organisations looking to preserve cash, invest in growth and at the same time emerge as a preferred employer, co-working spaces present themselves as an ideal partner. As traditional office spaces come with long-term leases, cubicle setups, low collaborative zones and lack the technology to offer rotational desk services for a hybrid mode of work, co-working operators have solved for each of these challenges with their tech-enabled platform.
From democratising office spaces by offering micro units in the form of seats to all the Grade A services including IT, food and beverage, concierge services at a fraction of cost, employers or occupiers are increasingly becoming aware of the benefits of co-working spaces. This enables them to offer a full-fledged hybrid form of work and allows them to house a high number of employees in the limited office space with efficient planning. On one hand, this enhances employees’ satisfaction level and empowers them to work seamlessly, it provides cost efficiencies and flexibility in operations for occupiers on the other, making it a win-win situation.
Geographic democratisation of flexible workspace popularises hybrid work
Surveys suggest that a whopping 77% of the respondents feel that offering remote/ hybrid working will be critical to attracting and retaining talent. This is an important fact that is driving technology, logistics and companies in other sectors to scout talent in smaller cities and the democratisation of co-working spaces in cities beyond metros is supporting this talent hunt. Today, cities like Coimbatore, Bhubaneswar, Lucknow and Jaipur are witnessing the rise of the IT workforce with an increasing number of companies venturing into smaller cities in search for talent. This transition is further complemented by the presence of co-working operators in these regions which cropped up to support the growing startup culture in these cities.
Now, a healthy combination of mushrooming of co-working spaces in smaller cities and companies hiring from the same creates a level playing field for everyone and results in a win-win situation. Going forward, the role of offices will evolve from merely being a structure to execute work to becoming a space for collaboration and innovation and investments in providing hybrid working through co-working spaces will ensure long-term growth for everyone.
The above article is authored by Anurag Sharma, Marketing Head Bhive Workspaces
