There was a time MNCs and large corporates conducted business solely from centrally located “corporate offices”. Well, not anymore! As remote working is becoming a norm, many organizations have started expanding their corporate real estate portfolio.

Today, businesses around the globe have switched to working from home (WFH) due to the ongoing pandemic. Corporates are also turning to Coworking in an attempt to enhance flexibility, create a distributed and hybrid workforce and to save cost. The question is which works best for corporates – corporate offices, WFH, or Coworking offices?

Let’s find out by analyzing five key factors central to today’s corporate ecosystem – flexibility, agility, productivity, safety, and community.

5 Key factors of Today’s Corporate Ecosystem

1. Flexibility
2. Agility
3. Productivity
4. Safety and Wellbeing
5. Community

1. Flexibility

It’s no secret that corporate employees always preferred flexibility, and the pandemic has made it their top priority. According to the 2020 EY Work Reimagined Survey, 90% of respondents want flexibility in when and where they work.

As traditional corporate offices are location-dependent and have fixed timings, they don’t score high on flexibility. Corporate teams that work from home, on the other hand, enjoy location independence but rarely get flexible work hours. Even worse, they end up working longer hours since the line between professional and personal life is often blurred while working from home.

Coworking space offers both flexible work hours and location independence. By choosing neighborhood Coworking, corporate employees get the flexibility to work from a location nearest to their residence. Flexi passes, hot desking, and pay-per-use packages make it possible for Coworking members to work on flexible schedules.

2. Agility

The concept of agile workplaces is gaining traction among MNCs and corporates. In an agile office space, employees are not permanently assigned to desks. Instead, they move around freely and switch between desks, private nooks, meeting rooms, lounges, common workstations, etc., based on the type and intensity of the work.

A traditional corporate office doesn’t offer much agility to those who work in it. Teams are often assigned dedicated cabins and desks, and the freedom to utilize diverse zones and areas within the office is limited. People working from home also don’t have the agility for activity-based working.

One of the main benefits of Coworking spaces is agility. Designed like an open office, a shared office comprises regular workstations, private corners, quiet zones, common work areas, outdoor seating zones, meeting rooms, and more. Corporates working from a Coworking space can make the most of the agility it offers to enhance employee experience.

3. Productivity

Employee productivity is another key consideration in the current corporate ecosystem. Large corporates across the world are investing money and time to increase the productivity of their workforce.

Working remotely from locations other than corporate offices and traditional setups boosts productivity, say reports. That said, remote employees who work from home face productivity problems due to distractions, insufficient amenities, absence of a productive work environment, digital overload, and other factors.

Shared offices serve as a great remote work option for companies looking to enhance employee productivity. According to the JLL survey on the Future of Global Office Demands, Coworking has the highest impact on productivity. What’s more, it allows corporates to continue working remotely and enjoy state-of-the-art facilities at the same time.

4. Safety and Wellbeing

Employee safety has always been a top priority of large corporates. One of the reasons companies switched from corporate offices to working from home during the pandemic was to ensure the safety and security of employees.

Working from home, without any doubt, is the safest work arrangement. However, long-term WFH does more harm than good – the digital fatigue and social isolation while working from home impact the emotional and mental health of employees. When employee wellbeing is considered, WFH might not be an ideal work agreement for corporates.

Here again, Coworking is proving to be a better choice for corporates. Neighborhood offices make it possible for employees to walk to work, which is safer than commuting to the corporate office. Shared offices also promote the emotional and mental wellbeing of employees by surrounding them with a dynamic and supportive business community.

5. Community

In the current corporate ecosystem hit by the pandemic, nothing is more important than community – it is through strategic collaborations that businesses recover and revive themselves. Workplaces that foster collaboration and communities are essential for corporates to create a sense of belonging among the workforce.

The work from home model makes little room for in-person interactions and consequently, it damages professional networks. Corporate offices are better than WFH in fostering internal and cross-functional collaboration within the organization, but connecting with the larger business community remains a challenge.

Collaboration and community are at the heart of Coworking, and that’s why businesses are eager to return to Coworking spaces rather than continuing with WFH. By choosing to work out of a shared office, corporates can ensure both internal and external collaboration.

Final Thoughts

In a business world moving towards hybrid work models, corporate offices, WFH, and shared offices all have their roles to play. That said, Coworking has a more revolutionizing effect on corporates as it provides them with the most viable alternate workplace that is flexible, productive, agile, and above all, collaborative.

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Start-ups or corporates, evolving brands or established ones, all businesses need an office. It should be a well-equipped space, reflect the company culture, and above all, serve as a productive environment for the workforce.

While young and mature companies have many workplace requirements in common, they also differ on several counts, ranging from the size of the office, the number of desks, lease terms, office layout, design, and more.

Let’s check out some of the top workplace requirements of start-ups and corporates and how they differ from each other.

6 Top workplace requirements of start-ups and corporates

1. A Business-Friendly Location
2. Scalability
3. Lease Terms
4. Office Layout
5. Collaborative Spaces
6. Furnishing and Facilities

1. A Business-Friendly Location

Having an office in a business-friendly location is a top workplace requirement of start-ups and corporates alike. It should be well-connected to all parts of the city so that clients, employees, and vendors enjoy easy access to the office. That’s why many a corporate office for companies is housed within business parks and commercially thriving CBDs.

However, start-ups might find it difficult to buy or rent an office in prime localities due to the skyrocketing prices of commercial properties. Coworking is an excellent choice for young companies in this regard. All reputed coworking operators have offices in prime localities and business parks, making it easy for young companies to enjoy the benefits of the location.

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2. Scalability

Established businesses often have large and fixed teams, and their hiring-related processes are also planned in advance. Since there is little or no possibility for abrupt upsizing or downsizing, mature companies can opt for a corporate workplace with a fixed number of workstations.

The workspace requirements of young companies, in contrast, can change drastically over a short period. They might move into an office with a team of 20 only to hire 15 more employees over the next few months. The start-up office design should be as flexible as possible to accommodate such rapid changes. For companies with evolving requirements, coworking is a better option than traditional offices as it allows them to add or remove desks without hassles.

3. Lease Terms

Whether it is an office for young companies or a corporate workplace, the importance of having a carefully executed lease agreement cannot be stressed enough. An office with flexible lease terms is best suited for start-ups as their requirements are likely to change over a short span. An agreement with a long tenure, lock-in period, or notice period might not be ideal for evolving brands.

A long-term commercial lease, in contrast, might be beneficial for mature brands as they are reasonably sure about their requirements. It gives them the stability to go ahead with their business plans without worrying about relocating to a new office anytime soon.

4. Office Layout

Based on the organizational structure, the layout of an office for young companies might differ from that of a corporate office. Most start-ups have a flat structure, while large corporates typically follow a hierarchical structure with multiple levels of management. Offices with an open floor design work well for young companies without organizational hierarchies. In contrast, a mature business with a hierarchical structure might need more compartmentalized spaces within the office.

That said, it doesn’t mean that the office space for mature companies is all about cubicles or start-up offices are all about open workstations. Though it is crucial to have common areas in the office, companies also need private rooms and quiet spaces. Reports suggest that both young and mature companies are opting for agile office design these days. That is, the office will have a mix of private and open workspaces, and employees can choose to work from an area/corner that best suits them.

Also Read: How Do Coworking Spaces Help Startups and Entrepreneurs Reduce Costs?

5. Collaborative Spaces

Collaboration is key to the success and growth of both young and mature companies. Since established corporates have been in the business for a longer time, they tend to have stronger collaborative networks than evolving brands. Furthermore, corporates have structured events and avenues for networking and collaboration, both internal and external.

Start-ups, on the other hand, benefit from an office space that promotes collaboration, such as shared offices. In addition to workstations and meeting rooms, coworking spaces typically have common areas, lounges, kitchens, and breakout zone where members can socialize. Such a collaborative environment enables young companies to build their social capital and form fruitful partnerships.

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6. Furnishing and Facilities

Office furniture and facilities are crucial workspace requirements for start-ups as well as corporates. The list includes ergonomic chairs, desks, décor, comfortable lighting, printers, Wi-Fi, storage spaces, reception area, meeting spaces, smartboards, and kitchen/cafeteria furniture, to name a few.

Based on their budget, companies can choose to get the office furnished according to their brand identity or choose a pre-furnished one. Managed offices, which are custom-designed office spaces managed by third-party operators, are fast becoming a favorite with large corporates and MNCs. Start-ups in the bootstrapping phase can kickstart their operations by moving into a coworking office where they get a pre-designed workspace complete with all amenities.

The Bottom Line

While the workspace requirements of young and mature companies vary, coworking pretty much caters to most of them. Once considered the go-to solution for start-ups, shared offices are increasingly finding favor with MNCs, especially now since the pandemic is redefining the commercial office requirement for corporates.

So, what are your workspace requirements? Whether you are looking for cost-effective coworking desks or a customized managed office, The Office Pass (TOP) can help you get the right workspace.

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New Delhi, 1^st July, 2021: The Office Pass (TOP), one of the largest home-grown Neighbourhood Coworking space providers conducted a survey titled “Workplace preference post covid”, to provide an insight into the changing needs and preferences of the Indian workforce post the COVID-19 pandemic and the nationwide lockdown.

The ongoing pandemic has changed the way of work forever with companies altering their models and redefining work cultures by experimenting with work from home as well as work near home. Corporates across India continue to navigate the new normal by embracing digitization, and using a mix of remote work and work from home for uninterrupted functioning.

The survey, which was conducted among companies and their employees, brings to the forefront various challenges and opportunities employees have faced with this new mode of operation. Additionally, the survey focuses on employees’ willingness to work remotely from their homes as well as infrastructural requirements to aid them to operate effectively, amongst others.

“Companies and employees are gradually adjusting to this new normal. The survey deconstructs the employee perspective and shares critical insights that would help employers in devising effective working strategies. As a flex workspace provider TOP is partnering with companies to offer solutions to meet the requirements of both employees and their organization,” said Aditya Verma, CEO and Founder The Office Pass (TOP).

The survey was conducted over a period of 2 weeks across the metros in India, and analysed inputs from 250 mid to large size companies. The survey saw participation from 70.2% male & 29.8% females, across IT sales and marketing, Human Resource, Administration, Finance, Legal and Customer Service.

According to the findings, before Covid, 66% of all employees preferred going to the office regularly. Preference for regular office was more among senior people (40-50 years) with 80% wanting regular full-time office. This preference dropped to 60% and 69% in the age group of 30-40 years and < 30 years respectively. There were about 34% employees, even before Covid, who were not going to the office regularly. As per the survey, regular office work was more popular in larger organisations (71%) compared to small companies (56%) who were more flexible towards employee requirements.

“As business continuity plans increase, companies are setting up multiple satellite offices at various locations to de-densify the headquarters and to enable their workforce to work near home. We are aggressively expanding our Neighbourhood Coworking model to offer office space within walking distance as offices plan to open,” said Nikhil Madan, Co-founder of The Office Pass (TOP).

A year into the pandemic many new work formats have evolved and they are at various stages of experimentation. As per survey findings, the Indian workforce seems to be cautiously yet eagerly waiting to return to work. Coming to the office 3-4 times a week seems to be the most popular format for both employees and companies. 54% of employees and 41% of companies prefer this format in the post Covid times. The second most popular format is to tie up with the Coworking office that allows employees to work from near their home. This is preferred by 29% of companies. Permanent work from home (18%) and permanent return to full-time office (12%) are the least preferred options.

Distance of the office from home, also came up as a key factor for employees. Interestingly, 75% of employees prefer an office within 5 km from their home with another 21% who prefer less than 10 km. Post pandemic, very few prefer an office >10 km. This is on expected lines as people are afraid to travel in shared cabs or public transport like metro and busses.

The outbreak of the pandemic had a big impact on core aspects of work life:  team building, collaboration, social networking and road mapping with colleagues have been highlighted as key factors for productivity enhancement. According to the survey, 27% of the employees prefer a “professional work environment” with another 25% mention “superior work-life balance” as the most important factor that enhances productivity. “Networking and socialising” ranked third with 22% of employees highlighting this as essential for productivity.

The second wave has brought several challenges and the hybrid work model is expected to dominate the world of work, for now. With the slow but sure reopening of offices, organisations will have to respond to these emerging demands, opportunities and challenges posed by the new normal with agility, to successfully sustain during these times.

About The Office Pass (TOP) 

The Office Pass (TOP) is a technology driven Neighbourhood Coworking & Managed Office space provider in India. TOP is the only Coworking & Managed Spaces Company in India that promotes #Walk-to-Work. TOP’s vision is to have multiple Coworking offices spread across the city – so one can find the closest TOP office in less than 10 minutes.

TOP currently runs 8 offices across Gurgaon, Noida and Delhi. Over 102 mid to large size companies are using TOP Coworking and Managed office services. The company plans to open 100 Neighbourhood offices over the next 3 years with a presence in multiple cities across India.

To learn more, visit www.theofficepass.com and follow TOP on LinkedIN, Facebook and Twitter.

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