Coworking Space vs. Traditional Office: Pros, Cons, and Considerations

In the modern day for coworking space vs. traditional office, going into an office building that’s dedicated to your company from 9-5 every day of the week is something of the past. The Covid-19 pandemic sparked a change in work-life balance by causing companies to go fully remote. Despite the fact that the pandemic has officially been declared over, many companies have retained remote work or at least a hybrid model. In fact, remote jobs now make up as many as 15% of work opportunities in the United States, with 26% of employees claiming to work remotely.

However, some companies believe in the in-person model with their entire hearts, yet retaining top talent without the option of remote, or even hybrid, work has proved difficult. In an effort to solve this, many companies have transitioned to offering coworking space options closer to where employees live, rather than forcing employees to make the long commute to the office. Learn the ins and outs of coworking to determine if it’s a viable option for your business.

The Basics of A Coworking Space

As a relatively new form of working, coworking is when people from different organizations assemble in a single place to work independently or in small groups on projects for work. Generally, the people working within the coworking space are not a part of the same company, which is where the name actually comes from.

Coworking spaces operate in almost the exact same way as a traditional office by offering amenities such as printers, snack rooms, desks, and more, though the spaces are built to be more modern and open as opposed to cubicle life.

How Common are Coworking Spaces?

Currently, there are over 6,200 coworking spaces in the United States which make up around 18% of the world’s total coworking spaces. On an annual basis, an average of 1.08 million people utilized these spaces with around 100 people per location serving as the norm. While this may not seem like a large figure, just five years ago there were only around 4,000 spaces in the U.S., going to show how fast they’ve risen in popularity.

How Expensive are Coworking Spaces?

The cost to rent a coworking space can vary drastically depending on location, amenities, whether private offices are offered, and much more. However, the average price ranges from around $250 per month to $1,000 per month for a desk. There are day pass options available at many locations that can go as low as $30.

5 Reasons to Consider Investing in a Coworking Space

When considering whether investing in a coworking space in Houston is right for you, there are a number of considerations that must be kept in mind. Specifically, there are five main reasons why coworking spaces are so popular:

Lower Overhead Costs

While the monthly cost of renting out coworking space for your employees may not seem overly low on the surface, there are other costs to consider. You don’t pay for utilities in the coworking space or for any of the amenities in most cases. This means that your overhead costs associated with a traditional office drop drastically.

Increased Levels of Productivity

Given the more modern style most coworking spaces use with open desks, collaboration rooms, and more, employees can see greater levels of productivity. In fact, employees who utilized coworking spaces scored higher than traditional employees in terms of overall satisfaction and productivity.

A Newfound Sense of Community

One amazing aspect of being in a coworking space is being surrounded by employees from other companies around the world. This allows workers to meet new friends, network with potential future colleagues, and so much more.

Allows for Flexible Work Schedules

When employees utilize a coworking space, they can come and go as they please. This takes a large amount of pressure off of the “show up thirty minutes before your boss” that often comes with a traditional office. Additionally, it allows employees to tackle some work from home to avoid traffic before heading out.

Private and Shared Room Options

For those who have groups of employees that would need to use coworking space, many of these options provide private group rooms for collaboration which can be booked as well. This means that coworking spaces can accommodate a single person, as well as an entire team.

Drawbacks of Using A Coworking Space

For all of the above benefits, there are a few drawbacks to signing up for a coworking space that all companies should be aware of:

• Companies who have employees working with extra sensitive data may not want outsiders to potentially see their work
• Companies cannot control the level of noise or distractions that may occur
• There is likely to be poor customer service within the coworking space
• A company has no control over the actual design of the coworking space and if it fits company themes
• There may be a lack of luxury within the coworking space

Questions for Determining if A Coworking Space is Right for You

When evaluating all of the potential benefits and drawbacks to investing in a coworking space for your employees, there are a number of questions that can help anybody determine if coworking is right for their company:

• Do a large number of your employees work a great distance from the standard office?
• Does your company budget allow for the expense associated with a coworking space?
• Would you like your employees to have the opportunity to network with people from other companies?
• Are there any potential security risks to the work your employees perform?
• Are there specific hours of access that you require employees to be present?

Bolster Organizational Productivity Today

On its surface, investing in a coworking space may seem like a large overhead cost for a company. However, the cost of losing employees due to not having flexibility with working conditions may cost more. To that end, evaluate all of the above benefits and drawbacks of utilizing coworking spaces for your employees to see if offering this is something that would appeal to your workforce.