In recent years, the concept of coworking has grown enormously worldwide. In the year 2021 alone (indeed, one of the 'corona years') the turnover of coworking spaces grew by 18.9%. This increase is partly due to the growing interest of corporates in coworking spaces. On average, there has been a 21% increase in the number of places rented by corporates in coworking spaces in 2021. Why have corporates become interested in coworking spaces that were particularly interesting for freelancers and start-ups in the past?

To answer this question, let's first dive into the terminology. Being part of a coworking space and flexible working are often seen as the same thing. Yet these are indeed different. Flexible working can mean many different things, but most people use it to have flexible working hours and work from a location wherever you want. However, this can also lead to disadvantages, for example: 'Flexible workers' often work faster and working from home is often associated with loneliness.

Flexible workplaces are often part of a coworking space (just like meeting rooms, for example), but actually mean something different than flexible working. Within a coworking space you can rent offices and/or permanent desks for a longer period of time. But, you can also take out a subscription form where you can work at designated places at different locations of the coworking space, such as at StartDock.

By having your staff work in (multiple) coworking spaces, the problems associated with working from home are solved. Even if employees work remotely. The use of coworking spaces also fits in well with working with flexible hours. Research shows that more than half of the companies that use coworking spaces have chosen this to enable flexible working for their employees.

Which brings me to the final question; what are the reasons for a corporate to accommodate staff in coworking spaces? Below are four of the main reasons.

1. The start-up culture

Coworking spaces are known for facilitating a workplace for freelancers and/or start-ups. This creates a culture within the walls of a coworking space in which passion, drive and entrepreneurship are central. This is a characteristic that corporates like to use. In 2019, british bank HSBC became the largest tenant of the coworking space WeWork and thus sealed the partnership that both parties still have with each other. HSBC indicated that it was stimulating for their employees to be part of a coworking space where "young companies with ambitious growth plans encourage employees to think beyond their own tasks/activities".

2. Managing real estate

When the employees of a corporate use coworking spaces, they do not occupy desks in the company's existing offices. A new model within corporates is the 'hub and spoke' principle, in which a central headquarters is complemented by partnerships with coworking spaces. Because employees can therefore work remotely, less m2 is needed and a higher occupancy rate is achieved.

3. Flexible working is the norm in finding talent.

Flexible working is becoming increasingly popular with young talent. Research shows that when there are multiple similar vacancies, 80% of job seekers reject those in which flexible working is not supported. Flexible working is also very important in retaining talent. Three out of four organisations in the UK indicate that providing flexible employment ensures that talent stays with the company longer. This is a very interesting fact for corporates as it costs an average of 12,744.82 euros to replace an employee.

4. Productivity

Optimizing and innovating workplaces remains a process that is always evolving. The most productive workplaces and/or environments aren't just the quiet individual offices or the bustling open spaces – the most innovative companies cater to the needs of employees by offering both spaces where you can isolate yourself as an individual and different spaces for group work.

One way to balance these conflicting needs is through activity-based working. Within this way of working, the different places within a building are arranged for different tasks / purposes. This can lead to higher productivity and lower costs for the company: when the National Grid in the UK modelled four of its offices to support activity-based working, individual performance improved by 8% and operating costs decreased by €10 - 12 million per year. In addition, their employees were also happier with this new way of working, with 86% saying that they liked the new layout of the buildings better.

However, setting up offices is expensive and time-consuming. For a 'beautifully' desiged workplace in an office building in Amsterdam (including furniture), you spend an average of € 300 per square meter (that is € 3 million for a 10,000 square meter office building!). Most coworking spaces are already optimized to support activity-based working and offer facilities such as phone booths for telephone conversations, meeting rooms for socializing, meeting rooms and nowadays even increasingly creative spaces.

Ultimately, the adoption of coworking by corporates is one of the rare things that makes sense from all perspectives. It gives employees what they want because they can work flexibly, while at the same time offering benefits for the relevant corporate. This is done through better staff retention, less direct overhead and it entails less risk because companies are not bound by long-term contracts with the rent of an office building.

In other words; Corporates <3 Coworking!