The approach to office work has completely changed over the last 5 years. In the wake of the COVID-19 pandemic, business leaders are realizing that remote and hybrid work modes are here to stay. According to Gallup, over half of all remote-capable employees have flexible working arrangements where they spend only a portion of their week in a traditional office setting.

With many office spaces sitting empty, companies are facing pressure to downsize their office portfolios to cut costs. However, eliminating office space altogether can have many negative consequences. For this reason, it’s critical for companies to figure out how to best provide physical space to their employees without overtaxing their financial resources. For this reason, more and more companies are embracing the shared workspace model. Here are 5 benefits of transitioning your company’s office portfolio into a shared workspace environment.

1. Cost Savings and Reduced Operating Expenses

Shared workspaces are advantageous for companies looking to reduce their overall operating expenses. With a traditional office space, companies must cover the cost of rent, utilities, maintenance, taxes, and insurance whether they use the space or not. Shared office spaces allow companies to only pay for what they truly need. This can add up to thousands in savings per employee, especially if you only need meeting spaces to bring the team together on special occasions.

2. Employee Happiness and Productivity

Shared workspaces offer a number of benefits that cater to the needs and expectations of today’s workforce. By providing employees with flexible workspaces and access to premium amenities like industry-leading technology, companies can increase employee happiness and engagement. According to one study, engaged employees report a 22% increase in productivity creating a win-win for both employees and their employer. Shared workspaces are also highly desired by employees because of enhanced networking opportunities as they engage with employees from other firms throughout the day.

3. Competitive Advantage

The challenge with traditional office space is the lack of flexibility. For growing companies, being locked into a long-term lease agreement can limit growth by locking the organization into one geographic location. Shared workspaces are superior in today’s rapidly evolving business landscape by allowing companies to scale seamlessly, access new markets, and attract a wider pool of talent.

4. Sustainability and Green Practices

Sustainable business practices are becoming increasingly important as consumers look to work with companies that are doing good for the environment. In fact, 80 percent of all businesses have some internal sustainability goals such as reducing waste or energy consumption. Shared workspaces support these goals by promoting efficient space utilization and reducing carbon footprints through shared resources.

5. Risk Mitigation

Shared workspaces provide companies with the opportunity to reduce and mitigate business risks. For example, diversifying locations and avoiding long-term commitments can help avoid business disruptions from natural disasters or from unexpected changes in the consumer demand. It also shifts many of the operating responsibilities tied with office ownership or leasing to the shared workspace provider.

Making the Shift from Traditional to Share Workspaces

The advantages of leveraging shared workspaces to downsize office portfolios are undeniable. Lakeside Workspaces offers our clients the perfect solution for equipping their employees with professional, well-equipped office spaces and meeting rooms at significantly lower rates than leasing traditional offices. Contact our team today to find out how we can help you transition your business to a more efficient and cost-effective model without sacrificing the tools and resources your team needs to perform at their best.