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Coworking members – who are they?

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Flexible workspaces are for more than just freelancers & startups. Here are 12 types of workers using these spaces today.

*Originally published on Allwork.Space: https://allwork.space/2019/10/12-types-of-coworking-members-and-what-they-need-from-their-workspace/

Millions of workers across the globe are already participating in the distributed workforce, driving explosive growth in the coworking and flexible office industries. But who are they? Are they the same people that were using coworking spaces a decade ago? Who will they be a decade from now?

Flexible workspace is for more than freelancers and startup teams. The range of who is utilizing coworking & flexible offices has grown as the industry continues to mature.

Here are 12 common types or workers you can find in a flexible workspace:

1. The Remote-from-Headquarters Employee

This remote worker works for a company that has a headquarters somewhere out of commuting range. Since they live far from HQ, they may have to travel to meet with their teams in person, but otherwise are fully remote. What the full time remote worker needs is access to quiet or private space to take frequent video calls. They may not need a private office if they are traveling a lot. They will gravitate towards small meeting rooms that they can book several times a day, but will otherwise be found at their dedicated desk complete with family photos.

2. The Distributed Company Employee

Their entire company is distributed across multiple states or even countries. Similar to other remote workers, they still need private space for those video calls, but they may be more accustomed to cafe seating and phone booths. Since their company is setup to handle a distributed team, they leverage communication tools more efficiently than a company with only a few remote employees.

3. The Partially-Remote Worker

These workers may be within commuting distance to a company HQ, but have the ability to work away from that office a few days per week. They may also serve multiple markets, so need professional space in each.

They are more likely to want the consistency of a private office, despite only using it a few days per week. While they could setup a home office, they may have client meetings or prefer work-home separation.

4. The Digital Nomad

The wanderers, the jet setters, the van-lifers. Digital nomads may stay in one place for a few days or a few months, but ultimately will continue on their way with their laptops to a new destination.

They can work from anywhere & stay focused in a noisy cafe as easily as a quiet office. They have their system down – laptop, noise canceling headphones, a journal – all packed nicely in a single backpack. You’ll see them post pictures from the space on their Instagram accounts, so photo worthy spaces & branded coffee cups are a must.

5. The Solopreneur & Freelancer

The classic user of coworking spaces. They work for themselves as part of the Gig Economy, with clients that may be local or remote. Their schedules may be erratic, working through the middle of the night or taking off mid-week for a quick vacation.

If the majority of their clients are local, they need a professional space to take meetings that isn’t a coffee shop. Otherwise they need somewhere for client calls, but phone booths are probably fine. They also like having 24/7 access to meet their deadlines and work the hours they are most productive, whether that’s because they are a night owl or an early bird.

6. Startups

Another classic from the earliest days of coworking. The early stage startup that doesn’t know if it’s going to survive for 6 months or 6 years. When they sign up for flexible office space, open desks are a great fit for their budget. However, as the startup grows, they will need more space and will opt for team suites. If their growth is explosive and the workspace cannot accommodate what they need, they will graduate to their own company office elsewhere.

7. Small Teams

Many traditional small businesses are moving to flexible offices. These are the small accounting firms, legal teams, architectural & engineering firms. They may have 2 employees, or 10, but have typical office needs: coffee, a conference room, private office space, access to a printer, and a nice spot to eat lunch nearby.

8. Enterprise Clients

The increasing number of large corporations signing membership and service agreements is one of the biggest sources of growth for the flexible workspace industry. Larger private offices suites with custom branding is one way that these corporations are integrating with the flexible workspace industry. Having the ability to provide premier workspace from anywhere is a serious advantage in the ever increasing competition for top talent.

9. Traveling Corporate Employees

Those same big corporations frequently have teams & employees on the road. These workers need a nice office space for a day or two at a time while they make the regional rounds. Perhaps they are on a family vacation when something critical happens and need to get some work done while the family is off playing. If these workers are traveling through the same community enough, a private office is ideal, although open desk space with abundant private meeting rooms and phone booths can usually meet their needs as well.

10. The College Student

Sometimes the local coffee shop just doesn’t cut it when you need to study for that calculus test. What is needed is a giant whiteboard, a change of scenery, and lots of coffee. They could also be an aspiring entrepreneur wanting to get a taste for startup life, so sign on for an internship with the workspace itself or a member company. Students bring incredible energy to a flexible workspace, but typically need discounted or sponsored membership rates.

11. Non-Profit Organizations

Non-profit organizations have tight budgets, and a need to build a base of support to help them focus on their mission. Flexible workspace, that can be expanded or contracted depending on this year’s grant cycle is a huge benefit that lets the organization focus on making the most impact with what they have. These groups are heavy users of larger meeting space, which they need for board meetings, volunteer training, or events.

12. Event Hosts

Coworking spaces are often more affordable & more trendy than the traditional conference center. Event hosts that are looking for a smaller venue, or one that is more aligned with their audience are drawn to the unique characteristics of flexible workspaces in addition to their accessible pricing & friendly staff.

 

Understanding who is utilizing flex space is critical to drive the growth & sustainability of the flexible workspace industry. These are customers that not only exist today, but will exist in the near future as more and more companies realize the benefits of remote teams & flexible work. Meeting the needs of these customers by understanding who they are is key to the success of every coworking space, serviced office, & flexspace provider.

 

Further Reading:

Social network analysis visualization

What coworking space operators need to know about pass networks

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Participating in a pass network should not devalue your product – it should highlight your worth.

One of the newest offerings on the coworking block is a growing list of companies offering a pass for access to multiple coworking spaces. 

My coworking space recently got an email from one of these companies pitching us on signing up to be a host space for their new pass. Participation would require that we allow their members day access up to a set number of days per month. 

Now, Cowork Tahoe gets a significant number of day pass visitors during peak tourism season and charges $30 per day. This is exactly who we offer day passes for. The vast majority of these customers do not become permanent members of our space.

The pass company offered us a payout of $7.50 per visit from members with their pass. That is a 75% discount compared to our standard rate.

What’s the incentive to say yes to that? There isn’t one. 

After paying as little as $50/month for their pass membership to access my coworking space, would they ever be willing to pay $30? Probably not. Our day pass now has the perception of being disproportionately expensive in comparison. Our product has a lower perceived value and there’s no going back from that.

There is also the loss of trust in our company if we are providing such a steep discount through a pass, but charging full rate to everyone else. It is a bad precedent to set with a potential member and can do harm to your business in the long run.

We previously wrote about why we discourage flexible workspaces from offering blanket free day passes to attract new members. This is the same. 

Pass networks like this are not good for coworking businesses. 

Is this type of pass network for coworking really that common? Unfortunately, yes, and increasingly common. 

Coworking pass memberships offer use of coworking spaces directly to the end users, whether they have a “home” coworking space or not. People pay for membership to the network, not a specific coworking space, so the customer relationship, including pricing, belongs to them. They are not your members.

Why are these companies popping up? What problem are they trying to solve?

Simply put: Easy access to a place to work, whenever, wherever.

On a recent business trip, I needed a coworking space for the day. I was staying with friends, so needed a professional office space to work from for a few hours in between meetings. 

As the owner of a coworking space, this should have been easy. 

I did a google search and checked the map results for spaces closest to where my meeting & lodging was, then cross checked those against reviews on Google & Yelp. Then, I had to go to the websites of the top results one by one to determine if I could just walk in, if I had to schedule a tour, if they even allowed drop-ins, etc. 

It was not a frictionless process. So, as a customer, I understand the idea of a pass network. If I belonged to PassX, I could quickly see spaces that were included, reducing the number of steps it takes for me just to get to work.

Are Pass Networks the best solution for this problem?

It is important for coworking space operators to understand that these passes are attempting to solve a problem for traveling workers, not necessarily for coworking spaces. The problem that many coworking spaces have is customer acquisition – getting more members.

It is easy to conflate the two. The problem pass networks are addressing is a person’s ability to quickly access coworking space for a day across multiple cities. However, that is not directly increasing the overall membership of participating coworking spaces.

The value proposition that these network companies pitch to coworking spaces is better exposure, more members filling empty seats, and revenue as a result of more deal flow. Having access to your beautiful workspace through a pass is providing more value to their company than it is to yours, however. 

Should you use a pass network? It depends. 

There are a lot of companies out there doing this, so it is important to do due diligence to determine if there is one that is the right fit for your coworking business. 

Here are some things to consider when deciding:

  • If you choose to be affiliated with them, will it be a positive reflection on your brand and your product? What is their reputation as a company?
  • What payout are they offering? If they require you to discount your day rate to bargain bin prices, think twice about if the company is really acting in your best interest or using you as a means to benefit their own customer base & their bottom line.
  • What are the expectations on your staff time when hosting a member of the pass network? Does it vary significantly from your typical onboarding or check-in process? If so, is that additional time or effort worthwhile?
  • Who are their customers? Are these customers the same as your target customers? Are there any expectations or guidelines for their behavior as a guest in your space? How do they handle bad actors?
  • What, if any, are the criteria they have for your participation in the network? Is there an expectation of high quality, convenient experience, with beautiful workspace that supports the productivity of their members or are they aiming for volume by signing up as many spaces as possible without regard for the reputation of the coworking space?
  • What are they offering for your participation besides a payout? Does participation in their network elevate your brand or does it bury it?

Finally, does the company recognize the needs of your coworking space as much as their members? Are the incentives of the company aligned with your own? They need to be.

Without a good supply of profitable coworking spaces, pass networks can’t exist.  And if they do not align their incentives with those of the coworking spaces they need as hosts, they shouldn’t.