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Image for blog post Self service coworking doesn't exist

Self-service coworking doesn’t exist.

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These things don’t run themselves.

  • Coworking spaces are high touch businesses, so cannot be expected to run without a high level of attention to the customer experience.
  • Technology does not exist to replace human involvement, it exists to support it and better leverage how time is spent on human involvement.
  • To create a premier customer experience, great technology & personal interactions are both required.

About a year ago, I had a number of conversations with a building owner as they were preparing to open a new coworking space.

Many of the discussions centered on basics like what furniture to buy, what memberships to offer, and what brand of coffee maker to get.

But the rest were tough – this owner wanted to be completely disconnected from the space. He wanted the place to run itself and was assuming that electronic door access and independent members would make that happen. He had a true “build it and they will come” attitude, with no intention of investing in actually running the space. Nice ergonomic desk chairs, yes. Human time? No.

One year later and I happen to have connected with several of the people in his community that I’d spoken to because they had wanted a new coworking space. None of them work there. They all tried it out and quickly left. Why? The place feels dead, there is no sense of place, no experience, nothing to keep them there. They did not feel valued as customers.

The input they gave about what they needed to be productive was ignored.

I have seen this so many times – a building owner that wants to monetize their space hears about coworking & thinks its an easy way to drop their vacancy rate. That 1200 sq ft office space on the 2nd floor that you’ve used for storage for the past 10 years? Of course it could be a coworking space! Slap on some paint, add a few desks & some motivational posters and open up the doors. People will show up in no time and you’ll be rolling in the extra revenue coworking can bring. Because its hip, its cool, and it look super easy. It’s just office space, right? Not true.

The thing is, these places don’t run themselves.

Coworking is not just office space. It never has been.

The key to building and running a thriving coworking community? The experience. Coworking is about providing the right flexibility to help members be supported & productive in their professional lives. That requires a heavy dose of customer service – heavy.

Small coworking spaces in particular are competing not just with other commercial office space, they are competing with non-consumption. Why would a remote worker pay for office space outside of their home if it provides no added value? They won’t. They have a desk and chair at home. Coworking spaces must provide more than a place to put a laptop.

Too many people believe that technology can be a substitute for that human touch. It can’t. What it can do is support, streamline, and improve the experience for both sides. But it absolutely does not serve as a replacement for human interaction. What it can do is free up time and remove inefficiencies that are preventing us from connecting to one another in the right ways.

My members use our mobile app to save them time & to interact with the physical space. Technology in this case makes it easy to get things done quickly. They can do things like see what meeting rooms are available and book one while walking down the hallway or waiting for their espresso.

What does that give them in return? Time to do things technology cannot – talk to another member at the coffee pot, take a moment to pet the office dog, focus on their next call, the things that we need to continue to feel connected to other humans and to be productive.

What can technology help me with as a manager? Keeping track of all the human things. Great technology does more than just enable payments and room scheduling. It helps me keep tabs on what my members are doing, what they need, what they don’t like, and what I can do with all of that information to help provide an even better customer experience and grow my business.

If you’re going to run a business, focus on that business, because it’s not going to run itself.

Image for blog post The coworking value proposition part 4

The Coworking Value Proposition – Part 4 (Employers)

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The flexible workspace industry has seen explosive growth year over year that will continue to grow. What started as spaces for freelancers & digital nomads have become mainstays for the workforce, including the largest global companies.

Part 4 of this series delves into why larger companies should leverage the flexible workspace movement. If you haven’t read the previous entries, here are links to each:

  • Part 1 provided an overview of the coworking industry and its potential in the future.
  • Part 2 focused on the benefits for individual members & the ecosystem of workspaces that exist today, including coworking spaces.
  • Part 3 was all about the opportunity for commercial real estate to grow the flexible workspace industry.

Large companies & corporations are driving a major portion of the growth in the flexible workspace industry, expected to create 40% of the demand for flexible workspace in the coming years. Flexible work policies & distributed teams are becoming the rule rather than the exception. Professional office space is still needed wherever those employees are, whether its full teams or single remote employees.

Employers & HR managers can leverage the growing coworking industry as part of a competitive strategy to attract, retain, and support talent. The value proposition of coworking for employers is just as strong as it is for individual workers.

What are some of the benefits of coworking for a large business?

Flexibility, not only in schedules, but in how & where work is done, is key for developing & maintaining a competitive & productive workforce. Coworking spaces can play a significant role in helping companies achieve that flexibility for their employees.

For employees that are not on-site at a corporate headquarters, coworking spaces are fully amenitized workplaces ready to go when and where they are needed, in more and more communities across the globe. With flexible membership options and workspaces, coworking spaces are great alternatives to home offices or coffee shops for working remotely.

Additionally, companies can also benefit from the flexibility provided by coworking spaces. The amount of space occupied can be scaled up or down, without the need for a company to manage a complicated and expensive build out. Many coworking spaces can accommodate everything from a single desk user to a large team suite. Companies can lease out only the space they need, even if those needs change quickly.

Why are these benefits valuable to a business?

Office space is a big expense for companies, both in regards to capital & operational expenditures, and is not typically the primary focus of the business. Coworking spaces can help companies not only reduce expenses, but also get more value out of the space that is being used, while helping companies focus more time on what they need to, their business.

They are balance sheet friendly – Utilizing shorter term agreements for coworking and flexible office space instead of managing real estate leases in house reduces risk & complications for a business’ financial statements. With the implementation of new FASB lease accounting standard (ASC 842 & IFRS16), organizations are required to recognize leases as assets & liabilities on their balance sheets for any lease that is over 12 months. This standard went into effect on January 1, 2019 for public companies, and will apply to private and non-profit organizations as well starting in December of 2020.

They are a better use of resources – Many of us have either seen or experienced a large corporate office floor with almost no one using it. The ability to more accurately match real estate needs with headcount needs can result in a direct reduction of real estate expenses. Why pay for the space if your employees aren’t using it? A better use of resources is to pay for the space that is actually needed and where it will actually be used.

What are some of the problems being faced by HR Managers?

Talent attraction – Competition for talent is fierce. Finding & attracting high quality employees requires increasingly enticing offers. Only a portion of that comes down to salary. Many in today’s workforce are looking for flexibility, remote work opportunities, and good perks in addition to competitive financial incentives.

Productivity & Retention – Once a company has the talent, the next challenge is retaining them and supporting a work environment that contributes to high levels of productivity. For example, a workplace that requires a long commute can reduce job satisfaction in a similar way as a pay cut. That’s before an employee even makes it to the office for the day.

How does coworking solve these problems?

Distributed employees, distributed space –  Recruiting can benefit from a broader geographic pool. Coworking provides office space for a company without the need to set up satellite office operations or requiring employees to relocate. Resources can be redirected from maintaining a large scale headquarters to coworking memberships & digital tools that can support remote & distributed teams.

Use of coworking spaces can be leveraged as a competitive edge for recruiting by illustrating a company’s support for flexibility in how & where an employee chooses to work. Flexible work is no longer a generous perk, but required for companies to maintain a talent advantage.

Improved employee experience, improved productivity – The statistics gathered over the last several years make a clear case for the benefits of working from an alternate work environment like a coworking space, such as:

  • 84% of people who use coworking spaces are more engaged and motivated &
  • 89% of people who cowork reported being happier.

Coworking spaces can help make people happier, which correlates to improved productivity, as discussed in our previous article on the 3/30/300 Rule of Thumb.

Why is coworking the best solution to these problems?

The demand for flexible work arrangements from the workforce will continue to grow. Flexibility and autonomy are what workers want. Companies that can provide that are rewarded with more productive, more satisfied, more loyal employees, ultimately saving money by avoiding lost productivity and employee churn.

If shifting away from the traditional corporate office to alternate work environments is the goal, why not have all their employees work from home and skip the office completely?

It’s not possible to implement effective remote or flexible work policies without providing your employees with the appropriate resources to be successful. Coworking is one of those resources – a professional work environment, others to work around, division between work and home life, and lots of coffee. Not everyone is productive or happy working from home. When workers can work at least part-time from an office environment, like a coworking space, they are more productive.

The flexibility that coworking spaces provide is a benefit to both the employees utilizing the space as well as the companies they work for.

The bottom line – coworking space for business is good for the bottom line.

Person using keyboard and mouse

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: