Just a few years ago coworking spaces were virtually unheard of however, they have fast become a popular staple in the business world. According to a report done by Statista, in 2020 there were 19 421 coworking spaces in the world, ReSourceYYC being one of them. That number grew to 28 552 spaces in 2022. It is projected that by 2024 there will be around 42 000 spaces. The number of offices directly reflects the demand for cost-effective spaces that cater strongly to small businesses, start-ups, consultants, or freelancers.
So, why are so many of these spaces suddenly seeming to pop up? Well, there are a few huge personal and business-related benefits that make them so popular.
Cost Benefit’s
A common misconception is that coworking spaces are expensive, and some may be, but for the most part, they are much less expensive than their traditional office counterpart. For example, when companies rent a traditional office, they are responsible for a myriad of operational costs. Alternatively, in a coworking space companies are saving on those costs, such as IT infrastructure, cleaning services and maintenance, which are included in the rental agreement. Member companies also have access to the amenities the office has to offer. These generally include ergonomically correct furniture, meeting rooms, coffee, tea, and sometimes event spaces. The buildings may also offer services like gyms, parking, bike racks, etc.
In addition, since many like to split their time between working from home and the office, companies can have more flexibility with the spaces they choose. They may only need a small space that a few employees can utilize when they want, instead of a large expensive space that is not always being used. Many coworking spaces also include virtual and hybrid services that can be moulded well around the needs of an individual and a company.
Social Interaction
Pre-pandemic there was already a growing loneliness epidemic, and it only expanded with work-from-home orders. Although many appreciated the freedom associated with working from home, they were not gaining the typical social interaction that occurs in a traditional office space.
In a survey by Harvard Business Review 83% of individuals found that working in a coworking space significantly decreased feelings of loneliness and isolation. In addition, 79% responded that their social network has expanded since joining a space. Within these newly found social networks, many said they would socialize with others in a non-professional manner, up to 54% even noted they would socialize with other members after work and on the weekend.
Interestingly, one of the most compelling reasons for an individual to join a coworking space was for social interaction. More social interaction creates feelings of happiness, in which 89% of individuals in a coworking space reported they felt. This can then lead to increased work motivation and engagement.
Networking
The networking aspect of coworking spaces is a large part of what has made them so popular. Many coworking spaces facilitate their own networking events, which encourage members to converse with others in the space. Networking also tends to occur naturally between individuals, whether they are grabbing a coffee or passing by in the hallway. The connections come from a shared desire for collaboration and business growth, something that is highly encouraged within coworking spaces.
In a survey by Small Business Labs it was found that 82% of respondents have expanded their professional network. In addition, many coworking members have reported that not only have their networks grown but they have also learned new skills or improved an existing skill set. Members also reported being comfortable asking other members for help or guidance. Furthermore even just being located in a coworking space has been a great source for finding new work and business referrals for members.
The combination of having a nice space to work in and other professionals to interact with tends to make workers happier. An increase in morale is well known for simultaneously increasing productivity and engagement with work. If you are someone who has been working from home, feeling lonely and/or not productive, check out our ReSourceYYC coworking space. It may be just the thing to bring back the motivation needed to make your business grow or to find more success with work.