Millennials, Innovation and the IFRS
Coworking spaces used to be dominated by young college grads working for early stage startups. Now, as some our guests at the Kaia dinner in Singapore mentioned, larger companies and multinationals are jumping in on this trend. Why? More companies are starting to see the benefits in terms of expenses, corporate culture and work-life balance, as we explain below. Overall, coworking can make a company more flexible and improves its employer value proposition.
1. Goodbye Landlord
With low or zero fixed costs, using coworking makes it extremely easy to scale up an office as companies grow. It allows affordable flexibility–whether for temporary staff in a project, business travellers in a new city or workers trapped by traffic in a neighbourhood in Manila. The basic purpose coworking spaces served to entrepreneurs apply to most other companies. It’s cheaper than getting a new office and doesn’t lock you in into a 2-year contract. With IFRS 16 coming into effect in 2019, joining a coworking hub might even have positive impact on your balance sheets.
2. It’s always millennials.
Millennials need to work somewhere with a pingpong table. But actually, besides being a trendy topic, coworking has a strong psychological rationale. The social structure of a coworking space gives both a sense of community and collaboration while maintaining a sense of individual autonomy. The fluidity of people at a coworking space makes your duties as an employee one of the few constants. In addition, the physical design—roundtables and open spaces—lends itself to more freedom in the style of work, which can boost productivity. Moreover, the space encourages a flatter hierarchy, encouraging communication and innovation, especially with younger employees. All of this lessens the struggle for work-life balance without requiring extra time away from the office, and brings an overall improvement to corporate culture.
Companies might want to be careful with this one, but coworking can be useful in terms of connections. The drawback is obvious. The public nature of coworking poses a risk for confidential information. The providers of these spaces must do more to address this issue. For example, coworking companies could limit membership to their spaces in order to prevent conflicts of interest amongst clients. Dealing with networking requires prudence, but if done correctly it can boost business development.read more