The Art of Workplace Communication is The Language of Leadership

The Art of Workplace Communication is The Language of Leadership

American author and presidential speechwriter James Humes once said that the art of communication is the language of leadership. And though certain leadership characteristics are inherent traits, effective communication is a learned skill.

For an organization to be successful, good communication practices are needed. It is the foundation of every aspect of the business. Whether it’s a large scale company inside private offices or startups in coworking spaces – no matter the size, without it, the basic functions of the management such as planning, organizing, motivation and controlling will not go smoothly.

Miscommunication is an error most of us are already familiar with. Even in our daily lives, we tend to miscommunicate with one another. From the errors between the sender and receiver, to the ambivalent language used to words that has multiple meanings and connotations; a lot could go wrong in a simple conversation between two people.

These drawbacks, though simple, can majorly affect business operations. Poor communication can hit both customers and suppliers. Staff morale can go down when relevant information aren’t relied timely. It can increase absenteeism by impacting motivation and can escalate levels of stress.

According to a survey conducted among 1,400 corporate executives and employees, eighty-six percent of the respondents have said that the lack of collaboration or ineffective communication contributes to workplace failures. In addition to this, the aforementioned study also discusses how common these issues are to various industry sectors. Its authors says that these miscommunications can slow down projects, productivity and has the ability to ultimately impact both client and employee relation.

Data from other reports have showcased how costly poor communication can be. Over an estimated $37 billion are spent on employee misunderstandings regarding company policies and business processes are in both the US and UK and companies lost a cumulative cost of $26,041 per worker per year to productivity losses resulting from communication barriers.

Why You Should Communicate

Conversely, the abovementioned report stated statistics demonstrating the positive impact of good workplace communication.

Companies who practice highly effective communication among their leaders receive 47% higher total returns to shareholders over the past five years compared to those who have least effective communicators. In addition to this, American electronics provider, Best Buy found out that high employee engagement scores result to better store performance – for every percentage point it raised employee engagement, there was a $100,000 increase in the operating income of their individual stores annually.

Improved workplace communication has the ability to change the game for your business. Several studies have said that this can deliberately increase a worker’s productivity.  Effective work group communication can lead to significant improvement in the overall performance of a company. Moreover, experts have found a strong link between organizations observing effective communication and the productivity ratings of their employees.

It increases employee job satisfaction by empowering the workforce with upward communication – information flows upward and would usually entail feedback. The more employers are able to listen to their employees, the better. Job satisfaction can also decrease rates of absenteeism and turnover.

Improving Workplace Communication

There are several ways businesses across various industries can improve the communication within their workplace.

Assessing the current communication utilized can give you an idea on the areas that needs to be improved. For example, your team is struggling to keep up with conversations through email. Why not try social intranet solutions and collaboration tools. Listing down your workplace communication methods can give you a clear idea on what to do next.

Internal communication is essential so it’s only apt to check in with your employees regularly. You can set meetings with them to discuss their thoughts on a project and task. By doing this, you are somehow implementing an open door policy between you and your employees – they are likely to feel more comfortable to bring matters to your attention.

Startups and teams in coworking spaces can take advantage of the open plan layout to improve their communication. Unlike in traditional workplaces, members of the team can easily approach their superiors to discuss tasks and project updates with them. Readily available communal areas can set a relaxed vibe during discussions.

The group’s internal communication can be strengthened by attending weekly happy hours or team-building events. In addition to this, each member can improve their communication skills by interacting with other members within the vicinity.

As per James Humes, leadership’s language is the art of communication. It is a skill that can be learned and improved throughout one’s life time – just like swimming and biking.

Hone your skill and communicate with us today!

The Makings of a Healthy Office

The Makings of a Healthy Office

A lot has been said about the importance of a workplace that cares for the well-being and health of its employees. Moreover, there’s an increasing number of overworked employees from today’s workforce, each one demanding for a better working environment and a healthy office.

Several reports from last year have said that workplace burnout have reached epidemic proportions. On a survey conducted among 614 US human resource professionals, 95% of HR leaders said that burnout is ruining workplace retention. When asked on the main contributors to burnout, respondents said that unfair compensation (41 percent), unreasonable workload (32 percent) and too much overtime (32 percent) ranked the highest.

The millennial generation have also made it clear that they want companies to be more attentive of their health. Experts have said that companies need to develop workplace wellness programs in order to attract more talents from the younger generation.

Due to the complexity of workplace culture and company policies, it became very hard for one to know whether or not his/her workplace is a healthy office.

HR.BLR defined workplace wellness as workplace health promotion activity or organizational policy in support of healthy behavior in the workplace and improve health of the employees. Companies can either incorporate medical screenings, on-site fitness programs or allot time for exercise sessions.

Dr. Carmella Sebastian of the WELCOA (Wellness Council of America) says that though it’s hard to quantify, a company’s investment on the well-being of its workforce can increase their morale, loyalty and engagement – all of which are good for both parties. She also adds that as the generation of Millennials start pouring in to talent pools, proactively engaging them is deemed to be a smart move.

But before anything else, there are certain things a company should take into consideration in developing its very own workplace wellness program.

Making It Healthier

Before implementing any changes or new regulations, it is only right to assess what you’re up against.

Taking into consideration that healthcare and associated costs can differ from company to company and from one industry to another, organizations need to know their population. Among your employees, how many of them are active smokers? And who among them are desk-bound?

Assessing the health of your employees through medical examinations can give your real time information on your population. In addition to this, it’s also important to know what activities and health topics they will be interested in. Create surveys and analyze what they would like to in terms of improving their health.

After gathering all the data needed to get a picture of what your company’s wellness is like, challenges will arise. For example, majority of your workforce are chronic smokers and the rate of bronchitis as well as lung cancer within your organization have gone above average.

Go for the low-hanging fruit and start turning your organization into a smoke free enterprise. Start executing policies that prohibits smoking in front of the building or anywhere near its proximity. By doing this, you are decreasing your workforce’s smoking rate by 6 percent and can result to people quitting.

Dr. Carmella Sebastian says that companies need to win their employees over and make it known that their health and overall well-being matters to the whole organization. Incentivize their efforts for participating and make them see that it matters to the company that they take good care of themselves.

And as your program flows through, celebrate your successes. Share with them the setbacks and challenges they conquered and the goal they have reached. Through this, you are increasing their morale.

A Healthy Office

Private companies aren’t the only one’s taking care of the health of today’s workforce. Serviced offices like call center seat leasing, private offices, and outsourcing spaces are taking into consideration the impact the workplace has on a person’s wellness. From spearheading events such as health fairs to designing their facilities to be healthier – installing bright lighting and ergonomic chairs and desks – providers are making sure that their members’ health are prioritized.

The discussion is yet to be over and there’s still more to cover. Day by day, our idea on how we work are changing and though these changes are deemed unorthodox, all of them are necessary for us to be better in our respective fields.

Change for the better and see what a healthy office looks like.

Sales Rain Adds One More Office Floor in BGC, Taguig City


Sales Rain has been consistently implementing innovative office space solutions and developing infrastructures that can cater to more businesses ranging from start-ups to multinational organizations and longtime players in various industries. 

Starting with over 250 plug and play seats on the 11th floor, the company is proud to announce the expansion of its BGC site with the recent full acquisition of Inoza Tower’s 15th floor. Situated along the 40th street of Bonifacio Global City, this building is a PEZA accredited facility which offers easy access to public transportation and dining options. It features an onsite cafe, smoking area, bank, and 24/7 convenience stores in and around its premises. 

Carrying a total of 1,027.10 square meters of leasable area, the newly procured entire floor will continue to offer a wide array of services from shared desks, enclosed private offices to modern seat leasing facilities. The aforementioned office area features notable amenities with over 250 fully equipped workstations and common areas such as conference & training rooms. With the company’s unchanging effort to provide exceptional services, sleeping quarters, locker rooms, a pantry area and clinic are all accessible to further accommodate its members.

“A lot of BPO companies have increased their staff working from home during the pandemic.  As we come out of the lockdown, we anticipate these companies to return back to offices and provide the same old high quality service to their customers. We have increased our footprint and positioned ourselves well to fulfill the requirements of such clients”

Sales Rain’s CEO Mr. Rajeev Agarwal adds.

Through building beneficial relationships, Sales Rain has partnered with hundreds of multifaceted companies who grew and reached success over the years. Driven by creating meaningful connections to its community and by adding another office floor in BGC, the company has advanced to become an adaptable serviced office provider in Taguig City and continues to expand its wide varieties of work environments through opening more sites in Metro Manila’s leading business districts. 

How Office Structure and Design Affects Workplace Innovation

How Office Structure and Design Affects Workplace Innovation

According to recent studies, an average person would usually spend 22.4% of their lives working. Considering that the average working week falls around 40 hours, that equates 1,960 hours per year once the holidays are deducted and assuming that they start their career at the age of 21 and retires once they hit 65, that’s a span of 44 working years. Using the same 409-hour working week, the final number is 91,250 hours.

And when someone – or something – spends 91, 250 hours inside an office or a workspace, he or she is bound to be affected by the environment present within its walls. The design of the space matters for it has the power to influence individuals engaged in the surroundings – be it indirectly contributing a new insight or forming extremities.

And with the majority of today’s working demographic devoting their efforts in competing with one another, each and every one of the players are on the hunt for ways to leverage innovation in their respective teams. One practical way of reaching office design goals is by being thoroughly understanding of how work space designs matter.

Understanding The Importance of Innovation

Well-established architects around the world have said that innovative spaces should be able to strengthen interactions, communication,  as well as collaborations. Its design and structure should be open, transparent and contextually responsive. There is a growing understanding amongst the majority that breakthroughs are usually the result of a greater collective working on formulating innovations. People need people – together, talented individuals create greater possibilities of achieving brilliant solutions.

Acclaimed author and expert John Seely Brown says that organizations who are constantly spearheading innovations don’t just possess visionary leadership and organizational commitment to creating new ideas, they are also supported by a place that underpin innovation. And with workspaces acting as the stage for overall work experience, it needs to be able to be effective on all fronts – from supporting its operations with the appropriate technology and tools down to positively influencing its culture.

The existing symbiotic relationship amongst the said components can create a multi-dimensional aid to successful innovations if integrated seamlessly. When done right, offices can both inspire and facilitate breakthroughs.

The Makings of An Innovative Space

The presence of co-working spaces, incubators and other innovation centers is proof that there is a growing need for offices that cradle the process of revolution. And though each kind carries a significant distinction that varies them form one another, there is a recognizable similarity in them – purpose and function.

Overriding aesthetics, architects and several designers have come back to the core of designs strengthening the “humanness” of the office. Gone are the flashy furnishings putting less emphasis on style and focusing its efforts on what the members needs – as a team and as individuals.

The well-known movement of coworking spaces prides itself in opening new ways of communication and sharing. Offering members a wide range of spaces for several unique activities in one place, providers have collaborated with those who will potentially use them. They have elevated their needs and ambitions – elevating employees and guests.

As the rest of the world continue to empower innovation as a new way to support emerging markets and create more jobs, the importance of innovative spaces will continue to rise. These versatile offices and its dynamic environment now serve as key to sustainable business growth.

Gain access to a wolrd-class contemporary serviced offices and welcome breakthroughs into your doors.

Branding Matters: Why Workplace Branding is Important to your Culture

Branding Matters: Why Workplace Branding is Important to Your Culture

We’ve heard it all before; branding matters – and it’s not just in terms of selling your products. Highlighting the unique points of your very own brand through your office creates a brand new experience for both of your clients and employees.

A well curated workplace branding infuses an office with a much deeper meaning, gives out a warm welcome to visitors and increases employee engagement, commitment and productivity. Though despite of this, several organizations remain to settle to adding the newest logo in the lobby wall.

Executive Vice President of JLL’s brand experience team, Big Red Rooster, Aaron Spiess says that it’s been a common knowledge among retailers that great branding plays a big role in sparking a shopper’s interest and loyalty for it gives them a better grasp of the identity of an organization. Forward thinking companies are applying the same principle to their respective headquarters, seeing that potential customers aren’t the only ones affected by compelling branding of a physical environment – thoughtfully designed workplaces also have the capability to excite and engage employees.

Effective Workplace Branding

The reality is this, even those with the best branding are often not thoroughly understood by its own members. A recent Gallup poll supported this claim by stating that only 41 percent of employees actually know what differentiates their brand amongst its competitors. And 24 percent vaguely knew what their company stood for.

Speiss adds that too many workers are disconnected from the brands they actually represent. Having a physical location that allows teams to experience it first-hand can help alleviate this issue.

And this is not just to have better brand ambassadors. Professionals who are immersed in an environment that is unique to their employers, they perceive a deeper sense of pride in being part of the team. But this isn’t the norm despite of having a demand for better engagement from their workplace. The aforementioned factor is becoming a valuable consideration among job-seeking Millennials who aren’t just looking for modern offices – they are seeking for a place that’s unique and meaningful.

First Impressions and Beyond

A great looking lobby is just the start of having an effective brand experience. It should be carried throughout the workplace through appropriate color palette, graphics as well as the layout. Designers can bring life to corporate culture from the lobby down to the huddle spaces in the back.

But before even jumping to interior decorations, startups who are about to acquire their very first office should be formulating their branding before choosing a space to lease. If taken into consideration upon site selection, you can now visualize the perfect workplace for your team.

One would assume that only established companies who fully own their offices are the only ones who can actually do this. But in reality, startups and even freelance professionals can choose workspaces that matches their branding. All it takes is to search for the perfect coworking space that echoes what you and your business stand for. From the colors, the workstations down to its community, these budding entrepreneurs can easily choose from the wide variety of providers in the market. Startups can settle for a private office and customize it the way they want to while freelancers can choose from several work areas that best fit them.

Slowly but surely, organizations around the world are now understanding the value of branding in their workspaces. Soon enough, organizations and designers will work together to craft an experience with meaning and purpose.

Create an immersive brand experience with our private offices and set up a date with us today!

Coworking Spaces Fostered the New Ideology of Community

Coworking Spaces Fostered the New Ideology of Community

When the seemingly taboo movement of coworking spaces rose to popularity, it carried not just claims of infrastructure and financial aid to startups and freelancers alike, but as well as several intangible claims that elicited curiosity among the members of today’s workforce.

Aside from fully furnished workstations and stable internet topped off with recreational areas such as pool tables, game rooms, and karaoke rooms, these shared offices offer one immeasurable component that is non-existent in traditional workspaces; community.

And though it had several naysayers saying that the increased productivity and so-called collaborative community are just false promises, providers have proven them wrong and they have several proofs that can support the truth of the claims.

The Death of Community Traditions

The movement itself carries a culture far from what most of the labor force grew up with. Upon introduction, these ideologies caused numbers of talent to reconsider and rethink their beliefs and what matters. Gone are the days when young professionals sought the security established company provided. A large-scale shift of mindset has took over the past few years that resulted to the death of several corporate traditions.

But new perspectives are not the only culprits behind the casualties, the newest demographic present in today’s talent pool and modern technology both have made significant contribution to the downfall of traditions. The new generation of employees aim to be in a workplace that allows them not to just work, but can also help them interact and learn while the latest advancements in technology has allowed people to work almost anywhere in the world.

As a result, coworking spaces thrived by giving the people what they needed in today’s highly-competitive and demanding market.

The Theory of ‘Swarms’ and Cross-Cultural Understanding

Antis of the movement claimed that the open layout is a recipe for disaster. With so much going on in the background, distraction is evident. But data from recent studies says otherwise. Deskmag, distributor of the largest annual coworking survey, said that 62% of respondents reported a significant improvement in their standard work upon joining. Moreover, a majority of the members present within these shared offices took were attracted by the community they offer.

The diverse network and large scale possibilities of collaborating with like-minded individuals are things that several freelancers and startups wanted to get a hold of in the hopes of retaining sustainable growth. Later on, even large corporations and tech conglomerates wanted some of this magic too.

Private organizations have tried incorporating these open-space layouts but were unsuccessful. It seemed like creating a collaborative culture needs more than just new ways of communication. So how did coworking spaces did it?

Though each provider is distinct from one another, they each shared one mission: to provide service to an interdisciplinary audience. They are purveyors of a shared culture fostered through knowledge-building events as well as communal eating and drinking. That though having face-to-face interaction synchronous to that of its online counterpart is vital, managing and maintaining a culture through several rituals remain to be important.

Experts have also discussed the benefits of ‘swarms’ of talented individuals present within these shared offices. A large number of literature has been produced emphasizing the positive results of ‘swarms’ of interdisciplinary professionas sharing a common goal. One classic example is the collaboration between scientists and mathematicians who lead the crew of Apollo 13 home. Experts said that this is a natural behavior amongst human beings. This component alone has helped them work together for growth. For a company to continuously thrive, they must have a adaptive culture – one that accepts change and embraces agile working and evolution.

This appropriate blend of networking and interaction within the coworking community allowed them to continuously thrive.

And though the movement itself is flawed, we have to admit that its pioneers have garnered a through understanding of how to create and manage a culture made up of different minds.

Ease yourself into the new traditions and talk to us today about joining a coworking space!

How to Effectively Transition Big Companies to Coworking

How to Effectively Transition Big Companies to Coworking

Since its success, coworking has expanded its reach from solo entrepreneurs, home-based entrepreneurs and startups, they now accommodate established and big companies – large teams or departments and other individual employees with flexible work hours.

The movement caught the affinity of today’s young professionals with its affordable offices, aesthetically pleasing work areas and great environment. The greater audience of the industry lauded it for the benefits and immeasurable opportunities it provides. Hence, it didn’t come as a surprise when established companies and even conglomerates were observed to be coming in and out of different shared offices.

Since then, it’s been observed as a rising trend among big companies and industry players as influential enterprises and Fortune 500 enterprises move their employees and teams to local coworking spaces. Partnerships between organizations and providers have been established over the last few years causing a large disruption in the real estate industry.

One prominent explanation behind the aforementioned sudden liking is the large pool of talent and ideas nestled in these shared offices. Tech giants and large corporations want to become part of its diverse growing community of innovators in hopes of gaining new perspective that they wouldn’t usually find in the premises of a corporate environment. Moreover, it gives them a better advantage against their competitors as they keep a close ear to any technological advancement or trend that cause potential threat in the industry and allows them to attract top talent and closely monitor any potential target acquisitions.

Though it’s rapidly becoming a common scenario, much is still left to be learned on how leading organizations can make the most of these shared offices. Transitioning to flexible working doesn’t have to be as hard as one would imagine, here are a few steps to ease your move.

Changing Over of Big Companies

The first and most important would be finding a space that fits an organization’s current culture. It’s important for prospect members to establish an open communication with the providers on what will fit for them – the space, its people and its vibe. Creating a discussion on what would work best for both parties is needed.

And since coworking managements will now be dealing with a much larger group of people, its only apt to come up with a brand new and much more flexible agreement for a new kind of lease. Take into consideration that some big companies and other prospective clients would be used to long term leases that could entail other extras such as concessions and more.

Security concerns are detrimental factors in the deliberation. Will they be needing any additional security needs? Can their equipment and other sensitive documents be safe in your private offices?

Once all important details and other technicalities are discussed, introduce the new team or individuals to the rest of the community. The connections and fortunate happenstances that could be made between members are one of the highlights as to why they have decided to join in.

By doing so, you can help freelancers to get gigs and corporations to get new people.

Incorporating Privacy Strategies in Open Plan Offices

Incorporating Privacy Strategies in Open Plan Offices

Open plan layouts were welcomed with open arms and was well-received by the majority of the industry. So much so, that within the following years, the world watched in awe as its numbers increased.

As of writing 70% of employees in America alone work in open-plan offices and experts predict that its numbers will continue to grow as employers scramble to create a  strategic solution that caters to their requisites as well as the needs of its workforce. With its versatile and cost-efficient lease terms, mixed with the concept of community, creativity and collaboration, it has dominated workspaces for more than a century.

And though there’s about thousands of blog posts, news articles and even research available in the internet telling freelancers and managers alike about its tangible and intangible benefits, it seems like the layout is losing its charm to today’s workforce.

According to a 2013 study on workspace satisfaction, nearly half of employees in open offices found the lack of both sound and visual privacy a significant problem. The sensation that someone could be looking – or even worse, listening – over your shoulder can’t be shaken off easily causing some of them to resort to the comfort of stairwells, pantry areas and even bathrooms for private matters.

Moreover, recent studies have also reported a stifled engagement amongst professionals in open areas. Bernice Boucher of JLL’s Strategic Consulting group said in an article that the scarcity of privacy at work is a clear crime against productivity. Too much noise and distractions make it hard for them to either do their jobs or have important conversations. It also adds a layer of concern for those who want to protect the confidentiality of their tasks. She adds that certain organizations are also recognizing this and are making significant efforts in incorporating privacy.

Hidden Potential of Well-Designed Open Spaces

Both architects, experts and providers of shared offices such as coworking spaces have put much emphasis on its affordability – the number one factor that appeals to most businesses. But one can only unlock its well-appraised potential if it helps the workforce feel empowered.

Anne-Laure Fayard and John Weeks of Harvard Business Review said that effective offices should be designed to bring people together by removing barriers but at the same time, should be capable enough to provide sufficient privacy so that employees wouldn’t have the irrational fear of being overheard or interrupted. Further strengthening this claim by adding that it should reinforce the permission to speak freely.

Open layouts should be designed in such a way that it doesn’t only constrain one’s working, but also gives them full control of their way of working.

Privacy Strategies for Long Term Success

Unlocking the potential of a strategically outlined open space layout doesn’t mean spearheading major renovations; simple measures such as installing movable panels to create ad-hoc private chat areas could help implement privacy.

Senior Vice President of JLL’s Workplace Strategy and Change Management, Phil Kirschner, says that the best scenario for an engaged, efficient and privacy-driven workplace is to have an activity-planning model – one in which members are allowed to choose between individual desks, phone booths, huddle booths and even shared areas depending on the set of tasks they need to accomplish for today.

The well-received coworking movement provides it members the aforementioned liberty to choose the right environment for them. In addition to this, certain providers implement specific instructions on how one should make use of certain areas. Quiet zones prohibit the use of phones, upholstered booths are for private discussions and both dining as well as lounge areas are reserved for engagement and interactions.

Admittedly, the design has its pitfalls – but only when they’re not done right or curated haphazardly. When devised in the right way, not only will it help cost overhead reductions but more importantly, it will help improve your work environment – resulting to a motivated workforce.

Get the best of collaboration and privacy with Sales Rain’s very first coworking space by getting in touch with us today!


A Golden Opportunity: Meeting Rooms in Coworking Spaces

A Golden Opportunity: Meeting Rooms in Coworking Spaces

On a normal basis, large gatherings and conferences are usually held in meeting rooms within high-end hotel rooms but in the presence of serviced offices, this tradition is slowly being disrupted.

Other than being a coworking space’s most profitable asset, they also represent a large opportunity for growth, industry experts say. Shared workplaces with rooms that can accommodate groups of 20-40 people can host corporate training meetings, according to Alliance Network’s chairman and founder, Frank Cottle

Providers are missing out on a great opportunity sitting right in front of themselves. By offering a cost efficient and much more appropriate alternative to hotel meetings, they are benefitting from the growing corporate mandate of innovation and sustained education.

Demand Catalysts

The increasing frequency of trainings and meeting plays a significant role in the thriving need for conference venues and event spaces. As the accelerating competition in the industry calls for continuous teaching and learning, it opened up a new untapped market for serviced offices.

Though seen as an important feature in an enterprise’s headquarters, large meeting rooms are one of the most expensive amenities to build and maintain. To make matters worse, they are also the least utilized. Corporations want to clear themselves of the burden of these big rooms since they are used at least once a month only. And with its usage averaging from once a quarter or twice a year, it makes sense that a majority of businesses simply want to settle with outsourcing the aforementioned space.

Presenting a new contingency for flexible workplaces.

Opportunity in Meeting Rooms

According to experts, meeting rooms are actually the most profitable rooms in a coworking space or serviced office. Its revenue can be up to three times per square foot of a permanent workplace. Hence, it’s worthwhile for operators to offer their conference rooms to large groups.

More than just providing additional earnings, having medium sized meeting rooms improves space utilization. The average occupancy rate of these functions in coworking spaces are 35 to 40% — with ample room for growth.

Advantages Over Hotels

Using location, features and other additional amenities as its leverage, coworking as well as other serviced offices carry the versatility to serve the aforementioned marketplace. Providers offer numerous advantages compared to hotels in terms of meeting rooms

• Natural Light

Cited as a major contributor to worker productivity and satisfaction, modern day offices are curated to incorporate natural daylight into the environment and since hotels are traditionally designed to maximize sunlight in bedrooms, conference halls are often found in poorly lit locations such as the basement.

• Concentrated Services

Shared offices and other business centers create a very different experience for both the enterprise who booked the space and those who are attending compared to hotels. Operators may have dedicated customer service representatives overseeing the venues unlike the former whose focus is on renting rooms and large-scale catered events.

• Easier Reservations and Smaller Headcounts

Reservation is made much easier in coworking spaces due to its cost-efficient fixed costs. These flexible workspaces are agile enough to accommodate small to large groups of people in an economical fashion. Moreover, unlike hotels that require large minimums, shared offices is able to host events in smaller numbers – saving you from expensive overhead costs.

Flexible Spaces are Beating Traditional Offices in Affordability

Flexible Spaces are Beating Traditional Offices in Affordability

As early as January 2018, the latest research has shown a significant difference between flexible spaces and traditional offices in pricing.

The latest propriety data of real estate service firm Cushman & Wakefield and serviced office broker Instant Offices shows that businesses found in the world’s major cities can save up to 73% in overhead costs if they opt for flexible workspaces than conventional office space solutions. Though the aforementioned study tagged Hong Kong as the most expensive city place to rent an office space in the world for its yearly rates of US$27,432 – nearly double the usual cost in other countries within Asia and 18% higher than that of its nearest global competitor, London – figures gathered by Instant from more than 20 years of flexible workspace listing reports that hot desks offered by coworking spaces and other serviced offices only costs US$7,607 per year.

Companies based in London can save more if they opt for the city’s flexible workspaces with an average price of US$11,391 – 47% cheaper than the conventional workrooms costing around US$22,631. Experts predict that the market will remain highly competitive as the demand grows and providers’ number increases. Managing director of Instant’s EMEA group, John Duckworth, says that it’s a common misconception amongst the majority that flexible spaces are much more expensive despite providing short lease terms and fully serviced offerings. He adds that based on their collated market data and their clients’ testimonials regarding their experience in joining local markets, it’s actually a practical, low-cost alternative.

Flexible Spaces, No Longer a Luxury

Though the idea of having an engaging, tech-style office seems like a luxury that only large companies can afford, it’s actually much more cost-effective to invest in them rather than simply settling down in traditional layouts. As of writing, modern fit-outs cost nearly 15 percent less than conventional designs in the US – over $30 less per square foot – according to a recent report by American professional services and investment management company JLL.

According to Jacqueline Dompe, Northwest Regional Manager of JLL’s Project and Development Services, tech companies with large renovation budgets are the first to adopt the trend of flexible office spaces. Still, over recent years, they’re not the only ones looking for a more engaging environment. She further discusses that both employees and employers from different industries are now seeing its value. And the good news of it is far more cost-effective have possibly contributed to its popularity. It’s not really an oxymoronic concept. There are a few logical reasons why these modern offices beat the traditional ones in terms of affordability.

First and foremost is the sparse need for construction materials for unassigned seat styles and open floor plans. These features are becoming increasingly popular as managements strive to provide their employees spaces that can accommodate their needs for collaborative and private areas without disregarding their own prerequisite for flexible office space solutions that can adapt to today’s changing times. Dompe adds that having flexibility meant breaking down permanent walls and doors. By doing so, fewer physical materials are required, resulting in a reduction of almost 21% in project costs. Providers are also given the potential of minimizing overall square footage as they offer a wider range of options such as coworking programs to remote workers and other entrepreneurs.

The savings landlords and pioneers get from building these flexible spaces allow them to propose cost-efficient fees, which are the major contributing factors to large companies and startups’ attraction to these types of modern workspaces. In addition to this, the big bonus of having the chance to divert these reductions into something far more productive and the potential of giving their employees a more meaningful experience as they work continues to be a priority of today’s leaders in the market.