Swiss companies underestimate co-working

Eight out of ten workers around the world say they would turn down a job that does not offer flexible working. As a result, 85 % of companies have adopted or plan to adopt flexible workplace policies in the last decade, according to the IWG's latest Global Workspace Survey. However, while the adoption of flexible workspaces will continue apace, conversations about the business benefits still largely focus on the minimal commitment that short-term leases offer companies. While this is an important consideration not offered by traditional permanent commercial space, there are many other benefits of a flexible workplace that are being overlooked.

Risk minimization

One of the main attractions of a flexible workplace is that it provides office space for a variety of business needs, from entering foreign markets to increasing the capacity of fast-growing startups. For example, if a company is expanding into another country, a flexible workplace can offer a more cost-effective alternative to investing in fixed office space that would have to be resold if unsuccessful. A famous example of unsuccessful global expansion is international online marketplace eBay's venture into China. After generating $1.21 billion in sales in 2002, the global auction house set up shop in China a year later, but was forced to pull out in 2006 after failing to gain an advantage over local competitors. Choosing a flexible workplace allows companies to sign, extend and terminate contracts as needed. In this way, flexible workspaces help companies achieve their strategic goals while reducing costs associated with growth and expansion.

Customized office space

In order for flexible workspaces or co-working to fit into a company's overall strategy, these office spaces must be able to be tailored to a company's needs. This means that they are fully customizable and allow companies to design their own office without the high costs typically associated with buying permanent commercial real estate. Garry Gürtler, Managing Director of IWG Switzerland, says, "With five different brands worldwide, our customers have a variety of different office styles and cultures to choose from. In Switzerland, with the new opening of our No18 brand next year, there will be three of them. As diverse as our customers' corporate cultures are, so are our offerings. It's important for companies to find a co-working space that fits their company's own culture, allowing them to complement and expand their brand."

Co-working: A sustainable solution

Another benefit of flexible working that is often overlooked is its positive contribution to the environment. According to a study by Nielson, an international market research firm, 81% of consumers strongly believe that companies should implement strategies to help address key sustainability issues such as climate change. Companies need to respond by demonstrating that they are acting responsibly and sustainably. In this sense, the flexible workplace or co-working offer the equivalent of office car sharing. This means that rather than investing in fixed business spaces that are too large for their needs, companies are choosing to collaborate with others to maximize space in already built-up, central city locations. Even when looking outside of cities to more rural locations, flexible workspaces address climate change by reducing commute times. According to the IWG study, shortened commute times in Switzerland can reduce CO2 emissions by 1 million tons per year by 2030. By choosing a flexible workspace, companies can reduce their negative impact on the environment in response to increasing public pressure. As flexible workspaces become more prevalent in today's business world, it's important to note that it's not just the short leases that make them a favorable choice of office space. The flexibility offered goes far beyond that, offering many different benefits that affect all areas of a business, from marketing to finance to overall strategy.

Source and further information: IWG