Shared workspaces and their impact on emerging companies

9. Raj Menda | Corporate Chairman, RMZ Corp Holdings Private Limited | Net worth: Rs 5,900 crore | City: Bengaluru

Meghna Agarwal

Emerging companies feel the need for the employees to connect, collaborate among themselves and externally in the right corporate environment, and at the same time, scale up their business. A workspace is a very essential and an integral part in the growth of a company. The office of the future will most likely include highly networked, shared, multipurpose spaces that redefine boundaries between companies and improve everyone’s performance. Most successful companies do not look at their workplaces as merely physical locations but as strategic tools with the power to impact how an organisation functions.

An emerging company is usually uncertain as to how much they would want to grow as a team in the next one year. Hence, it makes it difficult for them to move into a rigid office space in the scaling-up stage where cost is an essential factor. As startups are working on low budgets, dedicating a good chunk of money for an office space doesn’t seem like a good option. They would rather use their budgets on building up their offering or brand, while choosing a work environment that scales the probability of meaningful interactions to increase innovation and productivity, thus redefining the borders between the employer and the employee.

Shared office spaces have become a perfect choice for emerging companies to provide their employees a dynamic workplace where they can collaborate and grow at the same time, while offering all modern amenities to their employees. Emerging companies now have the option to start their operations with just a few seats from a shared office space and seamlessly transit into a dedicated office space which can be customised as per their needs. This also allows start-ups to save on cost of setting up the office. Internal studies suggest that companies will save around 15 – 20 % of their monthly cost on office rentals while working in a shared office setup.

In the next few paragraphs let us dive deeper into the different ways shared office spaces have impacted emerging companies.

Impacting multiple touchpoints

The workspace has moved beyond the traditional ways to a space which caters to multi stakeholders, acting as a first point catalyst to attract employees and reduce the cost of their retention, generate business, and eventually grow. Shared workspaces empower start-ups by reducing capital expenditure (CAPEX) and increase the flow of funds for their operational expenses (OPEX), thus enabling to leverage advantage of Economies of Scale, allowing companies to focus on what really matters to them. Office spaces have also started partnering for different services to fulfil the needs of start-ups in terms of recruitment, finance & accounting, legal, digital media and PR. Many office spaces have even started helping them nurture and grow their business to the next level. Correlating this to the market scenario, an internal research has shown that around 65 percent of employees choose companies based on their location and office facilities.

Creating the employer’s brand among employees

The office space has evolved from traditional places that lacked growth options to smart, flexible, and connected work spaces that offer space as a service that grows with companies. The new-age, techno-flexi workspaces are customized according to company's preferences, brand value, and ethos. Office spaces are now offering interiors designed to reflect the company’s background and its demography. Although they are working in a shared office setup, different companies have their own identity and are also able to create a distinct culture relevant to the brand among their employees.

Amenities and employee benefits

A shared workspace is a complete ecosystem of community where employees can connect, create, and collaborate, allowing for the growth of both employees and companies. With amenities such as open terrace cafeterias, gyms, reception desk, designated lounge areas, phone booths, and breakout areas, employee engagement is being taken care by office space, thus becoming a playground for start-ups to create or reinvent the wheels of success. Partnered spaces like training rooms, conference rooms and boardrooms based on pay-per-use model, help companies use the same space to allocate it for employees.

A scalable structure

Corporates look at a right business environment to thrive by providing space to grow with key drivers like scalability and flexibility, which help them expand in the same location without undergoing the hassle of searching and shifting to new office spaces. Start-ups can also avail the pay-as-you-grow model offered by modern workspaces which helps in the efficient allocation of funds.

As workplaces have evolved over time and offer more than just space, we can clearly see them as a vital cog in the scaling up of emerging companies. Shared offices are nudging companies to focus on things that matter to their business.