Flexspace is becoming occupied by teams from multinationals as well as startups and solo entrepreneurs
When you initially think about flexible office space, you may envision freelancers gathered around a communal desk with their laptops out, or start-ups huddled together for a bean bag meeting. But the fact that multinational companies are also under the same roof – using the same kitchen and coffee station – may surprise you.
While the shorter leases, scalability and cost efficiencies of flexspace make it a no-brainer for small businesses and the self-employed, they’re not the only clientele you’ll find at these next-generation offices. IWG – the world’s largest provider of flexible workspace – is seeing more and more large companies make use of its locations.
Take Brazil, for example. According to Tiago Alves, country manager in Brazil for IWG, over the past two years, Regus has seen a 100% growth in demand for flexible office space from large companies at its 74 locations around the country. And, over the past five years, these companies have gone from occupying 5% of the space at these locations to 30%. ‘Large companies’ refers to businesses with a turnover of at least R$20m (£4.2m) and 20 employees or more using the space.
“The flexible working movement began with small businesses, and flexible offices were seen as a place for the entrepreneur,” says Alves. “This has been changing, driven by the 2008 economic crisis, which caused large companies to look at office costs differently.” Among the companies that allocate part of their teams to IWG locations in Brazil are Ford, Amazon, Petrobras, Uber and Accenture consulting.
This is not to say that multinationals use flexspace in the same way as their smaller counterparts. Due to the higher staff numbers and, in general, a need for strict confidentiality, larger companies tend to hire private offices within IWG locations rather than communal spaces.
The reasons that large-scale business all over the world are turning to flexible office space are multiple. At times of economic uncertainty, or fluctuations within their specific industry, they may need to downsize their international employee base – and vice versa when things pick up. Volatile times call for a workspace that can grow and shrink as needed.
Unlike static conventional workspace, flexible offices allow companies to hire more or less space for their staff depending on their current needs. Flexible office locations also offer the option of shorter leases, so that corporate real-estate directors can reassess their company’s workspace situation and revisit it as needed.
The ubiquity of flexspace in cities all over the world and the range of brands available mean corporations can make smart decisions about which locations and styles are most suited to a particular sector of the business. This could mean locating a sales team in the heart of a city so they can easily meet clients but placing software development team in a separate location an hour away that allows them to work in a quieter environment with the tools and amount of space they require for equipment. According to IWG’s 2019 Global Workspace Survey, 85% of global businesses have seen their productivity increase as a result of greater flexibility.
Perhaps one of the most important value-adds that flexible offices can bring a larger company is talent retention, whether that’s due to the convenient location that helps staff cut down their commute times, or the modern, design-led environment (compared with a tired, conventional office set-up). Making use of cutting-edge workspace in desirable locations can help companies keep their top talent – which, in turn, helps them stay ahead of the competition.
Is it time your company explored the benefits of flexspace?
