2020 was a difficult time for the entire economy and the span of 12 months has radically affected the way organisations operate and work. Even though the disruption caused by the pandemic was significant on the flexible and coworking sectors, 2020 was also the year in which this sector took a massive leap forward. Companies across the world discovered first-hand that their workforces could be highly engaged and productive while utilising the ‘hybrid’ way of working: at home, in a local office, and occasionally at the corporate HQ. We’re already seeing more firms like Staples and Standard Chartered among others planning for a post pandemic world with a shift to hybrid working and moving to a more decentralised structure and operate with a ‘hub and spoke’ model. Japanese telecommunications group NTT, Nippon Telegraph and Telephone Corporation, has recently signed a deal which will allow 300,000 employees across its portfolio of companies and global network with access to IWG’s more than 3,300 workspaces globally. It follows a major agreement with financial services organisation, Standard Chartered, for 95,000 employees.

Pandemic's Impact on Coworking
In 2021, the flexible office market is undergoing a period of transformation as a result of the current climate that we find ourselves in. Businesses ranging from small to big are proactively looking to change their work environment to make it more flexible and resilient to unforeseen crises such as Covid19. The flexible working sector is transforming itself to adapt to such changes and spearheading the concept of hybrid working. There is a rising demand for flexible workspaces not just in metro cities but also in non-metro cities. Companies of all sizes across the world are turning to flexible workspaces and adopting a hybrid working model.

The pandemic has certainly affected us, but we are happy to also see it accelerating the trend of ‘hybrid working’ that’s been underway for several years. As the economy opens up, people are also accepting that homeworking has its share of both, the positives and negatives. We expect businesses will be quick to embrace the new ‘hybrid’ working practices as we emerge from the pandemic and will mark a real step-change for those industries that have historically had a very traditional view of the office. Distributed workforces will be the new normal as businesses seek to reduce risk and benefit from remote working. As a business, we have also seen a significant surge in demand for workspaces in suburban areas and small towns in the last few months and it is emerging as a real growth area for us. In fact, our recent research found that in the long-term, six in ten office workers want an office closer to home, almost half of them said they would quit their job if they were asked to return to the office five days a week and more than 75% said that a more conveniently located office is a must-have for their next job move, showing that we can no longer view flexible working as a ‘trend’.

Flex spaces being most viable option for the large and small enterprises
Pandemic has shifted the focus to sustainability and employee safety. These two aspects are going to be the prime focus for any business whether it is small or large. The nature of the flex-spaces is such that it complements the operational structure both of a large and small enterprise alike. It provides a much-needed flexibility and resilience to corporates rigid structure. Multiple studies have proved how flexible workspaces are fit for all as it provides work-life balance and cost savings for employees, reduces carbon footprint therefore better for the environment and cost saving for businesses, according to an EY study companies can save up to 11k per employee.

The trivial task of reopening the offices
Reopening offices is not a trivial task, but one that requires care and planning. Businesses need to adopt hybrid model of working as soon as they can. Hygiene and safety from the virus being the priority, offices should be opened in a staggered way and should not exceed the occupancy of more than 50% at any given point of time. Safety guidelines by WHO should be followed at every step. Large conglomerates should deconcentrate their huge workforce through a hub-and-spoke model where a central office for major operations is linked with smaller satellite offices where the majority of the workforce can be located, and safety measures can be easily followed. Good news is that this transformation has already gained momentum. Global enterprises are partnering with flexible spaces to allow their employees to work near their homes.

What is your outlook on the future of the co-working and flex-spaces sector?
Remote working is now critically normalised in the post pandemic work and has been proved to be successful across the sectors. Going forward, business need to incorporate hybrid working model as working from home is not a viable option in long term due to technological limitations. Not everyone’s home set-up allows productive work at home and people also need to get together from time to time to collaborate. Research has shown that professionals seek choice in whether they want to work from home, near home or at the office headquarters based on the requirements. This kind of work equilibrium can only be provided through flexible and co-working spaces and simultaneously helping employees to cut commute expenses and function in safe and comfortable environment.

All these trends and disruptions that we discussed are giving prominence to hybrid form of working. This clearly states that flexible and co-working spaces, with their innovative offerings, are going to shape the “future of work”.