A Coworking Case Study: Why Big Corporations Like Microsoft Are On Board

When you think of a coworking space, you may imagine freelancers or small creative start ups to be using the new initiatives. Whilst it is true that these creatives and lone workers thrive in the creative and idea fuelled ambiance of a coworking space, even major companies are picking up on the benefits.

In 2016, Microsoft picked up on the latest movement in working life and decided to move their sales employees to coworking spaces all over New York City. Whilst this started as an experiment for the company, a successful test run saw them continue to shift staff to coworking spaces. Eventually, they relocated the majority of their marketing and finance teams. Microsoft are now major advocates of coworking spaces, inspiring other big-name-brands like KPMG and Facebook to follow suit. In fact, many large corporations are now using coworking spaces, making up much of the revenue for American coworking organisations. But what did even a huge corporation like Microsoft see as so successful in community working?

Microsoft said that the shift in approach to working spaces was a case of correcting where they’d been going wrong. As a company that values and needs innovation to progress and even just to exist, they themselves couldn’t see why they hadn’t got on board earlier when companies like IBM had done. Being surrounded by creative professionals from different industries or even just young, passionate start up workers meant the company was able to move forward by learning from the innovative ways of these brands. This was also the main motivation behind KPMGs move. As a big name brand, coworking has prevented them from getting stuck in the rut of their tried and tested ways as other businesses and the world itself changes around them. Whilst has been threatened that coworking could become corporate, this benefit means we think this is unlikely to happen.

Another major benefit that Microsoft and the other big corporations joining them have seen is the increased productivity of workers. It’s strange to think that simply the office you’re working in could have such a profound effect but a sociable environment levels out the work life balance and makes working more enjoyable thus enabling more productive workers. Being surrounded by others and sharing ideas and working techniques can also allow to each worker to improve. It also creates efficiency due to accountability. The social atmosphere and thus community feel means people are more aware of each other and the work they are doing. This means the incentives to make great progress with work load are increased.

A perhaps more overtly explicit reason why large corporations are starting to realise that using coworking spaces is preferable is because they are so cost efficient. This is particularly important for start up businesses but even for large businesses its important to cut cost corners where they can. Particularly with real estate prices rising, renting a space within a space is a great alternative. The shared amenities also save on costs. This is one of the major reasons why Microsoft decided to expand their scheme to various departments. It’s mutually beneficial for different companies to share on costs regardless of the other benefits of community working. This is especially the case if, as with most modern businesses, you’re trying to maintain a highly sought after spot in a high profile city.

Overall, you can see coworking spaces as a microcosm of a place like Silicon Valley. The reason that this globally famous spots for innovation and growth of businesses was so successful is because companies are able to share infrastructure and resources to save on costs. They can also share ideas and knowledge to promote innovation and learn from each other in order to grow. Furthermore, they share a thriving local labour pool creating a community of thriving business. Coworking spaces can essentially compact and enhance these benefits on a smaller scale, making the most prolific and efficient working spaces. Silicon Valley was originally renowned as the spots for start ups but now even major companies are based there which really put it on the map. This is what we see happening with coworking spaces. Like Microsoft, large corporations are starting to see how beneficial community working spaces really are. For this reason, it is likely that coworking will be the overriding working reality of the future. Why not just join us now?

By Josie Hart