The largest global workspace operator, WeWork, recently released the findings from its survey directed at business leaders from across the U.S. and the U.K. The results reinforce the belief that most companies — whether remote, hybrid or fully in-office — plan to expand their office footprint in the next two years with a specific focus on flexible workspaces.
The majority of the survey respondents report that an office presence is key in increasing profitability, while also solidifying company culture and increasing productivity among workers. Moreover, the results show a clear focus on flexible workspaces or other types of flexible components as a means to achieve better work environments that benefit both the employers and the employees.
Among the main findings, WeWork revealed that a whopping 86% of leaders foresee the office space as a critical factor in their overall profitability in the next five years, as well as a positive influence on their company’s culture. At the same time, 59% of businesses planning to expand their workspace within the next two years — including almost three-quarters of remote enterprises — prefer flexible workspaces over traditional office spaces.
Just two-thirds of remote enterprises reported that their workplace strategy had a favorable influence on employee productivity, compared to 82% of entirely in-office and 76% of hybrid companies.
WeWork’s Chief Executive Officer Jon Santosa said that: “WeWork created the flexible workspace category recognizing that the office isn’t just where a company’s success happens, but a core driver of how it happens. This new data underscores a significant shift in recent years, where fully remote work is losing steam as businesses acknowledge the irreplaceable value of the office, cementing hybrid work as the best-of-both-worlds solution.
He also added: “With pandemic-era policies phasing out, Chief Operating Officers and Chief Financial Officers are now defining their workplace strategies with a focus on agile costs and bespoke, turnkey solutions to improve their bottom line. This, coupled with an emphasis on quality over quantity of office space, is propelling a flight toward flexible workspaces for their location, design and amenities. As companies look to the future, flexible workspaces are best-positioned to provide adaptable solutions that meet their priorities — maximizing space utilization, enhancing productivity and encouraging employee engagement.”
Strategies Used in the Workplace Shape Company Culture
Business executives are becoming aware that an organization’s workforce initiatives have a big influence on its financial performance. Indeed, a resounding 83% of CEOs questioned concur that the office has a greater influence on their profitability and bottom line today than it did five years ago. More significantly, 86% of them think this influence will increase in the next five years.
Plus, real estate expenses can become more flexible with shorter and more variable lease terms, which makes workforce strategies crucial for boosting output and profitability. For instance:
- Businesses with an in-office workforce are more likely than those with a remote workforce to believe that their workplace strategy improved worker productivity. In fact, 82% of fully in-office businesses and 76% of hybrid businesses agree with this statement.
- Although financial services companies were among the first to bring back employees after the pandemic and technology companies spearheaded the movement toward remote work during that time, these two sectors now share a common understanding of the importance of the office: 84% of financial companies and 88% of technology-based organizations agree that the office now has a greater influence on their company’s profitability than it did five years prior to the pandemic.
Future Office Growth Will Be Propelled by the Flight to Flexible Workspaces
Most businesses intend to expand their office space during the next two years, believing that the workplace promotes culture and profitability. Accordingly, the majority are giving priority to flexible workspaces in the process. To that end, the poll indicates that 72% of businesses intend to increase their workspace during this time with 59% deciding to do so by opening coworking or flexible office spaces.
More precisely, the research indicates that flexible workspaces are drawing businesses of all sizes and sectors, whereas remote work is losing traction:
- In the next two years, 95% of remote businesses intend to expand their workspace, with nearly three-quarters investing in coworking spaces and flexible office arrangements.
- Nearly two-thirds of hybrid businesses and 76% of wholly office-based businesses intend to increase their workspace. Coworking and flexible office spaces account for nearly two-thirds of each group’s plans.
- In the next two years, larger organizations are spending more in coworking or flexible offices. Compared to roughly one-third of small businesses, 54% of medium-sized and 41% of enterprise corporations plan to add these spaces to their portfolio.
- Financial services and IT/technology are the two sectors driving the shift to flexible offices and coworking. Throughout the next two years, 50% of these businesses plan to invest in these spaces, as opposed to 43% of construction and property and energy; 33% of manufacturing; and only 30% of business and professional services.
The WeWork survey was conducted through Vanson Bourne, an independent specialist in market research for the technology sector. The online survey was anonymous and directed toward 500 business decision-makers from the U.S. and U.K. from May 3 to May 16, 2024.
