How Coworking Spaces Contribute to Employee Retention

Coworking spaces have some many benefits, employee retention is just one of them.

Retaining top employees is harder today than ever before. The rise of remote work means that your best workers can be pinched by competitors from across the globe and star employees are always looking for new opportunities with better perks. 

Improving retention is particularly important if you managed to pick up talented employees during the pandemic. As the world rebounds, a strong candidate market has emerged. In 2021 alone, this drove 47.8 million employees to quit their jobs in search of greener pastures. 

Folks who elect to leave for a new opportunity cite many reasons for their decision. However, many employees who make the switch do so for one simple reason: flexibility. Your best employees know that they could be working on their own schedule for a firm that values their time and energy. 

Fortunately, you can make the transition to flexible working possible by creating coworking spaces that are great for your business and employees alike.

Good for the Business

If you run a business that made it through the pandemic, then you know just how much of a financial commitment physical workspaces can be. Research by workplace consultant Abintra shows that the average annual cost of a permanent, office-bound workspace is $18,000 per employee. 

Fortunately, coworking spaces offer a much cheaper and more flexible alternative. Coworking spaces are also great for start-ups that can benefit from better cash flow by avoiding an office lease and improved networking opportunities for new employees. Coworking spaces come furnished, too, meaning you can save big on office supplies and expensive purchases like computers or desks. 

In addition to being cheaper, coworking spaces may improve productivity amongst your employees. Folks who can visit a physical coworking space may benefit from greater focus during their working hours and fewer distractions. This is particularly important if you are currently running a fully-remote model but some employees report a desire to meet in person from time to time. 

Freeing up funds that would have been spent on office rent and supplies means that you have more cash to spend on your employees. This means you can spend big on perks and employee initiatives that show your commitment to employee health and wellbeing. Spending more on wellness is particularly important in our post-pandemic world, where folks need mental health support and want to feel valued by their employer. 

Employee Health and Wellbeing

Coworking spaces are great for most businesses’ bottom line. However, the real benefit of coworking is handed on to your employees who can take control of their life to improve their health and wellbeing. 

Employees who have access to coworking spaces can typically choose their own working hours and schedule the rest of their lives around their work. This balance means that folks can do things like attend fitness classes, get in touch with therapists, care for their family, or simply socialize when they want to. 

Unsurprisingly, the flexibility that coworking spaces offer leads to great well-being and happiness. 90% of employees who work in coworking spaces report feeling happier because of it and 83% feel less lonely when they can get some in-person interaction with peers or other folks who use the space. 

Coworking spaces are also set up to promote health and wellbeing. Unlike offices that are usually designed to be cost-effective, coworking spaces are typically created with productivity and health in mind. This means that many employees gain access to ergonomic chairs and healthy foods or drinks. 

Improved health, wellbeing, and happiness is a sure-fire way to improve employee satisfaction. Giving your employees access to a space that promotes well-being also displays your commitment to them and can make a meaningful difference to your overall employee retention. 

Access to Resources

Working with maximum flexibility is a great incentive for responsible employees. However, every employee may benefit from getting occasional face-to-face interaction with their workplace peers. 

Occasional face-to-face interaction is particularly important if your employees work and live on the road. These digital nomads love their lifestyle and are probably some of your most loyal employees due to the flexibility you offer them. However, they may need optional in-person interaction to receive access to sensitive resources or to “check in” between their travels. 

Offering a coworking space is a great way to account for folks who benefit from in-person interactions without burdening those who are happy to work fully remote. This flexibility means that you can have the best of both worlds, as your more extroverted employees will likely tag along to a few coworking sessions while their introverted peers can work in peace and quiet from the comfort of their homes. 

Conclusion

Coworking gives you the best of both worlds. You can give your workers the freedom and flexibility they want from remote work while ensuring they also have access to a physical location to work if they need it. This is particularly important in today’s job market, where top employees can easily find new employment that suits their lifestyle. You can use coworking spaces to show talented workers that you care about their well-being and improve retention.