The Democratization of Hybrid Work in India
Since the pandemic settled down, employees rightly started focusing on maintaining a healthy work-life balance and are demanding office spaces that shun the workplace toxicity of the old world. In line with this change, employers are now looking for office spaces that enable a collaborative environment among the workforce by design.
Studies by industry experts observed that 69% of organizations have already introduced, or will introduce a hybrid mode of work. This is driving the need for flexible workspaces across all key cities and as a testament to its increasing adoption, over 7 million square feet of space was leased by coworking operators alone in 2022. This is the highest-ever for a calendar year, accounting for about 14 percent share in the commercial real estate industry. It is quite safe to assume that the fate of remote working and coworking spaces are going to be intertwined.
Coworking Spaces, the foundation of hybrid work
In the economics of business, fixed costs including renting or leasing office spaces, maintenance & housekeeping, and other allied services constitute a significant proportion of their workspace expenses. For organizations looking to preserve cash, invest in growth, and emerge as preferred employers, coworking spaces present themselves as enabling partners.
Traditional office spaces come with long-term leases, cubicle setups, negligible collaborative zones, and a lack of technology to offer rotational desk services for a hybrid mode of work. Coworking operators have stepped up and solved these challenges with their tech-enabled platforms.
Geographic democratization of flexible workspace popularises hybrid work
A recent survey result suggested that more than 75% of participants felt a hybrid working model will be critical to attract and retaining talent. This has resulted in companies from the technology, logistics, and various other industries scouting talent from smaller cities, enabled by the democratization of coworking spaces beyond tier-one cities. This transition is further complemented by the cropping up of coworking operators in these regions, enabling the budding startup culture.
A healthy combination of coworking spaces in smaller cities and companies that are hiring from these cities is creating a uniform playing field, despite their geography. Going forward, the role of offices will evolve from merely being a structure to execute work to becoming a hybrid space for long-term collaborations, innovations, and investments, ensuring long-term mutual growth.