The rise of remote and hybrid work arrangements has revolutionized the way businesses operate after the COVID-19 era, presenting both challenges and opportunities for entrepreneurs and startups. Moreover, the surge of coworking spaces with subscription-based models has gained momentum, leaving business owners grappling with the decision to rent a coworking space or go for a traditional office.
Here is a detailed comparison of coworking vs traditional offices to help the startup owners make a decision. Discover the advantages and disadvantages of each option, and learn how to navigate the evolving workplace landscape to ensure your business flourishes well and brings all the necessary facilities for the employees
What is coworking space?
Coworking space is a professional environment where professionals from different teams, projects, and companies coexist. It has every amenity like a traditional office. You can use the internet, printers, scanners, meeting rooms, event spaces, coffee corners, and housekeeping services. These amenities also differ in different coworking spaces. The coworking space often attracts small business owners and startup founders as they can move in quickly and start working without any hassle of maintaining the office space.
The best aspect of coworking space is the opportunity to use different work areas depending on the work. For instance, professionals can use thinking pods to work in silence and common areas to interact with each other during fun activities.
The concept of coworking started gaining momentum in the early 2000s. The number of co-working spaces is increasing. In India, Pune has remained a flex hub, witnessing rapid growth in the last 5 years. The flex space stock in Pune has grown from less than 1 million sq ft in 2017 (6.6% of the India flex space stock) to over 6 million sq ft in Q1 2023 (11.5% of the India flex space stock) – a 7.5X growth.
Discover here – “10 Best Coworking Spaces in Pune”
What is the traditional office?
Traditional office is what we have been seeing for ages. They have a closed-plan layout. There are numerous fixed workstations and a structured environment that can enhance focus and productivity. Every workstation is divided into cubicles, giving enough privacy to the employees. While it gives privacy to every employee, it also comes with a rigid setup, restricting the employees from spending time on fun activities or relaxation.
The traditional offices have a fixed segregation for everything, providing employees with clear boundaries between work and personal life. There is fixed space for the pantry, for welcoming guests, and for everything else, and such corporate setups bring a sense of professionalism. But at the same time, the fixed setup sometimes brings boredom, keeping creativity at bay.
The overall appearance of traditional offices is corporate and the look and feel are generally made to resonate with the brand image. However, the spaces here are maintained by admin staff, which leads founders to hire dedicated employees.
While the initial investment may seem higher, traditional offices offer a great sense of permanence and brand identity
Coworking Space Vs Traditional Office
If you have been checking out a better option between a coworking and a traditional office, take a closer look at our detailed comparison.
| POD | Coworking Space | Traditional Space |
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Budding enterprises with limited budgets can benefit from coworking spaces. It is very cost-effective as the cost of all the amenities and services is included in the monthly rental. Businesses can scale the services as per requirements. | The acquisition and handling of traditional office space makes traditional offices a costly space. Installation and maintenance of every amenity and service consume time and money. Scaling any service requires further investment. |
Move-in Ready |
Coworking spaces have emerged as a perfect solution for business owners who only want to focus on their business. Coworking spaces are ready with every amenity and service. The business owners can pay and get started with their work immediately, saving a lot of time. | Traditional offices are exactly the opposite of the move-in world. Once the office space is finalized, business owners have to take care of the installation of all the amenities and furniture, which significantly increases the process of resuming work and demands a huge investment. Use the Office Space Cost Calculator to calculate your office expenses including the rent. |
Office and Administration |
In coworking space business owners just have to focus on their core business and the rest of all is taken care of by the coworking space providers. | The office administration play a major role in running the traditional offices. Every amenity and service is maintained by the admin department. |
Office Amenities |
Coworking spaces are designed to promote a dynamic environment with collaboration and flexibility. They have high-end office amenities such as high-speed internet, a kitchen, ergonomic furniture, etc. They have the option to upgrade their services according to their needs. | Traditional offices have all the amenities but are fixed. Everyone using the office has to use the same amenities. Moreover, the traditional setups lack areas of relaxation and play, making the employees more susceptible to mental stress. |
Office Culture and Branding |
The office culture is collaborative. Such offices are known for their openness and community. The design, seating arrangement, interiors, and management reflect a similar vibe. The coworking spaces help the employees create collaborations and expand their businesses. | The traditional offices operate in a hierarchical structure with fixed patterns of work. They have a fixed business goal which is visible in the office culture. With their belongingness, they have the freedom to maintain values and create an impression, building their strong brand which is not possible in a coworking space. |
Networking Opportunities |
The freedom in seating arrangements gives a lot of opportunities to network and collaborate with fellow working professionals. Numerous shared spaces, such as coffee corners, leave a lot of room for interaction and community building. | Traditional offices work hierarchically. The employees get to interact only with their peers during lunch breaks or meetings. The workstations are designed to isolate the employee so they to focus on their work. |
Privacy |
Privacy is an on-demand facility in coworking space. There are private cabins and thinking pods where an employee can go and work. However, when employees opt for the hot desks in the coworking space, they might need to sacrifice privacy. | Privacy is one of the main features that define traditional offices. The business owners can manage the access of the employees and outsiders. Employees can work without distractions and conduct meetings freely in traditional offices. |
Geographical limitations |
In terms of geography, coworking spaces are very liberal. They have chains of offices at different locations. Employees can attend their work at the nearest branch of the coworking space. All of this is covered in a one-time rent agreement. | There are geographical limitations in a traditional office. The office is at a fixed location and the employees need to commute to this place. If the employee’s residence is far from the office, they spend 1 – 2 hours commuting to the office space affecting their mental health. |
Health Benefits |
A survey suggests that three-fourths of the employees strength in a coworking space are satisfied with the office culture. This satisfaction reduces stress. The ergonomic furniture, creative interiors, and friendly environment have a very positive impact on the employee well-being. | The employee is responsible for their mental and physical health in the traditional office set up. The lack of community gathering and green space in the office affects the mental health of the employees. |
Direct Supervision |
Coworking spaces are flexible in terms of supervision. The professionals may work with different companies, teams, or projects. So, the supervision is based on their assignments. They get to build positive relationships with people working around them. | Direct supervision is a key aspect of traditional offices. Employees report to their managers and work directly under their supervision. This way they get the opportunity to connect with their line of managers but the connection with other members of the office space is limited. |
Prime Location |
The location can be varied but it works in a coworking space. The coworking spaces have a chain and employees can work from the nearest center without paying extra. | The traditional offices are generally large and located in prime areas. It can be easily located by anyone. However, the employee’s comfort is compromised. Employees daily travel to the office located in a prime location. |
Flexibility for Tenure |
Coworking spaces work on leases. These lease starts from one week and can extend to a long period of time. Coworking spaces offer flexibility in changing the tenure. Businesses can go ahead with short-term leases and extend them at any time. | A lot of resources and time are invested in building a ready office. The tenure has to be long and the offices need to run smoothly. The tenure is generally long-term, lasting around 3-5 years in India for traditional offices. |
Scalable Space |
Scalability is a key benefit of coworking spaces. The business owners can acquire the required space at any moment. They can increase or decrease it depending on the size of the team. This does not affect the availability of amenities and services. | Scalability is a tough choice for traditional offices. To have any increase in team size, they need to invest in resources and services. It takes a good amount of planning and time to add any increase in office size or team strength. |
Coworking Space or Traditional Office - Which is Better for You?
Though concepts of flexible desks and dedicated desks make coworking space a very convenient option, which option you choose out of two, depends upon your personal choice and requirements. If you are a startup founder or a small business owner, then you should undoubtedly go with a well-known coworking space provider like TRIOS Coworking Space, which offers these services at affordable rates and with premium amenities and flexible lease options. Moreover, with the notion of helping the founders with cutting-edge coworking space solutions, TRIOS has come up with a special program for startups. Such spaces are designed to work in favor of growing businesses.
Whether you are a big company, a startup, or an MNC, you can think about using coworking spaces in the current scenario, where hybrid working is a growing trend. Reach out to a market expert like TRIOS and get a coworking space with every needed amenity, along with the flexibility to limit or extend their usage.
Pratik Potnis
Pratik Potnis is the Founder and CEO of TRIOS Coworking Space. With over a decade of entrepreneurial experience and a strong business network, he has helped 200+ companies with his world-class coworking space services including Microsoft and Dunzo. At Trios, Pratik ensures all the operations are streamlined and aligned to business growth. He is well-versed in business forecasting and generating strategies for innovation and sales.You may connect with him on LinkedIn, Twitter, and Facebook.
