For decades, there was only one way to run a business. Businesses operated out of physical office spaces and employees were required to be present in the office to do their jobs. Aside from salespeople, very few employees were traditionally allowed to carry on their duties outside of corporate walls.
However, times are changing and there are now a number of options for business owners and employees to choose from, leading to the debate between traditional offices, co-working spaces, and remote offices.
Traditional Offices
You’re probably pretty familiar with this option, complete with windowless cubicles, water cooler, and typical office pranks pinned to the break room corkboard. This is where the majority of the workforce still operates today. In fact, 73 percent of companies today rely solely on in-house employees, according to a study.
Pros: Collaboration is easy and businesses have better control over work hours and productivity during those hours. It’s easier to keep an eye on employee performance and see where certain areas need to improve and what’s causing any setbacks. It can also be motivating and uplifting for employees to work in close proximity to others.
Cons: There are often distractions from actual work in the form of meetings, employee interaction, breaks, business conversations, and more. Furthermore, overhead can be an issue since businesses must pay for the office space. Most in-house employees are also paid a salary, which can often be wasted by unmotivated employees
When it Works: Overall, the traditional office space can be extremely productive for businesses that rely on client-employee interaction and teamwork. It’s the most expensive model, but it allows for simple collaboration and employee bonding, which can boost overall efficiencies. Also, some companies rely on prime real estate locations to attract both customers and employees. If that’s the case for your business, you need a traditional office space in a great location.
Co-Working Spaces
Co-working spaces emerge when large offices have more space than they need, so they sublet that space to freelancing individuals and small businesses. The employees in this space might not belong to the same company or even the same industry.
Pros: To begin with, it’s a much cheaper option for businesses and individuals to rent a small co-working space than it is to rent a full office space, which significantly reduces overhead. In addition, when you have employees working alongside a blend of other employees, they can pull in real-world insights and other ideas that are difficult to create when surrounded by workers of the same industry.
Cons: There is always a strong possibility of disagreements and dysfunctional environments in co-working spaces. Businesses have very little control over their employees, and when people are paired with individuals they can’t stand, productivity and innovation can go out the window.
When it Works: For small businesses looking for an affordable office space that feels like a traditional office space at half the cost, this can be a very good option. It can also be a viable option for individuals, as long as they have the option of getting out of the confining space if tensions get too high.
Remote Work
Remote employees generally work from home, which means you don’t need a specific office space. These employees determine their own schedules and generally use a task management or collaboration program to keep on track.
Pros: It’s by far the most affordable option. Without the need to pay for an office space, equipment, supplies, and all other expenses associated with it, businesses can save thousands of dollars each month. Furthermore, it can also yield higher levels of productivity. In fact, the earlier mentioned study showed that more than half of all employees said they were more productive when working remotely. Businesses can also save on salary and benefits by paying employees on commission rather than on salary.
Cons: Not everyone is motivated enough to work from home, and businesses have very little control over productivity and distractions. There is also limited control on connectivity issues, which can shut down work indefinitely if the employee has bad internet that goes out often. Furthermore, collaboration can be difficult, even though phone calls, video conferencing, project management software, and email are better than ever before. There is also limited employee collaboration and bonding.
When It Works: Companies looking to cut down on their overall costs can benefit greatly from remote employees. It’s also a useful option for companies that use a traditional office space, but don’t need to hire all employees full-time. This arrangement will only work, however, if people have full confidence in the productivity and quality of the work a remote employee will provide.
Which Model Is Best for You?
Choosing the model that works best for you is about determining the kinds of employees you need to hire and how productive those employees are. It’s also a matter of defining your mission and business goals, and choosing a model that will fit into that space.
For example, companies that rely on team collaboration and control of their employees’ hours need a traditional work space, while those that don’t have specific time frames or a real need for constant collaboration can benefit from the reduced cost of remote employees. By weighing the pros and cons of each of these models, any business can determine the best option.
About Drew Hendricks
I'm a tech, social media, and environmentalism addict. I've written for many large publishers such as National Geographic, Technorati, and The Huffington Post. I have also worked with a variety of startups around the globe as well as large advertising agencies in the United States and the U.K. I currently live in San Francisco, where I attend as many tech and business conferences as possible to gain knowledge and transfer it to others. In my free time you'll find me in a disc golf course or at the dog park with my dog Zeus.
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