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Coworking spaces are still on the rise, regardless of WeWork mistakes

(BUSINESS NEWS) Coworking spaces are taking the world by storm, WeWork may still be good for some but not all. But the smaller companies have what you need too.

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Last week, we shared a story on the sudden decline of coworking “giant” WeWork. In case you haven’t had a chance to read it yet (I highly recommend it as it sheds some serious light on the topic) the TLDR gist of the story is that the company has very quickly declined from a $47 billion company to an $8 billion one. That said, their drop in value has resulted in a need to offload assets, such as a variety of coworking companies it recently purchased – some as recent as this year.

Despite the company’s obvious failures, according to a recent coworking survey by Clutch, WeWork is still pretty popular. When surveyed against 5 other possible choices, the company took the top spot, with 39% of respondents said they work from a WeWork location.

But watch out WeWork! In the same poll, 36% of people (only 3% less than WeWork) are opting for local spaces for their coworking needs. So what does this mean for the coworking landscape in 2020? Clutch found some really interesting data that may give us some clues into what the future of coworking may look like.

Our first trend is that coworking spaces are seemingly favored by business who prefer to be involved in their local community and offer community-based perks. This is something that niche spaces, like Enterprise Coworking, owned by Focus Property Group in Denver, Colorado, are capitalizing on.

Andrew Schuh, a marketing specialist at Focus Property Group, says that local Denver businesses tend to be drawn to their coworking space and that “being local and involved in local events and forming partnerships with local businesses has really helped us. We have a local touch that WeWork doesn’t have.”

But are other local businesses and employees around the globe following suit? We’ve found that whether or not you’re with a company or single employee, the decision to go with a larger space, vs. a smaller, local space, really comes down to a couple things: the size and type of company you work for and your company’s policy on remote working.

For example, if you are a freelancer and you do not have a dedicated space to work in, assuming you have the amount of work that warrants a coworking membership, logic would say that you may want to go with a larger space like WeWork – one with more amenities (which we’ll discuss later in the story). However, being a freelancer also means that you’re probably the one paying for the space, so both actual need and budget can be very real concerns. These concerns may force you in the direction of a local company, vs. a large company like WeWork.

On the other hand, if you are part of an organization that pays for, or subsidizes your remote workspace (lucky you!), you may very well have the means to go with a larger space like WeWork.

Another trend that certainly plays a role in the 2020 landscape is in relation to company policy. It’s important to mention that many, but not all, larger companies have restrictions when it comes to remote working. Some businesses may completely disallow remote working, while others may only offer the ability to work out of the office a few days a week.

Clutch goes on to point out that if a company has more than 100 employees, it’s more likely that their employees visit their coworking space the majority of the week. They found that 53% of employees from larger companies spend 5 or more days per week at their remote office of choice.

In the same vein, Clutch found that if a company has less than 10 employees, only 29% of employees spend the majority of their time at their coworking office. This likely correlates somewhat with what we mentioned before: smaller companies are less likely to prioritize private office expenses, typically based on budget, need, and policy. It can certainly also have something to do with the job you’re in and whether or not the position supports remote work.

Schuh says “The majority of members use the space most days, but there are the smaller businesses that come in fewer days per week…our larger members are definitely here full-time, though.”

Now, another trend that may have an impact on the future of coworking is in relation to plans and contracts. Larger companies tend to stick with coworking spaces for at least a year. We speculate the reasons are both growth-related and budget-related. In a small company, month-to-month is often a great option as it offers flexibility. However, medium and larger companies frequently go with annual plans, which may be subsidized and offer a stable work environment for their employees.

For instance, TrustPilot, a well known review-gathering service and platform, is Enterprise Coworking’s largest member, with 72 out of 800 employees working at the Denver space. All Denver-area employees exclusively work out of Enterprise as it offers them both stability and flexibility. The company has a suite-plan (vs. a desk membership), meaning they can work anywhere they’d like in the office. They also recently signed a 5-year contract with the space, saying that they have no plans to move, even as they grow.

Contracts such as these support small to mid-sized businesses who are on the right track, growth-wise, and are looking to increase their footprint long-term.

The final trend we’ll discuss today is all about amenities. Coworking spaces aren’t just for working. They’re for playing, too!

Many coworking offices come with a wide array of services and perks. Clutch found that 39% of coworking spaces have recreation rooms, for example (Enterprise being included in that statistic). Game rooms like these can have a direct impact on job satisfaction and productivity, which can prevent burnout. Enterprise’s recreational room, for instance, provides pingpong tables, shuffleboard, and Xbox access and helps to reduce daily work-related stresses for many employees. Actually, according to Clutch, about 60% of coworking employees are more relaxed at home since they started working at a coworking office.

Office Assistant, Holly Emmons, attests to this by saying “Our team loves pingpong…people take breaks from their busy days to destress for a few minutes and get away from their desks, so it is great having these types of spaces throughout the building.”

Another amenity that’s taking the industry by storm is wellness programs, and it’s no wonder why. After all, having healthier customers means more activity in the coworking space (more frequent visits, consistent payments, less cancellations, etc.), which means more revenue for the coworking space.

So, what does all this mean for coworking in 2020? With larger companies committing themselves to specific services, we predict that the coworking model will continue to be near and dear to both businesses and employees in the future. In this competitive market, it’s highly likely that many spaces will also continue bring in new tactics and amenities to rival giants and small businesses-alike.

So, without further adieu, let the coworking space wars begin!

Rachael Olan is a Texas-based Staff Writer at The American Genius and jack-of-many-trades. She's well known for her abilities in Marketing, Sales, and Customer Service, with a focus on SaaS and eCommerce businesses. Outside of writing, Rachael spends much of her time with her swarm of pets, including a 70 lb tortoise named Frankie.

Business News

Debunking ridiculous remote work myths (and some serious survival tips)

(BUSINESS) People new to remote work (or sending their teams home) are still nervous and have no concept of what really happens when people work from home. We’ll debunk that.

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With an entire nation (or planet) moving to a remote workforce in the midst of a global pandemic, we’re hearing some pretty wild misunderstandings of what remote work is, and how it functions effectively. Bosses are scrambling to buy up spying tech for some good ol’ hamfisted enforcement.

For those of us who have been remote for ages, it’s fascinating to watch the transition. And also offensive. People tweeting about getting to take naps and not wear pants. That’s not remote work, that’s just you being unsupervised like a child for five minutes, KEVIN.

I was chatting with my buddy Michael Pascuzzi about remote work (full disclosure, he’s a Moderator in our Remote Digital Jobs group) and despite cracking many jokes, we realized there is a lot of noise to cut through.

In the spirit of offering meat for you in these hungry times, Michael offered to put his thoughts on paper. And why should you listen to him? It’s because he has worked for several tech companies, both startups and enterprises including TrackingPoint, 3DR, and H.P. He currently works remotely for Crayon, a Norwegian Digital Transformation, and Cloud Services company. He holds an M.B.A. in Digital Media Management from St. Edward’s University and a B.A. in Art History from the University of Connecticut. He’s also wonderfully weird. And a remote worker.


In his own words below:

So you’re working remotely now. Cool.

At first, it feels.. strange. But, as you get into it, you’ll get comfortable with your routine.

I’m sure you have a preconceived notion of remote workers. You probably thought this type of work was just for Unabombers and nomads. Maybe you don’t think you have a real job any longer because you’re doing it in your Underoos.

While, yes, working from home does allow you the option to work in your underwear, you still probably shouldn’t. There’s a lot to working from home and getting work done. You’re going to get a crash course in the coming weeks. I’m going to give you a leg up on your peers by telling you what you really need to know and what nobody else is telling you about remote work.

The following is a cheat sheet to getting ahead of your peers – and maybe make a case for you to continue in this lifestyle after the pandemic has subsided.

1. Working remotely doesn’t mean playtime

Right now, you’re roughly one week into your new working arrangement. You’ve got your table, your computer, and your whole set up. You’re also taking advantage of:
– The creature comforts of home
– Nobody looking over your shoulder

Irish coffees for breakfast, no pants-wearing, and naps during lunch are all available to you now that you work from home. And let’s not forget about #WhiteClawWednesdays!

These are all terrible ideas.

Here’s why:

If you come to a phone/video meeting drunk, we’ll know. If you’re on a video call with bedhead and a wrinkled shirt, we’ll assume you’re unprofessional. White Claw Wednesdays are probably okay in moderation, but taking a shot every time Karen says something annoying on a conference call is a bad idea!

Working from home should be an enjoyable and comfortable experience, but it shouldn’t be fun. It’s still work; and work sucks.

2. Working remotely should give you a better work/life balance:

Initially, you’ll find it hard for you and for your employer to separate your work hours from your life hours. Staying working only during your work hours is VITAL to keeping your sanity. Microsoft Office 365 has a tool that measures your wellbeing in “My Analytics.” Below is a picture of my wellbeing for this month. It’s not good.

digital accounting of wellbeing

The leadership team and managers at my company stress wellbeing. We take that chart seriously, and failing to have quiet days doesn’t make you look like a hard worker. Hard workers get shit done 8-5.

3. Working remotely also doesn’t mean firing the nanny

Working remotely doesn’t equal additional family time. Your work hours are your work hours. The pandemic quarantine doesn’t leave a whole lot of options for families to coexist without overlapping.

And it’s okay to occasionally have a “coworker.” But, you need to create your own private workspace within the hustle and bustle of homeschooling going on around you.

Here are a few more best practices you won’t read anywhere else:

You’ll need to learn to distance yourself from “work” when no longer at your “office.” This means powering down at the end of the day. Having a work/life balance when you work from home tends to swing in the opposite direction than you probably assumed; work can take over your life.

  • You’re going to have to turn off mobile notifications 100% of the time. It’s a pandemic, you’re not traveling; you don’t need them on – ever.
  • Turn off your computer at the end of the day. It’s good for your computer, and it’s fantastic for your mental health.
  • If your manager needs to reach you or you need to contact a direct report, just follow the wise words of Kim Possible: Call me, beep me if you wanna reach me.
  • You must wear pants. (FYI guys, dark leggings look like real pants and are super comfortable) Get ready for your day as if it were a regular office. Take a shower, shave, comb your hair, eat breakfast in the kitchen, wear jewelry. Look like you give a damn.

  • You must turn on your camera for video calls (and please don’t take your laptop into the bathroom. no field trips). Nonverbal communication accounts for 93% of all communication. We need to see your face, your posture, your eyerolls.
  • All of your calls should be video calls. You’ll find you’ll miss humans if you do not see them daily.
  • Clean the room (or at least directly behind you). We shouldn’t see laundry and quarantine snacks in the background. We absolutely should never HEAR you opening a bag of chips.
  • Close your door. Kitchen, office, bedroom… whatever you’re using needs to be YOUR space. It’s your office. Your clubhouse. Only one Homer allowed.

And for the love of all that isn’t COVID, please wear pants.

More resources:

I’m on a team at Crayon that freely consults on working remotely and cloud technology. This isn’t a sales pitch. If you have questions or need productivity tips, you can always email my team directly at contact.us@crayon.com.

Meanwhile, here are some additional resources to dig into:

  1. 20 tips for working from home
  2. Guide to engaging a distributed workforce
  3. Top 15 tips to effectively manage remote employees
  4. How to make working from home work for you

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Business News

Will House Democrats pass the new Senate stimulus package?

(BUSINESS NEWS) A new stimulus package for the COVID-19 pandemic has come from the senate, the question now is will the House Democrats accept and pass it?

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Congress can’t seem to agree about COVID-19 relief. Yesterday, the Senate and the White House came to an agreement on a $2 trillion economic stimulus package. The Democrats are now the hold-up. House Speaker Nancy Pelosi has publicly stated that the House will be reviewing the bill, but there is no commitment as to whether the bill will pass or not. The Hill reported that some House Democrats are concerned that they have not provided any input.

What’s in the measure?

According to CBS News, the actual text of the measure hasn’t been released, but they did get information from Minority Leader Chuck Schumer about some of the contents:

• Expanded unemployment benefits to boost the maximum benefit and to give laid-off workers full pay for four months
• Direct payments to individuals making less than $99,000
• $130 billion for hospitals
• $367 billion in loans for small business
• $150 billion for state and local governments
• $500 billion for large businesses
• Creates an oversight board to govern large loans
• Prohibitions to prevent President Trump and family from getting federal relief

Will the measure pass?

Pelosi has said that this measure is a big improvement over the Republican’s first proposal. It seems as if she is working hard to move the measure through the House, but given the current state of politics, it’s hard to believe that anything will be done without some debate. Many Democrats have pushed for a food stamp increase, which is not in the current measure. However, the Democrats did win on the oversight board that protects the employees of the companies who are getting loans. Money for states was another Democrat victory in the current measure.

If the bill can pass the House unanimously, lawmakers won’t have to vote on the floor. If the House can’t agree, the House will need to reconvene and amend the Senate measure or pass their own measure. Under the COVID-19 travel restrictions and quarantine issues, it might be difficult to get anything done quickly. The urgency is real, but so is the responsibility. The Democrats want the money to do what Congress intends, not for CEO compensation or stock buyouts.

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Business News

MLMs under investigation for claiming they have a COVID-19 miracle cure

(BUSINESS NEWS) Guys, there is currently no cure for COVID-19 and it’s definitely not being sold by your friend in an MLM or whatever their company calls themselves.

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MLM miracle cure

It should go without saying that essential oils are NOT a cure for COVID-19, but unfortunately, the MLMs are at it again. Yes, that’s right, there are people trying to market their oils, pills…etc. as a way to stave off the pandemic that is currently upon us. So before we go any further, may I remind y’all that there is no miracle cure to treat or prevent the virus.

Do not use MLM products as a replacement for the actions laid out by the Center for Disease Control and Prevention (CDC), like social distancing and vigorous hand washing.

Don’t get me wrong, if you or your friends or relatives want to use MLM products on top of the advice given by doctors and scientists, go ahead. But advertising that these products can cure a disease that’s currently spreading across the world isn’t just irresponsible, it’s dangerous. Even if you don’t catch it, you’re still at risk of spreading the virus.

As of right now, the FTC is investigating seven companies over COVID-19 related claims, but you should be suspicious of anyone claiming they have something that will help. Do your homework. Sources like the CDC and WHO (World Health Organization) are great places to start if you’re unsure about information that you see on social media or hear from a friend. Disinformation is everywhere, so it’s vital to keep track of sources.

If you do stumble across a friend or family member trying to slip in MLM sales during this global crisis, be civil in your rebuttals. Many people join MLMs because they’ve been struggling to make money elsewhere. MLMs are notorious for targeting immigrants and stay-at-home moms. With COVID-19 bringing a slew of job loss, financial circumstances for many are more precarious than ever, which could very well put pressure on people in MLMs.

In short: MLM corporations that advertise a miracle cure? I didn’t think these companies could be more evil, but I was wrong. Your friend on Facebook touting their essential oil as a miracle cure? Definitely not great, but there might be more going on than meets the eye, so be honest with them, but also be kind.

It’s no magic cure, but a drop of kindness could go a long way right now.

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