Flexible working is growing rapidly, up 19% according to consultancy firm The Instant Group. John Williams, head of marketing, puts it down to two factors: a change in how large companies are operating – specifically in relation to flexible working practices – and changes to the nature of the workforce itself.
He says: “It’s a mixture of the increase in the contingent workforce – consultants, one-man bands, and startups – and the fact that larger companies now work in a more agile way, keen to offer their employees more choice in where and how they work.”
With that, IWG has continued to expand across its operating brands, seeing another 156 new locations opening in 34 countries around the globe, since the turn of the year.
Additionally, reluctance by major companies to sign long-term lease agreements – in order to stay financially flexible – was also a driver. “Corporates are less keen now on signing lease agreements for the long-term as business cycles have become shorter since 2008 and companies have had to become more agile to adapt to this change.”
Despite the rise in flexible workspaces, much of this footprint is still concentrated on the world’s major ‘global cities’ with New York and London taking up the lion’s share of such available sites. IWG’s portfolio of operating brands, with Regus at the forefront, is continuing to expand into these major cities, but also into other growth territories as of this year such as Braga, Bilbao, Rennes, Gdansk or Huntingdon, in Cambridgeshire.
When it comes to the nature of the workforce driving the change in working practices, it’d be a mistake to think it centres on the creative sector. According to Williams, research has found that “in the US and UK, it is actually financial services and professional services organisations who are using flex space more than tech companies.”
Although relatively nascent as a trend in the commercial rented sector, with 5 per cent of the total office market, Williams suspects flexible workspace will make up 30 per cent of the market in the next decade.
So now is the perfect time to capitalise on this new business opportunity.
IWG, the global leader of flexible workspace and coworking, has launched its franchise offering, based on its proven business model, over 30-year experience and leading global brands like Regus and Spaces.
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UPDATE: Regus opens its first ever franchise location in North London
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