How to manage your coworking space spend budget

With many companies moving toward a hybrid work setting, like Meta and Zoom, the concept of a coworking space spend budget is not such a foreign concept. As real estate costs continue to increase, companies are tapping into the resource of on-demand coworking spaces as a central hub that, in some cases, is replacing the physical office space. 

If companies had used coworking spaces in the past, quite frequently they were booked on an ad-hoc basis, with employees submitting expense reports for reimbursement. Even though this might have worked for the few employees who might have been using coworking spaces on their “out of office” days, for meetings with clients, or when traveling, as companies move toward an official hybrid work setting (or in some cases, fully remote) and understand the valuable resource that coworking spaces are for their workplace culture, the need for a coworking space spend budget increases rapidly. 

Do hybrid-first companies need a coworking space spend budget? 

The short answer is yes. As your company adopts a hybrid-first (or remote) approach to the workplace, there’s a good chance that coworking space usage will increase. For many professionals, the days they are not in the office still require a more professional, focused setting, which on-demand coworking spaces offer. Additionally, some companies are tapping into on-demand coworking spaces as central hubs for employees who live near each other, to help support collaboration and connection, and to cut costs, based on an office space utilization analysis. 

With any type of increase in usage, there’s a good chance receipts and expenses will also jump up, and while your finance team may be equipped for that number of inquiries, it’s likely that they will need to decide what category those expenses are being paid from, and decide what type of allocation employees get. And even then, because the use of on-demand coworking spaces (which include hot desks and meeting rooms) might change by the month or season, your finance team will need to keep an eye on spending and do their best to adjust accordingly. 

How can companies create a coworking space spend budget? 

In order to create a coworking space spend budget, it’s important to ask (and answer) the following questions:

1. Who is eligible for coworking space benefits? Will every team member receive these benefits and if so, will they each get the same amount? Certain employees, like those who need to host client meetings or who live closer to other colleagues, might use them more than others. 
2. What are the average costs in the areas your team needs to book? Building your coworking space spend budget requires researching the cost in the cities in which your team works or frequently travels. It’s also important to price out the different costs, from a hot desk to a private office to a meeting or conference room.
3. How will your team be using the spaces (and how often)? If you’re booking on-demand coworking spaces to replace a physical office in various locations across the country, your budget will be different than a company looking to provide hybrid employees with the opportunity to work outside their homes on the days they’re not in the office. 

How can companies consolidate the coworking space spend budget process?

Managing a coworking space spend budget for any size team can be challenging, particularly because it’s often an unchartered territory for many. However, Flexspace offers companies an easy way for hybrid teams to search, book, invoice, and manage the entire process, all in one platform. It’s why companies like Shutterstock are looking to Flexspace to support their on-demand coworking space needs. 

“Flexspace is an intuitive portal for both admins and users alike. The Flexspace team is incredibly responsive and supportive of all our workspace needs, no matter the location. They’ve been a great vendor to work with!” – Ashley Casey, Global Assistant Director of Workplace Experience & Operations, Shutterstock. 

With Flexspace, you have the ability to adjust your coworking space spend budget in real-time, based on how much or how little your team is utilizing the available on-demand coworking spaces, not to mention gain insights into spending and usage trends based on team members. As Flexspace handles your workspace spend management, you can focus on ensuring that your team is feeling focused and productive in their work.

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