Remote working has changed a lot for employees — not only in terms of their day-to-day working habits, but also their work-life balance. This means being home more often, blending personal and professional space and relying on virtual communication with colleagues.
When asked what’s most important when considering a new employer (outside of the salary offered), 35% of people say remote working is their top priority. This isn’t too surprising as some of the main advantages for remote working are flexible work hours, less stress from commuting, and the freedom to create a personalised workspace.
While remote work helps employees build flexibility into their day, for some it can lead to a sense of isolation. This is where co-working comes in. Co-working is when people gather in a neutral space to work on different projects individually, or in groups on the same projects. Whether it’s hot desking, private offices, cafes or libraries, it’s an alternative to rigid ways of working. This “third space” can be beneficial for improving productivity and work-life balance.
How remote work has changed the workplace
In 2019, prior to the coronarvirus pandemic, just 4.7% of UK employees worked from home. The pandemic vastly changed the culture of work and attitudes towards remote and flexible working. Nearly half (44%) of people in the UK now work from home (hybrid or full-time remote). As a result, there is a huge decrease in the demand for a physical office headquarters, with 63% of business leaders taking steps to reduce office space to save money due to the shift of working culture.
For professionals who face long commutes, prefer a less corporate environment, or simply need a break from the isolation of working at home — co-working environments can offer a middle ground away from the restrictions that home/office binaries provide. These spaces have given people have the ability to discover where and how they are most productive.
The limitations of remote working
The surge in remote working has created necessary changes to communication, wellbeing strategies and support for employees. There are some drawbacks to remote working such as:
Increased distractions
According to 2024 research, 15% of employees spend nearly a third of the working day (two hours) distracted. There is a discrepancy between ways of working between employees as some people are very distracted by office small talk and noise around them, whereas some people need a strictly quiet zone to focus. The top distractor for office workers is colleagues talking around them (38%), whereas for remote workers it’s the temptation to look at their phone (27%).
Loneliness for remote workers
Gallup found that 22% of the global workforce feel lonely every day, seeing significantly higher levels of loneliness in remote workers. This lack of connection could have consequences for employee mental health — 50% of employees already say that their mental health takes a toll on their productivity while they’re at work.
Blurring the lines of work/life boundaries
This combination of working life and personal life environments can cause issues with work-life balance. Some employees feel a degree of difficulty to ‘switch off’ if they work in their home environment, leading to unhealthy work habits such as unpaid overtime.
The benefits of co-working spaces
Co-working environments provide a middle ground between home and the office. Here’s a few ways that these spaces can boost employee morale and mental health for employees:
Encouraging a work-life balance
For remote workers, a fresh workspace helps disrupt the monotony of working from home and sparks new ways of thinking.
Co-working environments can help work-life balance by including:
- Encouraging exercise – travelling to a different workspace instead of staying home promotes physical activity. People that are physically active have a 30% lower chance of becoming depressed.
- Improves social wellbeing – it can be easier to meet a friend for lunch or interact with other people in the co-working space.
- Promotes taking breaks – 19% of people feel burnt out by not taking regular breaks. Outside of a corporate office setting, people might feel more freedom to take breaks from their work schedule, creating a more balanced routine.
Giving employees a sense of belonging
The New Economics Foundation and Co-op estimate that loneliness costs UK employers £2.5 billion a year. As remote and hybrid work continue to reshape our professional lives, co-working spaces blend flexible working with a sense of belonging. Being surrounded by like-minded professionals, instead of being home alone, makes it easier to feel part of something bigger.
This can include meeting up with friends who have different jobs, joining community groups sharing the same space or feeding off the atmosphere working solo. These shared environments offer more than just a desk—they create a sense of connection.
Improving focus with co-working environments
Being around other people in a working space can increase accountability towards work and limit dips in productivity. Co-working spaces tend to be full of people who have taken the initiative over their engagement and productivity levels. Unlike traditional offices, these environments bring together professionals from a variety of industries and backgrounds.
Watch our free webinar on building connection with employees
One of the most powerful benefits of co-working spaces is their ability to ease the loneliness that can come with remote or independent work. A café with background noise may motivate one person, whereas a silent space or community-led environment may appeal to another.
Watch our free webinar on community and belonging for more ways to build a happier, healthier workforce. Vicky Walker, Chief People Officer at Westfield Health, discusses the ways that businesses can build connection: