Over the past few years, workers have been uprooted from their traditional work locations and required to set up home offices or utilize a temporary office or coworking space. Enforced social distancing restrictions meant that suddenly up to half or greater of a company’s building space was empty. Yet, the owners were still required to cover utilities and maintenance and meet their lease obligations.
As restrictions lift, a healthy percentage of employees still choose to work remotely, having discovered increased productivity and improved quality of life through the added flexibility and independence of not being tied down to a regular schedule in a centralized location. As a result, some companies are experiencing the added stress of having too much space and not enough workers onsite.
To take on the tasks of daily procedures, supervision, and human resources, and to alleviate the stress of rebuilding and expansion, a hybrid form of the management agreement is starting to gain a foothold in the marketplace. Businesses are now turning to management professionals within the temporary and coworking office services industry to convert and utilize their unused areas into coworking office spaces and take on daily operations tasks.
Hybrid management contracts seem destined to become a permanent part of the new wave of office culture, spurred initially by the pandemic and continued as small business people find a need to regain their foothold. Here are some of the benefits and pitfalls of using a management contract for your business.
Advantages of Using a Contract Management Company
- Contract management companies can ease the burden for owners and their teams by taking over the daily operational tasks, including human resources, recruitment, and reception.
- Contract management companies have highly trained and vetted staff who work for the management company. Therefore, businesses need not be concerned regarding staff issues and consistency.
- Since management companies have experience working within various industries, they can help owners with networking, manage multiple branches within a business and give owners the breathing room to focus on expansion and regrowth.
Things to Consider When Choosing a Contract Management Company
Before signing with a contract management company, here are a few things to think about.
- Some privacy may be compromised when allowing an outside management company within your internal operations. They will need to understand how your model operates to assume guardianship.
- Full financial disclosure is expected of a management company, which can open the door to possible exposure and fraud within your business.
- Hiring an outsourced management company doesn’t mean exclusivity unless written within your contractual agreement. Your business may be among several within a particular industry that a sole management company manages. Hence, a solid reputation and trust are necessary before signing anyone to fulfill the management role.
Coworking office spaces like those offered with Workspace Strategies are managed by a team of professionals who understand privacy, the need to focus on the future of business, and can handle the day-to-day operations.
For companies who need help converting their unused space into a coworking environment, hiring a reliable team for a management contract is worth considering.