The Work-life Insight

Talk to Employees About Office Reopening

At Virgin, we believe that all businesses – regardless of size or sector – should be led by purpose. This is why I’m so proud to see how Virgin Media is living up to its purpose of ‘building connections that really matter’. I spoke to Jeff Dodds, Chief Operating Office of Virgin Media, as part of my Purposeful Leadership interview series and I was really inspired by what he had to say.

We talked about everything from accountability and authenticity; to making your purpose practical and evolutionary; building a culture of belonging; balancing your personal purpose with a business purpose; involving your people; having brave conversations to create positive change; and so much more.

Jeff brought so much energy to the discussion. Every time I speak to leaders who are genuinely driven by purpose, I am always blown away by their passion and commitment to making every business decision through a purpose lens. It's this drive and focus that helps businesses reach such ambitious purpose and sustainability targets, and turn talk into action. As Jeff put it:

“When you start talking about being purposeful, people assume it’s at the expense of being performance-driven. This, for me, is an ‘and’ not an ‘or’.”

When you look at the impact the company has made over the last five years, and it's current Meaningful Connections Plan, the proof is in the pudding.

This solutions-focused, action-driven approach to business is ingrained in Jeff’s character and is a wonderful trait in a leader. In his own words:

“My dad used to say to me: ‘I can’t hear what you’re saying, because your actions are deafening me,’ and I really believe that.”

I just loved this... well said Jeff’s Dad! Speaking of character traits, Jeff also listed these six qualities as being particularly important in becoming a purpose-driven leader:

being driven
keeping a focus on performance
being empathetic
being inclusive
making sure you listen
trusting others

I was also particularly interested in Jeff's ‘cultural triangle’ theory. As he stated: “Leaders make choices, and choices determine culture.” It’s this understanding that your purpose and your values need to be embedded from the very top, that makes the Virgin Media O2 leadership team so effective. At Virgin, we often take a different approach to the traditional business norms, and, as Jeff and I discussed, the triangle is often inverted to make sure culture is co-created by the people. This ensures that everyone has a say in driving change and in making business decisions.

Jeff understands purposeful leadership better than almost anyone I’ve met, so I hope you find our discussion insightful. To close, I’d like to share Jeff’s personal purpose statement, which really says it all:

“My purpose is to realise my own potential, by helping others to realise theirs.”

Credit:‍

Post-Holly Branson

Website: www.virgin.com

Tips to Loose 20 Pounds Rapidly

min read

6/17/21

Tips to Loose 20 Pounds Rapidly

Losing weight can be incredibly challenging regardless of whether you’re looking to lose five pounds or 20.

Not only does it require diet and lifestyle changes, it also takes quite a bit of patience.

Fortunately, using a mix of proven strategies can simplify and expedite weight loss.

Here are 10 of the best ways to quickly and safely drop 20 pounds.

1. Count Calories

It may sound like a no-brainer, but counting calories is one of the easiest and most effective ways to start losing weight fast.

Weight loss occurs when you use more calories than you take in, either by reducing your intake or increasing your physical activity.

While cutting calories alone is generally not considered a sustainable way to lose weight, counting calories can be an effective weight loss tool when paired with other diet and lifestyle modifications.

Keeping track of your calorie intake can increase your awareness of what you’re putting on your plate, giving you the knowledge you need to make healthier choices.

Interestingly, one review of 37 studies found that weight loss programs that incorporated calorie counting led to 7.3 pounds (3.3 kg) more weight loss than those that didn’t.
‍

Try tracking your calorie intake by using an app or a food journal.

Summary - When paired with other diet and lifestyle changes, counting calories can help you make healthier choices to increase weight loss.

2. Drink More Water

Upping your water intake is a simple way to boost weight loss with minimal effort.

In fact, one study found that pairing a low-calorie diet with increased water intake before meals resulted in 44% more weight loss over a 12-week period.

Research shows that water may enhance weight loss by bumping up metabolism, temporarily increasing the calories your body burns after eating.

According to one study in 14 adults, drinking 16.9 fluid ounces (500 ml) of water boosted metabolism by 30% after 30–40 minutes.

Drinking water with meals can also keep you feeling full, reducing your appetite and intake.

For example, one small study showed that drinking 16.9 fluid ounces (500 ml) of water before a meal reduced subsequent calories consumed by 13%.

For best results, drink at least 34–68 fluid ounces (1–2 liters) of water per day to maximize weight loss.

Summary- Drinking water can temporarily increase
metabolism and reduce appetite to enhance weight loss. For best results, drink
at least 34–68 fluid ounces (1–2 liters) of water per day.

3. Increase Your Protein Intake

To lose 20 pounds fast, including more protein-rich foods in your diet is absolutely essential.

A high-protein diet has been associated with decreased belly fat, as well as preserved muscle mass and metabolism during weight loss.

Protein can also help reduce appetite and decrease calorie intake.

One study in 19 adults found that increasing protein intake by just 15% increased feelings of fullness and significantly reduced calorie intake, belly fat and body weight.

Another study showed that consuming a high-protein breakfast decreased levels of ghrelin, the hormone that stimulates hunger, by a much greater degree than a high-carb breakfast.

Meat, seafood, poultry, legumes, eggs, nuts and seeds are a few healthy sources of protein that you can easily add to your diet.

Summary – Protein has been shown to decrease belly fat
and body weight. It may also promote feelings of fullness to reduce calorie
intake.

4. Cut Your Carb Consumption

Decreasing your intake of refined carbs is another useful strategy to accelerate weight loss.

Refined carbs have been stripped of their nutrient and fiber content during processing, resulting in a final product that is nutrient-poor.

What’s more, they typically have a high glycemic index, which means that they are digested and absorbed quickly. Rapid digestion leads to spikes and crashes in blood sugar levels, followed by increased hunger.

Consuming high numbers of refined carbs has also been linked to increased body fat and weight gain.

For instance, one study in 2,834 people found that a higher intake of refined carbohydrates was associated with increased belly fat while a greater intake of whole grains was associated with less belly fat.

Another small study had similar findings, reporting that a diet rich in whole grains decreased both body weight and calorie intake compared to a diet focused on refined grains.

To get started, simply swap out refined grains in pastas, white breads, cereals and pre-packaged products for healthy, whole-grain alternatives such as couscous, quinoa, brown rice or barley.

Summary -Refined carbs can increase hunger levels and
may be associated with increased belly fat and weight gain compared to whole
grains.

5. Start Lifting Weights

Resistance training is a type of exercise that involves working against a force to increase muscle strength and endurance.

Adding resistance training to your routine can bump up fat burning and metabolism to help you burn more calories, even while at rest.

One review showed that 10 weeks of resistance training may increase metabolism by 7%, stabilize blood sugar in those with diabetes and lead to 4 pounds (1.8 kg) of fat loss in adults.

Meanwhile, another study in 94 women suggested that resistance training preserved fat-free mass and metabolism after weight loss, allowing the body to burn more calories throughout the day.

Get started by hitting the gym or doing body weight exercises at home, such as squats, planks and lunges.‍

Summary – Resistance training can help increase
metabolism and preserve fat-free mass, helping you burn more calories
throughout the day.

6. Eat More Fiber

Fiber moves slowly and undigested through your gastrointestinal tract, slowing the emptying of your stomach to keep you feeling full longer.

One study in healthy men found that consuming 33 grams of insoluble fiber, which is commonly found in wheat and vegetables, was effective in decreasing both appetite and food intake.

The satiety-boosting effects of fiber could produce big benefits in terms of weight control.

One review reported that increasing fiber intake by 14 grams per day was linked to a 10% reduction in calorie intake and 4.2 pounds (1.9 kg) of weight loss over a four-month period, even without making any other diet or lifestyle changes.

In addition, a 20-month study in 252 women found that each gram of dietary fiber consumed was associated with 0.5 pounds (0.25 kg) less body weight and 0.25% less body fat.

Fruits, vegetables, whole grains, nuts and seeds are all excellent sources of fiber that are integral to a healthy weight loss diet.

Summary – Fiber keeps you feeling full to reduce
appetite and intake, which may boost weight loss.

7. Set a Sleep Schedule

While there’s no doubt that switching up your diet and exercise routine are the two most important routes to losing 20 pounds, the amount you sleep could also play a role.

In fact, one study in 245 women showed that both sleeping at least seven hours per night and getting better sleep quality increased the likelihood of weight loss success by 33% .

And just as getting enough sleep can set you up for success, sleep deprivation can cause the pounds to slowly pack on over time.

One study following 68,183 women over 16 years found that those sleeping five hours or less gained an average 2.5 pounds (1.14 kg) more than women who slept at least seven hours per night.

Another study showed that even a single night of sleep deprivation can increase levels of hunger hormones, which could lead to increased appetite and weight gain.

Try practicing a bedtime ritual each night, sticking to a routine and minimizing your intake of caffeine before bed to establish a healthy sleep cycle and enhance weight loss.‍

Summary – Getting enough sleep and improving sleep
quality could benefit weight loss. Conversely, sleep deprivation can lead to
increased hunger and weight gain.

8. Stay Accountable

Staying accountable to your weight loss goals is key to long-term success. There are many different ways to do so.

For example, weighing yourself daily has been associated with increased weight loss and a reduced risk of weight regain compared to weighing yourself less frequently.

Research also suggests that keeping a food journal to self-monitor your intake and progress can help you lose more weight and keep it off longer.

You can also try partnering with a friend or joining an online weight loss community to increase your motivation and stay on track towards your goals.

Summary – Staying accountable can help increase weight
loss. Weighing yourself daily, keeping a food journal and pairing up with a
friend are all effective strategies to enhance weight loss.

9. Add Cardio to Your Routine

Whether you’re looking to lose one pound or 20, adding cardio to your routine is a must.

Cardio, also known as aerobic exercise, is a form of physical activity that increases your heart rate and helps strengthen your heart and lungs.

What’s more, it increases the calories your body burns to aid fat and weight loss.

One study in 141 overweight and obese participants showed that cardio exercise alone was effective at inducing significant weight loss.

In fact, performing cardio to burn either 400 calories or 600 calories five times per week for 10 months resulted in an average weight loss of 8.6 pounds (3.9 kg) and 11.5 pounds (5.2 kg), respectively .

Another study had similar findings, reporting that six months of cardio exercise alone decreased body weight by 9% in 141 obese older adults.

To maximize weight loss, aim for 150–300 minutes of cardio each week, or about 20–40 minutes every day.

Walking, running, jumping rope, rowing and boxing are some easy and enjoyable cardio workouts that can amp up weight loss.

Summary – Cardio can increase your body’s
calorie-burning quota to boost both weight and fat loss.

10. Eat Slowly and Mindfully

Mindfulness is a practice that involves becoming more aware of your thoughts and feelings while also shifting your focus to the present moment.

Eating slowly and practicing mindfulness can help increase weight loss and decrease intake while also allowing you to enjoy your food.

For example, one small study demonstrated that eating slowly led to greater increases in satiety hormones and feelings of fullness than eating at a faster pace.

Similarly, a study in 30 healthy women showed that eating slowly resulted in decreased calorie intake and greater feelings of fullness compared to eating more quickly.

Another review of 19 studies found that mindfulness interventions were able to significantly increase weight loss in 68% of studies.

Try minimizing distractions while eating, chewing your food more thoroughly and drinking water with your meal to help yourself slow down and enjoy.

Summary- Eating slowly and practicing mindfulness can
increase feelings of fullness, decrease calorie intake and enhance weight loss.

The Bottom Line

Though losing 20 pounds can seem like a major challenge, it can be done quickly and safely by making a few simple changes to your diet and lifestyle.

For best results, mix and match these tips to enhance both weight loss and overall health.

Credit:
Post-Author: Rachael Link, MS, RD
Website: https://bit.ly/35tfftp

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This Company's Bathroom May Be The Most Important Room In Its Office. Here's Why

min read

6/15/21

A few weeks back, I was delivering a presentation on the future of remote work to a group of private equity leaders based in New York City. The session was organized by Robert Landis, a founding partner of the Origination team at Riverside Capital, a lower- and middle-market private equity firm with an incredible track record over three decades of investing.

Riverside invests in mostly founder-led businesses, and I recently read about one of their biggest “exits” to date, selling a business for more than 60 times its purchase price.

I joked with Landis about the potential size of the tombstone for that recent deal. A tombstone is a glass or plastic desktop plaque that commemorates a transaction and notes the different parties who were involved. In the investment world, it’s essentially a trophy, and most people in the industry display them proudly—you may have even seen them sitting on a desk in the past.

Landis responded to my joke by revealing that he’s not a big fan of tombstones. He explained that there is little to learn from them, and when they sit on your desk, you can become complacent, overconfident, and overly-focused on past accomplishments.

Landis was much prouder of a practice his firm created that is effectively the opposite of a tombstone: they call it “Lessons from the Loo.”

Plastered in the bathroom of Riverside’s office is a “Lessons from the Loo” poster, which displays details and learnings from the investments Riverside has made that did not have a positive outcome. The lessons include both specific information about each deal, and repeatable patterns that may crop up in future potential investments and, fittingly run the risk of the investment going into the…well, you can probably guess.

Every time employees at Riverside use the bathroom, they are reminded not of their incredible track record, but of where the firm has erred, and what the team can learn from those missteps.

The partners at Riverside have been right far more often than they’ve been wrong. Their choice to display the lessons from their failures so prominently is indicative of a culture that prioritizes learning and being transparent about failure. Great organizations want employees to share failures openly so that mistakes are not repeated. It’s okay to fail, but it’s not okay to keep making the same mistake; the former is often an error of omission, while the latter is an error of commission.

“Lessons from the Loo” is also a not-so-subtle reminder to employees to keep their heads below the clouds.

I asked Landis how many times they’d lost all their money from an investment, a rare occurrence in private equity. He noted that while it had only happened a few times, they were often for the same reason. In most cases, the founder had committed some sort of fraud, whether through a lack of integrity, falsification of financials or omission of key risks during the process of due diligence. Essentially, those deals were doomed before the relationship even began. Cataloging these failures—and recognizing this pattern—has led Riverside to create new processes designed to root out these issues in a prospective deal.

That takeaway reminded me of something I heard years ago, paraphrased from a Warren Buffet quote: “It’s hard to do a bad deal with a good person and a good deal with a bad person.”

While it’s important to celebrate our individual wins, people and organizations who win the most over the long run learn from their mistakes and don’t repeat them. That includes making sure you are careful to do business with the right people in the first place.

‍Quote of the Week: “One mistake will never kill you. The same mistake over and over again will.” –Harvey Mackay

‍Credit:

‍Post Author: Robert Glazer

Website: https://bit.ly/3pTa2Vj

Wework’s Profitability Seems Far-Fetched

min read

6/10/21

How to Talk to Employees About Reopening

min read

5/27/21

by Brian Kropp and Joe Coyle

Summary. According to Gartner data, 94% of midsize businesses will have some mix of in-office, remote, and hybrid employees when they reopen their offices. While the desire is to return to “normal” as quickly as possible, the reality is that the workplaces employees…more.

At the start of the Covid-19 pandemic, there was rampant speculation that one of the long-term implications would be the end of the office. While the workplace will undoubtedly become a hybrid environment with more employees working remotely at least part of the time, the reality is that companies will still have offices. In fact, according to a poll of more than 200 respondents conducted during a recent Gartner webinar, only 1% of midsize companies are planning on becoming fully remote organizations. On the other end of the spectrum, only 5% of midsize companies are planning on having all employees come back to the physical workplace. The remaining 94% will have some mix of in-office, remote, and hybrid employees.

As more individuals are getting vaccinated, business leaders need to shift their thinking from the abstract question of where employees will work to the reality that there is a specific day on the calendar that some kind of return to the office will actually occur. That day appears to be approaching quickly, as the same Gartner poll found that 69% of midsize companies are planning on reopening their workplaces in the second half of 2021. The question of how to return to the office will be more challenging than the abrupt shift to remote work was in March of 2020, given the variability of rules, regulations, and people’s vaccination status.

Vaccinations Aren’t the Entire Solution‍

The poll showed that the majority of employees support the idea of their employer mandating Covid-19 vaccination. However, only 8% of poll respondents said they’re actually planning to require proof of vaccination as part of their return-to-workplace strategy. The most common approach midsize companies are taking is to strongly encourage vaccination but not ask for proof of vaccination status (48%) and to ask employees to self-report if they’ve been vaccinated (36%). Unfortunately, these two approaches will leave employers in the dark as to the degree to which their employees have actually been vaccinated.

Insight Center Collection

‍While there has been discussion around vaccine passports as a way to prove one’s vaccination status, there are several reasons why they’re not ideal. First, the speed at which they’re being developed is lagging behind the speed at which companies are planning to reopen their offices. Second, different states are considering different strategies: For example, Texas and Florida have recently announced that employers will not be allowed to use them, but other states like New York and Illinois appear to be positively inclined toward them. This variability in approaches across states will make it difficult for employers with distributed workforces to create comprehensive policies.

Many employers are also hesitant to collect this information due to privacy and legal concerns. Chief human resources officers have indicated that because vaccines are part of an employee’s health care record, collecting information about who has been vaccinated could potentially be considered crossing a privacy line. Legal concerns could emerge if an employee has an adverse reaction to a vaccine their employer required them to get. Additionally, an employer might be sued for creating an unfair set of conditions for employees who choose not to get vaccinated. Even if the law is on the employer’s side, the reputational damage that could result from a legal fight doesn’t seem worthwhile for most companies.

How to Foster a Safe Environment

‍The net result of these factors is that employers will be reopening offices to some number of unvaccinated employees. Here are four strategies midsize companies can use to navigate how to open up the workplace in a way that maximizes employee safety and productivity.

Announce reopening plans well in advance. Many employees harbor concerns about how safe the workplace will be. Communicate your company’s reopening plan to employees well in advance of the actual date. Communications should indicate the actual safety measures you’ll have in place, as well as enhance perceptions of safety. For example, if employees commute primarily via mass transit, they’ll also be seeking guidance or reassurance about the safety of their journeys to work.

Define and communicate your hybrid work strategy. Gartner’s 2021 Hybrid Work Employee Survey of more than 2,400 knowledge workers found that 54% of employees agreed that their employer’s approach to flexibility will impact whether they’ll stay at their organization. A hybrid approach will allow employers to meet employees’ new flexibility preferences.

Despite widespread plans to adopt hybrid models, just 21% of HR leaders polled in Gartner’s recent webinar indicated they have a clear vision for the future role of the physical workplace. Creating a hybrid strategy that works and makes employees feel safe requires companies to clearly communicate when people should work from the office and when they should work from a different location. For example, Dropbox announced a “Virtual First” strategy, defining the purpose of the office as specifically for collaboration and community-building and not for individual work.

Create Covid safety moments. Leaders in oil and gas and manufacturing have long embedded safety moments in their workplaces to prevent injuries from occurring. This same mindset needs to be adopted across industries to create Covid safety moments. Leaders and managers should set aside a short amount of time per day to remind employees about the importance of Covid safety measures in the workplace.

This will become even more important as vaccines continue to be administered and employees start to let down their guard. These safety moments will be the most effective if leaders enable employees to talk to their colleagues about them, as peers are often more trusted than leaders or HR on workplace issues. A 2019 Gartner Global Labor Market Survey found that employees and candidates trust current employees the most for information about working at a particular organization. Employees talking among themselves will be an important part of creating a safe workplace.

Set guardrails around vaccine conversations. The development and rollout of Covid-19 vaccines have created an unparalleled interest in the efficacy of and experience with vaccinations more broadly. As employees return to the workplace, they’ll naturally discuss whether or not they’ve been vaccinated. Those who haven’t been vaccinated might get excluded from certain interactions like getting lunch together. Others might look down on those who have been vaccinated.

Leaders and managers need to communicate what conversations and behaviors are acceptable in the workplace regarding each individual’s vaccination status. While leaders might be tempted to simply ban all conversations about vaccination status, this isn’t realistic given the desire for employees to talk to each other. Rather, organizations should remind employees that vaccinations are a personal decision, and they shouldn’t pry or question their colleagues’ choices. Without these guidelines, companies risk not only uncomfortable interactions but discriminatory behavior between employees based on their vaccination status.

While the desire is to return to “normal” as quickly as possible, the reality is that the workplaces employees return to in 2021 will not look like the ones they left in 2020. Encouraging employees to get vaccinated is good, but it’s not enough. The companies that are thinking about safety, flexibility, and clear communication will have the most success as we enter another period of profound change.

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Change starts with each of us

min read

3/25/21

Half-Time Remote Work Benefits Environment and Employees

min read

3/24/21

5 Tax Considerations for International Remote Working

min read

2/4/21

If your employees are working from another country—even temporarily during the pandemic—your organization should evaluate the tax implications of a cross-border work arrangement to protect itself from cross-border tax complications.

The COVID-19 pandemic has significantly increased remote work arrangements. Many employers have found themselves with employees working remotely across an international border. Although initially many countries offered temporary tax relief to employers during the pandemic, the rules aren’t consistent across all countries, and it’s unclear how long the relief will remain in effect. Many countries have varied treatment depending on whether an employee was “trapped” in a country or is working remotely as a matter of convenience.

Below, learn how to navigate the tax implications of cross-border work arrangements.

‍

1. Determine If There’s Risk of Establishing a Taxable Presence

When an employee works across an international border, an employer should consider whether the employee’s activities in that country causes the organization to have a permanent establishment—and therefore taxable presence—in the country where the employee performs their work. Most countries source income to the location where services were performed.A permanent establishment typically subjects the company to income tax in that country based on the following:

Types of activities being conducted by the employee
Profit attributable to that activity
Income tax treaties
Additional US tax reporting obligations

Recommendations

Mitigate exposure to foreign tax systems. Understand the specifics of when a taxable presence is triggered in the country where the employee is working.

‍Make sure you understand the employee’s activities. You should also consider the level of authority exercised by the employee on behalf of your organization.

‍Evaluate your company’s organizational structure. When a large number of employees work in a particular jurisdiction, determine if an offshore employee holding company could avoid taxable income in a jurisdiction.

2. Understand the Country’s Employee Versus Contractor Distinctions

A common tax question is whether a company has employees, contractors, or consultants. This is a significant distinction because, as noted above, having employees in countries apart from the location of the employer can establish a taxable presence for the employer in that location.

Some countries view contractors as employees, which may inadvertently create a tax presence for the company in those foreign jurisdictions.

Recommendations

Establish a framework. Obtain a complete understanding of how all cross-border employees are compensated and what duties they perform. A framework looks at job duties for personnel abroad and helps align them with how the activities are viewed locally. Specifically limiting functions for employees or contractors can be the difference between creating a taxable presence for the company or not.

‍Learn the definitions.

‍ Remember that the definition of an employee, contractor, or consultant in the United States may differ from those in the country where the person is working remotely.

‍Manage risk up-front with due diligence.

‍ If the United States has a treaty with a country where the organization has employees, income tax issues may be covered. However, treaties don’t necessarily cover local employment law issues, and there’s always the possibility of a new foreign government assuming power and changing the law. To mitigate complications, research local country law and continue to assess these laws periodically because they may change.

‍Outsource your administration.

To manage global payroll risk, some companies use professional employment organizations (PEOs) or administrative services organizations (ASOs) to handle the daily administration as well as payroll tax and returns for team members working abroad. Outsourcing can reduce risk because employees are contracted with the PEO rather than the company. However, but outsourcing doesn’t necessarily prevent a contracted employee from creating an international tax presence for a company.

3. Consider Withholding Taxes

A withholding tax represents an obligation on behalf of the payer of an item of income to withhold tax from a payment made to a nonresident recipient. After that, the payer is required to remit this amount to the taxing authority on behalf of the nonresident recipient.

Withholding tax is used to ensure a tax payment is collected on specifically identified items of income paid to nonresident recipients. These include payments for management fees and technical services and activities typically performed by employees or contractors.

Most countries have a domestic or standard rate of withholding tax established for payment of income to nonresident recipients. The domestic and standard rates of withholding tax vary by jurisdiction and often may be reduced or eliminated under an applicable income tax treaty between the payer and recipient home countries.

Recommendations

Evaluate the activities of remote employees. Determine whether the employee is working part-time remotely in a nonresident country and occasionally in the company’s home country.

‍Establish procedures to continually evaluate withholding tax risk. Even if your organization has established an arrangement with the employee that mitigates cross-border tax implications for an employee working remotely, your organization’s needs may change, resulting in the employee working part-time from a different location.

4. Determine Transfer Pricing Implications

A growing number of countries have regulations requiring transfer pricing. Tax authorities around the world have intensified their focus on the issue.

Transfer pricing may be implicated in a cross-border remote work arrangement if the employee’s activities benefit more than one company within a controlled group. If the employer implements an offshore employee holding company, transfer pricing is implicated.

Recommendations

Document the activities of the employee. Be sure to include how these activities impact the entire organization.

‍Evaluate the need for intercompany contracts. These may be needed to compensate the company that pays the employee for the benefit provided to other controlled companies in group.

‍Apply benchmarking. This is useful to determine the range of prices or profit levels.To be respected by tax authorities, transactions between related parties may require the following:

An actual cash payment as opposed to solely an accounting entry
Payment before the year closes to ensure current deductibility

5. Follow US Reporting Requirements

US companies with employees working abroad should consider US tax reporting obligations arising from the activities performed by its employees outside the United States.

Depending on the US tax classification of an organization’s overseas business activities, various information returns may need to be filed with the organization’s US income tax return. Noncompliance with the information return filing requirements carries at least a $10,000 penalty for each missed filing and may result in the statute of limitations for the organization’s US income tax return remaining open indefinitely.

‍Form 8858 Requirements

‍Beginning with tax year 2018, the IRS established new filing requirements for Form 8858, Information Return of US Persons with Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs).

These filing requirements rely on a facts and circumstances analysis of an organization’s cross-border activities to determine whether a Form 8858 should be filed. Depending on the nature of an employee’s activities and level of authority, a remote work arrangement could establish the basis for a Form 8858 filing requirement for the organization.

Recommendations

Determine the tax classification. If the organization has established a legal entity in the country from which the employee is working, determine the tax classification of the entity from a US tax standpoint.

‍Decide if an information return is needed. Based on the tax classification of the legal entity, or lack thereof, evaluate whether a US information return is required to be filed.

‍Document relevant fact and circumstances. If a legal entity doesn’t exist and the organization is taking the position that an employee’s activities don’t give rise to an information-return filing obligation, the position should be documented including the relevant facts and circumstances supporting the analysis.

‍We’re Here to Help

‍If you have questions about the impacts of your employees working oversees remotely, please contact your Moss Adams professional.

‍Credit:

‍Post Author: Roy Deaver

Website: https://www.gensler.com

Coworking Spaces- Everything You Need to Know About Coworking from Demand to Future

min read

1/27/21

IN THIS STORY

What is a Co-working Space?
What Coworking Space Offers?
Why do people use a Co-working Space?
When Do you Need a Coworking Space?
Famous companies that started in a coworking space
How to Choose a Co-working Space?
What holds for the future of Co-working?
FAQ's (Frequently Asked Questions)

Co-working spaces are the new craze among youngsters and people who like their freedom. A co-working space has to offer you things that a traditional office most definitely cannot. If you are thinking about why they have gained such popularity and have become a trend or thinking about joining one, this article is the perfect piece of content that will give you the necessary insight.

What is a Co-working Space?

As the number of smaller businesses and entrepreneurs is rising, a professional setting to accommodate them increases with time. A coworking space is a perfect solution for everybody trying to bring up something new to the industry.

Co-working could be explained as an arrangement where workers of different sectors, industries, or companies share an office space with shared infrastructure. This sharing is mainly of space's physical assets like equipment, utilities, parcel acceptance services, or even receptionist. To put it simply, a Co-working space is a shared ground for a variety of work. There are more than 3 million coworkers globally marking this a rising phenomenon.

The culture of shared workspaces is more dynamic and upcoming than regular offices as the zest of young blood keeps the vibes high, increasing productivity. Thinking of why coworking space is an unmissable experience? Let this article tell you more.

The culture of shared workspaces is more dynamic and upcoming than regular offices as the zest of youngblood keeps the vibes high, increasing productivity. Thinking of why coworking space is an unmissable experience? Let this article tell you more.

What Coworking Space Offers?

There is a basic set of amenities that any Co-working space will offer you. There is a need for certain infrastructure for a professional setting that will aid you in your final productivity levels. These utilitarian assets include-

Shared Spaces: The nomenclature has it that you will share your workspace with other people who are dedicated to their sphere of professional projects. The aura created by these hard working coworkers will aid your productivity levels and catalyze your process of goal accomplishments.

Dedicated Desks: As different workers work at the same stations, there are dedicated desks with special amenities for people of professions who need more than just a desk and chair. These dedicated desks can include computers, graphic pads, work lights, stationery, and so much more.

Private Offices: If your profession demands frequent client meetings, use of sounds, or are working on some classified projects that require to rent private office space , you can also opt for private booths and offices offered by co-working spaces. These are cabins designated for workers who need privacy while working on their projects.

Virtual Offices: Virtual office provides its clients with a business address to help them in the registration process. This platform can provide a company with conference and meeting rooms as per their requirement. It is a safe environment that any company can rely on and take care of their business virtually. Mail receipts and mail handling is another feature that the virtual office can provide. As a co-working space, this platform can benefit a virtual receptionist to ease the flow of the business meeting, etc.

Meeting & Conference Rooms: Some professions demand frequent client meetings and conferences either physically or virtually. People belonging to such professional spheres do not have to worry as co-working spaces have designated meeting rooms designed to provide privacy and comfort. There are many meeting rooms in a single co-working space so that different organizations can hold simultaneous conferences.

Why do people use a Co-working Space?

After knowing what is coworking space, the new question for you would be, why the hype? What is the reason behind this buzz as the number of coworking spaces worldwide has risen almost to 20,000 in 2020? So here are a couple of reasons you cannot miss the opportunity to work in such a space-

Cost: Let’s not beat around the bush and come to the most important point of running a business. The capital and investment cost are the biggest expenditure you frame your business on. If we say, a small business can save more than 2700 dollars monthly by incorporating a coworking space instead of a regular office space? This is the truth as leasing an office is expensive, and so is incorporating other amenities. In coworking spaces, you can rent office space hourly or you can share costs with other inmates who pay equally for the utilities. This relieves business costs, alleviating you from the pain of paying the loans for your office space.

Networking: The right contacts are the most important yet unseen assets of any growing business. With multiple other companies working in the same space as you, better collaborations are made. Potential partnerships, employers, and duets as freelancers are constant in such spaces. Do you know Uber and Instagram are a product of coworking space networking?

Productivity: Surrounding yourself with able and hardworking people is always a motivation towards a better output. As co-working spaces are mostly used by freelancers and upcoming businesses striving to mark the market, the zeal to succeed is extremely high. Success follows hard work and perseverance, which are strongly portrayed by the employees working in these spaces. This energy is instilled in all the coworkers who struggle each day for a better tomorrow. This aura surges the productivity levels ensuring better output.

Alone, but not lonely: Working from home, on your bed, in your pajamas while usurping the fridge may sound like a dream, but it isn't. Loneliness will strike you hard one of these days, and your work output will hit the newest low. Making you understand how coworking spaces work. Though you are working all on your own, on your terms, just like you wanted your freelance life to be, you are still surrounded by all these people following similar paths as you, making you one of the wholes. This provides emotional support and elevates your production. Thus, these spaces have been growing at an annual average rate of 23% since 2010.

Attractive Features: A Co-working space can provide you a lot more than a normal office floor for higher rent or lease. As co-working spaces are made for community uses, it comes with a larger plot area. This includes multiple conference rooms, Utilities such as a canteen or a kitchen, several refreshment spaces, and outdoor spaces. The flexibility and freedom of these shared workplaces are unmatched as you can work on your schedule without being answerable to anyone. Coworking spaces are curated in such a fashion so that coming to work does not feel burdensome. It is foreseen that by 2022, 13% of Businesses, other than US-based ones, will be using these coworking space models.

When Do you Need a Coworking Space?

As we know what a co-working space is used for, our turn is to know the people who utilize this facility to its maximum. Though anyone in need of a workspace can use it, statistically speaking, there is a demographic distinction in who needs these the most. Following data will give you an idea about when a coworking space is needed –

Freelance: Co-working spaces are the best choice when you are a freelancer. As coworking spaces are flexible, you can issue your presence according to your needs of the day. You can be present there while you aren't answerable to anyone for your absence on your days off on the days you need to work. This is an excellent network building space as employees look for freelancers to hire all the time. You can build your connection in your break time and have a hearty chat with other freelancers sharing your experiences. This is a great mingling space when you need to correspond with anyone as well.
Small Scale Business: Not all businesses are huge capital invested in heavy-duty industries. Some are upcoming businesses and startups looking for cheaper office space and even some interns to work for them. This is how co-working spaces work in gathering the needy and the needy together. As shared workspaces are cheaper, it reduces the financial burden of smaller businesses. The coworking space also provides them with amenities they could not have afforded if they had to pay for an office lease. Thus, it is an excellent option for them.
Large Scale Enterprise: A need for extended workspace arises when a large enterprise with too many employees does not stop growing. Industry pioneering companies like Nike use spaces enterprise coworking as they need to get their work done on time. As huge enterprises work internationally, managing office space becomes a hassle that can be made simpler by these shared workspaces with minimum orthodoxy and strictness.
Non-Profit Making Organizations: As non-profit making organizations do not depend on their trades and profits, they are cost-conscious and believe in resource-saving and optimum utilization. Co-working spaces are apt workstations for them to meet more people and build connections while cutting operational costs.

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Famous companies that started in a coworking space

Co-working spaces have seen many successes and failures, as this is where a lot of the beginners started dreaming. As more startups begin to flourish, the popularity of co-working spaces and questions around how coworking space work starts. Here are some companies and conglomerates which started in co-working spaces and made it big-

Uber: This global conglomerate, which functions in almost all developing or developed countries, conceived on-road and incubated in a co-working space in New York called The Yard. It started with two men working together at shared working spaces, which increased to 8 people in another co-working space and now into a multinational company employing thousands of people.
Instagram: The idea of Instagram was developed after the makers refurbished their old idea of another social media photo uploading site called Burbn. As they realized while working in a co-working space, the photo filter became the popular aspect of the application. They renamed the app Instagram and relaunched it.
Spotify: Shared office spaces can be considered a big launching pad for miniscule organizations, such as Spotify, to guide their path. This company with humble beginnings was originated in Sweden but got its big launch while in the coworking space of san Francisco in the US.
Wanderfly: This budget-friendly travel and exploration company was bought by TripAdvisor 12 months into its launch. In the hot desks of one coworking space in New York was the idea of Wander Fly conceived, which went onto become one of the important bases of new exploration.
Indiegogo: A wall Street Analyst started one of the largest crowdfunding portals sitting at one of the desks in a co-working space. This is a motivation for all the data analysts’ freelancers who dream to make it big. These spaces are a breeding ground for ideas as companies make it big after getting started here.

How to Choose a Co-working Space?

Trying out something new for the first time, and getting no help from any source must be difficult. In this article, we have already discussed what is coworking space. But you want to experience it for yourself to agree with us. Here are some tips for finding you the perfect coworking space tailormade for your needs instructing you on what to look for when choosing your workspace and how does coworking space work -

Location: This is one of the most important points to look for in your place of work. You have chosen this option with the reason to save your time and money. You should look for places closer to your home to reduce commute time and cost. But you cannot deny safety and thus should choose a location where it is peaceful. Also choose a location with easy access to public transport, restaurants, shops and parking space. Difficult right? Do your research to find the best co-working space for yourself.
Cost: You are looking for a long terms’ solution with effective budget-cutting pros. Plan your budget and needs before settling in a workspace. Expensive co-working spaces will have premium amenities, yet they will surely burn a hole in your hard-earned savings. Cheaper working spaces will not serve your purpose as they will offer you fewer services. The proper balance that fits your budget should be planned in the beginning.
Environment: How does coworking space work is the primary question that should strike your mind while searching for one. Every space has its own culture and work environment. Choose one that suits your principle and work ethics, or you will be in constant clashes with your coworkers, which will affect your work output negatively.
Type: The type of Co-working space entirely depends on the community of coworkers residing there. A particular batch of specialty professionals may favor the space for specific reasons. E.g., a content writer may choose a specific co-working space where he or she can collaborate with other writers for a newer project. Space may be comfortable for them because of the library of research material it has. Likewise, different spaces have different perks, especially for a variety of professionals.
Amenities: Though this is of tertiary importance, you can always check up on the utilities and resources a co-working space provides before joining. Besides basic amenities such as the morning coffee and the Wi-Fi, you definitely can have special needs. There are luxurious amenities such as a gym, lounges, and parks in certain shared spaces. So, if you aim to choose a premium place with certain off-beat amenities, check beforehand.
Duration: The commitment to the place and work is something you should consider before checking in and finalizing on a co-working space. Are you using this place for a filler till you get an office space of your own? Then this is a short-term plan, and you can settle with just about any workspace. But if you are planning to continue being a coworker, choose a space that solves all your desires. Do not settle with just anything as the lack of the needed amenities will affect your work. Other than this, your business goals also determine your workspace needs. Are you aiming to go global? Is your business more interested in local clients? Everything depends on the duration of office use. Settle your short term and long-term goals before finalizing your office space.

What holds for the future of Co-working?

As the youngblood of the world travels the roads not taken traditionally, freelance and startups are increasing in multi-folds. It is estimated that the number of co-working spaces is expected to double by 2024 worldwide, surpassing 40000. There will be more than 6 million coworkers globally by 2022.

These are statistics that speak louder than words about the bright future that lies ahead for coworking space. As the need for an extended workspace and hot desks rise, more options are made available to the coworkers. Co-working and sharing of spaces will become the new norms for the workforce entering the market today. The genuine rise in corporate workers who work from their own space has led to this flourishment. This benefits the organization as well as the employees. The organization saves infrastructural money while the worker gets a suitable and comfortable space for their desire to work.

With the influx of the Covid-19 pandemic, Co-working spaces have an ever-increased demand. This is no surprise as most workers cannot work in crowded office spaces or take the public bus to commute to their office area. However, work from home has become the new norm; most dedicated employees abstain from this setting. This is because of the informal infrastructure and lack of professional approach at their home spaces, which remarkably lessen their productive streak. This has given rise to the work-near home normalcy where people look for safe co-working spaces to carry on their daily professional duties.

It is the need of the hour to understand what is coworking space and how much it has helped today’s growing startups and small businesses.
Co-working spaces are the future of the workforce as industries go global, and trades become less orthodox. This setting provides a win-win situation for both employers and employees in a corporate setting, while freelancers and small-scale businesses get a ground to start from. This is a wholesome shared environment for every professional looking to start their daily duties regarding bread earning. A lot of dreams are made in these spaces and do get their wings here.

FAQ's (Frequently Asked Questions)

1. Why is coworking so popular?
What is the Co-working space known for the most is its flexibility and cost reduction. It is popular among freelancers and startups and thus charting the trend among youngsters who demand freedom in their workspace.

2. Is coworking a better alternative than traditional office space?
Depending on your work demands and profession, a co-working space can be a better option than a traditional office. If you are an out of box thinker and a non-follower of traditional paths, this one is definitely for you.

3. Can we hire Coworking spaces for one day?
You can book co-working spaces for a day. Co-working space is known for its non-committed culture, and this is its biggest benefit. You can even hire co-working spaces for a few hours.

4. How much does a coworking space cost?
The cost of a co-working space depends on many factors such as the location, the amenities, period of use, etc. But generally speaking, an ordinary space can cost approximately $29 a day, and conference rooms can cost $10 a day.

5. Is a coworking space worth it?
This depends on your personal experience and the kind of work you plan to get done. For bloggers, designers, and other freelancers, it is the perfect workspace, while if you are planning for a 9-5 traditional job, maybe it can not suit you. It depends on what you expect out of your space and has your answer to how does coworking space work.

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