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Change starts with each of us

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min read

3/25/21

Half-Time Remote Work Benefits Environment and Employees

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min read

3/24/21

5 Tax Considerations for International Remote Working

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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.

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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

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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.

Reserve your coworking space today

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.

Reserve your coworking space today

Most People Want to Return to the Office - But They Expect Changes

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min read

12/14/20

There’s no place like work. Just before the pandemic hit, Gensler released the U.S. Workplace Survey 2020 research findings, the latest in our research series that measures how people work, as well as the effectiveness and experience of the workplace.

At the time that research was conducted, we asked a now-poignant question: where do people prefer to work? We gave respondents four choices: home, employer’s workplace, a coworking site, or a coffee shop. When their workplace was well-designed to meet their needs, U.S. knowledge workers overwhelming chose the workplace. The workplace mattered.

When we return to the office, it will be anything but a return to normal. While we’ve been working from home, we’ve changed how we work. We’ve built new skills in how to work virtually. We’ve developed new ways to connect with our colleagues, clients, friends, and extended families. We’ve learned that working from home has, in fact, been brutally efficient and productive for most, especially for those trying to work individually.

In Gensler’s new Work From Home (WFH) Survey — research of 2,300+ U.S. knowledge workers across 10 different industries — employees report gains in their ability to complete individual work and in personal creativity. Similarly, a recent McKinsey study finds 60% of businesses report that new remote sales models were proving as much or more effective than traditional channels. Businesses have implemented new platforms and technologies overnight and have worked faster and better than they ever imagined.

For most of my clients, working from home has not been a problem. On the contrary, it has been an accelerator in decision-making, innovation, and shared purpose. Our clients are hoping to foster these new behaviors as they begin to reimagine a new way of working. Their expectations are changing as they reimagine their businesses.

Working from home can be productive, but most people want to return to the workplace.

‍Gensler’s WFH research found that working from home regularly was new to most employees. Only one in 10 U.S. workers regularly worked from home prior to the pandemic. Now that many people have had to work from home, most people look forward to coming back to the office.

According to our research, only 12% of people want to continue to work from home full-time after the pandemic subsides. Most want to go back to the office full-time, or are looking for a balance between the two. The amount varies by industry. On average, most employees want to work from home two-to-three days or less.

We’ve proven we can easily and efficiently work from home. Focus work requiring deep concentration is reported to be exceptionally effective at home, and virtual collaboration also saw an increase in effectiveness as compared to doing both activities in the office. Nevertheless, we can’t effectively do all work activities from home. The workplace not only still matters, it may be more important than ever.

The longer we work apart from colleagues, the more being together matters.

‍While we can focus at home, we can’t easily socialize. Collaborating in person is off-limits. The pandemic has shown that we really miss people. We yearn for interaction and a shared work experience. We miss meetings with coworkers and clients. We miss socializing with our colleagues. We miss impromptu connections. And we miss the learning, coaching, and mentoring that comes naturally just by being together.

According to our survey, the most important reasons employees see for coming into the office include meetings, socializing, connecting with colleagues, and building community. This underscores the fact that being with colleagues in person is an invaluable part of the workplace experience, as is being part of a community that can’t be replaced virtually while working from home.

This is not only changing expectations of how we work, but it’s changing the role of the physical workplace.‍

The role of the post-COVID-19 workplace will shift away from a place where people simply go to work, and into a place where people want to be to meet, socialize, and work with each other. It will shift from a “work” place for individual work to a “convening” place for group work.

The new role of the workplace will be to build community, to reinforce culture and shared purpose and mission, and to strengthen relationships with each other. We might choose to split our work week: working independently at home for intense heads-down work and virtual collaboration meetings, and reserving other days to come together to be with our teams, colleagues, and clients in person.

The design of physical workspaces must change to support this new role with new space types that connect us with each other and support group work. This new design must reinforce the culture, mission, and purpose of organizations in visceral ways, giving each employee an understanding of how their work contributes to the whole when they are present and how it includes them even when they are working from home.

The new workplace must be worth the commute — a human-centric experience where employees feel safe, healthy, and empowered. It must be a place where design can nudge healthy behaviors and people can feel that their work, and their personal well-being, is valued. Just like well-placed stairwells can encourage people to take the stairs instead of elevators, steps such as removing excess seating, installing sanitizing or hand-washing stations, and placing 6-foot floor markers for social distancing can encourage new behaviors. This new workplace must provide a wide range of work settings to empower each person and help them bring their full selves to the workplace to do their mind’s best work. These can include private roomsfor focus, huddle, or phone calls; semiprivate areas for individuals or small teams; whiteboarding or brainstorming areas; and individual settings.

COVID-19 has been a huge disruptor in every aspect of our lives. But the eternal optimist in me believes something better will emerge. Virtual platforms and tools have level-set the playing field and an empowered equity has emerged. The coronavirus has forced us to reexamine our priorities about what’s important and what really matters. It is allowing us reimagine a new workplace where people come together, reinforce culture, and strengthen relationships. I’m incredibly optimistic about this new workplace where people matter more than ever.

Credit:
Post Author: Janet Pogue McLaurin
Website: https://www.gensler.com

How to Create a "Happy" Work Environment ("Fulfilled" versus Satisfied)?

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min read

11/2/20

‘Work environment’ is probably the most talked-about subject when it comes to employee development. But current work scenarios do not seem to care much about the happiness factor of their workplace.

We feel it is essential to create a workplace that is fulfilling, and which encourages the employees to have better relationships at work. This can work like magic when it comes to scaling your business and making it a more profitable one.

So, in this post, we are going to take a deep dive into what makes a workplace happier and what is it that the present leaders should do to make sure their team gets the best work environment ever.

What Does Happiness At Work Mean?

Happiness at the workplace should be defined while taking into consideration the overall sense of enjoyment at work, the ability of the team to gracefully handle setbacks, connecting with everyone amicably, and finally, that your work not just matters to yourself, but also to your organization and beyond.

The happiness at work can be tied to every desirable outcome that the employees, employer, workplace, and the complete organization hope for. One can tie the feeling of happiness with being healthy and becoming more creative and efficient in solving problems; producing more with less and innovating his way to the top of the career.

But, what about when the same ‘happy’ people at work, face setbacks? Well, in the face of adversity, these people tend to see the bigger picture and have a low inclination towards stress. They have better-coping abilities and can recover from adverse conditions with ease. Not just that, happiness at work can also result in people getting better at resolving internal and external conflicts.

Also, when you work towards making your workplace a happy place, you indirectly are making people happier and more likable. They’ll become more trustworthy and deserving of better roles as they develop leadership qualities in them.

Now, that we have seen what happiness at work mean and what it brings with itself, it’s important to know how to go around this whole ‘happiness’ thing without messing your workplace up.

How to Work Towards Happiness at Work?

Well, there’s no simple answer to this question. But, if you will study different workplaces and try to match the results, four key pillars of happiness at work will emerge. These are – Purpose, Engagement, Resilience, and Kindness. These happiness pillars, as we call them, affect the workplace on personal, social, and structural levels. Let’s discuss them, shall we?

1. Purpose

When you talk about the core values of an employee, ‘purpose’ tends to be a great reflection of what they give more importance to. Therefore, it is important to align their everyday behaviors and decisions with their core values. This generally leads to making people at work feel more purposeful,.Morten Hansen, a management professor at UC Berkley, defines purpose in a way that really makes sense to both individual and organizational levels. He tells that people who have a sense of purpose are the ones who feel they are making valuable contributions to the organization or society, providing meaning to lives and not harming anyone.

2. Engagement

People generally enjoy at work when they feel that they are being engaged in the decision made by the organization. To increase engagement at work, leaders should prioritize fun, humor, creativity, and playfulness at work. Also, giving people more ownership over what they are going to do on a daily basis, schedules, tasks, personal development, and more can significantly improve their engagement as now they feel that they have control over their job at the workplace. Lastly, it’s important for leaders to work at making schedules that are less hectic, and a working space that is more immersive to the flow of work.

3. Resilience

The overall happiness at work, as mentioned earlier, has a lot to do with people’s ability to cope and learn from setbacks, failures, and disappointments. Resilience doesn’t mean working in a way that prevents setbacks and difficulties. It means creating better ways to overcome challenges and make the workplace an authentic fighting-spirit.One way to implement these groundbreaking changes to your workplace is encouraging people to become more and more mindful to get over the learned habits of self-criticizing or playing the blame-game, or feeling disappointed by thinking about the past setbacks and upsets. These habits can make it really hard for people to work as a team. Therefore, it is important to weave mindfulness into the work environment.

4. Kindness

Most people spend almost 40% of their lives at work. To make the workplace their ‘second home’ in truest of its feeling, it is important to make people orient their thoughts and actions towards caring for their colleagues. Being kind to everyone around you will make your employees develop dignity and respect. Not just kindness, the people at work should practice empathy, compassion, and gratitude to make their work environment and relationships trustable. This will result in more commitment and productivity from the employees and will definitely make your workplace essentially a happier place to be.

7 Best Practices for Leaders to Create a Happy Workplace

1. Employee Development

Every action and decision taken by the leaders at a workplace should be towards the betterment and development of their employees and workplace. A happier workplace is the one that is completely committed to developing employee-management and employee-employee relationships. There is no sure-shot way to get this right but to experiment with different plans, failing, learning, and then experimenting more. The process of the employee development should, however, follow the 4 pillars of making a happy workplace.

2. Flexibility and Understanding

Innovation and new ideas develop in an organization that provides their employees with great flexibility at work. The employees are happier when their supervisors give them an ample amount of room to make mistakes and experiment with their work. Also, employees that find their organization to be very much willing to take risks of allowing them to make mistakes, tend to have a great commitment towards the company goals and objectives.Here’s a chart that will help you understand what drives employees to produce great work.

3. Avoiding Work Burnout

Leaders at work should work overtime to develop ideas and plans that could help their team to experience less work burnout. It is not just about the number of hours they spent at work, but also about how they feel while they are at the job. Do they feel appreciated when they put in extra time and effort to get tasks done? If your employees do not feel appreciated or have doubt if they even matter to the company, they will resent spending every extra second they are at your office working.

4. Getting Rid of Obstacles

The work employees do at your workplace should be seamless and have no obstacles that disturb their flow and not help them achieve their level of productivity. Obstacles in a work environment most certainly result in low job satisfaction. Leaders and management should not wait for exit interviews to know what’s wrong in the company but should act proactively to figure out the problems employee face when working in their organization.

5. Resolving Conflicts

Like every other family on the planet, your office family will also have conflicts that require attention and positive reinforcement. Leaders should not assume that a happy workplace is essentially a place with zero conflicts. Conflicts are sometimes passive and can become dominant at a very inappropriate moment. This has to be avoided at all costs. The only way to go around solving conflicts is to make sure the management works in a constructive manner – making employees feel safe sharing the conflicts they experience at work.

6. Meaningful Work

To cultivate a happier work environment, leaders need to develop programs that make the employees more mindful at work. This can effectively help them tie meaning to their work – something which is quite lacking in the present business organizations around the globe. The relationship between happiness and meaning is profound and should be well understood to make your employees feel that their work is providing great meaning to the organization. This feeling and sense of contribution leads to a highly gratifying job satisfaction

7. Being Appreciated

A study done on Globoforce, a software manufacturing company, found that a staggering 80% of the employees feel that being appreciated and recognized for the work they do in the organization makes them feel more satisfied and cared for. If leaders want to make the organization a better place to work, they need to come up with a policy that makes sure the people who are contributing to the betterment of the organization get recognized and rewarded regularly. Employees at an organization need to know that their happiness in the company matters more than anything else and you will see their productivity shooting through the roof.

WorkSocial's Mission to Bring Happiness Back to Work

‘Happiness at Work’ is a cornerstone that people attached to WorkSocial feel most proud of. Their ability to boost autonomy and productivity by having great personal connections with the workers has helped them create a coworking space that is immersive, more engaging, and motivating.Their mission to bring happiness back to work is backed by the actions taken to provide the people working at their coworking space a sense of belongingness that goes a long way in helping them build strong connections and establish great friendships within the work sphere.‍

Final VerdictI

t’s true that today employees feel a high level of disengagement with their organizations and have to fight for their interests and their contributions to be noticed and cared for. It’s a reality that their previous generations sensed but did not give it any attention. Now, when more and more purpose-driven millennials and Generation Z are entering the work culture, it will become a challenge for leaders and managers to create a healthy and happy workplace.