Why Employers Should Establish a ‘Third Place’ for Their Teams
June 15, 2024

In today’s dynamic work scene, bosses are realising the value of cool spaces that spark teamwork, innovation, and happy vibes for their employees. One trend that’s catching on is the concept of the “third place” – a spot that’s not your usual office or home, but a chill zone where you can hang out, connect, and get stuff done in style!

Business leaders experimented with several tactics to entice employees from their work-from-home silos when they were serious about getting staff back to the office last year in 2023. Some provided complimentary lunches, while others experimented with lowering the bar for business attire and expanding the number of secluded areas available for concentrated work.

According to Tim Rowe, founder and CEO of CIC, a company that manages more than a million square feet of coworking and event spaces globally and employs over 14,000 people with membership cards, managers need to think beyond the work vs. home dichotomy as hybrid work becomes the norm and employers and employees settle into an RTO stalemate.

Rowe told Fortune that “there’s an element that people are looking for, which is also a third place in the office.”

Fostering collaboration and community within the workplace

A “third place,” as defined by sociologist Ray Oldenburg, is usually a public meeting place, such as a bar or coffee shop; the “first place” is the house, and the “second place” is the office. As the pandemic continued and desk workers looked for a way to avoid staying home all day and going back to buildings that felt out of date, the concept of third places as viable workspaces gained traction.

To restore significance to the workplace, Rowe suggests that managers develop a third space within the office rather than merely considering happy hours at the neighbourhood bar. Over some time, Rowe discovered that organising events and meetings—roughly one thousand annually among various offices—brings disparate teams of employees together and facilitates idea sharing with individuals they might not have otherwise encountered. A recent event drew several hundred attendees and featured multiple breakout sessions on solar energy, in addition to socialising and an open bar.

With the rise of distant work, collaboration suffered, and in a hybrid society, it is not always natural. He claims that one approach to address this is to introduce social events into the workplace. This may be bringing in guest speakers for talks where staff members can also socialise, serving catered lunches while someone lectures on a topic unrelated to work, or having a panel discussion with an open bar, according to Rowe. It’s about putting productivity on hold, even for a short while.

Why Employers Should Establish a ‘Third Place’ for Their Teams

“There’s this chance for something a little more inspiring and a little more connected. According to Rowe, these are some of the components businesses are aiming for when developing what we would refer to as a “community” or “culture.”

Reimagining the office 

According to CIC research done by Harvard Business Review Analytic Services, about 90% of workers desire some form of physical office experience. They are drawn to the office’s reputation for fostering a sociable, collaborative, and community atmosphere. Leaders, however, obviously want people working in the offices. 

Top behavioural researcher Ben Waber previously told Fortune that managers should “view physical offices as a management tool,” and research indicates that in-person collaboration produces greater innovation results. In addition to being a motivating “carrot” rather than a punitive workplace rule, Rowe contends that establishing that third location within an office fosters innovation.

“There’s a fundamental human need most of us have for social contact and if the office environment fulfils that need, you’re more likely to come to the office,” he says.

Why Employers Should Establish a ‘Third Place’ for Their Teams

Some major companies have long delivered a “third place” office experience to workers. Google, for example, holds the Talks at Google speaker series, in which it brings in thought leaders, authors, actors, and creatives for a sort of informal interview. Last year, the insurance giant Allstate redesigned its 15 global offices, which the company calls “pods,” outfitting them with a quiet space for heads-down work, an open collaborative space for events, and cafe spaces where workers could connect socially and host events—a type of third place within an office.

Bob Toohey, chief human resource officer of Allstate, tells Fortune, “We’re trying to create that environment, just like you would walk into a cafe sitting out on the street.”

According to him, the corporation views its offices as gathering places for employee communities for a variety of purposes outside of work. “Our goal is to establish a setting that is adaptable and conducive to social interaction, teamwork, idea exchange, and meaningful work,” he states.

Additionally, the corporation gave $10 million to global company executives to help them devise innovative strategies for uniting their teams and other employees within the workplace.

Some arranged career learning and development activities for their junior colleagues, some hosted watch parties for sporting events, and still others organised Lego-building events to encourage strategic thinking.

“You see the energy when people come together around those events,” Toohey says. According to a recent Allstate employee poll, 90% of workers feel a sense of belonging to their teams, and roughly 65% feel a sense of belonging to cross-teams. According to him, establishing a third-place atmosphere in the workplace contributed to the sense of community and encouraged employees to resume in-person work.

Toohey states, “We want to make it easy for everybody to connect together.” We seem to be headed in the right direction.

In essence, by embracing the concept of the “third place” within the office, companies are not just reimagining workspaces—they’re creating vibrant hubs of collaboration, community, and connection. From Google’s Talks at Google series to Allstate’s innovative office pods, these spaces go beyond productivity—they’re about fostering a sense of belonging and excitement. So, let’s toast to the future of work, where creativity thrives, friendships blossom, and every day feels like a new adventure!

(Tashia Bernardus)

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