Should Your Startup Consider an Open Office Layout?

Nowadays, just about everyone in business has experienced the open office design. Instead of using cubicles or walls to separate workspaces, this concept places employees together in open, communal areas. Originating in Germany in the mid-20th century, open office plans gained popularity in the U.S. during the early 2000s, especially among East Coast creative agencies, Silicon Valley tech firms, and other innovative companies. Today, about 70 percent of American offices use this design.

But as open offices have become more common, some issues have surfaced. While supporters say it promotes collaboration, camaraderie, flexibility, and comfort, employees often complain about constant distractions, lack of privacy, and feeling exposed. Studies even suggest that open offices might reduce productivity, hinder collaboration, and harm employee morale.

As newer generations increasingly oppose the open office layout, and as more evidence against it piles up, companies need to explore new designs to stay competitive. Recently, designers have experimented with various new plans aiming to minimize the downsides of open offices while enhancing their benefits. Let’s discuss the pros and cons of open office layouts and explore some promising alternatives.

Open office designs emerged to address the limitations of private offices and cubicles, which hindered collaboration and fostered an unhealthy, individualistic work culture. Proponents, primarily among management, believe the open setup solves these problems.

Reducing physical barriers between team members encourages a more collaborative environment. Employees isolated in private spaces may not see themselves as part of a team or may hesitate to seek advice from colleagues. Also, fewer barriers mean communication requires less effort and inconvenience.

Shared workspaces can foster a sense of teamwork, rather than individual task pursuit. Private offices often carry a sense of prestige, which can create competition for better spaces. Open offices are also cost-effective, requiring less per person and per square foot and allowing for streamlined IT infrastructure.

Eliminating private offices makes managers more approachable. Without closed doors, supervisors can easily interact with their teams, and vice versa, enabling more efficient oversight. As companies grow or change, open floor plans provide flexibility to adapt to new talent or workspaces. Plus, open offices offer a modern look, allowing air and light in, creating a pleasant environment.

However, many employees have voiced concerns about open office layouts. While accessibility can encourage collaboration, it can also be a source of distraction. Some offices have introduced “do not disturb” rules, like wearing headphones to signal the need for focus.

Additionally, employees often feel exposed throughout the workday, with no moments of privacy. Though managers may believe openness reduces barriers, many employees feel they are constantly watched, leading to stress and reduced productivity. Constant exposure to colleagues can also cause irritability and conflicts.

Increased contact means more germs, leading to more sick employees and lost productivity. Over time, these stressors can create job dissatisfaction, making it hard for employers to retain top talent.

A Harvard University study found that open offices might lead employees to withdraw socially, preferring electronic communication over face-to-face interactions. This negates the expected benefits of increased collaboration, communication, and morale.

Finally, the impact on women is significant. Many female employees find the lack of privacy and exposure not just demoralizing, but also threatening. With the rise of movements like #metoo, it’s clear that companies must take women’s concerns seriously to avoid fostering a hostile work environment.

What the open office got right is highlighting the importance of talent. A company’s employees are its most crucial resource. If they are unhappy, they will seek better opportunities, often in better-designed workspaces.