In the post-pandemic era, we find ourselves at an exciting point where we can reimagine the purpose and configuration of our workplaces. After an extended period of remote work, people are reevaluating their preferences: Are open offices still the preference? What about closed, traditional spaces? Or perhaps, do we even need a physical office any more? The answer is not a one-size-fits-all solution; it depends on your company's needs.

Ultimately, the design of your office space should elevate overall productivity. Offices are evolving from mere workplaces into places where people gather not only to work, but also to meet and socialize. Whether you are adapting to the hybrid work culture or seeking to create an environment to attract your team back to the office, this guide is here to assist you.

What are Open and Closed Offices?

Before we dived into the pros and cons of open and closed offices, let’s take a moment to understand what each of them are.
 

Open Offices definition

The key feature of an open office is its expansive layout, where long rows of desks are arranged closely, often with minimal partitions or separators between employees. These offices prioritize open space over individual cubicles or cellular offices. Open offices typically feature communal areas where employees can gather, such as cosy lounges with couches, or shared kitchen spaces. Some open-plan offices even include recreational areas with activities like ping pong or table football, promoting a relax environment. This design encourages face-to-face communication and maximizes natural light, creating a collaborative atmosphere.
 

Closed Offices definition

A closed office is a more traditional type of working environment. In contrast to open office, teams and individuals are assigned with dedicated workspace with privacy, using screens or fixed walls to create separate office spaces. While the fit-out costs for closed offices, such as constructing stud walls, separate air conditioning units and doors, can be higher, there have always been an interest of this office type because of its quieter work environment and privacy. For instance, the manager's office is often set up as a closed space for confidential meetings and the secure storage of valuable data. In an open office setting, acoustic pods, meeting pods, and sound-proof phone booths are introduced to mimic the closed office setup.

Advantages of Open Office Space

Promotes Collaboration and Communication

Perhaps the most well-known benefit of open office spaces is their ability to promote collaboration and communication among teams and team members. When there are no physical barriers or separate offices, it becomes easier for team members to interact, share ideas and work together, enhancing productivity, performance, and teamwork.

Cost-Effective Space Utilization

In terms of space utilization, open-plan layouts are more cost-effective than closed ones. Companies can accommodate more employees within the same square footage compared to traditional closed offices. They can also save on building walls, screens, and separators between workstations, reducing expenses on furniture and office equipment.

Flexibility and Adaptability

Another benefit of open offices are flexible and easily customizable. They can be rearranged to accommodate changing teams and organizational structures, making them particularly appealing to startups and small businesses that experience rapid growth. When there is a new team member, they can simply add a chair and laptop to the large sharing work desk. This adaptability saves both time and money compared to the fixed configurations of closed offices.

Enhanced Networking and Community Building

Open offices create opportunities for face-to-face interaction between individuals to build stronger relationships and a sense of community. This setup is particularly embraced by coworking spaces, where it encourages networking and benefits freelancers and entrepreneurs. It creates opportunities for what's known as 'culture collision', a phenomenon that has birthed many startups. On the other hand, the shared areas like pantries and lounges further encourage informal interactions.

Disadvantages of Open Office Space

Noise and Distractions

Open offices, while favoured by modern businesses, are not without their downsides. Noise and distractions can easily hinder to productivity. Imagine a sales team working side by side with accountants; the constant phone calls from the former clash with the latter's need for concentration. Even if you don't want to, you can still overhear colleagues' conversations or be interrupted when you try to focus.

Lack of Privacy

Privacy is another issue in open offices. Colleagues are assigned with little to no personal space throughout the day, which can be especially taxing for employees that are used to the privacy of remote work during the pandemic. Introverted individuals may find open spaces intimidating, while others dislike the feeling of being perpetually watched.

Potential for Increased Stress 

Furthermore, open offices can escalate stress levels and reduce job satisfaction. The absence of physical barriers can inadvertently create a sense of surveillance, making employees feel pressured to appear busy. To tackle these issues, companies incorporate acoustic solutions and private meeting spaces when carefully planning the design of open office layouts.

Advantages of Closed Office Space

Privacy and Reduced Distraction

One of the biggest advantages of closed office spaces is the level of privacy they offer. Distractions are effectively minimized within an enclosed workspace, making them ideal for tasks that require intense focus and concentration, such as auditing. When employees are less likely to be interrupted by colleagues, the overall productivity will be boosted.

Personalization

Closed offices allow for personalization in individual workspaces. Employees can decorate their offices with personal items such as family photos or ornaments, creating a more comfortable and personalized environment that contributes to their job satisfaction. It can also create a sense of belonging. In terms of storage and organization, closed offices offer plenty of space for drawers and overhead bins, so that employees can keep their personal and work-related items neatly organized.

Sense of hierarchy

Lastly, closed offices can generally illustrate a sense of importance or hierarchy within an organization. Senior managers or HR personnel, for instance, usually require privacy for meetings and discussions of sensitive matters; therefore, closed office spaces will suit them better than open spaces. This differentiation in workspace based on roles can help reinforce the organizational hierarchy.

Disadvantages of Closed Office Space 

Hindered Communication

In certain industries such as design and creativity, a lot of time is spent on brainstorming and interactions. Hence, opting for a closed office setup may potentially hinder communication and teamwork. The physical barriers of closed spaces can make it less convenient for colleagues to interact and collaborate spontaneously. This isolation behind closed doors can constrain the team from developing strong interpersonal relationships, which is especially critical for startups and small teams, where close-knit collaboration is key to rapid growth.

Can be Expensive

Next, closed offices typically require more physical space and are more expensive to set up. The requirement of individual partitions, doors, and separate infrastructure for each office cubicle adds to the overall expenses. These spaces also demand higher maintenance and utilities costs, making them less budget-friendly.

Siloed Work Culture

Furthermore, the closed office setup could allow for a siloed work culture. When individuals have everything they need in their isolated spaces, they have no reasons to leave, hence there are fewer opportunities to encounter and build relationships with others, making it more challenging to build team spirit.

Key Factors to Consider When Choosing Between Open and Closed Office Layouts

Ultimately, the choice between open and closed office layouts requires a careful evaluation of the advantages and disadvantages to align with an organization's needs.

Begin by assessing your company culture and values. If your organization prioritizes collaboration and teamwork, an open office layout may be the preferred option. Conversely, closed offices may be more suitable for cultures that prioritize privacy and focused work.

Next, consider the nature of the tasks. Collaborative roles, such as events management, often thrive in open environments. In contrast, tasks involving data analysis or concentrated work may benefit from closed offices to minimize distractions.

Besides, you can take employee preferences and feedback into account. Conduct surveys or discussions to gain insights into your team's preferences and optimize their work environments accordingly.

To harness the benefits of both setups, a hybrid approach has emerged as a solution that acknowledges the diverse needs and roles within an organization. Leading serviced offices like Compass Office offer fully-furnished, lockable workspaces in prime locations, complemented by open facilities such as pantries, coworking spaces, and meeting rooms. They also provide the flexibility to scale up or down as required within the Compass Office ecosystem, while accommodating various work styles to create a workplace that genuinely meets your needs.