Evaluating the influence of Employee Productivity on Performance with a focus on Satisfaction in Co – working spaces: Insights from Sri Lanka g spaces: Insights from Sri Lanka

Abstract

The office market, a key component of the broader commercial real estate sector, plays a significant role in Sri Lanka's economy. Despite economic challenges, Colombo's commercial real estate market has shown resilience, with strong demand for high-end office spaces in the central business district driving a sustained growth. With limited Grade A office space and increasing demand for flexibility, co-working spaces have emerged as an attractive, cost-effective alternative for businesses seeking adaptable office solutions. These spaces promote collaboration, productivity, and employee satisfaction, driving the exploration of their impact on these factors to uncover insights that contribute to organizational success in this context. The study implemented a quantitative research methodology to gather data from employees working in co-working spaces across different sectors in Colombo city through a self-administered questionnaire, resulting in 100 complete responses. The survey measured essential variables, including employee productivity, satisfaction, and performance, using established scales. To investigate the effects between these variables, Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized with the aid of SmartPLS 4.1 software. The findings indicated that employee satisfaction serves as a positive mediator between employee productivity and performance, also revealing a significant positive effect on the other three direct effects examined. The Smart PLS SEM analysis confirmed that both employee satisfaction and productivity significantly influence employee performance in co-working spaces. This paper enhances knowledge on employee productivity and performance in co-working spaces, emphasizing the mediating role of employee satisfaction in Sri Lanka withing emerging economies. By investigating these factors, the study aims to provide valuable insights for key stakeholders including policymakers and business leaders on strategies to optimize coworking space designs, implement flexible Human Resources policies, foster collaboration, and enhance employee well-being, ultimately improving organizational success through employee engagement.