Employers are surviving the economic downturn in a variety of ways. Some have cut staff, while others instituted hiring and wage freezes.

Thousands of businesses have downsized their space in an effort to reduce rent. To compensate, cubicles are getting smaller. Some employers have eliminated their “cube farms” in favor of open floor plans. Cubicle walls are becoming shorter, too. All of these efforts to squeeze more people into smaller spaces affect workers—sometimes positively, sometimes not.

If you are an employer considering a move to boost cash flow, consider these pros and cons that a tighter working conditions have on employees.

Pro: Increased accessibility. Lack of walls naturally leads to more personal interactions and in some cases, more mentor relationships.

Con: More interruptions can be counter-productive.

Pro: Increased productivity. Fewer walls mean employees tend to cut down on personal conversations and web surfing. They might fear getting caught without a cubicle to protect them!

Con: Too much interaction can lead to problems. One law firm deemed its open floor plan a failure and returned to cubicles because of too many disruptions and personal conversations.

Pro: More people in a smaller space leads to eavesdropping opportunities. It can be motivating for employees to hear each other at work. Newer staff can pick up work style and sales ideas from more experienced workers.

Con: Smaller spaces mean it’s easier for employees to pick up bad habits from each other, become stressed when listening to their quirks (such as crunching through a snack or tapping on their desk), or learn far too much personal information about their peers. All of this closeness can lead to a level of tension that might not have existed in the larger office.