Effective Remote Teams: Strategies and Costs Across Locations

How to keep a remote team engaged in your company and associated costs

In today's business landscape, remote work has become widespread. Many companies, including startups, have embraced remote teams to access global talent, save on costs, and promote diversity.

Adding “home” to an “office” went from a niche decision some companies made to an inevitable and massive shift in the way that people work around the world. As well, some companies will never go back to in-person working, and therefore the industry is bound to continue to change and evolve over the next few years.

So let’s find out what it is all about!

Overwhelmingly, remote workers would like to work remotely at least some of the time for the rest of their careers and 97% of remote workers would recommend remote work to others!

A report from a study of young talent conducted by Universum among 12,000 students from 77 universities in Poland, published in May, showed that 80% of all surveyed students express an interest in remote work, and for the IT group, this number reaches as high as 97%.

Employees that are working remotely are satisfied with their level of efficiency (effective use of available resources) and productivity (achieving work-related results). Almost every second respondent in the Hays Poland and SWPS University study, rated their remote work efficiency very highly. At the same time, as many as 43% of respondents are convinced that they are more productive when working remotely, and another 41% do not see a change in productivity resulting from this form of work provision.

It can be inferred, therefore, that employees are content with what they are able to achieve in the home office model.

According to a working document authored by Nicholas Bloom from Stanford, who supports research under WFH Research, employees save an average of 72 minutes per day while working remotely, totaling two weeks per year. A survey conducted last year by Gallup also showed that employees feel most engaged when working remotely. Employees worldwide appreciate these benefits to the extent that they are even willing to accept an 8% reduction in salary to maintain the option of remote work.

However there are also some struggles. In past years, collaboration and communication difficulties, as well as loneliness, were top of the list. 27% of remote workers declared not being able to unplug as their biggest struggle with remote work, followed by difficulties with collaboration (16%), loneliness (16%) and distractions (15%).

Yes, the painful fact is, that not everyone has suitable living conditions to effectively focus on work – often in the same apartment, parents participate in remote meetings at the same time that children attend remote lessons and bored dogs and unruly cats wander around or lie down on the keyboard.

Of course, it’s essential to admit that there are challenges in keeping remote teams satisfied and engaged, however we still need to keep in mind that over 96% of employees who have experienced remote work would like to continue this form for the rest of their professional career.

Let us explore the topic of maintaining engagement in remote teams then!

Engaged employees are more productive and likely to stay with the company. For remote teams, engagement is even more important due to the lack of physical proximity and daily interactions found in traditional offices.

Why does remote team engagement matter?

• Productivity: Engaged employees consistently contribute their best work, leading to higher productivity.
• Retention: High engagement levels reduce turnover rates, saving money on recruitment and training. According to Gallup, disengaged employees cost you 34% of their salary!
• Innovation: Engaged employees are more likely to generate innovative ideas, benefiting the growth of startups.
• Company Culture: A culture of engagement fosters a positive and inclusive work environment, even in a remote setup. Furthermore, building a positive work culture is just as crucial as providing leading-edge collaboration tools.

Numerous studies by the Gallup Institute have confirmed that the best predictor of measurable organisational success is the level of employee well-being, which includes factors such as their physical and mental health.

Employee well-being is strongly linked to their engagement – the better the well-being, the higher the engagement and better work outcomes.

Managerial engagement directly translates into team engagement (data indicates that manager actions account for up to 70% of team engagement). Companies with highly engaged employees experience a 41% lower absenteeism rate, 40% fewer quality issues, and a 21% higher profitability.

Staying in touch with remote employees always requires extra effort and resources.

So what can be done to keep the remote teams engaged?

1. Effective CommunicationTransparent and regular communication forms the foundation of remote team engagement. Utilise tools like Slack, Zoom, or Google Meets for video conferences, chats, and project updates. Encourage open dialogues and ensure remote team members feel valued and heard.
2. Clear GoalsSet clear goals and expectations for each team member. Remote employees should understand their roles and responsibilities to stay motivated.
3. Regular Check-InsSchedule one-on-one meetings or team catch-ups to discuss progress, challenges, and career development. These sessions provide opportunities for feedback and connection.
4. Provide ResourcesInvest in the necessary tools and resources to facilitate seamless remote work. This may include project management software, ergonomic home office equipment, or training programs.
5. Foster a Virtual CultureCreate opportunities for social interaction, even in a remote setting. Virtual team-building activities, online social events, or collaborative projects can help build camaraderie.

Clearly, remote work is cost-effective for both the employer and the employee. However, there are always some hidden pitfalls of working from home for both parties.

Let’s have a look at hidden costs of remote setup!

Here's a breakdown of key cost factors:

1. Technology and InfrastructureProviding remote employees with necessary hardware, software, and internet connectivity can incur significant costs. This includes laptops, security software, VPNs, and high-speed internet. Employees may also need peripherals such as speakers, webcams, or headphones. Moreover, the employee may require the right office furniture, such as a desk, a decent chair, or even good lighting in the workplace.
2. Communication ToolsOngoing expenses include subscriptions to communication and collaboration tools, such as video conferencing software and project management platforms.
3. Training and DevelopmentInvesting in remote team training, upskilling, and professional development programs is crucial for employee growth but adds to the budget.
4. Security MeasureEnsuring data security for remote workers can be costly. Investments in firewalls, antivirus software, and even employee cybersecurity training may be necessary. According to a study by TechRepublic, 95% of companies in 2020 suffered from data loss…
5. Employee BenefitsSome companies offer remote employees benefits like home office stipends, wellness programs, or flexible work schedules, impacting the budget.
6. Retention StrategiesAllocating funds for recognition programs, performance bonuses, or career advancement opportunities can keep remote employees engaged and motivated.
7. Organising meetings and eventsLarge (or even small) meetings and events which employers need to assemble a team, are significantly increasing employees' loyalty but they are also a serious burden on the budget, especially if you have no experience in planning them.

To sum up, maintaining engagement in remote teams is vital for any organisation's success. While costs are involved, the benefits in terms of productivity, retention, and innovation outweigh them. Implementing effective communication, clear goals, and a virtual culture can keep remote teams engaged, ultimately contributing to the company's long-term growth and success.

Remote work is here to stay, and embracing it while considering associated costs is a strategic move that positions startups for sustainable growth in the modern business landscape.

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Sources:

“State of the Global Workplace: 2023 Report” Gallup

“State Of Remote Work 2021”

"Engagement during the pandemic. The impact of Covid-19 and remote work on the efficiency of Polish companies.”, MC2 Innovations report, Hays Poland, SWPS University of Social Sciences and Humanities.

“What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries.” McKinsey Global Institute, November 23, 2020

“Leading Teams Forward”, Advised by Gallup Remote Work Trends, Jennifer Robison, Adam Hickman.

“State Of Remote Work 2019”, A report by Buffer in partnership with Doist, Hubstaff, Remote-How, RemoteYear, Trello, Workfrom, and We Work Remotely.

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