The shift to remote work has brought about numerous changes in how organisations operate. While there are clear financial implications, such as the cost of technology and support, there are also substantial benefits that may outweigh these expenses. In this blog, we'll explore why managing a remote workforce might be more expensive than running an office-based team but how the potential advantages could power your business to be more effective.
Productivity in a Remote Setting
For many types of jobs, remote work can lead to increased productivity. Productivity, in this context, means more work that has a beneficial economic impact on the team, company, or organization. Here’s why remote work can enhance productivity:
- Fewer Distractions and More Focus: Employees working from home often experience fewer interruptions than they would in an office setting. Without the typical office distractions, employees can focus more easily on their work, resulting in higher productivity.
- Reduced Stress from Commuting: Commuting can be stressful and tiring, often leaving employees feeling drained before they even start their workday. Remote work eliminates commuting, which can lead to better-rested employees who are more productive and efficient in completing their tasks.
- Work Based on Impact, Not Presence: In an office environment, employees might feel pressured to "look busy" or engage in tasks that do not necessarily add value, just to appear productive. Remote work shifts the focus to actual output and meaningful contributions rather than mere presence.
- Clearer Prioritisation of Tasks: Remote work often requires employees to be more intentional about their work. They need to think more clearly about what tasks matter most and align their efforts accordingly.
Research supports these points. A study published in the Harvard Business Review found that remote workers are often more productive than their in-office counterparts due to fewer distractions and better work-life balance (HBR, 2019).
The Role of Management in Remote Work
While remote work can boost productivity, its success heavily depends on management. A manager's ability to communicate goals and priorities effectively is crucial in a remote setting. Poor management—such as setting priorities based on visibility or what reflects well on the team rather than what’s most productive for the organization can hinder a remote team’s effectiveness.
Effective remote management requires:
- Clear Communication: Managers must clearly communicate expectations, goals, and priorities to remote employees. This helps ensure everyone is aligned and working towards the same objectives.
- Support and Supervision: Running a remote workforce might require more supervision and support than managing an office-based team. This need varies by job type. For example, an HR professional may find it challenging to gauge employee well-being or quickly resolve issues without the casual interactions that occur naturally in an office setting, alternative approaches that fit with different job types must be sought and implemented.
Research by Gallup indicates that managers account for at least 70% of the variance in employee engagement across business units (Gallup, 2015). This statistic underscores the critical role managers play in fostering a productive remote work environment. It is worth noting here that one of the most overlooked factors, the autonomy given to employees, is probably the most significant. We have already seen news articles on employers using technology to ‘spy’ on their employees and employees using ‘mouse jigglers’ to appear to be working. When things don’t go right, even if the issue is just with one or two employees then the temptation can be to put in controls, immediately undermining trust, and often not fixing the problem. Going down this road rarely fixes anything and is more likely the beginning of a journey of implementing even more controls, rules and unenforceable policies.
Build a culture that works for employees, let them know what is needed and trust them to do it right. Job descriptions often contain ‘expectations’ but many of these are responsibilities and should be understood as such. Communicating a responsibility is very different from them being actively taken on, employees may need reassurance that a particular responsibility is theirs and they have the remit to do what is necessary to execute this responsibility. Equally it should be understood that responsibilities are part of the job and not doing it is not doing the job properly.
Technology and Its Role in Remote Work
The right technologies are essential for a successful remote work setup. From personal experience, tools like Slack are often rated more highly by high performing teams than alternative collaboration messaging solutions. Though even those who could clearly express a preference might find it challenging to articulate the features or capabilities that make one tool more effective than another. So take the time to choose technologies that really add value to how the team works, and be quick to kill them off if they are not widely used (there will always be a few active users in any system, that doesn’t mean it needs to be kept running)
However, organizations should focus on core technologies that effectively support their work processes rather than accumulating multiple tools. A company I worked for once invested heavily in a sales collaboration tool that was never fully utilized because the core Salesforce implementation upon which it relied was flawed. This example illustrates that it’s more important to have fully-functional core systems than to try to fix problems with additional solutions.
Cost Implications of Remote Work
When comparing the costs of running an office versus a remote workforce, it’s clear that savings on rent and associated expenses can quickly be absorbed by investments in technology and social gatherings. Technology costs are decreasing, and while the SaaS bill might seem high, it often allows companies to maintain smaller IT teams or outsource IT entirely.
Face-to-face interaction remains crucial. Regular meetups, whether every week or at regular slots during a month, help maintain team cohesion and culture. Different gatherings may be needed for geographically diverse teams on a less frequent schedule. They help with relationship-building that can produce the kind of spontaneous brainstorming that leads to innovative ideas and solutions.
What About Cost of Management
The Need for Selfless Leadership
Managing a remote workforce requires managers who are selfless, focused on their team's success, and supported by a robust coaching infrastructure. Ideally, these leaders would have training in productivity, stress management, well-being, career development, and business performance.
Conclusion
Running a remote workforce might be more expensive than managing an office-based team, but the benefits—such as increased productivity, better employee well-being, and potential cost savings on office space—can make it a worthwhile investment. By focusing on effective management, the right technologies, and fostering a strong company culture, organizations can harness the full potential of remote work.
