Article

November 6, 2024

What is a Distributed Workforce and How to Manage it?

Milton Herman

15 minute read

This guide explains how to work effectively with a distributed workforce, the benefits and challenges of this type of work arrangement. Additionally, we’ll cover distributed workforce trends and offer tips for distributed workforce management.

What is a Distributed Workforce?

A distributed workforce is when a company has employees in several locations. These locations include the company’s satellite offices and the employees’ homes. Remote work, telecommuting, and other terms often get interchanged with distributed workforce — but distributed workforces usually refer to companies that have a mix of office, remote and deskless employees.

The global COVID pandemic has made flexible work arrangements more common. Team members have become comfortable using distributed workforce tools like Slack, Zoom and countless others to keep in touch with co-workers and complete their projects.

Gartner found that employees are strongly in favor of a distributed working arrangement. Over half (55%) of employees are considered “high performers” when they are provided complete flexibility over their work (where, when, and with whom they perform their job duties). Only 36% of traditional nine-to-five employees were considered “high performers.”

According to McKinsey, there are several physical or manual activities that can’t be done by a remote workforce. These include operating machinery, using lab equipment, and providing hands-on care. Other job functions, such as communicating with others, counseling, teaching, gathering and processing information, and coding data could possibly be done by employees in any location. The industries with the highest potential for a distributed workforce moving forward post-pandemic are:

Finance
Insurance
Management
Business Services
Information Technology

What is a Distributed Employee?

Distributed employees are team members who embrace entirely remote work. Employees in this category may never meet their co-workers or their supervisor face-to-face. That doesn’t stop them from being engaged and valuable team members.

Difference Between Distributed Work, Remote Work, and Hybrid Work

Let’s take a closer look at these three ways of working.

— Distributed Work

As mentioned above, distributed work refers to employees working away from their company’s main office. The term originated in the 1970s. At that time, NASA employees were looking for ways to lower their mileage traveling to and from work. The NASA workers reported to branch offices located closer to home.

Now distributed work refers to employees who work at their company’s office part of the time. They spend the other part of their work schedule working from another location, and this arrangement reduces their commuting time.

— Remote Work

Remote work is the term used to describe work taking place outside of a traditional office. It includes several work arrangements, including employment, contractors, and freelancers.

In a situation where someone is performing fully remote work, they are working from their home office, a co-working space, a coffee shop, or another convenient location. Clear, real-time communication between team members is required for this work arrangement to be effective.

→ Read more: 20 Advantages of Remote Working

— Hybrid Work

There are multiple definitions for what constitutes hybrid work. In most instances, there is an element of working in an office as well as remotely. Each organization sets its own policies for hybrid work.

The fully distributed model is not considered a truly hybrid one. Instead, it is a fully remote way for an employee to work.
In the default digital option, teammates can choose to work from any location they choose.
This method is also called “remote first.”
The static hybrid method assigns each teammate to a specific work location, either at home or in an office.
In the dynamic hybrid arrangement, teammates can work from home or the office. The teammates can choose their schedules.
The synchronized hybrid method means that teams can work from the office and home. - Teammates are still required to come to the office on the same schedule.

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Distributed Workforce Trends

The global Covid-19 has changed the way people work, and employers have adjusted to a remote distributed workforce. According to Gallup, one-third of US workers were working remotely full-time, and another 25% were working remotely part-time (fall of 2020). Two-thirds of workers wanted to continue working remotely.

It’s no longer uncommon for employees to access company applications in different cities. They could live anywhere in the country with an internet connection or move about while working. Employees need to access the company network — no matter where and what device they are using (desktop computer, laptop, tablet, or smartphone).

Distributed workforces must access multiple applications on the company VPN (Virtual Private Network), such as:

Customer communications
Enterprise software (ERP)
Video teleconferencing
Word processing

Different Examples of Distributed Workforces

The following are examples of companies with a distributed workforce.

— Apple

Apple’s 147,000 employees work in a hybrid model. They work in Apple Park, the company’s office located in Cupertino, California, USA, three days per week, and workers can work from home two days each week.

— Microsoft

This company also has a hybrid work model for its 160,000 employees. Employees can work from home for up to half of their work time each week without a manager’s approval. If they wish to work from home 50% or more of their work time, the employee needs their manager’s approval to make this change.

— Spotify

Spotify is an international company that believes in allowing its employees to work from “wherever they do their best thinking and creating.” The company is introducing its “Work from Anywhere” policy this summer. It is designed to give employees more freedom in choosing how they work. Everyone can decide whether they would prefer to work mostly at home or in the office in the geographic location (city, country) of their choice. Spotify will allow employees to have an office co-working space if they want to work in an office and don’t live within commuting distance of a corporate office.

— Twitter

This company allows employees to work from home as long as their role is conducive to remote work. Employees who live near the company’s New York, San Francisco, or nine other offices in the US may choose to work at one of them.

What are Distributed Workforce Benefits for Companies?

A distributed workforce offers several benefits for employees and companies.

1. Reduces the amount of office space needed

The company can save on its real estate costs, which include rent or property taxes. Companies also pay less for heating, cooling, and electrical expenses. As the company grows, it does not have to add office space or consider moving to larger premises to accommodate more employees.

2. Boosts productivity

Companies with remote employees are not locked into having their employees only perform their duties during one time zone during business hours. These businesses can operate on a 24-hour basis by hiring employees globally and adding on-demand workers during peak periods.

3. Eliminates commuting time

Remote employees don’t drive or take public transportation to get to the office. This experience can be stressful, which means employees arrive at work distracted and irritated. Some employees may need to reset after arriving at work, which affects their productivity. Eliminating the commute time also reduces wear and tear on employees’ vehicles, saving the employee money. Employees who usually take public transport also save money on their travel expenses.

4. Expands the hiring pool

Recruiters aren’t limited to local candidates when searching for employees who can work from home. Workers can be situated anywhere globally, which means that recruiters have a much larger hiring pool to choose from when seeking qualified candidates.

5. Allows employers to hire more diverse candidates

Companies can also take advantage of a more diverse pool of qualified candidates when they accept applications from talent living in a wider geographic area. The business can benefit from hiring people from different cultures and backgrounds. Individuals bring their distinct life experiences to work with them, enhancing the work culture’s ability to innovate, connect with customers, and solve problems

6. Supports employee mental health and wellness

Remote employees may find that working from home gives them more flexibility during the day. They will still be required to attend scheduled meetings. Otherwise, these employees can work during times when they are at peak efficiency, which is not necessarily during “business hours.” As long as they manage their work correctly, they can take the time they need for their personal and family responsibilities.

7. Boosts employee retention rates

Modern businesses can’t afford to lose valued employees and they are currently facing an annual turnover rate that could climb by as much as 20% from pre-pandemic levels. Employee retention remains a priority for businesses in all industries. Companies are keeping their top talent by offering work-life flexibility to employees. According to a Gartner survey conducted in November 2021, 52% of employees said that flexible work policies are an important factor in whether they will stay in their current jobs.

Work-life flexibility includes offering opportunities to work remotely and flexible hours. It also includes recruiting top talent from where they are located instead of insisting candidates relocate to the employer’s location when hired.

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What are the Main Challenges of a Distributed Workforce?

A distributed workforce also presents some challenges for businesses.

1. Communicating with remote workers

It’s important to establish clear policies about how often team members should be communicating with each other if they will be working off-site. The manager should also indicate the best way for the team to keep in touch. For example, the manager might request that documents be uploaded to the team’s Google Drive folder instead of attached to an email. Conversations of a sensitive nature can occur by phone or video instead of chat or email.

2. Keeping employees engaged

It can be challenging to keep a distributed workforce engaged and make them feel as though they are part of a larger team. There are ways to recognize remote workers, such as sending them a digital birthday card. All employees should participate in any office pools and prize draws. Managers can ensure remote workers don’t become burned out by scheduling regular one-on-one coaching sessions with distributed team members. The manager should clarify that the employee is free to speak honestly about any concerns during these times.

3. Maintaining the company culture

Managers must make a concerted effort to maintain the company culture when employees don’t go to the office daily. Supervisors must find ways to recognize outstanding employees for their work. These can include mentioning the employee on a group chat or a video call and sending a plaque to their home. Managers can also facilitate online social events for their teams. Employees and their supervisors can get to know each other and develop relationships outside of their job duties.

4. Resisting the urge to micromanage remote employees

Some managers feel they must take extra care to ensure their team works on their tasks if they work remotely. These managers find it difficult to let go and trust that the employees will do their work without someone checking on them often. Unless an employee demonstrates a problem, the manager should avoid micromanagement. It implies that the manager doesn’t trust the employee to work independently, and most people resent that implication.

5. Guarding against cybersecurity threats

Cybersecurity represents a significant threat to companies employing remote workers. Employees who previously worked in an office environment with company computers now work conveniently on their desktop computers and handheld devices. The employees may have a home network with a VPN or work from a local coffee shop with non-secure Wi-Fi. If an employee’s device becomes lost or stolen, confidential company information could become public.

How do you Manage a Distributed Workforce?

The following are some distributed workforce best practices for keeping everything running smoothly.

1. Hire the right people from the start

The first step in having a successful distributed team is to hire the right combination of people. Ideally, this is a remote distributed workforce made up of trustworthy individuals who are comfortable working independently.

Immediately start connecting team members to the company mission statement, vision, and values. Engage with employees, no matter where they are located or their role in the company.

2. Set clear expectations for the distributed team

When setting up a distributed workforce, set up clear expectations and guidelines. Some employees may already have experience with working remotely. Others may be new to working from home. To create a fair and equitable work environment, make your expectations for the entire team clear from the outset. These expectations include:

Communication methods
Hours of work
How due dates will be communicated
How changes to a project will be communicated
How projects will be completed
Tools the team will use

Ensure clear communication with an employee experience platform that easily shares messages between employees. When messages are flowing between team members, everyone can focus on the projects at hand.

3. Schedule regular one-on-one and team meetings

Regular communication between the manager and their team is essential for keeping a distributed team engaged and productive. Schedule team meetings early in the week with video conferencing. Use these meetings to discuss the current status of the team’s projects, the team’s goals, and any issues the team members are having.

Along with regular team meetings, schedule one-on-one sessions with each team member to keep everyone engaged and connected. If a manager fails to take this step, employees are more likely to feel disengaged at work. During these individual meetings, the team member can ask questions, get personalized feedback, and raise any employee concerns.

The employee experience platform makes sharing information with the entire team an easy and efficient experience. Everyone can contribute their thoughts to their fellow employees in a supportive environment. For one-on-one and coaching sessions, this technology works just as well. The manager and the employee can discuss the employee’s strengths and any areas for improvement.

4. Use video to communicate with the team often

Employees who work in the same environment get used to communicating face-to-face. Relying on video for communication means that the team gets used to seeing each other and provides more of an “in-person” feel. Even though employees may be separated by distance, they don’t necessarily have to feel that way.

Video conferencing allows the participants to see and hear their fellow team members. Employees can better understand what is being said by picking up on non-verbal cues like tone of voice and facial expressions. These cues can enhance the team’s overall communication levels and understanding.

Video gives managers the chance to put a face to their words. Team members feel they know each other better when they can see each other and their reactions to what is said at meetings.

Centralize Enterprise Video Assets Product Visual

5. Be transparent and accountable with your team

When feasible, don’t confine team discussions to current tasks. Share information about what is going on with other projects, departments, and company goals and successes. These facts give everyone on the team an insight into how their work contributes to the entire company. They may feel a greater connection to the business.

Knowledge is meant to be shared (with authorized users). Withholding information that team members need to do their work properly doesn’t improve their productivity or help them feel engaged in their work. Managing knowledge appropriately is a crucial consideration.

6. Make employee engagement a priority

When the company fosters employee connection opportunities, it supports mental wellness, boosts employee satisfaction, and supports the company culture. One way to improve employee engagement is to recognize their efforts. Thank employees for their work during one-on-one sessions, and publicly acknowledge efforts during team meetings.

A digital platform lets employees feel they are part of the team from their first day on the job. Engaged employees are motivated to contribute at their highest level and make a difference on the job.

7. Organize opportunities for the team get-togethers

Since the team can’t get together in person, find ways to bond outside of work. They can do plenty of activities online, such as virtual happy hours, virtual ice-breaker games, and virtual game or movie nights.

Your team members can post photos of their pets or family members to internal communities and chat channels. Private chat rooms are a place to share work-appropriate jokes and stories about their personal lives.

LumApps’ Frontline Workers app is a robust digital workspace for all employees, whether they work in the home office, at home, or elsewhere. It is accessible from desktop, Android, or iOS devices.

LumApps for Frontliners gives each team member a personalized experience with news, events, and access to the corporate blog from multiple locations. The app allows managers to virtually onboard new team members quickly and easily. Existing employees can access their tasks, schedules, and milestones without leaving the app. Everyone can communicate using group chat and instant messaging.

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