Embracing the Virtual Workplace

By Malcolm L. Miles, CEO

In March 2020, the World Health Organization (WHO) announced that the COVID-19 outbreak had evolved into a pandemic, and life as we once knew it ceased to exist. Schools closed, few people had access to childcare, transportation became limited, and organizations across the country were left reeling. While employees frantically searched for alternative office spaces and work routines, panicked employers were left to choose between changing their operational and organizational structures or closing their doors indefinitely.

Although many CEOs feared it would be impossible, it was the virtual workspace that ultimately provided a solution. Thousands of Americans who were initially struggling to stay afloat were able to keep their jobs and businesses going, and over the past three years, the concept has continued to evolve. The massive transition from physical to virtual office spaces has allowed professionals and companies alike to realize the benefits of remote work. With approximately 70% of full-time U.S. employees having already worked remotely — and with many continuing to do so — new hybrid and remote working models have emerged, and companies are adopting them for the long term. As a result, leaders are rethinking their workplace culture and creating more progressive policies to help their employees thrive on virtual teams.

Such developments are critical to the success of organizations throughout the nation — at least for as long as millennials remain the largest generation in the labor force. According to a recent article by Forbes, most millennials prefer a virtual environment, and many will only apply for jobs that offer at least some remote work opportunities. In fact, the 2023 United States Job Market Trends Report found that 49% of the millennials surveyed are seeking fully remote employment, and of the job seekers already working remotely at least one day per week, 43% said they would quit if they had to return to the physical office full-time.

However, millennials are not the only ones who have found tremendous value in having access to virtual workspaces. A McKinsey study from 2022 reveals that 87% of all workers who are offered remote work embrace the opportunity for a variety of reasons: a more comfortable work environment, no commute, flexible schedules, less time and money spent on physical appearances, and a healthier work-life balance. Whether it is not having to dress up for work or getting to listen to their favorite music on the job, virtual workspaces give employees a greater sense of control over their time “on the clock.”

Of course, the employers providing remote and hybrid work options are also seeing the advantages — so much so that many have come to believe that an office not wired for hybrid collaboration is a waste of space. According to Forbes, 90% of the employees who worked remotely during the pandemic say they were either­ as productive or more productive than when they worked in brick-and-mortar offices, and 67% say they were significantly more productive. Employees cited several reasons for the increase in their productivity:

  • 25% of office workers reported office politics distracted their workflow, compared to just 15% of remote workers.
  • 34% of the employees said that interruptions from colleagues affected their productivity, compared to only 16% of remote workers.
  • 28% of office workers said that their daily commute negatively impacted their productivity, compared to 18% of remote workers.

A survey conducted by Indeed.com in 2023 produced similar findings. Researchers reported the primary benefits of virtual workspaces for employers include improved morale, a decline in employee turnover, less absenteeism, reduced health insurance costs, and operational cost savings. Companies are also finding they can save millions of dollars by scaling back their square footage. For example, Dell reported saving approximately $12 million per year in real estate costs alone by encouraging employees to work from home.

With so many positive results, it is likely that remote and hybrid work environments will continue to grow in popularity. In fact, a 2023 study conducted by the National Bureau of Economic Research analyzed more than 250 million job vacancy postings across five English-speaking countries and found a significant increase in virtual job offerings. Researchers from Stanford, Harvard, and other institutions found that from 2019 to early 2023, the share of postings that offered new employees one or more days of remote work per week rose more than three-fold in the U.S and by a factor of five or more in Australia, Canada, New Zealand, and the United Kingdom. One reason why employers are increasingly offering remote work arrangements after the pandemic is to attract potential employees. Virtual workspaces lessen the burden of distance and allow organizations to recruit talent from a wider geographic area. Also, businesses that are experiencing rapid growth may look to remote and hybrid work arrangements to help reduce office space and energy consumption.

Still, while there are numerous advantages to working in a virtual environment, we cannot ignore the fact that it has its challenges. Since the onset of the pandemic in 2020, employees have had to change how they approach their job responsibilities. Seemingly overnight, they found themselves trying to work with children at home and struggling to complete tasks with fewer resources — such as limited information, a lack of tech support, the absence of necessary equipment, and an insufficient amount of space. Employers and employees have also been spread out across multiple locations, making it more difficult for everyone to collaborate. While some organizations have managed to overcome these obstacles, others are continuing to search for ways to adapt.

To learn more about the state of remote and hybrid work, how employers and employees are adjusting, and where they are headed, Owl Labs partnered with leading remote work analytics firm, Global Workplace Analytics (GWA) in July 2022. In their 6th Annual State of Remote Work Report, researchers surveyed 2,300 full-time workers in the U.S. at companies with 10 or more employees. Participants ranged in age from 21 years old to over 60 and were 49% male, 50% female, and 1% nonbinary. Of those surveyed,

  • 70% said it was often or always difficult to contribute or be part of a conversation when on video calls.
  • 72% reported that they could not always identify who was speaking on video calls.
  • 63% said that they could not always see other people’s faces when they were on video calls.
  • 62% reported that they were unable to see the virtual whiteboard when it was in use.

Now that we are well into 2023, employers and employees still battling these issues are asking, “Where do we go from here?” Since remote and hybrid workspaces have become “the new normal,” they are left with only one option: to move forward. For companies to compete in today’s market, employees must learn how to successfully work in a virtual environment, and employers must determine how to support them safely and productively in their efforts.

Employee engagement has always been integral to producing quality work, so organizations can continue to push forward by elevating the virtual tools and spaces where employees collaborate. To assist in their efforts, Forbes published the following list of suggestions:

  1. Begin by setting up a centralized information system. When working on a virtual team, documents and information must be easily accessible, and internal communication must be effective. Investing in a reliable centralized information system will connect all users to a central server that stores network and user data. Everyone in the organization will then be able to create, upload, share, and edit professional documents — which will significantly facilitate everyday work and increase productivity. Examples are CRM systems, which deal with client relations, and ERP systems, which are used to manage all parts of the company (accounting, sales, marketing, task delegating, storage, etc.). Companies may also choose to use cloud storage providers such as Dropbox, Google Drive, and OneDrive.
  2. Train everyone to use the same messaging platform. Since messaging platforms easily connect people regardless of location, they are ideal for virtual teams. They are easy to use, more visible than email, and provide instant communication in real time. To guarantee success, companies must train new hires during the onboarding process to ensure they understand how to use the platform and are comfortable doing so. Examples of messaging platforms are Microsoft Teams, Google Chat, and Slack.
  3. Optimize job postings. When working in a virtual environment, finding the right team members is especially important. Therefore, when reviewing applications or conducting interviews, it is essential for hiring managers to have a specific set of criteria that candidates need to meet. Traits of successful remote workers include self-motivation, a solid understanding of technology, and the ability to work independently.

Since it is likely that remote and hybrid work options will only increase from here on out, employers should either already be adapting their working environments or preparing to adapt. If you believe your organization could benefit from additional training, consider registering for the course Thriving on a Virtual Team by JH Miles and Associates. Throughout the highly interactive workshop, participants are provided with a variety of tools, techniques, and best practices for navigating the virtual workplace. Contact us for more information.