Remote work is no longer the little-known concept it was. Heck, a quarter of all jobs in North America are set to be remote by the end of 2022! Nevertheless, certain aspects of this approach to work continue to cause confusion. Case and point?
The difference between remote and distributed teams! While many people use these terms interchangeably, key distinctions exist between them that are important to understand if you wish to manage either type of team effectively. Ready to clear things up once and for all? Here’s an in-depth look at remote vs. distributed teams.
What are remote teams?
Remote teams are teams of employees who enjoy complete freedom over where they work. They can generally do their jobs anywhere there’s an internet connection – at home in their pajamas, at a café in town, on a tropical beach, you name it!
Because of this flexibility, some fully remote teams never even meet in person, relying on mobile apps, video conferencing tools, and other pieces of software to communicate and collaborate.
Many companies set different rules though, and adopt what’s called a hybrid model of work (also known as “partially remote”, read our article comparing hybrid vs remote). Although the same basic freedom around the team’s location applies, the business also has a central office that employees can go to. They may make it compulsory for people to work there a set number of days each week or leave the decision entirely up to their employees.
In essence, then, remote teams work for companies that were created in a set location and maintain a physical office space there. The employees – more often than not – are recruited from in or around that same area and are simply given the option of working outside the office.
Examples of companies with remote teams include Hubstaff, Swiftly, FlexJobs, and Zapier. In the following section, we’ll review the incentives behind this approach that justify their decision.
Pros of remote teams
Remote working offers a significant number of benefits to both employees and businesses. Here are the main ones to keep in mind:
1. Greater employee freedom
As we’ve discussed, workers on remote teams have much more control and flexibility over their office environment. This often equates to a better work-life balance, which is one reason many employees report a higher degree of workplace satisfaction.
2. Lack of commute
For traditional employees, one of the worst parts of working in an office is the long journey to and from work each day. This issue fades into non-existence for remote teams though. Employees can forgo the commute and enjoy the convenience of working from home (or wherever takes their fancy!).
3. Productivity increases
Studies have shown that – however counterintuitive it may sound – remote employees are actually more productive than their in-office peers. This boost in output may relate to their quieter working environment, the absence of social interactions compared to being in an office, and a general boost in satisfaction.
4. Lack of micromanagement
It’s much harder to micromanage your team when you can’t look over their shoulders all day! This isn’t something to worry about though. Given the freedom to work on their terms and the inability to ask constant questions, remote employees learn to become more independent and self-sufficient.
5. Increased bottom line
Despite having to adopt new processes and invest in new systems/tech, remote teams can save businesses lots of money. This is largely to do with the lack of office space. CEOs can either ditch their headquarters altogether or downsize to something more suitable for hybrid working. Expenses like rent, utilities, dedicated internet, maintenance work, and tech infrastructure fall away in the process.
6. Improved customer service
Another advantage of having employees in different locations is the ability to operate in multiple time zones at once. Among other benefits, this is a major boon for your customer service. Businesses can ensure rapid responses to peoples’ queries/concerns at all times of day/night.
Cons of remote teams
There are downsides to remote setups as well though. Here are a few of the main disadvantages that employees and businesses may encounter:
1. Employee isolation
Although most employees seem to enjoy it, remote working isn’t for everyone – especially when it’s fully remote (i.e. there’s no central office space). Some prefer the social aspect of traditional office environments, dislike video conferencing, and value face-to-face interactions. This can impact morale and workplace satisfaction.
2. Problematic working environments
Most offices fizz with noise and activity, which is why many employees work better in the quiet of their homes. Unfortunately, some households are rife with distractions! When there are young children to look after, pets who need attention, fridges full of food, and TVs with shows you want to watch (and no boss to keep you on track), it can be even harder to stay focused.
3. Potential for tech complications
Remote teams rely on technology, meaning outages and malfunctions can be extremely detrimental to operations. Even something as simple as a missed email/DM can lead to delays, miscommunication, and/or unhappy clients. Furthermore, because people are using work computers and phones outside the office, there’s also a higher risk of cyberattacks.
4. Time zone issues
Arranging meetings and coordinating projects can be difficult when people work in different time zones. You have to set very clear expectations around communication and when people should be available. Fail in that regard and any number of setbacks can ensue.
5. Slower problem-solving
Effective problem-solving and conflict resolution can be a bigger challenge too. After all, working in the same office means you can ask questions, call impromptu meetings, and iron out disagreements in person whenever you need to! It’s usually a slower process when you’re relying on email exchanges, DMs, and video calls.
6. Hindered communication
As the previous point demonstrates, a primary obstacle remote teams have to overcome relates to communication. Businesses must spend significant sums of money to implement high-quality software tools that facilitate fast, smooth, and effective interactions between teammates (and train everybody on how to use it).
7. Changes to hiring processes
Remote hiring and onboarding of employees differ from traditional work environments, demanding new systems and processes as a result. Interviews are conducted via video call, for example, and training resources are generally online too. The quality of your onboarding process and the degree of support you offer can both impact employee retention.
8. Possible hybrid complications
When some employees work in the office and others work remotely, it can take extra effort to manage the entire team effectively and ensure both groups are treated with equal importance (e.g. organizing virtual team-building activities as well as in-person ones). Focusing more attention on one group over the other could make people feel left out and/or unsupported.
What are distributed teams?
A distributed team is a group of employees who work together from different geographical locations 100% of the time. Everyone collaborates on projects while working remotely, with no single centralized HQ or office location to work from.
Just like in a remote setup, distributed teams leverage technology to perform their roles and communicate with colleagues. However, they don’t just use it, they need it.
With no physical space to meet or work in (or with employees working from multiple company office locations), everything they do is conducted online/using tech – from swapping messages and solving customer problems to editing documents, discussing projects, and giving presentations to clients.
Consider a team of IT technicians who are employed by the same company but work in different offices. They each have a similar skillset and perform the same core duties, utilizing cloud-based software to support clients, stay connected with each other, and share information in real time regardless of where they are.
This is a prime example of a distributed (AKA “spread out”) team: one high-functioning unit working toward the same goal from various locations. They’ll never meet in person but still succeed in doing their job.
Pros of distributed teams
Given the likenesses between remote and distributed teams, most of the advantages we discussed above apply here too. Nevertheless, there are definitely additional incentives to building/managing a distributed team:
1. Access to a wider talent pool
Businesses that adopt a distributed working model are no longer reliant on local candidates to fill vacant positions. Because the jobs are based in different locations and can be performed from anywhere, companies can hire skilled workers from across the planet – often in locations where the minimum wage is much lower. The result is a winning combination of higher-quality employees who cost less yet still form a cohesive team that pursues the same goals/targets.
2. New hires don’t need new space
What happens in a traditional business when you recruit a bunch of new employees to accommodate and encourage the company’s growth? You need to find (and pay for) additional office space for them to work in, right? This isn’t an issue when you hire remote workers though. Assuming your current subscriptions, software, and cloud platforms can handle the influx of staff, you can scale as quickly as you want.
3. Scaling is easier
That isn’t the only way that distributed teams can help businesses grow faster than traditional companies. Their access to a wider talent pool (because they aren’t restricted to a single location) and higher-quality candidates help here too – as do the financial savings that come from not having a central headquarters, which can be reinvested to spur growth.
4. Reduced staff turnover
Having groups of employees in different locations can also have a positive impact on staff turnover. For instance, team members who might otherwise leave the company in pursuit of new challenges might be willing to relocate to a different office instead. Other people step down from positions at traditional teams because of things like family obligations (e.g. having to look after an elderly relative) and ill health. The fact they can work from home may permit them to continue in their role.
5. It facilitates expansion
Companies that plan to expand into new territories also benefit from the distributed team model. They can have people on the ground and operating in the correct time zone, which aids everything from customer service (rapid response times) to marketing (understanding local markets/cultures/demographics).
Cons of distributed teams
The primary drawbacks of distributed teams align with those of remote teams too. However, they also have some unique problems that we’ll discuss here:
1. Company culture can suffer
Establishing a strong and supportive company culture can be trickier without a central location in which the team can meet and get to know each other. Managers must make a special effort to organize virtual team-building activities that promote cohesion between distant colleagues.
2. It isn’t always viable
Certain industries, such as manufacturing, have no choice but to maintain a physical space from which to operate, which makes them a poorer fit for distributed teams. Indeed, these types of businesses would have to pay for the workspace as well as the new tools and software that remote teams require.
3. Unavoidable remote downsides
Unlike some remote workers, distributed teams never experience the perks that come from having a centralized office space (e.g. the social aspect of seeing their colleagues and the manager’s ability to call impromptu meetings). They’re forced to live with certain inconveniences of remote working, such as conducting meetings and team-building events virtually and experiencing zoom fatigue.
4. Occasional cultural misunderstandings
Distributed teams are regularly spread around the world, which opens the door to cultural mix-ups and misunderstandings. Even if everyone on the team speaks English, there may be certain non-verbal signs (e.g. the “okay” hand gesture, where you touch your forefinger to your thumb) that mean different things in different places. Managers must also be aware of cultural preconceptions, the potential for inappropriate humor, and possible anxiety in communication if/when English isn’t someone’s first language.
Remote vs. distributed teams: How do they compare?
Remote and distributed teams both fall into the overarching category of virtual teams. And – as you can tell from the definitions and pros and cons above – there’s a high degree of overlap between them! There are some subtle differences though, which we’ll turn to now.
Location
A primary distinction is that distributed teams don’t operate from a central location, whereas some remote teams employ a mixture of office-based and remote workers. To put it another way, all distributed teams are remote in nature, but not all remote teams are distributed!
As an aside, one way in which these two types of work teams are similar is that they both benefit from corporate retreats. Remote team retreats bring colleagues who usually work in separate locations together to hang out, get to know each other, and/or focus on tasks that are too difficult to do remotely.
Choice
Another factor in play is the varying degrees of choice involved. Some remote employees can choose to work from the office or any other location that takes their fancy, right? It’s true that certain companies obligate a balance (e.g. 2 days per week in the office), others leave the decision entirely up to their staff.
Distributed employees don’t have that luxury. They’re recruited to a team that’s been set up to operate from afar, with no central HQ available. In other words, the entire workforce was never intended to be in the same place at once.
Approach
Taking a macro look at this topic reveals a third apparent degree of separation between remote vs distributed teams. Whereas remote work is essentially an arrangement that employers come to with their employees, distributed work is akin to a mindset that the organization adopts.
Rather than a simple procedural decision (i.e. letting people work outside the office), distributed teams require companies to think differently about how they operate; to adopt a new, inclusive, and collaborative approach to drive the business forward.
Why is this distinction important?
Understanding the differences between remote vs. distributed teams might not seem like a big deal. But think of it like getting a diagnosis from the doctor. Once you know exactly what you’ve got, you can start managing the situation better and improving your symptoms!
The same is true for your virtual team. Once you clarify whether it’s remote or distributed, you should be able to manage your employees and processes more effectively. For example, you could book a workation upon realizing your distributed employees would benefit from meeting in person or arrange a time for your remote workers to come to the office for a whole team meeting.
And that’s assuming you already have a team in place! For someone yet to begin their business venture – or looking to pivot into a new way of working – understanding these subtle distinctions can ensure you take the right approach from day one. This leads us to our final section…
Should you establish a remote or distributed team?
In essence, making this decision requires you to answer a few key questions:
- Do you want/need a central HQ from which people can work, or not?
- Do you ever intend to meet your employees face to face? Or do you want them to be able to meet up?
- If so, then how often do you want/need this to happen?
- Is the talent pool in your current geographical location sufficient to fill the roles in your company?
- Do you have access to the requisite tools, software solutions, and IT equipment to establish a remote or distributed team? If not, do you have access to enough capital to buy them?
If you a) don’t think it’s important to have a physical space for your team, b) have adequate financial resources set everything up properly, and c) like the sound of a larger talent pool, then a distributed team could be right the way forward.
And remember, you can always go on a company retreat if/when you do want everyone to get together!
Book a company retreat for your virtual team
Most businesses are more than familiar with the concept of remote work nowadays. However, one area in which confusion still exists is the distinction between remote vs. distributed teams. With any luck, the insights in this article have cleared things up for anyone who’s ever conflated the terms!
Whether you manage a remote or distributed group of employees, though, there’s no question they’ll benefit from meeting up in person at some point soon. So why not organize a team retreat to make it happen? Or, better yet, why not get Surf Office to organize it for you?!
We’re experts at planning the perfect getaway, with local knowledge and years of experience that enables us to craft unique experiences for countless organizations every year. Want to get the ball rolling? Get in touch with us today.
