The virtual workplace has become commonplace for many organizations. Increasingly, employees are located in distant or satellite offices, telecommute, or work flexible schedules. SharedHR supports many virtual employers as workers transition to a dispersed workforce. Technology has made remote work practical and often leads to cost savings.

According to the Society of Human Resources Management (SHRM) survey report Workplace Flexibility in the 21st Century: Meeting the Needs of the Changing Workplace, 43% of HR professionals say that in the next five years, a larger proportion of their workforce will be telecommuting. Another recent study conducted by Nemertes Research further illustrates the widespread transition to a virtual workplace suggests that the number of virtual workers in the U.S. has increased 800 percent in the past five years.

Although there are many benefits to the virtual workplace, there are also challenges to managing people in the non-traditional work environment. Work now crosses over broader geographies, markets, countries, cultures, alliances, partnerships, and supplier networks. This diversity can create dysfunction and communication breakdowns if organizations do not effectively address the unique needs of leadership, technology and communication, teamwork, and recognition in a virtual workplace.

Leadership

Leadership style is a key factor that influences effectiveness and success in a virtual organization. Maintaining cultural identity, engendering trust, empowering independence, and “living the employment brand” all require an active, frequently reinforced leadership style. Leadership skills can prove even more essential in a virtual workforce because it demands a strong focus on relationships, emotional intelligence, focus on process and outcome, shared decision making, and the ability to give frequent feedback. Effective virtual leaders resist the urge to micromanage and direct. Although it can sometimes be disconcerting to not see the ongoing developments of an employee’s work, virtual leaders learn to engender trust in their team’s ability to meet deadlines and achieve goals by setting clear expectations—and then having the confidence to “let go”.

Technology and Communication

Technology is essential for virtual workplaces. Embracing and searching for new technology—such as instant messaging, web-based HR and communication systems, screen sharing and web conferencing—ensure connection, collaboration, and responsiveness. Fortunately, these forms of technology are familiar to a growing number of employees. In order to connect human beings, it is essential to thoughtfully select the most appropriate technology. For example, email is not the best medium to communicate an inspirational message. It is important to consider the best technology/communication medium for different needs of the virtual workgroup. For example, video conferencing that allows individuals to see and hear expressions is critical to building trust and rapport. Technologies such as teleconferencing, webcasts, shared electronic whiteboards, and groupware are appropriate when sharing results or building collaboration on a project. Texts and instant messaging tend to be preferred when seeking instant check-ins on logistics, work progress or meetings. Virtual team members thrive most when the best technology for the type of message involved is clearly communicated, modeled by senior management and consistently utilized.

Another important communication opportunity is the virtual “water cooler.” Virtual workplaces should remember it is often the casual conversations that build company loyalty and peer working relationships. Some organizations have retained this more casual communication through online discussion forums or established company social networking.

Teamwork

Unlike workgroups physically together, effective virtual workgroups strive to work toward a common vision and purpose. In a virtual workplace however, this common charter needs to be reinforced much more frequently to ensure a commonality among the group working towards that purpose. In the virtual organization, teams tend to shift towards collaboration and knowledge sharing. Effective leaders move less from “controller” and more to “coordinator” of team members. Virtual teams value the open sharing of information that keeps them connected to their corporate identity and empowers them to work alone, yet toward a common goal. In a virtual environment, it becomes even more essential to ensure workers are “in the loop” and included in key decision making. “Out of sight, out of mind” is the death of a virtual workgroup. Frequent check-ins to clarify assumptions and recognize contributions are the hallmarks of top organizations.

Recognition

In a virtual workplace, managers must find creative ways to recognize both individual and team achievement. Recognition bridges the gap between casual or personal work interactions and reinforces the goals of the organization. In a virtual workplace, it becomes even more important to balance the accomplishment of tasks with the building of relationships. The following are select ideas for promoting recognition adapted from The Distance Manager: A Hands-On Guide to Managing Off-Site Employees and Virtual Teams:

(1) Hold an annual or semiannual achievement review event;
(2) Acknowledge personal milestones, such as birthdays, weddings, birth of children, anniversaries of tenure in the company, educational accomplishments, community service, etc.(3) Invest in “portable parties”—send party kits (such as party hats, horns, party favors, confetti) to each member and celebrate via video-conferencing;
(4) Create a location on the company intranet to post best practices and learnings.

Significance

The virtual workplace is both rapidly growing and changing as businesses understand the many benefits and new leadership competencies, technologies and communication needs are understood. Employers currently managing or considering a virtual workforce might consider and adapt leadership style to make the most effective use of time and resources. Managing a remote workforce means a greater commitment to communication, well-planned teamwork and achievement of goals. SharedHR supports many virtual organizations and can help provide policy as well as infrastructure to connect your team.