What Distributed Workforce?

What’s The Difference Between Traditional Office-based Setups And Distributed Workforces? 

In contrast to conventional office-based models, a distributed workforce challenges the idea of a centralized physical workspace and represents a paradigm shift towards increased flexibility in the workplace.

These models rely more heavily on advanced technologies such as collaborative video conference and project management tooling to help teams operate efficiently and collaborate in real time. 

‍What’s The Difference Between A “Distributed” And “Remote” Workforce?

The terms distributed and remote workforce are often used interchangeably. However, there are key differences between the terms that are worth highlighting: in a distributed workforce, an organization usually does not have a central office. This model is structured in a way in which employees live in several different locations and collaborate by leveraging project management tools such as Slack, Monday.com, and Asana. 

In contrast, remote workforces refer to workforces that have a central physical office and work in the same place or time zone. Despite having a centralized office, remote teams are given the option to work from home but remote workers also have an office to go into for face-to-face meetings should the need arise. 

Pros and Cons of Adopting the Distributed Workforce Model

Embracing the model comes with a myriad of advantages. Despite the significant benefits, managing a distributed workforce comes with its own set of challenges. Here’s a summary of the most important pros and cons to take into account:  

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The Importance Of Communication In A Distributed Workforce

Communication is the lifeblood of effectively managing distributed work. The distributed nature of teams requires that teams work harder on communication in order to achieve the same level of collaboration and cohesion as traditional teams. Understanding and optimizing communication dynamics ensures that teams remain connected, collaborative, and aligned toward common goals. Distributed workforces can ensure effective communication by: 

• scheduling regular check-ins and structured meetings such as daily standups and weekly catch-ups
• encouraging a culture of openness and transparency by establishing organizational feedback channels 
• providing training and support for remote tools that are used within the business

What Industries Are Suited To A Distributed Workforce?

Certain industries and roles are particularly well-suited. Identifying these sectors should give you useful examples to model your distributed workforce after. Examples of industries that are suited to a distributed workforce include Technology and Software Development, ‍Digital Marketing and Media, and Creative Industries. 

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Considerations for Employers Transitioning Into A Distributed Workforce 

Employers contemplating the shift must consider various factors. Successfully transitioning to a distributed workforce requires careful consideration of technology, company policies, and legal implications. 

• Technology Infrastructure: Employers must ensure that their workforce has access to the right digital tools that support remote work such as cloud-based platforms for remote collaboration, cybersecurity measures and project management tools. 
• Company Policies and Compliance: Employers must update or create policies specific to remote work. For example, employers should implement work-from-home policies that outline expectations, work hours, and availability.
• Legal and Tax Implications: Working with a global team brings unique legal and tax challenges so employers should be aware of employment laws in different regions and the impact on contracts, compensation, and employee rights.

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Taking Advantage Of a New Era of Work

When following a distributed workforce model, organizations are well-positioned to take advantage of benefits such as wider, more diverse talent pools. They also play a part in redefining the future of work itself, boosting their reputation as a global employer.

Making the shift towards a distributed workforce is easy when partnering with an Employer Of Record (EOR). 

An EOR is a third-party service that assumes employer responsibilities on behalf of another business and legally employs staff in new regions. An EOR handles duties such as setting up employment contracts in compliance with local regulations, payroll management, HR functions, and benefits administration.

Working with an EOR will help you mitigate compliance risk, give you access to broader talent pools, and decrease operation costs. 

Discover how Playroll’s EOR solution can help you scale your workforce globally with one compliant platform supporting more than 180 countries.

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Distributed Workforce FAQs 

Can Distributed Workforces Succeed?

Yes, distributed workforces can be successful if they follow some of the model’s best practices we have discussed above. These best practices include establishing effective communication channels, integrating advanced technologies, and fostering a company culture of trust. 

What Are Examples of A Distributed Workforce? 

Distributed workforces have become increasingly popular in recent years and there are a plethora of companies that have adopted this model in the real world, including Zapier, Canva, GitLab, and Atlassian. 

What Is Global Workforce Management?

Global workforce management refers to the process of coordinating and facilitating a geographically dispersed workforce. This process includes managing various HR activities such as recruitment, onboarding, and compliance for companies with a presence in multiple countries.