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Human Resource Management and Industrial Relations

Set Up Remote Workers to Thrive

By Jay Mulki, Fleura Bardhi, Felicia Lassk and Jayne Nanavaty-Dahl

October 1, 2009

As increasing numbers of employees work remotely, companies need to find effective ways to manage internal communication and social interaction, and also to provide these employees with opportunities to become more visible.

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During the last decade, virtual work — professionals working remotely from home, from client locations or simply from the road — has become increasingly prevalent. Some Fortune 500 companies, including Procter & Gamble, IBM, Accenture and AT&T, have already partially or fully eliminated traditional offices.1 As much as 10% of today’s work force telecommutes from home — more than triple the level of 2000. In addition, as companies trim staff positions in areas such as information technology, accounting and public relations, they are relying more heavily on freelance workers.2 Telecommuting and remote work arrangements will accelerate in the coming decades in response to the ongoing globalization of work, ever-increasing customer demands and the cost and time of commuting.

The Leading Question

How can managers maximize the chances that their remote employees will succeed and provide benefits for the company?

Findings
  • Managers need to help employees prioritize their work and find the right work-life balance.
  • To reduce remote workers’ feelings of isolation, managers should promote face-to-face interactions with colleagues.
  • Managers should be accessible and look for ways to provide visibility for remote employees within the organization.

Virtual work arrangements appeal to both corporations and employees based on the economics and the personal flexibility and autonomy they offer. Flexible work has enabled corporations to hire and retain employees who value the ability to respond to family demands and desire more control over the time, place and mode of their work.3 By reducing the number of full-time employees on site, corporations are realizing higher productivity and savings in real estate costs. International Business Machines Corp., for example, saves $100 million a year by allowing 42% of its employees to work remotely.4 However, virtual employees and managers alike are becoming increasingly aware of the challenges associated with virtual work as they relate to internal communication, social interaction and employee satisfaction and commitment.

The Pros and Cons of Remote Work

Traditional work is based on tying an employee’s time to job tasks and location. It is structured around employees gathered in a central location, which allows managers to coordinate activities and advance internal communication. The traditional work format enables sharing of social experience, interpersonal coordination, modeling of work behaviors and giving and seeking advice. Virtual work, by contrast, refers to employment configurations outside of the traditional office — along a continuum that ranges from occasional telecommuting to “hoteling” (sharing office

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This article was printed from MIT Sloan Management Review online: http://sloanreview.mit.edu/the-magazine/2009-fall/51116/set-up-remote-workers-to-thrive/

Comments on “Set Up Remote Workers to Thrive”

  1. This is a very important topic for business. Unfortunately, I do feel like the description of the problems with a remote workforce and the conclusions are mostly self-evident. For example, the solution for lack of face time is to setup more face time. Moreover, most of the solutions are equally valid and necessary for a colocated workforce, therefore there is little unique about the solutions to a remote workforce. This does not seem like a mgt review quality, and I would have a hard time recommending this to a manager of a remote workforce as a reference.

    Guy Hocker

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