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Businesses Are Moving Away from Physical Offices

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A tremendous number of people in America work very hard at something that bores them. Even a rich man thinks he has to go down to the office every day. Not because he likes it but because he can’t think of anything else to do.

~W. H. Auden
 
There is a growing trend in business of firms moving away from having a physical presence. This trend is especially prevalent among small and medium-sized firms, but we are starting to see this strategy picking up among larger businesses too, just at a much slower rate.
 
Just about every start-up I see does so without an office. And many of these entrepreneurs are determined to continue to operate without one.
 
Then there is the telecommuting trend. According to the U.S. Census, more than 6 million people work from home—myself included. The natural evolution of technology has made telecommuting and video chat easier and more affordable, and I think it is safe to say this will be a normal part of business in no time. Several companies are already offering products specifically for remote workers, such as payroll and HR.
 
The writing is on the wall. This is coming, and now is the time for managers to adapt to this trend rather than fight it. There are some critical staffing issues you must be prepared for when you manage a remote workforce. 
 
I am dealing with several managers who have such a difficult time managing their remote workers. They feel they have no control when their staff is not in the office where they can see how much work they are doing.
 
However, having a staff member in your sightline is not nearly as important as ensuring you have a method of keeping them accountable. So often, managers get hung up on how many hours an employee is working when they really should be concerned with how much work that employee is getting done. 
 
Overseeing a remote workforce really requires a new kind of management. I advise any firm that is moving in this direction to go through training that stresses the importance of communications, accountability and teamwork. These are necessary for all workers but especially critical for those who work remotely. 
 
Operating from a home office where human interaction is lacking can be challenging for remote workers. Managers must ensure this is not a barrier for the employee by maintaining frequent—but not excessive—communication. The purpose here is not to monitor them but to remind them they are part of the team and their work is important. 
 
E-mail is okay for this, but actually talking to your staff is essential. I like video chat rooms since they allow the participants to see one another. 
 
Accountability is so much more critical for staff who is off premises than for those in the office. To monitor their progress and ensure they are meeting their job requirements, it is important to establish weekly goals.
 
A third challenge with managing remote workers is preserving the team environment. Each of us wants to feel like we are part of a team, but it is hard for remote workers to feel like a member of the team when they are operating on their own island. 
 
A culture of strong communication is necessary to counter this isolation. Encourage your staff to communicate often with each other and hold videoconferences to bring everyone together.
 
Eliminating physical office space and having remote workers are not things that are going to work for all firms, but go out and see if they are right for yours. If you do decide to move this direction, just remember, you will need to adopt a new management style to be successful. 
 
You can do this.
 
Published: February 7, 2014
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Jerry Osteryoung

Jerry Osteryoung is a consultant to businesses—he has directly assisted over 3,000 firms. He is the Jim Moran Professor of Entrepreneurship (Emeritus) and Professor of Finance (Emeritus) at Florida State University. He was the founding Executive Director of the Jim Moran Institute and served in that position from 1995 through 2008. His latest book, coauthored with Tim O’Brien, “If You Have Employees, You Really Need This Book,” is a bestseller on Amazon. Email Jerry @ jerry.osteryoung@gmail.com

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