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Remote Work

Remote work has been a complete game-changer for how business is done in modern times. If you’re wondering what this term means and how the concept behind it works, stick around. We will help you understand everything you need to know and find the answers to all your questions.

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What is remote work?

Remote work is a type of work arrangement where employees, freelancers, or independent contractors can perform their jobs from locations outside a traditional office. This could be working from home, a coworking space, or any other location that has a stable internet connection. 

Some of the most significant technology advancements, such as video conferencing, cloud storage, and collaboration tools and software, have made it easier for remote workers to stay connected, even when working from different spots around the world and in different time zones. 

Many modern companies operate fully remotely, while some of them also use a hybrid model of work that combines remote and office-based working. 

What are the different types of remote work?

While the concept of remote work resembles working from your favoured location, different employers approach this model in different ways. Below are some of the most common types of remote work:

Fully remote

In a fully remote setup, employees work entirely outside of a traditional office. Companies that commonly use this type of setup don’t have physical headquarters, and they fully rely on digital tools for collaboration and communication. 

Temporarily remote

This setup applies to employees who work remotely for a limited time due to special circumstances, such as the COVID-19 pandemic, company policies, or personal reasons. Once this temporary period ends, employees should return to a physical office setting. 

Partially remote

The partially remote setup is also known as a hybrid because it lets employees split their time between remote and in-office work. The balance can be different, as some companies might set fixed remote days, while others may give employees flexibility to make their own choices. 

Remote-friendly

A remote-friendly setup is commonly found in companies that allow employees to work remotely but still have a strong office culture. While remote work is possible, it’s often not the default, and employees may be expected to work from physical offices more occasionally. 

Remote-first

In a remote-first company, working remotely is the default. While these companies may have physical headquarters or offices, employees are not required to be physically present for work. All processes, communications, and collaborations in these companies are designed for remote working. 

What are the benefits of remote work for employees

Beyond choosing their own work location, remote work offers many more benefits for employees. Here are some of the most significant ones:

Better work-life balance

Employees who work remotely can skip long commutes and rigid working hours, which contributes to better time management and balance of work with personal life, family, and hobbies. 

Reduced expenses

Working from home or a location of choice reduces or completely eliminates daily commuting costs, work attire spending, and even food expenses, compared to physical attendance in traditional offices. 

Fewer distractions

While offices can be noisy and full of distractions, remote work allows professionals to create a custom work environment that will positively impact their productivity and focus. 

More autonomy

Remote work gives professionals more control over their schedules and work environments, which ultimately leads to more productivity, increased motivation, and better job satisfaction. 

More job opportunities

Remote work removes geographical barriers for professionals, letting them apply far beyond local job opportunities without the need for physical relocation. 

What are the benefits of remote work for employers

Remote work not only benefits employees, but it also brings many advantages for businesses. Here’s how companies can gain from embracing remote work:

Access to a wider talent pool

Without location restrictions, employers can hire quality talent from all around the world without being limited to a specific location. This can make it easier to find employees with more narrow and specialised skills. 

Lower costs

With fewer employees in their physical offices, employers can save on expenses like rent, utilities, office supplies, and other related costs. Employers who embrace the fully remote concept can eliminate these costs altogether. 

Scalability

Instead of expanding office spaces, businesses that operate remotely can onboard employees from different locations without worrying about physical distance and, therefore, scale their teams more efficiently. 

Reduced employee turnover

Remote work can improve employee satisfaction and reduce burnout, which leads to higher retention rates. Employees who have flexibility are more likely to stay with a company long-term. 

Business continuity

Remote work allows businesses to operate even during unexpected events like natural disasters, pandemics, or transportation strikes. When there’s no need for physical presence, teams can continue working without any disruptions. 

What are the challenges of remote work?

As much as remote work offers many advantages for both employees and employers, it also brings a vast number of challenges that need to be addressed. Below, we explore the most significant challenges of remote work:

Loneliness

It can be easy for remote workers to feel isolated without in-person interactions, which can lead to a lack of creativity, motivation, and work satisfaction. Maintaining social interactions, such as regular meetings and virtual team-building activities, can help combat this. 

Burnout

While remote work offers greater flexibility, it can sometimes blur the line between work and personal life. To avoid overworking and burnout, it’s recommended to promote setting clear working schedules and boundaries, as well as taking regular breaks.

Communication barriers

Misunderstandings can happen more easily without face-to-face interactions. Remote teams must rely on clear and structured communication through chat apps, video calls, and collaboration tools to stay aligned. 

Performance monitoring

Remote managers may find it harder to track employee performance without direct supervision. Implementing goal-oriented tracking methods and productivity monitoring tools might help to ensure better accountability. 

Legal and compliance issues

Hiring remote workers across different countries comes with legal complexities, including tax regulations, employment laws, and benefits compliance. Companies need to stay informed and up-to-date and follow local laws in each hiring country. 

What's the difference between remote work and work from home (WFH)?

While “remote work” and “working from home” are often used interchangeably, they don’t mean exactly the same thing. 

Remote work refers to any job that is done outside of a traditional office environment, whether it’s from home, a coworking space, a café, or another location. 

Work-from-home, on the other hand, specifically means working from the employee’s residence. It’s a type of remote work but doesn’t include other remote locations such as cafés or shared workspaces. 

In short, all work-from-home jobs are remote, but not all remote jobs are work-from-home. 

What's the difference between remote work and distributed work?

Both terms “remote” and “distributed” describe work done outside a central office, but they differ in their structure.

Remote work means employees can work from anywhere, but the company might still have a headquarters office. Some employees may work remotely, while others may choose to work in person.

A distributed team means there is no central office, and all the employees work from different locations, often across multiple time zones. These companies operate entirely online. 

A remote-friendly company may still have a headquarters, while a distributed company is fully decentralised. 

What's the difference between remote work and hybrid work?

“Remote” and “hybrid” work share a lot of similarities, but they function very differently.

Remote work means employees work entirely outside of an office, either permanently or with no requirement to come in. 

Hybrid work is a mix of remote work and in-office work, where employees may be required to come in on specific days or choose when they want to work remotely.

Hybrid models of work aim to balance the benefits of remote work with in-person collaboration. 

What's the difference between remote workers and digital nomads?

While these two concepts also share similarities, not all digital nomads are traditional remote workers, and not all remote workers are digital nomads. 

Remote workers perform their job activities outside of a traditional office, but they may work from a fixed location, such as their home or a coworking space.

Digital nomads travel and work from different locations, often across countries. They rely on internet connectivity to maintain their working responsibilities while embracing a location-independent lifestyle.

While digital nomads are considered a type of remote workers, remote work doesn’t always involve travel. 

Is remote work here to stay?

Remote work has become a big part of how we work today, and it’s not going away anytime soon. While there are some companies that are bringing employees back to offices, many of them are sticking with remote or hybrid setups because of the flexibility, cost savings, and the opportunity to work with global talent. 

However, in addition to the many advantages, remote working also brings challenges such as legal considerations, communication issues, and others that require thoughtful consideration. Besides all these challenges, companies and employees who use the right tools and strategies are still making it work and benefiting from it. 

The way we work will keep evolving, but what’s clear is that remote work is here to stay as a permanent concept in the future of work!

Hire and onboard remote workers with Native Teams

Native Teams is a global payments and employment platform that helps global businesses hire and manage remote employees in 85+ countries. Our suite of solutions covers everything - including global payments, local employment, tax optimisation, financial tools, and more, allowing you to get the ultimate value globally without any rigid administrative and compliance costs.

With the goal of making your global employees happy and supported, our team will provide local legal expertise and dedicated employee-level support, so you can scale your business knowing that you have a reliable partner who will handle everything in the background. 

Curious how our solutions can help you hire and grow globally? Book a demo call today to find out the details of how we can help!