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A study into the practicalities and issues of managing a remote workforce
Regus, September 2013
Managing
at arm’s
length
48%Percentage of
respondents believe that
remote working at least
some of the time helps
people switch off at the
end of the day.
Managing at arm’s length / Foreward 01
In February 2013 the CEO of Yahoo, Melissa Mayer, ordered
all the company’s workers back to fixed office working.
The move – designed to prevent abuse of flexible working
practices – was instantly pilloried by commentators around the
globe as reactionary and short-sighted. Yet Ms Mayer’s reaction
to poor performance is a common fear in the minds of managers
contemplating the task of motivating and managing staff at
a distance. The more sensible commentators observed that
abuse of remote working practices by employees is not the fault
of remote working itself, but simply a failure of management.
After all, the challenge of managing a mobile workforce
will not go away.
Remote, mobile, flexible or even agile working – call it what you
will – is now almost as common as fixed working.
Soon the majority of us will no longer have a single, defined
place of work. Given the win-win benefits, this is hardly a
surprise – what organisation wouldn’t want fewer operating
costs, higher productivity and employee retention, lower risk
and enhanced employee work:life balance?
Managing at arm’s length / Research 02
global?local?
According to the 2013 Regus Global Business Survey almost fifty per cent of professionals
across the globe now report that they work remotely for half their working week.
50%of professionals
work remotely
Managing remote workers is increasingly being recognised as an art in itself. As the inexorable move towards flexible
working continues, it is likely that remote management training will become more and more prevalent.
Technology is the great enabler, allowing workers to remain in
contact with their colleagues in ever more sophisticated ways,
wherever they may find themselves. However, successful remote
working requires rather more than just providing employees with
the latest equipment and letting them get on with it.
Even with video communication tools allowing managers to
actually see team members regardless of where they are, trust
remains an important issue. There are also concerns about
whether working away from colleagues and more experienced
workers slows the development of younger team members.
Nevertheless, members of Generations X (born 1965-1980)
and Y (born after 1980) are certainly being remotely managed
some of the time and are likely to feel sufficiently familiar with it
to introduce more of it as they move into more senior roles.
Managing at arm’s length / Research 03
Having been remotely managed themselves, Generations X and Y recognise
the benefits of flexible working practices for all concerned, including an
improved quality of life, lower costs and increased motivation and productivity.
37%
And 43 per cent of managers use video calls to
communicate with their teams when working remotely.
43%
Across more than 90 countries analysed, specific
reporting and monitoring systems are used by 37% of
businesses to help managers and employees be
effective when remote working.
This Regus research report has found
that over half (55%) of its respondents
believe that the effective management
of remote workers is perfectly achievable,
but not without additional management
training and skills development.55%
Key findings and statistics
Managing at arm’s length / Key findings and statistics 04
•	 Respondents reveal that managing people at a distance works – but it’s an art 		
	 that needs special training. In fact more than half (55%) report that effective remote 	
	 management is perfectly achievable, but not without specific management training 	
	 and skills.
•	 In spite of this, trust issues remain important as 54% of respondents say that 	 	
	 management is worried about how remote workers spend their time.
•	 In order to address the trust issue, a significant proportion of companies are 	 	
	 reportedly turning to reporting systems to monitor the efficiency of remote
	 teams (37%).
•	 Remote managers also rely on technology to communicate with their teams with 	
	 43% using video calls for a more face-to-face feel than regular telephone calls
	 or email.
•	 Respondents are divided as to the effects of remote management on employee 	
	 development, perhaps because the practice is still relatively new and its long-term 	
	 effects need more time for solid evaluation to be made.
•	 Although 68% of respondents consider that being managed remotely slows 	 	
	 junior employee development, 37% believe that junior employees become more 	
	 responsible faster if they are managed remotely.
•	 However, given that 50% of Generations X and Y are being remotely managed 		
	 at least some of the time, compared to only 41% of Baby Boomers (born 1945-	
	 1964), there are grounds to believe that this trend is set to increase as younger 	
	 generations enter more senior roles and apply the same flexibility of location that 	
	 they experienced to their own teams.
•	 39% of respondents also report that one of the benefits of remote management is 	
	 that relationships remain more professional.
•	 Finally, almost half (48%) of respondents believe that remote working at least
	 some of the time helps people switch off at the end of the day, improving their 		
	 work:life balance.
55 54 37
43 50 68
50 33 48
Just as the Industrial Revolution in the 18th and 19th centuries
changed the way the world worked – moving people from
working as individuals or in small groups – to producing things
and services in vast factories or offices, so the Information
Technology Revolution of the 21st century is moving work away
from something that is done in huge groups to something that is
done wherever and whenever, using technology to bring people
together. Such has been the force of this development that
remote working is to all intents and purpose standard practice
for many professionals.
People want to improve their work:life balance (a growing
expectation amongst the younger generations). Firms want to
improve people productivity by reducing fixed office operating
costs, eliminating the financial waste and environmental impact
of under-occupancy, and cut commuting.
Remote working
now mainstream
Managing at arm’s length / Remote Working Now Mainstream 05
Technology has enabled remote working, and drop-in workspace networks stretching round
the world keep the working environment professional, wherever someone needs to be.
Managing at arm’s length / Predicted Growth 06
By 2015, the world’s mobile worker population will reach
1.3 billion, representing 37.2 per cent of the total workforce.
The most significant gains will be in the emerging economies
of Asia/Pacific thanks to continued, strong economic growth,
while the Americas will experience a slower growth rate due to a
protracted economic recovery and high rates of unemployment.
“Despite recent market turmoil, mobility continues to be a critical
part of the global workforce and we expect to see healthy
growth in the number of mobile workers,” says Stacy Crook,
senior research analyst for IDC’s Mobile Enterprise Research
programme, responsible for this forecast.
This view is supported by a study published by the internet
company Cisco, which found that college students and workers
aged between 18 and 30 (Generation Y) were so obsessed with
using technology all the time that they were “always connected”
and saw little distinction between work and social time when it
came to using devices, whether they were owned by
themselves or their employers.
Face-to-face meetings with customers and prospects would
also change, with 72 per cent believing getting together in
person will become increasingly rare. The company, which
carried out the study in December 2011, said that businesses
were already getting fit for purpose by investing in cloud-based
software, virtual private networks or in new tools to ensure that
remote teams remained connected and engaged. The growth
in video communication and social media across corporate
networks was also supporting this migration away from the
traditional office.
Predicted
growth
In the UK, a study by Virgin Media Business
found that company chiefs predicted that more
than half of employees would work from home
within the next decade.50%
60%
This development could also have other benefits. Virgin predicted
that not only could businesses potentially make huge savings
by reducing the numbers of people working in offices in central
London and elsewhere, but the travel network could be under
less pressure as well. London’s public transport network currently
caters for 25 million journeys every single day. If the predictions
of the UK’s business leaders come true, and nearly two thirds
expect to be commuting less often, that number could tumble to
a more manageable 10 million journeys, the report concludes.
In Japan, the case for remote working has been made by
dramatic events. The March 2011 earthquake and tsunami threw
wide regions of the country into chaos, and this provided a
powerful incentive for companies to allow more of their employees
to work remotely. For example, the industrial producer Teijin has
enabled 2,000 employees to telework and electronics company
Hitachi has extended its existing teleworking policy to include
all workers. Internet business Softbank has made it possible for
marketing staff to work from home.
In Australia, the federal government is enthusiastic about remote
working and has launched the National Digital Economy Strategy,
which aims to double the number of Australians who telework
to 12 per cent by 2020. Meanwhile, a report by Colmar Brunton
and Deloitte Access Economics showed that if 10 per cent of
Australians were to telework 50 per cent of the time, it would save
120 million litres of fuel and 320,000 tonnes of carbon emissions.
Even in China, as the country’s economic power grows, telework
or telecommuting is on the rise as part of a general introduction of
western-style work practices.
Perceived
benefits
Managing at arm’s length / Perceived Benefits 07
The report also focused on more mature workers and
revealed that 60% of mature workers would take up
telework if it was available to them and, as a result,
delay retirement by an average of 6.6 years – which
is important in view of the ageing of the population
and the impact on overall participation rates. 74% of
people not in the labour force with family or career
responsibilities reported that they would take up a
telework employment opportunity.
55%
However, not everybody is convinced that these developments
make business sense. In the United States, much has been
made of the decision by Marissa Mayer, the incoming head of the
internet company Yahoo, to demand workers return to the office.
The decision was apparently prompted by a desire to encourage
greater team collaboration to help Yahoo improve its business.
Meanwhile, although there is much academic research to suggest
that employees who are allowed to work remotely enjoy greater
motivation and are more engaged, a 2011 report by WorldatWork
discovered that fewer employed Americans did so regularly in
2010 than in 2008. The drop from 33.7 million to 26.2million
was attributed in part to remote workers (often referred to as
teleworking in the US) being perceived negatively – a problem at
a time of high unemployment. More than a quarter of employees
viewed being able to telework as a “reward”, in line with the fact
that employers saw it as a worker benefit.
In Canada, meanwhile, the Microsoft Canada Flexible Workplaces
report found that only a quarter of managers thought that their
employees were more productive when working remotely.
This was compared to the 55 per cent of workers who believed
that they themselves were more productive – showing a clear
disconnect between the thinking of management and employees.
Something emphasised by the finding that six out of 10 bosses
also thought that they were more productive when
working remotely.
The managers’ major concerns about remote workers included
finding the inability to meet face-to-face a challenge; feeling
remote workers were less focused than those in the office;
worries about the lack of accountability; and a perception that
remote workers did less than their office counterparts.
Counterpoints
Managing at arm’s length / Counterpoints 08
of workers who believed that they themselves were more productive...
The continuing development of ever-smarter forms of mobile,
tablet and cloud-based software technology, enabling increasing
numbers of employees to work away from their offices, is
creating a challenge for management. On the one hand, the
technology that enables workers to do many of their tasks as
effectively at home, on the road or elsewhere produces much-
needed efficiencies at a time of great competition and offers the
potential for increased productivity, especially at a time when
organisations of all sorts are expected to be operative 24 hours a
day, seven days a week. On the other, it is being used by workers
– especially those newer to the workforce – to justify demands for
greater flexibility in where, when and how they work.
The challenge of
remote management
Managing at arm’s length / The Challenge of Remote Management 09
Japan
Mexico
India
France
Brazil
South Africa
China
Global Average
Canada
USA
Australia
UK
Belgium
Germany
Netherlands
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fig. 1
55%Proportion of respondents
who think that effective remote
management is perfectly possible,
but only with additional training.
Effective remote management is possible, but only with additional training
Global Average
Whatever is driving it, managers have a challenge they have
never really encountered before – remote management. That
is, they need to be able to inspire, motivate and control people
they cannot always see as well as those who are sharing the
same physical space as them. Encouragingly, nearly two thirds
of respondents in the Regus survey interviewing over 26,000
business people in more than 90 countries believe that with
additional training and skills development, the effective remote
management of dispersed team members is achievable.
However, there appear to be clear national differences in
attitudes. The Japanese, for example, are strong supporters
of this view along with most emerging economies, while
respondents in Germany, the Netherlands and the UK are less
likely to believe that additional training is an enabler of effective
remote working. The USA, Canada and China are close to the
global average, confirming that Chinese perceptions of remote
working are becoming aligned to western standards.
Managing at arm’s length / The Challenge of Remote Management 10
Dutch respondents are also the least likely to agree that
managers are worried about how remote workers use their
time, suggesting that Dutch management is more open-minded
towards flexible working than most. By contrast, China tops the
table in this category, followed by Mexico and South Africa. All
three are significantly above the global average of 54%.
China
Mexico
South Africa
India
Brazil
USA
Canada
Global Average
France
Germany
Australia
UK
Belgium
Japan
Netherlands
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
90Countries surveyed...
Fig. 2
55%Proportion of respondents
who say management are
worried about how remote
workers use their time
Managers in my company are worried about how remote workers use their time
Global Average
Businesses appear to be taking steps to bring some rigour to the
area of remote working. More than a third use specific efficiency-
monitoring reporting systems for remote teams, while 43 per cent
of remote managers use video calls to communicate with their
team in the office – thereby demonstrating that new technologies
are helping remote working become more manageable, as well as
facilitating it in the first place. India, China and Brazil – all countries
where management was more than averagely concerned about
productive use of staff time – are among the leaders in this area.
Reporting
systems
Managing at arm’s length / Reporting Systems 11
Fig. 3
Fig. 4
35%Respondents reporting their company
has a specific reporting system to
monitor efficiency in teams that
work remotely.
China
India
South Africa
Brazil
Mexico
Australia
Global Average
Canada
USA
France
UK
Belgium
Netherlands
Japan
Germany
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Global Average
We have a specific reporting system to monitor efficiency in teams that work remotely
China
India
South Africa
Brazil
Mexico
Australia
Global Average
Canada
USA
France
UK
Belgium
Netherlands
Japan
Germany
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
43%Respondents reporting that in their
organisation video communication is
used to communicate
with remote workers.
Global Average
In my organisation we use video communication to communicate with remote workers
Respondents are also concerned about how junior employees
develop, with 68 per cent around the world feeling that being
managed remotely slows their development (see Figure 5). This
is a special worry in Australia and France, where more than three
quarters feel it is an issue. Dutch workers confirm their open
view on flexible working, and Chinese and Brazilian respondents
highlight how their countries have embraced the practice.
Employee
development
Managing at arm’s length / Reporting Systems 12
Fig. 5
75%of workers in Australia and France feel that being managed
remotely slows their development
France
Australia
Belgium
South Africa
UK
Mexico
Germany
India
Global Average
Japan
USA
Canada
Netherlands
China
Brazil
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
68%
Proportion of respondents
who think that junior
employees develop
less rapidly if they are
managed remotely.
Global Average
I think junior employees develop less rapidly if they are managed remotely
Managing at arm’s length / Employee Development 13
Conversely, as can be seen in Figure 6, over a third (37%) of
respondents consider that junior employees become more
responsible faster if they are managed remotely. This view
is particularly strong in the Netherlands and many emerging
economies with the exception of Mexico. Thirty-nine per cent
feel that relationships remain more professional with some
remote working (see Figure 7). This view was particularly
strongly felt in China, but not in Japan.
Fig. 6
Fig.7
Netherlands
Brazil
China
South Africa
India
Global Average
UK
Canada
Belgium
Australia
USA
Mexico
France
Germany
Japan
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
37%Proportion of respondents
who think that junior employees
become more responsible through
remote working.
Global Average
I think junior employees become more responsible through remote working
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
China
Brazil
Germany
Netherlands
India
South Africa
Mexico
Global Average
Belgium
Canada
USA
UK
Australia
France
Japan
39%
Respondents reporting that in their
organisation video communication is
used to communicate
with remote workers.
Global Average
I think remote management helps maintain a more professional relationship with employees
One of the most contentious issues is whether remote
management helps employees to switch off faster after work.
Across all countries analysed, roughly half of respondents agree
with the notion. However, opinion varies between Japan – which
appears to be generally sceptical about the benefits of remote
working – and the surprisingly lukewarm Netherlands on the one
hand, and India and Mexico on the other, where nearly three
quarters of respondents agree with the notion. This may be
connected with the commuting stresses caused by the transport
issues in countries with extreme urban congestion.
Switching off
Managing at arm’s length / Switching Off 14
Fig.8
India
Mexico
China
Belgium
South Africa
USA
Brazil
Canada
France
Global Average
Australia
UK
Germany
Netherlands
Japan
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
50%
Proportion of respondents who think
that remote management helps
employees to switch off faster
after work.
Global Average
Remote management helps employees to switch off faster after work
This study has established that business feels upbeat about managing a remote workforce, but also recognises
that special skills need to be developed for the new style remote manager. Based on the collective insight of a
number of leading thinkers as well as the experience Regus has gained from helping thousands of businesses
move from a fixed to a more flexible mode of working, outlined below are the ten rules for the effective
management of a remote workforce.
Establish an atmosphere of trust and responsibility
There is no point in creating virtual teams and then being so worried about whether they will get on with their
work, that you micromanage them. So trust is an essential part of the remote team. However, so is their
own responsibility. Set up a granular, but easy to use micro-reporting system so they can effectively monitor
themselves. This should be as automated as possible – there are a wide variety of free and paid for tools
and apps that can facilitate this – that not only makes achievement visible to management, but also helps the
employee self-manage and prioritise.
Be overt about the rules and write new contracts
A new way of working demands a revised contract that clearly sets out the duties and responsibilities of both
employee and manager. Remote working does require more reporting to management, so clearly specify what
this entails. Definitions of success and failure should be documented together with the rewards and penalties
associated with each.
Establish clear goals and measure on outputs
Managers have to learn to manage goals and outcomes, not tasks. The first step is clear thinking to establish
what those goals are. Meeting agendas have to become clear, descriptive and outcome-oriented so there can
be no excuse for coming to a meeting unprepared, nor confusion over what is to be achieved afterwards, and by
when. Management also have to analyse which elements of process (‘how an outcome is achieved’) they think
are important and therefore have to be described and enforced.
Promote corporate culture and facilitate relationships
Some organisations have noted that they perceive remote working as a positive force to ‘de-politicise’ the
work environment. No longer is presenteeism an option for currying management favour. Facts, actions and
outcomes are everything. But it has to be recognised that remote workers have fewer opportunities to interact
with colleagues and form productive relationships in a virtual world. Therefore, an active programme has to be
constructed that allows colleagues to spend time together outside of purely completing work tasks. There has
to be focused attention on making work fun and providing virtual workshops or brainstorming sessions where
people can laugh, game or have open discussions.
Managing the remote workforce -
What does success look like?
Managing at arm’s length / What does success look like? 15
Rule 1
Rule 2
Rule 3
Rule 4
10rulesfor the effective management of a remote workforce
1
2
3
4
Provide professional local/flexible workspace
Research has shown that homeworking is often not conducive to productive working because of disturbances,
distractions and lack of professional working facilities. Providing staff with access to drop-in professional
workspace, close to their home or their itinerary, provides them with the combination of locality and professional
working environment. This is both motivating and encourages focus and productivity.
Ensure the technology platform is robust
Virtual workers are dependent on technology, so it is essential that the technology you provide is easy to use,
and is quick, reliable and robust. Encourage the use of video conferencing so that people are not just remote
voices to one another, but can see each other’s expressions. Ensure that cloud-based applications enable
functions such as database access or printing whichever business centre the employee is working from.
Organise regular communication and encourage feedback
Organise regular virtual meetings to keep staff talking to one another, but avoid purposeless meetings. Make
sure people understand meeting etiquette and do not simply dial in while working on other tasks. Ensure active
participation from all parties and actively encourage feedback and opinion. Where possible, acknowledge and
act on feedback. Managers should also have regular open-door times each week when members of their staff
know they can contact them to discuss issues arising.
Make sure that personal development is actively discussed
Managerial time should be regularly scheduled to discuss staff progress and performance. This replaces the
complimentary or disciplinary conversations that can more easily take place ad hoc in a fixed office. Such
conversations give virtual staff the assurance that their professional development is being taken seriously and
that they are not ‘out of sight, out of mind’. By the same token, these scheduled conversations ensure that staff
do not hide behind their physical remoteness from management.
Lead by example
Rules for virtual staff need to be respected and observed by their managers. Meeting times must be met
and subsequent actions fulfilled; preparation should be thorough; objectives and targets completed to a high
standard and on time; and management should be contactable and transparent in their goals and activities.
Many commentators have remarked that managers of virtual teams have to be – and be seen to be – even more
energised and active than their fixed-working counterparts.
Be transparent with customers
Remote working arrangements have become normalised and widespread in business. So there is no need
to hide remote working from customers – internal as well as external. In fact, not only should remote working
be transparent to them, a virtue should be made of its use to improve staff work:life balance, happiness and
productivity, to access a wider talent pool, to retain key staff, and so on.
Managing at arm’s length / What does success look’s like? 16
Rule 6
Rule 7
Rule 8
Rule 9
Rule 10
Rule 5
5
6
7
8
9
10
Remote working is growing and will continue to do so.
Therefore, organisations that do not engage with the issue of
effective remote management will get left behind. Technology
will only get smarter, more powerful and cost effective; people
will continue to want more control over their lives as they search
for the optimal work:life balance; businesses will search for ever
more efficient ways of improving productivity and decreasing
cost. Newer entrants to the workforce are increasingly pressing
for an acknowledgement of this as they point out the feasibility of
working anywhere any time on a laptop, tablet or smartphone.
At the same time, increasing pressures on organisations of
all sorts – public as well as private sector – to cut costs while
delivering better services for longer periods (increasingly 24-7),
is making a strong business case for reducing or eliminating
fixed office space leases, especially as there is firm evidence
that flexible workers are more productive as well as happier
and more motivated. Adding force to this view is the
environmental argument against commuting and fixed space
energy requirements.
A majority of business professionals the world over now agree
that remote management is perfectly achievable, so long as
it is recognised that management need special training to
adapt to new ways of working. Nevertheless, it is not entirely
straightforward. There are still issues – such as distrust of flexible
workers on the part of their peers and managers, and isolation
and fear of being passed over on the part of the flexible workers
– to be overcome. To overcome these issues, organisations
need to invest in management training right now – in line with
pioneering counterparts that have already done so – if they are
not to lose competitive edge, attract and retain top talent, and
make valuable productivity gains.
Managing at arm’s length / Conclusion 17
Conclusion
work:lifebalance
Managing at arm’s length / Country Highlights 18
Country highlights
UK
Only 33% of UK respondents said that in their organisations
remote managers used video calls to communicate with
staff in the office and only 26 per cent said they had specific
reporting systems for managers to monitor teams working
remotely, at least some of the time.
USA
Two thirds of US respondents – just under
the global average – believe that junior
employees develop less rapidly if they are
managed remotely.
France
Only 26 per cent of French respondents
believe remote management helps
maintain a more professional relationship
with employees.
Germany
Thirty-two per cent of respondents
believe that remote management helps
employees switch off faster after work.
India
India is generally highly
enthusiastic about flexible working
and remote management, with 81
per cent of respondents saying
they manage someone or a team
remotely at least some of the time
and 72 per cent believing that
remote working helps employees
to switch off faster after work.
South Africa
Fifty per cent of South African respondents confirm
that their company has a specific reporting system
to monitor remote worker efficiency.
China
Chinese managers are the
most likely to be worried
about how remote workers
use their time, and they are
much more likely than average
to have specific reporting
systems for managers to
monitor the efficiency of
teams working remotely.
Mexico
Mexicans were
among the most
convinced that
remote management
helped employees to
switch off faster after
work (71%)
Australia
Thirty-eight per cent of respondents state
that their company has specific reporting
systems to monitor efficiency in remote
working teams.
Belgium
Seventy-five per cent of Belgian
respondents believe that junior
employee development can be
slowed by remote management.
Canada
Sixty-one per cent of Canadians said
they managed somebody or a team
remotely at least some of the time.
Brazil
Sixty-one per cent of Brazilian
workers surveyed are
convinced that effective remote
management is possible to
achieve with additional training.
Japan
Japanese respondents are
the least likely to think junior
employees become more
responsible through remote
working; to believe that remote
management helps maintain a
more professional relationship
with employees; and to feel
that remote management helps
employees to switch off faster
after work.
The Netherlands
Dutch respondents are the most sure that
junior employees become more responsible
through remote working.
Over 26,000 business respondents from over 90 countries were
interviewed during January 2013. They were sourced from Regus’
global contacts database of over 1 million business people
worldwide, which is highly representative of senior managers and
owners in business across the globe.
Respondents were asked about their views on remote
management, whether they managed or were managed remotely
at least some of the time and what practices their business had
adopted to facilitate remote management, if any. The survey was
managed and administered by the independent organisation,
MindMetre, www.mindmetre.com
Managing at arm’s length / Methodology 19
Methodology
Regus is the world’s largest provider of flexible workplaces, with
products and services ranging from fully equipped offices to
professional meeting rooms, business lounges and the world’s
largest network of video communication studios. Regus enables
people to work their way, whether it’s from home, on the road
or from an office. Customers such as Google, GlaxoSmithKline
and Nokia join hundreds of thousands of growing small and
medium businesses that benefit from outsourcing their office
and workplace needs to Regus, allowing them to focus on their
core activities.
Over 1 million customers a day benefit from Regus facilities that
are spread across a global footprint of 1500 locations in 600
cities and 100 countries, which allow individuals and companies
to work wherever, however and whenever they want to. Regus
was founded in Brussels, Belgium in 1989, is headquartered in
Luxembourg and listed on the London Stock Exchange.
For more information please visit www.regus.com
Managing at arm’s length / About Regus 20
About Regus

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Managing at arm's length

  • 1. A study into the practicalities and issues of managing a remote workforce Regus, September 2013 Managing at arm’s length
  • 2. 48%Percentage of respondents believe that remote working at least some of the time helps people switch off at the end of the day. Managing at arm’s length / Foreward 01
  • 3. In February 2013 the CEO of Yahoo, Melissa Mayer, ordered all the company’s workers back to fixed office working. The move – designed to prevent abuse of flexible working practices – was instantly pilloried by commentators around the globe as reactionary and short-sighted. Yet Ms Mayer’s reaction to poor performance is a common fear in the minds of managers contemplating the task of motivating and managing staff at a distance. The more sensible commentators observed that abuse of remote working practices by employees is not the fault of remote working itself, but simply a failure of management. After all, the challenge of managing a mobile workforce will not go away. Remote, mobile, flexible or even agile working – call it what you will – is now almost as common as fixed working. Soon the majority of us will no longer have a single, defined place of work. Given the win-win benefits, this is hardly a surprise – what organisation wouldn’t want fewer operating costs, higher productivity and employee retention, lower risk and enhanced employee work:life balance? Managing at arm’s length / Research 02 global?local? According to the 2013 Regus Global Business Survey almost fifty per cent of professionals across the globe now report that they work remotely for half their working week. 50%of professionals work remotely
  • 4. Managing remote workers is increasingly being recognised as an art in itself. As the inexorable move towards flexible working continues, it is likely that remote management training will become more and more prevalent. Technology is the great enabler, allowing workers to remain in contact with their colleagues in ever more sophisticated ways, wherever they may find themselves. However, successful remote working requires rather more than just providing employees with the latest equipment and letting them get on with it. Even with video communication tools allowing managers to actually see team members regardless of where they are, trust remains an important issue. There are also concerns about whether working away from colleagues and more experienced workers slows the development of younger team members. Nevertheless, members of Generations X (born 1965-1980) and Y (born after 1980) are certainly being remotely managed some of the time and are likely to feel sufficiently familiar with it to introduce more of it as they move into more senior roles. Managing at arm’s length / Research 03 Having been remotely managed themselves, Generations X and Y recognise the benefits of flexible working practices for all concerned, including an improved quality of life, lower costs and increased motivation and productivity. 37% And 43 per cent of managers use video calls to communicate with their teams when working remotely. 43% Across more than 90 countries analysed, specific reporting and monitoring systems are used by 37% of businesses to help managers and employees be effective when remote working. This Regus research report has found that over half (55%) of its respondents believe that the effective management of remote workers is perfectly achievable, but not without additional management training and skills development.55%
  • 5. Key findings and statistics Managing at arm’s length / Key findings and statistics 04 • Respondents reveal that managing people at a distance works – but it’s an art that needs special training. In fact more than half (55%) report that effective remote management is perfectly achievable, but not without specific management training and skills. • In spite of this, trust issues remain important as 54% of respondents say that management is worried about how remote workers spend their time. • In order to address the trust issue, a significant proportion of companies are reportedly turning to reporting systems to monitor the efficiency of remote teams (37%). • Remote managers also rely on technology to communicate with their teams with 43% using video calls for a more face-to-face feel than regular telephone calls or email. • Respondents are divided as to the effects of remote management on employee development, perhaps because the practice is still relatively new and its long-term effects need more time for solid evaluation to be made. • Although 68% of respondents consider that being managed remotely slows junior employee development, 37% believe that junior employees become more responsible faster if they are managed remotely. • However, given that 50% of Generations X and Y are being remotely managed at least some of the time, compared to only 41% of Baby Boomers (born 1945- 1964), there are grounds to believe that this trend is set to increase as younger generations enter more senior roles and apply the same flexibility of location that they experienced to their own teams. • 39% of respondents also report that one of the benefits of remote management is that relationships remain more professional. • Finally, almost half (48%) of respondents believe that remote working at least some of the time helps people switch off at the end of the day, improving their work:life balance. 55 54 37 43 50 68 50 33 48
  • 6. Just as the Industrial Revolution in the 18th and 19th centuries changed the way the world worked – moving people from working as individuals or in small groups – to producing things and services in vast factories or offices, so the Information Technology Revolution of the 21st century is moving work away from something that is done in huge groups to something that is done wherever and whenever, using technology to bring people together. Such has been the force of this development that remote working is to all intents and purpose standard practice for many professionals. People want to improve their work:life balance (a growing expectation amongst the younger generations). Firms want to improve people productivity by reducing fixed office operating costs, eliminating the financial waste and environmental impact of under-occupancy, and cut commuting. Remote working now mainstream Managing at arm’s length / Remote Working Now Mainstream 05 Technology has enabled remote working, and drop-in workspace networks stretching round the world keep the working environment professional, wherever someone needs to be.
  • 7. Managing at arm’s length / Predicted Growth 06 By 2015, the world’s mobile worker population will reach 1.3 billion, representing 37.2 per cent of the total workforce. The most significant gains will be in the emerging economies of Asia/Pacific thanks to continued, strong economic growth, while the Americas will experience a slower growth rate due to a protracted economic recovery and high rates of unemployment. “Despite recent market turmoil, mobility continues to be a critical part of the global workforce and we expect to see healthy growth in the number of mobile workers,” says Stacy Crook, senior research analyst for IDC’s Mobile Enterprise Research programme, responsible for this forecast. This view is supported by a study published by the internet company Cisco, which found that college students and workers aged between 18 and 30 (Generation Y) were so obsessed with using technology all the time that they were “always connected” and saw little distinction between work and social time when it came to using devices, whether they were owned by themselves or their employers. Face-to-face meetings with customers and prospects would also change, with 72 per cent believing getting together in person will become increasingly rare. The company, which carried out the study in December 2011, said that businesses were already getting fit for purpose by investing in cloud-based software, virtual private networks or in new tools to ensure that remote teams remained connected and engaged. The growth in video communication and social media across corporate networks was also supporting this migration away from the traditional office. Predicted growth In the UK, a study by Virgin Media Business found that company chiefs predicted that more than half of employees would work from home within the next decade.50%
  • 8. 60% This development could also have other benefits. Virgin predicted that not only could businesses potentially make huge savings by reducing the numbers of people working in offices in central London and elsewhere, but the travel network could be under less pressure as well. London’s public transport network currently caters for 25 million journeys every single day. If the predictions of the UK’s business leaders come true, and nearly two thirds expect to be commuting less often, that number could tumble to a more manageable 10 million journeys, the report concludes. In Japan, the case for remote working has been made by dramatic events. The March 2011 earthquake and tsunami threw wide regions of the country into chaos, and this provided a powerful incentive for companies to allow more of their employees to work remotely. For example, the industrial producer Teijin has enabled 2,000 employees to telework and electronics company Hitachi has extended its existing teleworking policy to include all workers. Internet business Softbank has made it possible for marketing staff to work from home. In Australia, the federal government is enthusiastic about remote working and has launched the National Digital Economy Strategy, which aims to double the number of Australians who telework to 12 per cent by 2020. Meanwhile, a report by Colmar Brunton and Deloitte Access Economics showed that if 10 per cent of Australians were to telework 50 per cent of the time, it would save 120 million litres of fuel and 320,000 tonnes of carbon emissions. Even in China, as the country’s economic power grows, telework or telecommuting is on the rise as part of a general introduction of western-style work practices. Perceived benefits Managing at arm’s length / Perceived Benefits 07 The report also focused on more mature workers and revealed that 60% of mature workers would take up telework if it was available to them and, as a result, delay retirement by an average of 6.6 years – which is important in view of the ageing of the population and the impact on overall participation rates. 74% of people not in the labour force with family or career responsibilities reported that they would take up a telework employment opportunity.
  • 9. 55% However, not everybody is convinced that these developments make business sense. In the United States, much has been made of the decision by Marissa Mayer, the incoming head of the internet company Yahoo, to demand workers return to the office. The decision was apparently prompted by a desire to encourage greater team collaboration to help Yahoo improve its business. Meanwhile, although there is much academic research to suggest that employees who are allowed to work remotely enjoy greater motivation and are more engaged, a 2011 report by WorldatWork discovered that fewer employed Americans did so regularly in 2010 than in 2008. The drop from 33.7 million to 26.2million was attributed in part to remote workers (often referred to as teleworking in the US) being perceived negatively – a problem at a time of high unemployment. More than a quarter of employees viewed being able to telework as a “reward”, in line with the fact that employers saw it as a worker benefit. In Canada, meanwhile, the Microsoft Canada Flexible Workplaces report found that only a quarter of managers thought that their employees were more productive when working remotely. This was compared to the 55 per cent of workers who believed that they themselves were more productive – showing a clear disconnect between the thinking of management and employees. Something emphasised by the finding that six out of 10 bosses also thought that they were more productive when working remotely. The managers’ major concerns about remote workers included finding the inability to meet face-to-face a challenge; feeling remote workers were less focused than those in the office; worries about the lack of accountability; and a perception that remote workers did less than their office counterparts. Counterpoints Managing at arm’s length / Counterpoints 08 of workers who believed that they themselves were more productive...
  • 10. The continuing development of ever-smarter forms of mobile, tablet and cloud-based software technology, enabling increasing numbers of employees to work away from their offices, is creating a challenge for management. On the one hand, the technology that enables workers to do many of their tasks as effectively at home, on the road or elsewhere produces much- needed efficiencies at a time of great competition and offers the potential for increased productivity, especially at a time when organisations of all sorts are expected to be operative 24 hours a day, seven days a week. On the other, it is being used by workers – especially those newer to the workforce – to justify demands for greater flexibility in where, when and how they work. The challenge of remote management Managing at arm’s length / The Challenge of Remote Management 09 Japan Mexico India France Brazil South Africa China Global Average Canada USA Australia UK Belgium Germany Netherlands 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fig. 1 55%Proportion of respondents who think that effective remote management is perfectly possible, but only with additional training. Effective remote management is possible, but only with additional training Global Average
  • 11. Whatever is driving it, managers have a challenge they have never really encountered before – remote management. That is, they need to be able to inspire, motivate and control people they cannot always see as well as those who are sharing the same physical space as them. Encouragingly, nearly two thirds of respondents in the Regus survey interviewing over 26,000 business people in more than 90 countries believe that with additional training and skills development, the effective remote management of dispersed team members is achievable. However, there appear to be clear national differences in attitudes. The Japanese, for example, are strong supporters of this view along with most emerging economies, while respondents in Germany, the Netherlands and the UK are less likely to believe that additional training is an enabler of effective remote working. The USA, Canada and China are close to the global average, confirming that Chinese perceptions of remote working are becoming aligned to western standards. Managing at arm’s length / The Challenge of Remote Management 10 Dutch respondents are also the least likely to agree that managers are worried about how remote workers use their time, suggesting that Dutch management is more open-minded towards flexible working than most. By contrast, China tops the table in this category, followed by Mexico and South Africa. All three are significantly above the global average of 54%. China Mexico South Africa India Brazil USA Canada Global Average France Germany Australia UK Belgium Japan Netherlands 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90Countries surveyed... Fig. 2 55%Proportion of respondents who say management are worried about how remote workers use their time Managers in my company are worried about how remote workers use their time Global Average
  • 12. Businesses appear to be taking steps to bring some rigour to the area of remote working. More than a third use specific efficiency- monitoring reporting systems for remote teams, while 43 per cent of remote managers use video calls to communicate with their team in the office – thereby demonstrating that new technologies are helping remote working become more manageable, as well as facilitating it in the first place. India, China and Brazil – all countries where management was more than averagely concerned about productive use of staff time – are among the leaders in this area. Reporting systems Managing at arm’s length / Reporting Systems 11 Fig. 3 Fig. 4 35%Respondents reporting their company has a specific reporting system to monitor efficiency in teams that work remotely. China India South Africa Brazil Mexico Australia Global Average Canada USA France UK Belgium Netherlands Japan Germany 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Global Average We have a specific reporting system to monitor efficiency in teams that work remotely China India South Africa Brazil Mexico Australia Global Average Canada USA France UK Belgium Netherlands Japan Germany 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 43%Respondents reporting that in their organisation video communication is used to communicate with remote workers. Global Average In my organisation we use video communication to communicate with remote workers
  • 13. Respondents are also concerned about how junior employees develop, with 68 per cent around the world feeling that being managed remotely slows their development (see Figure 5). This is a special worry in Australia and France, where more than three quarters feel it is an issue. Dutch workers confirm their open view on flexible working, and Chinese and Brazilian respondents highlight how their countries have embraced the practice. Employee development Managing at arm’s length / Reporting Systems 12 Fig. 5 75%of workers in Australia and France feel that being managed remotely slows their development France Australia Belgium South Africa UK Mexico Germany India Global Average Japan USA Canada Netherlands China Brazil 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 68% Proportion of respondents who think that junior employees develop less rapidly if they are managed remotely. Global Average I think junior employees develop less rapidly if they are managed remotely
  • 14. Managing at arm’s length / Employee Development 13 Conversely, as can be seen in Figure 6, over a third (37%) of respondents consider that junior employees become more responsible faster if they are managed remotely. This view is particularly strong in the Netherlands and many emerging economies with the exception of Mexico. Thirty-nine per cent feel that relationships remain more professional with some remote working (see Figure 7). This view was particularly strongly felt in China, but not in Japan. Fig. 6 Fig.7 Netherlands Brazil China South Africa India Global Average UK Canada Belgium Australia USA Mexico France Germany Japan 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 37%Proportion of respondents who think that junior employees become more responsible through remote working. Global Average I think junior employees become more responsible through remote working 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% China Brazil Germany Netherlands India South Africa Mexico Global Average Belgium Canada USA UK Australia France Japan 39% Respondents reporting that in their organisation video communication is used to communicate with remote workers. Global Average I think remote management helps maintain a more professional relationship with employees
  • 15. One of the most contentious issues is whether remote management helps employees to switch off faster after work. Across all countries analysed, roughly half of respondents agree with the notion. However, opinion varies between Japan – which appears to be generally sceptical about the benefits of remote working – and the surprisingly lukewarm Netherlands on the one hand, and India and Mexico on the other, where nearly three quarters of respondents agree with the notion. This may be connected with the commuting stresses caused by the transport issues in countries with extreme urban congestion. Switching off Managing at arm’s length / Switching Off 14 Fig.8 India Mexico China Belgium South Africa USA Brazil Canada France Global Average Australia UK Germany Netherlands Japan 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 50% Proportion of respondents who think that remote management helps employees to switch off faster after work. Global Average Remote management helps employees to switch off faster after work
  • 16. This study has established that business feels upbeat about managing a remote workforce, but also recognises that special skills need to be developed for the new style remote manager. Based on the collective insight of a number of leading thinkers as well as the experience Regus has gained from helping thousands of businesses move from a fixed to a more flexible mode of working, outlined below are the ten rules for the effective management of a remote workforce. Establish an atmosphere of trust and responsibility There is no point in creating virtual teams and then being so worried about whether they will get on with their work, that you micromanage them. So trust is an essential part of the remote team. However, so is their own responsibility. Set up a granular, but easy to use micro-reporting system so they can effectively monitor themselves. This should be as automated as possible – there are a wide variety of free and paid for tools and apps that can facilitate this – that not only makes achievement visible to management, but also helps the employee self-manage and prioritise. Be overt about the rules and write new contracts A new way of working demands a revised contract that clearly sets out the duties and responsibilities of both employee and manager. Remote working does require more reporting to management, so clearly specify what this entails. Definitions of success and failure should be documented together with the rewards and penalties associated with each. Establish clear goals and measure on outputs Managers have to learn to manage goals and outcomes, not tasks. The first step is clear thinking to establish what those goals are. Meeting agendas have to become clear, descriptive and outcome-oriented so there can be no excuse for coming to a meeting unprepared, nor confusion over what is to be achieved afterwards, and by when. Management also have to analyse which elements of process (‘how an outcome is achieved’) they think are important and therefore have to be described and enforced. Promote corporate culture and facilitate relationships Some organisations have noted that they perceive remote working as a positive force to ‘de-politicise’ the work environment. No longer is presenteeism an option for currying management favour. Facts, actions and outcomes are everything. But it has to be recognised that remote workers have fewer opportunities to interact with colleagues and form productive relationships in a virtual world. Therefore, an active programme has to be constructed that allows colleagues to spend time together outside of purely completing work tasks. There has to be focused attention on making work fun and providing virtual workshops or brainstorming sessions where people can laugh, game or have open discussions. Managing the remote workforce - What does success look like? Managing at arm’s length / What does success look like? 15 Rule 1 Rule 2 Rule 3 Rule 4 10rulesfor the effective management of a remote workforce 1 2 3 4
  • 17. Provide professional local/flexible workspace Research has shown that homeworking is often not conducive to productive working because of disturbances, distractions and lack of professional working facilities. Providing staff with access to drop-in professional workspace, close to their home or their itinerary, provides them with the combination of locality and professional working environment. This is both motivating and encourages focus and productivity. Ensure the technology platform is robust Virtual workers are dependent on technology, so it is essential that the technology you provide is easy to use, and is quick, reliable and robust. Encourage the use of video conferencing so that people are not just remote voices to one another, but can see each other’s expressions. Ensure that cloud-based applications enable functions such as database access or printing whichever business centre the employee is working from. Organise regular communication and encourage feedback Organise regular virtual meetings to keep staff talking to one another, but avoid purposeless meetings. Make sure people understand meeting etiquette and do not simply dial in while working on other tasks. Ensure active participation from all parties and actively encourage feedback and opinion. Where possible, acknowledge and act on feedback. Managers should also have regular open-door times each week when members of their staff know they can contact them to discuss issues arising. Make sure that personal development is actively discussed Managerial time should be regularly scheduled to discuss staff progress and performance. This replaces the complimentary or disciplinary conversations that can more easily take place ad hoc in a fixed office. Such conversations give virtual staff the assurance that their professional development is being taken seriously and that they are not ‘out of sight, out of mind’. By the same token, these scheduled conversations ensure that staff do not hide behind their physical remoteness from management. Lead by example Rules for virtual staff need to be respected and observed by their managers. Meeting times must be met and subsequent actions fulfilled; preparation should be thorough; objectives and targets completed to a high standard and on time; and management should be contactable and transparent in their goals and activities. Many commentators have remarked that managers of virtual teams have to be – and be seen to be – even more energised and active than their fixed-working counterparts. Be transparent with customers Remote working arrangements have become normalised and widespread in business. So there is no need to hide remote working from customers – internal as well as external. In fact, not only should remote working be transparent to them, a virtue should be made of its use to improve staff work:life balance, happiness and productivity, to access a wider talent pool, to retain key staff, and so on. Managing at arm’s length / What does success look’s like? 16 Rule 6 Rule 7 Rule 8 Rule 9 Rule 10 Rule 5 5 6 7 8 9 10
  • 18. Remote working is growing and will continue to do so. Therefore, organisations that do not engage with the issue of effective remote management will get left behind. Technology will only get smarter, more powerful and cost effective; people will continue to want more control over their lives as they search for the optimal work:life balance; businesses will search for ever more efficient ways of improving productivity and decreasing cost. Newer entrants to the workforce are increasingly pressing for an acknowledgement of this as they point out the feasibility of working anywhere any time on a laptop, tablet or smartphone. At the same time, increasing pressures on organisations of all sorts – public as well as private sector – to cut costs while delivering better services for longer periods (increasingly 24-7), is making a strong business case for reducing or eliminating fixed office space leases, especially as there is firm evidence that flexible workers are more productive as well as happier and more motivated. Adding force to this view is the environmental argument against commuting and fixed space energy requirements. A majority of business professionals the world over now agree that remote management is perfectly achievable, so long as it is recognised that management need special training to adapt to new ways of working. Nevertheless, it is not entirely straightforward. There are still issues – such as distrust of flexible workers on the part of their peers and managers, and isolation and fear of being passed over on the part of the flexible workers – to be overcome. To overcome these issues, organisations need to invest in management training right now – in line with pioneering counterparts that have already done so – if they are not to lose competitive edge, attract and retain top talent, and make valuable productivity gains. Managing at arm’s length / Conclusion 17 Conclusion work:lifebalance
  • 19. Managing at arm’s length / Country Highlights 18 Country highlights UK Only 33% of UK respondents said that in their organisations remote managers used video calls to communicate with staff in the office and only 26 per cent said they had specific reporting systems for managers to monitor teams working remotely, at least some of the time. USA Two thirds of US respondents – just under the global average – believe that junior employees develop less rapidly if they are managed remotely. France Only 26 per cent of French respondents believe remote management helps maintain a more professional relationship with employees. Germany Thirty-two per cent of respondents believe that remote management helps employees switch off faster after work. India India is generally highly enthusiastic about flexible working and remote management, with 81 per cent of respondents saying they manage someone or a team remotely at least some of the time and 72 per cent believing that remote working helps employees to switch off faster after work. South Africa Fifty per cent of South African respondents confirm that their company has a specific reporting system to monitor remote worker efficiency. China Chinese managers are the most likely to be worried about how remote workers use their time, and they are much more likely than average to have specific reporting systems for managers to monitor the efficiency of teams working remotely. Mexico Mexicans were among the most convinced that remote management helped employees to switch off faster after work (71%) Australia Thirty-eight per cent of respondents state that their company has specific reporting systems to monitor efficiency in remote working teams. Belgium Seventy-five per cent of Belgian respondents believe that junior employee development can be slowed by remote management. Canada Sixty-one per cent of Canadians said they managed somebody or a team remotely at least some of the time. Brazil Sixty-one per cent of Brazilian workers surveyed are convinced that effective remote management is possible to achieve with additional training. Japan Japanese respondents are the least likely to think junior employees become more responsible through remote working; to believe that remote management helps maintain a more professional relationship with employees; and to feel that remote management helps employees to switch off faster after work. The Netherlands Dutch respondents are the most sure that junior employees become more responsible through remote working.
  • 20. Over 26,000 business respondents from over 90 countries were interviewed during January 2013. They were sourced from Regus’ global contacts database of over 1 million business people worldwide, which is highly representative of senior managers and owners in business across the globe. Respondents were asked about their views on remote management, whether they managed or were managed remotely at least some of the time and what practices their business had adopted to facilitate remote management, if any. The survey was managed and administered by the independent organisation, MindMetre, www.mindmetre.com Managing at arm’s length / Methodology 19 Methodology
  • 21. Regus is the world’s largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios. Regus enables people to work their way, whether it’s from home, on the road or from an office. Customers such as Google, GlaxoSmithKline and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities. Over 1 million customers a day benefit from Regus facilities that are spread across a global footprint of 1500 locations in 600 cities and 100 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit www.regus.com Managing at arm’s length / About Regus 20 About Regus