STAFFING RESOURCE CENTER

Cloud computing, wireless internet and mobile connectivity have helped pave the way for the widespread adoption of remote work in U.S. companies. In fact, a recent Gallup survey revealed that 43 percent of American workers spend at least some time working remotely, a number that has been on the rise since 2012. Business leaders like remote work options because they eliminate geographic boundaries to hiring and open up a global talent pool. Employees like remote work for several important reasons, according to data from Inc.com:

• Forty-six percent of employees say that flexible options improve job satisfaction because it supports work-life balance.

• When asked what would keep them with their current employer, 26 percent of employees cited flexible work arrangements.

• Seventy-three percent of managers said that flexible work options have a positive impact on employee satisfaction.

Remote Work Eliminates The "Water Cooler"

Given the fact that employers and employees have real reasons to love remote work, it would seem logical that companies of all sizes across all industries would embrace remote work. However, corporations that once led the way in building remote teams -- IBM, Bank of America, Aetna, and Yahoo -- have actually been ordering workers back to the office.

Many companies that have scaled back on remote work cite the "water cooler effect" for this return to the traditional cubicle setup. The water cooler effect is the idea that the best ideas and innovations occur in casual encounters among co-workers around the office.

This makes a great deal of sense. When co-workers and colleagues are located just a few steps away, it's only natural that people would strike up conversations about projects they are working on and solicit advice and input on problems they are having. Such spontaneous conversations are not as possible when the workforce is dispersed across the county, state or country. It's easy to understand why business leaders feel that dispersed teams are less cohesive and collaborative.

The Business Benefits of Remote Work

While remote work eliminates the water cooler effect, there is data that supports the idea that people work better when they work from home. According to a Global Analytics study of more than 4,000 remote workers, the advantages of telecommuting outweigh the drawbacks two-to-one. Remote work, the study says, increases worker productivity, engagement, collaboration and retention, while also helping businesses cut costs.

Furthermore, Gallup data shows that engagement actually increases when employees are allowed to split their time between working from home and working in the office. Engagement reaches its peak when employees spend 60-80 percent of their time working off-site. Researchers believe this is because people like to feel balanced. Partial telecommuting allows people to work from home but still feel like part of the team when they come to the office.

So, Should You Embrace Remote Work or Cut It Off?

Remote work increases individual engagement, but working from the office increases collaboration. So, the answer isn't black-or-white. Success really depends on the company's ability to manage remote workers effectively to provide both independence and collaboration at the same time. This can be achieved through:

• Connecting the individual to business goals: Employees will feel more engaged if they understand how their work helps move the company towards success.

• Promoting idea sharing: Collaboration and innovation happen more naturally in the office, but it can be facilitated across remote teams through communications and file-sharing tools that keep everyone connected.

• Managing objectives: Many leaders worry that people are goofing off when they work from home. Instead of micromanaging time, focus on objectives and milestones and measure success by employee output.

• Providing ongoing feedback: Many companies are eliminating annual performance reviews in favor of providing continuous, real-time feedback. This is an especially effective strategy for remote workers who might feel a bit disconnected from the team.

• Splitting the time: Remote workers who live within commuting distance should be encouraged to come into the office two days a week to create engagement and balance.

Finally, the success of remote teams really depends on the people you hire. It is important to not only find people with the skills required to do the job, but also to choose people who are self-motivated, disciplined and who communicate well in writing. This isn't always an easy task, especially when remote work options allow you to open your talent pool to the entire country -- or the globe. This is where a strategic staffing partner can help. The right recruiters can help you build an effective team and realize the true business benefits of remote work arrangements.