Co-Founder and CEO at Y Scouts. Y Scouts is the world's first purposed based leadership search firm.
getty
Some may cheerfully proclaim that working from home is here to stay, while others are a lot less chipper about the notion. Clearly, the world has changed, but virtual positions aren’t for everybody. Virtual leadership, in particular, can be challenging for some companies.
According to a May 2021 Harris Poll, 40% of employees said they want to work from home post-pandemic. Still, there will be plenty of qualified candidates in either case. When you’re looking to hire your next leader and you have the choice of remote versus local talent, which should you select? There are pros and cons to each.
The Advantages And Disadvantages Of Local Hiring
Reed Hastings, Netflix co-founder and co-CEO, comes down on the curmudgeon side, believing there’s nothing positive about remote work. Goldman Sachs and JPMorgan CEOs agree. David Solomon of Goldman Sachs calls virtual work an aberration. Those are harsh words, but it tells us just how positive they are about the benefits of office life.
Here are some of the reasons why local work may be favored:
Pros
• Human Connection: Most businesses rely on camaraderie and collaboration, something that’s missing even with the best software solutions. According to Dropbox’s research team studies, despite the many tools that help employees work together, there’s still an element of human connection required. Personal interactions and emotional connections build trust.
• Synergies: Progressive office spaces are often set up to facilitate creative energy flow. People with different communication styles and various strengths can easily collaborate without calling a meeting. There is no substitute for the subtleties of body language and voice tone that are captured in person.
• Mentorship Opportunities: Young employees need exposure to seasoned professionals and others who may help them develop. Although you can structure programs, the most effective mentoring is organic and in person. Those who need mentoring will likely develop closer bonds with the people they see rather than the ones they don’t.
And then there are the reasons why building an office-centered team isn’t such a good idea:
Cons
• Pricey Real Estate: The average cost of U.S. office space is expensive. For instance, the average rental space costs just under $15,000 per employee per year in New York City. Of course, there are less expensive places, but the costs can still be significant when you consider executive spaces.
• Noise Levels: Open floor plans in many offices create plenty of racket. Studies confirm that the constant din of conversations, footsteps and office equipment actually causes people to be 25% crankier than usual and to sweat 34% more. That’s probably not so great for productivity.
• Potential Health Risks: In addition to the spread of diseases like Covid-19, there are other potential health risks to consider. They include slip and trip hazards, ergonomic factors, repetitive movement injuries, eye strain, falling objects and even occupational violence.
The Advantages And Disadvantages Of Virtual Hiring
Proponents of virtual teams believe that there are ways to preserve and even enhance your company culture regardless of where people sit in the world. They favor remote work for other reasons, as well:
Pros
• Less Stress: Unfortunately, most commutes don’t include an idyllic train ride gazing out on cows grazing in green pastures. According to the U.S. Census Bureau, the average round-trip commute is nearly an hour. In many urban areas, commutes can exceed 90 minutes daily. Long commute times are associated with depression, stress and even insomnia.
• Cost Savings: Concerns over money are a significant drain on workplace productivity. According to researchers, workers in the largest U.S. cities spend an average of $5,679 annually commuting, which is a hefty pay cut. There are other expenses, as well, including professional clothes and lunches out.
• More Diverse Hiring Pool: With no defined geographic location, companies will have a larger pool of viable candidates to choose from, an increasingly important factor post-pandemic. Also, working remotely allows candidates to live where they prefer (or can afford) while doing the work they love.
• Less Drama: The stress of working closely together can cause tempers to flare. Passive-aggressive activities can lead to uncomfortable office drama and awkward relationships. This type of conflict drains managerial time that should be focused on driving bottom-line results.
There are, of course, the downsides to virtual work:
Cons
• Always On: Many remote leaders report that they never feel off duty. They have trouble establishing boundaries and believe that they must always be available to take a call from the CEO or an important client. Some may overcompensate by working excessive hours to prove their relevance.
• Different Skill Sets: When managers can’t see the team, they may struggle with control issues. Perhaps the most pressing issue for managers who are accustomed to closer contact is to understand how to adapt their skills and trust employees. For some, the switch from the daily line of sight to managing by results is difficult.
• Getting Promoted: According to the Washington Post (paywall), research in the U.S. and China shows that promotions are reduced roughly by half for those who work from home. Colleagues may be unaccustomed to using video conferencing or may forget to patch in virtual workers. Remote leaders miss out on impromptu social invitations and informal conversations that build trust.
Company Type And Culture
Opponents of virtual teams are quick to point out that their companies need personal connections and spontaneous collaboration. This is true for other companies and cultures, as well. But before you decide there’s only one way to get the work done, ask what’s worth maintaining and what’s just a nostalgic remnant of a bygone era.
Beyond any list of pros and cons, consider the unique aspects of your company and its organizational DNA. The journey will differ for every organization. When you understand what matters most to leadership, your employees and the communities you serve, you’ll have greater clarity.
Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
