What is distributed work?

Distributed work refers to a way of working in which companies have one or more employees who work in different physical locations, a model on the rise—in the first quarter of 2024, an estimated 35.5 million people in the U.S. teleworked for pay. This work model may comprise:

• on-site teams at one or more office locations
• remote employees who work from home, coworking spaces, or are traveling
• digital nomads

Looking to simplify your international payroll operations? Pay your global team compliantly and on-time with Oyster.

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

Distributed work describes how an organization structures its workforce across multiple locations, while remote work simply means working outside a traditional office.

Remote work is purely procedural (working somewhere outside the office), whereas distributed work requires a new way of thinking about how companies are collaborating and working together.

Benefits of distributed work

Why are so many companies embracing distributed work? It's more than a trend—it's a strategic advantage that unlocks key benefits for your business and your people, with research showing the rise in remote work is associated with an increase in industry-level TFP (Total Factor Productivity).

• Access to global talent: Hire the best candidates worldwide, expanding your talent pool significantly.
• Higher employee satisfaction: Flexibility and autonomy boost morale and retention, with global data showing that fully remote workers are the most likely to be engaged at work compared to hybrid or fully on-site employees.
• Greater business resilience: A geographically dispersed team is less vulnerable to local disruptions, from natural disasters to economic shifts.
• Reduced overhead costs: With no need for a large central office, companies can save significantly on real estate and facility expenses; in fact, an increase in remote workers is associated with a decrease in unit office building costs growth.

How to manage a distributed workforce

Managing a team across different locations and time zones requires a thoughtful approach. It's less about surveillance and more about trust, communication, and clear outcomes. Here's how to set your distributed team up for success:

• Prioritize clear communication: Create a single source of truth for important information and embrace asynchronous communication across time zones.
• Set clear expectations: Define goals, responsibilities, and deadlines clearly. Focus on the results your team produces, not the hours they work.
• Foster trust: Give team members autonomy—it's essential for distributed team success.
• Invest in connection: Intentionally create opportunities for social interaction, whether through virtual coffee chats or team-building activities, as research has found that creativity lessened when working virtually compared to in-person collaboration.

Tools and infrastructure for distributed teams

What's the secret to keeping a distributed team connected? The right technology stack. Your tools should eliminate friction, not create it—think of it as building a digital headquarters.

Essential tools often fall into a few key categories:

• Communication hubs: Platforms like Slack or Microsoft Teams for real-time and asynchronous conversations.
• Project management software: Tools like Asana, Trello, or Jira to track tasks and progress transparently.
• Global employment platforms: A solution like Oyster to compliantly hire, pay, and care for team members anywhere in the world, handling the complexities of local laws, payroll, and benefits.

Example of distributed work

Oyster is the perfect example of a distributed workforce. With no central office, all Oyster's employees work remotely in locations around the world.

Start building your distributed workforce globally

Distributed work transforms hiring from a local challenge into a global opportunity. It allows you to build a more diverse, resilient, and engaged team by focusing on talent and skill, not location. But navigating the complexities of global employment, from compliance to payroll, can feel overwhelming.

Oyster's global employment platform simplifies the entire process. We empower you to hire, pay, and care for talented people in over 180 countries—without the need to set up local entities. Ready to build a world-class team, no matter where they are? Start hiring globally and see how simple it can be.

FAQs

What does distributed work mean?

Distributed work is when employees collaborate from multiple locations without a central headquarters.

What is another word for distributed workforce?

Common terms include "remote-first team," "location-independent workforce," or "global team."

How is work distribution different from task delegation?

Work distribution is about spreading your workforce across locations, while task delegation is simply assigning specific duties to team members.

Disclaimer: This article and all information in it is provided for general informational purposes only. It does not, and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.