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April 1, 2022   FinTech and Alternative Finance, Fintech Opinions, Leadership, Productivity, Competition, Human Capital, Health   No comments

Pros and Cons of a Distributed Workforce

Guest Post | Apr 1, 2022

distributed workforce - Pros and Cons of a Distributed Workforce

Distributed workforces are growing increasingly common, even as COVID-19 restrictions ease. Having employees work from all around the world is too beneficial for companies to pass up. But with the pros of a distributed workforce, there are also some cons. Keep reading to find out what they are.

Pros:

Increased Productivity

Contrary to popular belief, research shows that productivity increases with a distributed workforce. Remote workers feel motivated and are more likely to work overtime from the comfort of their homes.

Larger Candidate Pool

A distributed workforce allows companies to choose from a broader set of candidates for each role. This is great if you’re looking for very in-demand specialists like developers or engineers. But finding top talent might also be more challenging due to the increased number of applicants.  A distributed workforce allows companies to choose from a broader set of candidates for each role. This is great if you’re looking for very in-demand specialists like developers or engineers. But finding top talent might also be more challenging due to the increased number of applicants. By utilizing tools such as third-party staffing agencies and attending staffing webinars, you can be sure to find top talent in the roles you are looking to fill.

Diversity

Having employees from a wide range of backgrounds, beliefs, and ideals can boost innovation. There are two forms of diversity:

  • Inherent - traits someone is born with like gender, ethnicity, race, etc.
  • Acquired - traits someone acquires through experience.

To reap all benefits, a team should include both forms of diversity.

Read:  58 Must-Read Remote Work Resources | 50 Great Remote Working Resources

Improved Work-Life Balance

Most remote employees enjoy an improved work-life balance. A distributed workforce allows employees to easily plan their day without worrying about how they’ll get to and from work. They can also take more efficient breaks at home, making them more productive when they’re working.

More Savings

A diversified workforce brings savings both to organizations and employees. Companies save on renting costs for offices or parking spaces. Workers don’t have to worry about travel expenses or food. Not commuting to work also reduces the carbon footprint, which is good for the environment.

Cons:

Increased Security Risks

A distributed workforce means more security risks as all communication and file transfers have to be done online. Having solid cyber hygiene is crucial. This includes protecting devices with antivirus software and firewalls, using tools for password security, etc.

Managing Employees

Without face-to-face interaction, it can be challenging for management to direct employees and gauge their performance. It’s important to hire reliable staff and use tools like online calendars or to-do lists to keep track of what employees are doing.

Isolation

Remote workers might start to feel isolated from their company, leading to stress and anxiety. Managers will have to keep these employees happy and productive. First, it’s important to promote honest communication and organize remote team building activities. Additionally, you can provide therapy sessions or a subscription to a mental health app like Mindletic or Yoursapp.

Motivation Challenges

Some employees may have difficulty staying motivated without seeing others around them being productive. Procrastination and a laid-back attitude can easily become a habit, leading to a downfall in one’s professional life. Establishing a dedicated workspace and limiting distractions is crucial to remaining productive outside the office.

Final Thoughts:

If a company isn’t tied to a physical location, people can work from anywhere. A distributed workforce brings many benefits, but there are also several drawbacks. By understanding them and taking steps to reduce the negative effects, businesses can make the most out of their remote work model.

NCFA Jan 2018 resize - Pros and Cons of a Distributed WorkforceThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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