Fully Distributed

A fully distributed or remote-first company is an organization where all or most of its employees work remotely from different locations, rather than working together in an office setting. This means that employees can work from anywhere in the world, as long as they have a reliable internet connection and the necessary tools to do their job. This allows for more flexible work arrangements and can help reduce costs for the company, such as office rent and utilities.

What is a Fully Distributed company?

A remote, or fully distributed, workplace policy refers to a set of guidelines and practices that organizations implement to enable employees to work from locations outside of a traditional office setting, often from their homes or co-working spaces. This policy typically addresses various aspects of remote work, such as communication, collaboration, performance management, work hours, and technology requirements. The goal of such a policy is to ensure productivity, accountability, and a healthy work-life balance for employees while maintaining the organization's objectives and values.

How do Fully Distributed companies work?

The key to successful remote work is not just about having the right tools, but also about creating the right culture. This means fostering transparency, setting clear expectations, providing support for employees to set up their home offices, encouraging work-life balance, and making an effort to build connections between team members.

Background

The concept of remote work emerged with the advent of telecommuting, enabled by the development of telecommunication technologies. Jack Nilles, an engineer, is often credited with coining the term "telecommuting" in 1973. During the 1980s and early 1990s, technological advancements, such as personal computers and the internet, made remote work more viable. Companies like IBM and AT&T started experimenting with remote work policies.

The widespread adoption of high-speed internet, smartphones, and cloud-based tools accelerated the growth of remote work. Mainstream recognition came in the 2010s as companies like Automattic, Buffer, and Zapier championed remote work, proving its viability and effectiveness.

Since March 2020, the COVID-19 pandemic forced organizations worldwide to adopt remote work policies to maintain business continuity. This shift led to a rapid acceleration in remote work adoption and the development of new tools and policies to support remote workforces. As a result, remote work has become a permanent fixture for many organizations

Examples of Fully Distributed Companies

GitLab: GitLab is an open-source web-based DevOps lifecycle tool that provides a Git-repository manager providing wiki, issue-tracking, and continuous integration and deployment pipeline features. It's well-known in the tech industry for its fully remote-first workforce. GitLab has no physical office and all of its more than 1,000 employees across 65+ countries work remotely. The company has thoroughly documented its remote work practices, providing valuable insights for other businesses.

Automattic: Automattic is the company behind WordPress.com, WooCommerce, Jetpack, and many other popular online platforms. Its workforce is fully distributed, with over 1,300 employees working from 77 countries. Automattic is a great example of a successful large-scale, remote-first company, having mastered the art of managing a scattered workforce while maintaining high productivity and a strong company culture.

Basecamp: Basecamp is a project management and team communication software company. They've been proponents of remote work for many years, even writing a book about it called "Remote: Office Not Required". The team at Basecamp is scattered across 32 countries around the world.

Zapier: Zapier is a global remote company that allows end-users to integrate the web applications they use. Although the company was founded in California, USA, it's been a fully remote company since inception. Zapier maintains a team of around 300 employees across 27 countries, showing how the remote-first model can support a diverse and global team.

Benefits

Flexibility: Remote work policies provide employees with greater flexibility in managing their work hours and personal life, leading to improved work-life balance.

Talent pool: Companies can access a wider talent pool by hiring employees from diverse geographical locations, without being limited by proximity to a physical office.

Cost savings: Organizations can save on overhead costs such as office space, utilities, and equipment by adopting a remote work policy.

Increased productivity: Many studies have shown that remote employees can be more productive due to fewer distractions, reduced commuting stress, and a more comfortable work environment.

Employee retention: Offering remote work opportunities can enhance employee satisfaction, leading to better retention and reduced turnover rates.

Environmental impact: Remote work policies can help reduce carbon emissions by cutting down on daily commutes, contributing to a greener and more sustainable environment.

Challenges

Communication: Remote teams may experience communication challenges due to time zone differences, limited face-to-face interactions, and reliance on digital communication tools.

Collaboration: The absence of in-person meetings can make it more difficult for team members to collaborate effectively, especially in tasks that require brainstorming or complex problem-solving.

Accountability and performance management: Tracking employee performance and ensuring accountability can be more challenging in a remote work environment.

Isolation and loneliness: Remote employees might experience feelings of isolation or loneliness, which can affect their mental well-being and job satisfaction.

Technical issues: Remote workers rely heavily on technology, which can lead to interruptions or difficulties if there are technical issues or insufficient infrastructure.

Security concerns: Remote work environments can introduce potential cybersecurity risks, requiring organizations to invest in robust security measures and employee training to maintain data privacy and system integrity.

Summary

A fully distributed company refers to an organization that enables its employees to work from locations beyond the traditional office setup, such as their homes or co-working spaces. The practice became more feasible with the advent of telecommunication technologies and has been accelerated by recent advancements like high-speed internet, smartphones, and cloud-based tools. Companies such as GitLab, Automattic, Basecamp, and Zapier are prime examples of successful fully remote businesses. The benefits of such a setup include enhanced flexibility, access to a wider talent pool, cost savings, increased productivity, improved employee retention, and positive environmental impact. However, challenges such as communication barriers, difficulties in collaboration, accountability issues, feelings of isolation, technical problems, and security concerns must be effectively managed.