Virtual Organization Attributes: Advantages of Virtual Teams

A virtual organization relies on telecommunication and information technology to power its workforce and connect team members across disparate locations. Through the advent of instant messaging apps and video conferencing, entire organizations can now exist without any office space required.

Individual companies and agencies can decide just how virtual they want their organizational structure to be: For instance, some might prefer to have only a few remote employees, while others might strive to take their entire organization online.

While every virtual enterprise is different, there are several attributes common to most, if not all, of them. Here are three you’re likely to see in action often:

1. 1. Flexibility: Virtual organizations empower their remote workers to make decisions about where, when, and how they want to work. While many companies might put some parameters on this sort of decision-making, virtual team members still have far more leeway on average to decide where they want to live, what hours they want to work, and how they want to communicate than they would in a more traditional organization.
2. 2. Decentralization: Given how spread out most virtual workforces are, the structure for these organizations also trends toward decentralization. Teams are both more independent and interdependent—they have the freedom to set their own goals while still operating with people in disparate locations to achieve the objectives of their joint venture together.
3. 3. Tech savvy: Virtual workplaces rely on up-to-date communication technologies and information systems to keep this style of work running smoothly. Through video conferencing, direct messaging apps, email, and other technologies, it’s possible to work from anywhere on the planet so long as the employee has internet connection.

Virtual teams gain access to a host of benefits they might not have access to in a more traditional work environment. Keep these three success factors in mind when pondering the strength of this organizational model:

• Broader talent pools: As a virtual organization, you can access the best talent from Los Angeles to New York City and beyond. This allows you to pull from a far wider base of potential workers to ensure staff go above and beyond the core competencies their positions require. Having team members in so many locations also has the side benefit of creating new market opportunities in those areas, too.
• Increased flexibility for employees: Remote team members can work from any region they see fit. This empowers people to work from home, travel while working, or drop into a more traditional office whenever they want more face-to-face interaction. This locational flexibility often pairs with the ability to set one’s own hours. Individuals can work with human resource management to work out an advantageous schedule for all parties involved.
• Lower costs for employers: As a business strategy, entrepreneurs can use virtual arrangements to cut down on costs. When a team goes remote, there’s no need to pay for an actual office space. This frees up cash flow to go toward other initiatives instead of a monthly leasing payment.

Although remote work comes with plenty of pros, virtual organizations also have some cons to consider. Here are three disadvantages to keep in mind:

• Lack of in-person connection: Traditional organizations allow for far more face-to-face contact than virtual ones do. In a purely virtual organization, you’ll only see your coworkers online. Some people prefer this arrangement, while others wish they could spend more time in person with others.
• Potential communication issues: Within a work group, some people might have an easier time communicating when they have a physical presence in an office. Some people adapt more easily to exclusively working in the virtual world than others. Additionally, working across multiple different time zones can make it difficult to coordinate communications for even the most internet-savvy telecommuters.
• Security concerns: If you transition toward being a virtual organization, it opens the possibility of more online security issues. Grant only necessary permissions to employees and inform them of any confidentiality requirements you might have as a business. Work with a cybersecurity team to ensure all online communications are secure.

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