Most business owners will agree that it’s become much harder to justify paying the increasingly exorbitant lease rates for office space in most major cities in North America. Even Canada isn’t exempt.
Once a haven for US companies looking to hire cheaper Canadian labor, Vancouver now has the lowest commercial vacancy rate. To add insult to injury, it also has the highest price of gasoline in North America.
CBRE’s Canada Q2 Quarterly Statistics Report said that downtown Vancouver’s office vacancy rate was 2.6 percent in 2019’s second quarter, down from 4.7 percent one year previously, making it the hottest commercial office space market in North America on par with Toronto, beating out 3rd place San Francisco, where the vacancy rate is 3.6 percent.
Growth in commercial office space worldwide is also being spurred by coworking. We now see coworking facilities in a large number of major cities across the globe, although the number of new coworking space openings does appear to be slowing down when compared to the previous year.
Coworking is obviously not free. It does reduce the overhead and headache of having to manage your own office (lease, insurance, maintenance, etc) but if and organization made use of coworking facilities full-time, it could likely be more expensive than a comparable stand-alone office space, per square foot.
It doesn’t take a genius to see that not only are office spaces getting harder to find, but they are also the most expensive they ever have been. For staff, who are interested in raising a family, getting them to this expensive office is also costly. This sounds like a lose-lose proposition, why are we doing this again?
Unsurprisingly, IT organizations and software organizations that have no real need for dedicated physical locations appear to be shuttering offices and opting for coworking + remote work models.
Automattic, Gitlab, Shopify (just to name a few) have successfully made this transition, in fact, some of these companies were purposefully built as distributed companies from the get-go.
Various reports and studies have been done which seem to indicate that everyone wants to work from home. In a recent study, Buffer published the State of Remote Work where 2,500 remote workers surfaced some interesting statistics:
Zapier has also published a report(*) on the subject and the findings are quite similar in that it points to knowledge workers’ desire to work remotely:
Microsoft (Japan) is also researching work routines and recently published findings on a 4 day work week experiment, which increased productivity by up to 39.9%. This could very well increase even more if they adopted a virtual coworking model for the other 4 days.
Now that we have set the stage for what looks to be an unstoppable trend, let’s take a look at why this is not a no-brainer.
I interviewed a few companies (ranging from small to large) and asked them what their position was with remote work in mind. Some business owners and team members expressed concerns.
Some of these concerns are legitimate and it could be they will not be overcome with even the best remote work processes.
Case in point — In 2012, Marissa Mayer was hired as CEO of Yahoo! and was charged to return the former powerhouse to its glory days. Among the many things she had to fix were company culture and productivity. According to sources closer to Yahoo!, it was made clear that many of those working at the company were not getting their jobs done when working from home. A review of VPN logins and source repository access logs surfaced a gap in the lack of work being accomplished while Yahoo! staff were working from home.
In 2013, an internal letter was issued, the company mandated that remote work was to be all but banned. Here is an excerpt from that letter…
To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side. That is why it is critical that we are all present in our offices. Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. Speed and quality are often sacrificed when we work from home. We need to be one Yahoo!, and that starts with physically being together.
Some of Mayer’s staff, the press, and many other groups let her have it, no one seemed to be impressed. It could be said that Mayer had little choice. She had to do whatever she could to turn the company around and for her, that meant taking some drastic measures. In a Forbes post, Yahoo! commented further…
“This isn’t a broad industry view on working from home — this is about what’s right for Yahoo, right now.”
At first blush, it would seem this was more about timing and the position Yahoo! found themselves in at the time. They did what they thought needed to be done to influence behavior.
This seems like an extreme case, but the same sentiment can be found in other IT and SaaS organizations worldwide. In fact, some of these companies are the creators of communications software and services we use for remote work every day. In fact, they openly promote the “work from anywhere” mantra in their own product marketing. It might seem a little hypocritical, but it is happening for many of the same reasons we have shown.
Now that we have heard the concerns, let’s talk about the potential upside. Here are some high-level benefits:
One in four knowledge workers find their commute to be among the most stressful parts of their job.*
Obviously, these benefits can contribute to a more attractive and economical approach to building a business, as long as you can overcome the concerns.
If you are still with me and undeterred, you are not alone. Personally, I have been working remotely 100% for several years in various roles with teams all over the world. I have learned a few things along the way. Here are the cliff notes.
Remote Work Guide: A good place to start is by creating a “remote work guide” document that embodies some or all of the elements listed here along with your own spin on things. Your teams may not have experienced working remotely before, they will need some guidance and direction, this is also where we set expectations eg. working hours, always-on video, etc. It could be an addendum to your existing company handbook or a completely new document, keep in mind it will grow with your company. (Note: Many miss this step and it’s likely the single most important contributing factor to a successful remote work strategy for your company or organization.)
Small Teams: You are going to need some time to plan your rollout and decide which processes and tools are going to work best for your various teams. When your teams are first getting started, parcel off smaller project teams that are tech-savvy and preferably have experience using online collaboration tools. Their experience will pave the way for everyone else. Once you have a good process that seems to be working, you can roll it out in stages for everyone else.
Always-on Video Conferencing: This may sound a bit creepy but it can actually be quite effective in preserving team spirit, fending off FOMO and helping with the isolation that some feel when working remotely. It can be done in pairs, teams or even using a water cooler approach where team members drop in and out during the day. You can even use it to bridge branch offices, like a window into each remote office. Let’s be honest, organizations are going to see a bit more opposition when introducing this concept, it will need to be actively managed. As the business leader, you will need to actively work with team members to encourage participation (eg. by leading a weekly all-hands meeting or asking them to join or lead regular video calls, etc). If managed properly this idea can be a great communications centerpiece.
Weekly all-hands Video Conference: This is less about remote work and just good business practice. I have seen this work well in traditional and remote businesses, but few business leaders do it. Weekly highlights are shared by the CEO with support from other leaders in the organization. A master slide deck is prepared in Google Slides, with input from various departments. Friday afternoons are a good time as it ends the week on a high note (and serious note if things need attention) and helps start the next week off with a positive sentiment.
Coworking Passes: In addition to virtual coworking, it’s a good idea to include at least one or two days a week of onsite coworking for those that feel they need to get out of the house and be around other professionals. This has been widely adopted by some of the larger distributed organizations. Going completely virtual can be a bit of a shock to the system, this helps ease the transition and keeps everyone feeling like they are still human.
Offsite Team Events: With the reduction or elimination of in-person face time, team-building exercises now become more important. Organize quarterly or semi-annual gatherings at your favorite coworking establishment or pick a fun recreational location. If your company is large enough, you can divide these meets into geographical pods. Schedule at least one all-hands meeting per year with some fun events to ensure everyone feels like they are part of the organization. Do yourself a favor and don’t leave this to the last minute, you will have a poor turnout, piss people off and defeat the purpose.
There are literally dozens of team collaboration tools you can use to empower your remote workers. Try as many as you can. Select tools that are intuitive and self-explanatory, this will cut down on the learning curve. Make sure the vendors you select provide mobile support so your teams can be connected via phone or tablet.
Here are some that I have used and have found work well for remote teams, in no particular order:
As this remote work thing matures, we will see more purpose-built applications that aim to bring our teams closer together, virtually.
We are already seeing some activity in this space with the recent capital raise by Tandem, which has a sidecar collaboration application that works pretty well with Slack.
Another is Sococo, which looks more like a virtual workspace with web conferencing. They take an interesting approach to how they visualize the virtual office and how team members work together. I actually think this is an intuitive idea, although it does feel a wee bit recreational. To be fair, I have not used the service.
It is expected these solutions that personalize and aid remote teams in working better together will certainly evolve. It is still unclear if customers would opt-in for purpose-built applications or just use several disparate applications to do the same job, time will tell.
The next post will speak to the future of remote work. We will be touching on AI & bots, VR & AR in the remote work realm, some of which are being used today and some are not far off at all.
If you work in a distributed company, I’d like to hear from you. What tools do you use today and how are they working for you? How often do you use video/web conferencing as part of your daily routine? If you prefer sharing your comments or questions privately, feel free to shoot me a text message or call anytime: (877) 897–1952 (Note: All calls will be recorded).
None of the ideas expressed in this post are shared, supported, or endorsed in any manner by my employer.
TMC / WebRTC World & PKE Consulting have published a WebRTC Pioneers press release following a WebRTC Pioneers dinner at WebRTC Expo in Atlanta last week, paying homage to some of the early work being done around WebRTC.
Congratulations to W3C ORTC Community Group founders & core contributors…
Robin Raymond – Hookflash
Bernard Aboba – Microsoft
Justin Uberti – Google
There are however, many names missing from this list who have had a significant impact on early work being done around WebRTC / ORTC. Peter Thatcher (Google), Emil Ivov (Jitsi) & Shijun Sun (Microsoft), Roman Shpount (TurboBridge) and Iñaki Baz Castillo immediately come to mind.
Businesses are gradually migrating to IP-based platforms and solutions. Frost & Sullivan’s research shows that most businesses that have not yet deployed IP telephony plan to do so in the next few years. But not everyone is ready to make the move. And practically no business is willing to forklift its entire existing infrastructure overnight.
The major holdbacks in IP telephony and UC adoption are typically related to concerns over how to protect existing, unamortized assets and ensure continuity when migrating to new communications architectures. Therefore, most businesses are cautious in their implementation of VoIP and IP telephony and are only gradually migrating individual platforms and sites, thus creating “islands” of IP technologies within the company’s communications environment. SIP trunking helps bridge these islands.
VoIP access and SIP trunking services involve the provision of integrated circuits using VoIP or SIP technologies to enterprises that have implemented premises-based enterprise telephony solutions (Private Branch Exchanges (PBXs)/IP PBXs or key systems). In a VoIP access or SIP trunking scenario, the service provider typically offers local dial tone, long-distance calling, and a limited set of call-management and control features such as extension dialing to intra- and inter-office locations.
VoIP access and SIP trunking services essentially direct enterprise customers toward a path of gradual transition to fully converged, IP-based networks. They allow businesses to enjoy the benefits of IP telephony while eliminating the need to forklift-upgrade their networks. VoIP access services interfacing with a legacy TDM system do require the deployment of a voice gateway at the enterprise premises, whereas SIP trunking services are typically deployed with SIP-based or SIP-enabled enterprise telephony platforms where protocol conversion is not required. Session border controllers (SBCs) may, however, be needed for protocol normalization and security purposes. Typically, VoIP access and SIP trunking services allow enterprises to continue to utilize their existing handsets as well as other TDM voice customer premises equipment (CPE) thereby preventing significant upfront investments.
Increasingly, service providers are bundling VoIP access and SIP trunking services with various network-based communications applications and capabilities, such as hosted auto attendant, voicemail, unified messaging, mobility/FMC or some data services including web hosting, web email, managed security, and so on.
Join Frost & Sullivan and Level 3 for a presentation on sustainable business voice strategies with a key focus on SIP trunking and its benefits to small and large businesses: http://bit.ly/lXeeJw
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