Employer of Record: The Secret to Building and Managing Distributed Teams
An Employer of Record can help you hire workers in a specific country. BRIDGE IN is your Employer of Record for your teams in Portugal.
What do tech giants like Amazon, Google, and Facebook have in common? They all have global operations spanning multiple continents, an obsession with innovation and… increasingly distributed teams. These companies have been able to harness the power of remote work to build innovative and successful products and services with talent sourced from far-reaching corners of the world. So, what are distributed teams exactly, what are the advantages for companies and how should they be managed?
What are distributed teams, and what are the key benefits?
Put simply, a distributed team is a remote team of employees who work from different locations. There are many benefits to having a distributed team, including increased flexibility and productivity, as well as the ability to tap into a global talent pool.
With a distributed team, you are no longer limited to hiring people who live in your city or even your country. You can hire the best person for the job, no matter where they live. This benefits companies who want to hire the best and brightest, regardless of location.
Also, it gives employees what they most desire: flexibility. Distributed teams can work from anywhere in the world, a key attribute for employees who have families or other commitments that make it difficult to work traditional office hours. It also allows employees to work in the environment where they are most productive in, whether that is at home, in a coffee shop or at a co-working space.
Finally, depending on how you structure your distributed teams, it can also save a company money on overhead costs. With no fully owned office buildings, there is no need to pay for office space, furniture or other traditional office expenses.
There are many tech companies that are harnessing the benefits of having distributed teams. Notable examples range from Amazon to Facebook, Basecamp to GitHub. These companies have been able to take advantage of the benefits of having a distributed team to build successful businesses – but exactly what “type” of distributed teams?
What do distributed teams look like?
From fully remote, to work from home and hybrid arrangements, there are many structures for distributed teams. These are the most common.
FULLY REMOTE
One common structure is the fully remote team scheme, where all team members work from home or other remote locations. This can be helpful because it allows team members to work from anywhere in the world, and it eliminates the need for expensive office space.
One example of a tech company going fully remote is UpWork, which allows businesses to find and work with freelancers online. UpWork is entirely remote, with no physical office space. The company relies on technology to connect workers with clients and to facilitate communication and collaboration.
Another successful example is GitLab, a company that has been working remotely for years, and started well before the pandemic with more than 1000 remote employees. On their blog, they regularly publish tips for other companies that wish to enter the remote world. With such a big distributed workforce, GitLab has set up a series of policies for async and virtual communications - picking the correct emojis to react to chat messages, allocating a certain number of minutes to wrap up video calls, a “buddy” system for onboarding new employees that keeps new hires from getting overwhelmed.
WORK FROM HOME MIXED WITH IN-OFFICE
Another common structure is the work-from-home team, where team members work from their homes but come into the office for occasional meetings or to collaborate on projects. This enables companies to save on office space and can be more convenient for team members who have family commitments or other responsibilities that make it difficult to work in an office full-time.
For example, Amazon’s customer service team consists of associates who work from home. They take calls from customers and help them with their orders. Another example is Apple, which has a work-from-home program for its employees who provide support for Apple products.
REMOTE-FIRST - THE POWER OF POD TEAMS
Finally, the remote-first is a mix of the two previous structures. In a hybrid team, some team members work from home and others work in the office. This allows the team to have the best of both worlds – the flexibility of working from home and the ability to collaborate in person when needed. One example of a tech company with hybrid work is Google. They have "Googlers" who work in their offices, and they also have "Nooglers" who work remotely.
A good example of hybrid teams is Pod Teams. By definition, a pod is a small group of individuals with complementary skills working with a shared purpose to complete a portion of a larger project. The advantage of using Pod Teams is that they allow for a more focused and efficient work environment which can lead to better results and a faster turnaround time for projects. Back to Google, they have a history of using small, focused Pod teams to work on new products and features. This allows development to move quickly and efficiently, while still maintaining a high level of quality.
As our CEO Pedro Henriques said: “This is what the future looks like: there is no obligation to go to the office, but there is the possibility of having a shared space, a personal meeting. This is what creates a team spirit”.
How to manage distributed teams?
There are a few challenges that come with managing a distributed team, but with the right tools and strategies in place, they can be overcome.
IMPROVE COMMUNICATION, BUILD TRUST
With team members in different time zones and locations, it is important to have clear and concise communication protocols in place so that everyone knows what is expected of them and can easily stay up-to-date on the latest news and developments. Clear communication is the foundation of distributed teams, as is another vital aspect: trust.
When you can’t see your team members face-to-face on a daily basis, it can be difficult to build trust. Keep in mind that distributed teams can be just as productive as teams that are in the same office. Trust your team members to get the job done and don’t micromanage.
MAKE SURE EVERYONE IS ON THE SAME PAGE
Thriving as a Distributed Team requires members to feel comfortable working together and sharing ideas. To do so, it is essential to pick the right “type” of collaboration for each case. And there are basically two types of collaboration: synchronous and asynchronous. Synchronous collaboration is when multiple people work on a project at the same time, while asynchronous collaboration is when people work on a project at different times.
There are pros and cons to both types of collaboration. Synchronous collaboration can be more efficient because everyone is working at the same time and can communicate immediately. However, it can also be more chaotic because there are more people working on the same thing at the same time. Asynchronous collaboration can be more organized as people can work at their own time and pace, and share their work when they're done. However, it can also be less efficient causing re-work and conflicting decision-making.
Tech companies often use both synchronous and asynchronous collaboration, depending on the project. For example, a company might use synchronous collaboration for a project that requires brainstorming and everyone to be on the same page, such as a new product launch. On the other hand, a company might use asynchronous collaboration for a project that can be worked on independently, such as executing a marketing campaign.
There are many tools for both sync and a-sync collaboration. For sync collaboration, video conferencing and instant messaging can be used to allow team members to communicate in real time. For a-sync collaboration, tools such as email and project management software (think Asana or Trello) allow team members to communicate and work on projects asynchronously.
SET UP AN EMPLOYER OF RECORD
An employer of record (EOR) is a company that provides services to help other companies hire employees in a foreign country. The EOR acts as the employer on behalf of the client company, taking on the responsibilities of payroll, benefits, and taxes with 100% compliance and 0% risks on the final client side. There are many advantages to using an EOR, especially for tech companies.
First, it saves the client company the hassle and expense of setting up their own foreign subsidiary. Second, it allows the client company to avoid the red tape and regulations associated with hiring employees in a foreign country. Third, it gives the client company more flexibility in entering a new market, since they can use the EOR's services to employ their team and expand it later on until it makes sense to open a subsidiary. Overall, using an EOR can save time and money for tech companies that want to hire employees in a foreign country while enjoying the flexibility and advantages of a remote structure.
BRIDGE IN, launching operations abroad has never been easier
BRIDGE IN is different from the regular, global Employer of Record provider. We have fully-owned operations in Portugal and we don’t outsource our EOR services to partners. We are a local Employer of Record, with local experts in labour law, taxation and payroll to ensure we offer the best quality services at a competitive price.
Our team has extensive knowledge of Portuguese regulations and will help you navigate the complexity of local bureaucracy so you can employ your team in Portugal in no time, with no risks and no hassle.
While you focus on scaling your business, BRIDGE IN takes care of payroll, benefits, workforce management and all HR-related matters in Portugal. Get in touch with our team.
