Remote Work for Small Teams: Tips for Managing Distributed Teams

It’s hard to believe it’s been five years since the COVID-19 pandemic, and it’s equally hard to imagine that some businesses will ever go back to requiring employees to work in the office on a full-time basis.

For many employees, remote or hybrid work arrangements aren’t just a well-deserved perk. Instead, these models are now a necessity to juggle busy lives and support a healthy work-life balance. It’s a benefit for many small businesses too, since they can recruit top talent and team members from anywhere in the country. Remote teams also contribute to increased productivity and flexibility, and can cut down on overhead costs, especially those related to office space.

Yet before startups and SMBs can achieve all of these benefits when it comes to managing distributed teams, they may have to overcome a few initial challenges. After all, managing remote teams requires a different approach, one that incorporates better planning, communication, tools, and processes.

But it can all be worth it. Small businesses can go beyond remote work survival and actually thrive, especially if they’re equipped with the right strategies and support systems. In this article, we’ll take a closer look at the full range of what’s required to support a remote work environment – everything from communication to compliance – to keep all employees happy, engaged, and productive, wherever they happen to work.

Key Challenges Related to Managing a Distributed Workforce

It’s important to remember that managing a remote team isn’t as just letting your employees work from home. Without the proper mindset, equipment, and understanding of the rules in place, employees could misunderstand the requirements – or what you expect as an employer.

The following are three specific challenges that small businesses face when attempting to manage remote teams:

1. Communication gaps, especially across different time zones. Let’s face it: When your team is spread across different cities, time zones, or even different countries, it can be hard to schedule meetings, collaborate in real time, and even maintain team engagement. The effort is important though since any missteps, miscommunications, or delays can lead to less-than-ideal outcomes.

2. Tracking productivity and maintaining engagement. In traditional offices of the past (remember those?), it was easy to manage the entire workforce at all times. Supervisors could even rely on “management by walking around” (MBWA) to see who was busy and who might be falling behind. Yet with remote employees, visibility into daily work and important tasks can be limited, especially if your company doesn’t have a project management system or other approach to understand what’s happening at all times.

3. Attempting to manage payroll and compliance. Hiring in different states can add a new layer of complexity when it comes to labor laws, tax requirements, and overall compliance. For many small businesses, it can be extremely difficult to keep up with all of this – especially if they don’t have dedicated HR staff or if they still rely on spreadsheets or other manual efforts.

These challenges don’t have to add up to a scenario where remote work is not possible. Instead, they just require the right tools and strategies to overcome them. 

Best Practices to Help any Small Business Manage Remote Teams

Unfortunately, successfully managing remote teams takes a lot more than trusting employees to get their work done. It requires creating an overall system that supports each employee and their unique needs in all they do.

To help, here are a few best practices any small business can implement to manage remote work teams much more effectively.

1. Use collaboration tools to streamline communication. Companies should consider a full range of collaboration tools to manage the work, communicate with employees, facilitate meetings, and keep things on track. These include Slack for quick messages, Zoom, Teams, or Google Meet for meetings, and Asana or Trello for project management. It’s also important to do all you can to create and enforce policies for their use to maximize consistency and minimize confusion.

2. Set clear expectations (and continue to reinforce them). Remote employees embrace clarity in all aspects of their work – everything from expected work hours to daily communications to reporting status updates. You should clearly define your view of what success looks like, including details related to work hours (especially across time zones), communication frequency and style, and meeting deadlines. Making sure everyone understands these details helps prevent potential miscommunications and contributes to higher levels of employee engagement.

3. Create opportunities for natural connections, team building, and company culture. Build in time for social interaction, even if it’s just 15-minute virtual coffee chats or Slack channels for non-work banter. Celebrate wins, recognize achievements and milestones, and encourage peer-to-peer shoutouts. A little effort goes a long way in making people feel seen and valued, even from afar.

4. Automate payroll and compliance (wherever possible). Nothing derails trust faster than a missed paycheck or a compliance slip-up. Automating your payroll system ensures your remote employees get paid accurately and on time, no matter where they live. It also helps you stay compliant with local tax laws and labor regulations, which is especially critical when hiring across state lines. Manual processes just don’t scale when your team is distributed.

By implementing these best practices, small businesses and startups can confidently manage remote employees to increase productivity, drive meaningful, real-world connections, and improve compliance. 

How DianaHR can Help you Support Remote Teams

Managing a remote team is a lot easier when you don’t have to go it alone. That’s where DianaHR comes in. Designed with small businesses in mind, DianaHR simplifies the behind-the-scenes work that keeps distributed teams running smoothly. 

Payroll Automation Across State Lines

With team members scattered across multiple states, payroll can quickly become a compliance minefield. DianaHR automates payroll processing and handles state-specific tax filings, helping you stay compliant with ever-changing labor laws. Whether you’re onboarding your first out-of-state hire or managing a growing remote team, DianaHR ensures your employees are paid accurately and legally every time. 

Expert HR Support, When You Need It

Remote teams come with unique HR questions and challenges, from crafting remote work policies to resolving performance issues from a distance. With DianaHR, you get on-demand access to experienced HR consultants who can guide you through policy creation, employee disputes, and compliance best practices. It’s like having your own HR department, without the overhead. 

Building a Strong Foundation for Remote Success

Remote work isn’t just a trend – it’s a long-term strategy that can help small businesses thrive. With the right tools, clear communication, and expert HR support, managing a distributed team becomes not just possible, but productive.

By investing in smart systems and proactive planning, you can create a remote work environment where both your people and your business grow. 

FAQs

What are the benefits of remote or hybrid work arrangements?

When set up and managed effectively, remote or hybrid work models offer a wide range of benefits for employees and the companies they work for. From the employee perspective, workers enjoy greater flexibility, reduce commute time (and associated cost savings), and a better work-life balance. For companies, remote work environments can lower overhead costs, expand the talent pool beyond their office or city, and improve employee engagement, productivity, and retention.

What are the issues with remote work arrangements when they’re not managed effectively?

When remote work policies are not set up and managed effectively, it can lead to communication breakdowns, little or no accountability, and a sense of isolation and disengagement from remote employees. If not corrected, these challenges can decrease communication and productivity, damage employee morale, and make it difficult to retain top talent.

What are some best practices for creating and managing a successful remote work environment?

Creating a successful remote work environment and managing a distributed workforce starts with clear communication, established expectations, and using technology to improve collaboration and communication. From there, ongoing success depends on promoting and fostering positive connections, offering flexibility, and using the most effective tools to automate important processes related to payroll, performance management and tracking, and compliance.

How can an outsourced HR service like DianaHR help me improve the way I manage my remote employees?

An outsourced HR service like DianaHR can help you manage remote employees by giving you access to an HR expert capable of managing complex tasks like multi-state payroll, tax compliance, and policy development. With access to on-demand HR experts, you also get guidance on everything from onboarding to performance management – so you can lead your remote team with confidence.