Remote Work vs Distributed Workforce

Voice of the Enterprise: Coronavirus Flash Survey, conducted by 451 Research showed that 38% of participating companies expect work-from-home models in a long-term or permanent way of managing their workforce. As the pandemic prolongs, more companies are seriously considering adopting a work-from-home model and policy. Either way, as a result, more companies are looking to better understand the difference between a remote workforce and a distributed workforce, along with its advantages. 

What Is a Distributed Workforce?

A distributed workforce can be simply described as an overarching ethos for the way work is being done – in relation to business productivity. While a company may still have a physical office, employees have the free will to operate from anywhere in the world, on a full or part-time basis. Regardless of an employee’s location, a company’s workforce works in a blended schedule, that enables clear channels of communication and highly effective collaboration. 

What is the difference between remote and distributed workforce?

As flexible work models continue to evolve, the terms remote work and distributed work are often used interchangeably—but they’re not the same. Understanding the difference between a remote worker and a distributed worker is key to building the right team structure, communication style, and company culture.

Below are the main distinctions that set them apart.

1. Team Structure

A remote worker is usually part of a centralized company where the core team operates from a physical office. The remote role is an exception to the norm, often added to support flexibility or accommodate location-specific hires.

On the other hand, a distributed worker is part of a decentralized team, where everyone is based in different locations. In distributed teams, there’s often no physical headquarters, and the structure is built around location-independent work from the start.

2. Collaboration Style

Remote teams tend to operate within traditional work hours and emphasize real-time collaboration, like scheduled meetings, live chats, and instant feedback. This model works well when most of the team is in the same time zone. In contrast, distributed teams rely heavily on asynchronous collaboration. They use tools like shared documents, project boards, and recorded updates to allow team members in different time zones to contribute effectively without needing to be online at the same time.

3. Work Location

Remote workers usually have a fixed work location outside the office, such as their home or a co-working space. Even though they’re not in the office, they still function within a company that has a physical presence. Distributed workers, however, are free to work from anywhere, and the company may not maintain any physical office at all. The flexibility is higher, and location is often irrelevant as long as the work gets done.

4. Cultural Integration

Remote workers can sometimes feel isolated, especially when most team interactions happen in-person at the office. They may miss out on informal conversations, office events, or spontaneous collaboration. Distributed teams intentionally create a digital-first culture by organizing virtual meetups, team-building sessions, and inclusive communication habits to ensure everyone feels connected and valued—no matter where they are.

5. Flexibility

The key distinction between this work model is flexibility. Remote workers often still follow the company’s office hours, which can limit their schedule flexibility. Their workday is typically aligned with that of their in-office peers. Distributed workers, however, usually enjoy greater autonomy over their time. Since these teams are built to function asynchronously, distributed workers can set their own hours, focus on results, and balance their workload more independently.

“So in summary, remote work is a model of work, whereas distributed work is a central mode of productivity for an organization as a whole”.

The initial challenges in this paradigm shift are obvious — therefore foresight and planning are important to preserve a cohesive context in your workplace culture, without the physical rhythms of “turning up” at the office every day. But once a company and its employees overcome these hurdles the benefits of a distributed workforce are clear as day.

READ MORE:

• Employer of Record: The Solution to Hiring Challenges
• Why do You Need An Employer of Record Service in Indonesia?
• 10 Essential Tips Before Hiring an Outsourcing Company

Benefits of Distributed Workforce for Businesses

Adopting a distributed workforce model brings several advantages for companies looking to scale efficiently and stay competitive:

Access to Global Talent

A distributed workforce allows businesses to recruit from a global talent pool rather than being limited to one city or country. This leads to stronger, more diverse teams with specialized skills that may be hard to find locally.

Increased Productivity

Employees in distributed teams often work during their most productive hours, without the distractions of a traditional office environment. The flexibility to manage their own schedules enables better focus and efficiency, which provides higher output and better work quality.

Business Continuity

With team members spread across different regions and time zones, businesses can maintain operations even if disruptions, like natural disasters or local power outage, affect one area. This geographic diversity supports smoother and more resilient workflows.

Cost Savings

By minimizing the need for physical office space, utilities, and on-site support services, distributed workforces help companies significantly reduce overhead costs. These savings can be redirected to other business priorities, such as tech investments or employee development.

Improved Employee Satisfaction

Distributed work model offers employees more flexibility and control over their work-life balance. This autonomy often results in higher job satisfaction, lower stress levels, and improved retention rates, benefiting both the workforce and the business in the long run.

5 Essential Tips for Managing Distributed Workforce

Managing a distributed team calls for intentional leadership, strong communication and focus on outcomes. Without the structure of physical office, distributed workforce companies must create clear system to keep everyone aligned and productive.

Here are five essential tips to help you manage a distributed team successfully:

1. Establish Clear Communication

Set expectations around how and when teams should communicate. Use a mix of tools, such as chat apps for quick updates and video calls for more in-depth discussions. Encourage clarity, brevity, and consistency in all communications to avoid misunderstandings.

2. Set Up Clear Goals and Accountability

Make sure every team members knows their responsibilities and deliverables. You can use shared dashboard or progress trackers to keep everyone aligned and avoid ambiguity in remote work settings.

3. Invest in Technology

Use reliable project management, communication, and document-sharing tools to keep teams connected and workflows organized. Cloud-based platforms can help streamline collaboration and maintain visibility across time zones.

4. Prioritize Results

Focus on outcomes rather than tracking work hours. Since distributed teams work across different time zones, a performance-based approach ensures fairness and motivates employees to deliver their best without micromanagement.

5. Build a Strong Remote Culture

Create a sense of belonging through regular virtual check-ins, digital team-building activities, and open channels for feedback. Celebrate achievements and recognize individual contributions to strengthen engagement and team morale.

Employer of Record – Setting Up A Distributed Workforce In Indonesia. 

Indonesia has the largest labor force in ASEAN with over 130 million working-age population. Its lower wage rates (ranging from US$115 to US$28), young workforce (averaging 30 years of age), and vibrant economy are a few factors luring foreign companies (without offices or a registered company) to legally hire from Indonesia, through a service known as an Employer of Records (EoR).

How To Legally Hire Indonesians Without Establishing a Company in Indonesia?

A legal way for foreign companies (with no offices or registered entities in Indonesia) to hire from Indonesia’s labour force is through an Employer of Record (EoR) service. Outsourcing this hiring process through Employer of Record company in Indonesia offers the following incentives:

Quick Market Access

Foreign investors and companies setting up a company in Indonesia need to note while the process to set up a foreign-owned company is relatively quick, the business sector your company operates must be fully open to foreign investments. Also, human resource positions in Indonesia must be held by an Indonesian citizen. Considering the cost, time and resources required to manage a company incorporation in Indonesia and hiring a human resource manager.

Compliance with Indonesian Labor Law and Regulations

As a Labor and immigration policies in Indonesia undergo reforms, corporate compliance can become an enormous obstacle, if a company is unfamiliar with Indonesia’s company law and investment law. To mitigate any legal violations, EoR enables a company to transfer all employment responsibilities and duties to an EoR service provider. For more information, click here.

Outsourcing HR Duties To Focus On Core Business Functions

In Indonesia, only its citizens are eligible to work in human resource and all aspects of human resource management are undertaken by an EoR service provider. InCorp’s Full EoR Services:

• Recruitment and Candidate Shortlisting
• Appointments and Employment Agreements 
• Payroll processing and Salary Adjustments
• Income Tax Calculations and Reporting
• Employee Benefits and Insurance
• Visas and local sponsorship applications

InCorp as Your Employer of Record Provider in Indonesia

InCorp offers full and tailor-made such services, including setting up an Employee of Record agreement in Indonesia and Vietnam. To understand how inCorp’s tailor-made solutions can help you, please fill out the form below for an initial consultation or chat with our chatbot.