Remote work has become a prevalent topic in the business world. The finance industry is no exception. Advancements in technology, coupled with the COVID-19 pandemic, have accelerated the adoption of remote work practices.
As a BAS agent, you most likely have some kind of experience of working remotely. You might even currently run a team that is partially or completely remotely based, and are contemplating the challenges and opportunities that come with managing this type of team.
This article aims to provide you with insights, strategies, and practical steps to effectively run a remote team while growing a successful business and mitigating potential risks at the same time.
The rise (and rise) of remote working
The rise of remote work has been a significant trend especially in the past couple of years, and the financial industry has embraced this change. According to a June 2021 report conducted by the Australian Institute of Family Studies, two thirds of Australians worked from home (with 67% sometimes or always working from home, compared to 42% before COVID).
The following year, the Australian Bureau of Statistics (ABS) had similar statistics to show. Australia’s leading statistician, ABS chief David Gruen, said that remote work is here to stay. In March 2022, he told the Australian Financial Review that over 40% of people regularly work from home, up from 30% before the pandemic.
The flexibility and cost-saving benefits offered by remote working arrangements have attracted both employers and employees alike. In the financial industry, remote work allows businesses to tap into a wider talent pool, reduce office space costs and enhance work-life balance for their team members.
Why businesses choose remote working
Remote working has gained popularity among businesses in the financial sector due to its ability to increase productivity and performance, offering employees the flexibility to work in their optimal environment and eliminating distractions.
We explain some of these benefits in further detail below.
Increased productivity and performance
Remote work has shown to boost productivity and performance among employees. When working remotely, individuals have the flexibility to create their optimal work environment, free from the distractions commonly found in traditional office settings. They can design their workspace to suit their needs, whether it’s a quiet home office or a favourite coffee shop.
With fewer interruptions and (for some) less dramatic office politics, remote workers often experience improved focus and concentration, leading to higher productivity levels.
Remote work eliminates the time and energy wasted on commuting (approximately an average of 67 minutes per day), providing employees with more hours in their day to dedicate to work. It also allows businesses to tap into a diverse talent pool, allowing them to hire the best professionals regardless of their geographical location. By attracting top talent, companies can harness the expertise and skills of individuals who may not be available locally, giving them a competitive edge in the industry.
Cost savings and operational efficiency
One of the significant advantages of remote work for businesses is the cost savings it brings. Traditional office setups come with considerable expenses, including rent, utilities, office supplies and maintenance. By transitioning to a remote work model, companies can eliminate or significantly reduce these overhead costs. According to one U.S. source, remote work could save businesses around $500 billion every year (that’s about $11,000 an employee).
As canvassed above, because remote work allows businesses to explore a global talent market, they can also find the best professionals at competitive rates. Without the limitations of a physical office location, companies can tap into a broader pool of candidates, expanding their options for recruitment and potentially reducing hiring costs.
Companies can also use working from home arrangements to leverage their own technology, using it to streamline processes, automate tasks, and facilitate remote collaboration. Digital tools offering cloud-based document storage, project management platforms and state-of-the-art video conferencing software enable seamless communication and real-time collaboration. This ultimately results in cutting down the need for time-consuming and tedious in-person meetings.
Enhanced employee satisfaction and retention
By providing employees with the flexibility to work remotely, businesses can cater to individual preferences and promote a healthier work-life balance. This flexibility allows employees to better manage personal commitments and responsibilities, reducing stress and increasing overall job satisfaction. When employees have more control over their schedules and work environment, they tend to experience higher levels of motivation and engagement.
Again, as mentioned above, because emote work eliminates geographical constraints, businesses can also retain top talent from a broader talent pool. Professionals in the financial industry, such as BAS agents, can now join organisations based on the quality of their work and alignment with the company’s vision and values, rather than being restricted by commuting distances.
Risks of running a remote team
While remote work offers numerous benefits, it also comes with certain risks that businesses need to keep in mind and address.
Communication and collaboration challenges
Remote teams often face hurdles in maintaining effective communication and collaboration due to the lack of face-to-face interactions. Misunderstandings, delayed responses, and a sense of isolation can hinder team cohesion and productivity.
According to one team leader :
“…finding opportunities to communicate in a remote environment takes conscious effort. You cannot just bump into someone in the hallway or peek if their door is open ”.
When team members are physically dispersed, personal interactions are limited, and reliance on virtual communication becomes crucial.
Misunderstandings and misinterpretations can occur due to the lack of non-verbal cues, leading to potential delays and conflicts. Different time zones and availability windows can also create hurdles in scheduling meetings and impede real-time collaboration.
Data security and privacy concerns
With remote work, the risk of data breaches and security breaches increases. Confidential financial information must be protected, and proper measures should be implemented to ensure data security and compliance with regulations.
Working on personal devices or connecting to unsecured networks can leave remote team members vulnerable to cyberattacks. The transfer and storage of confidential financial information and sensitive documents may become more susceptible to unauthorised access or data breaches. According to the Office of the Australian Information Commissioner (OAIC), there was a considerable jump in data breaches due to human error from July to December 2020 (the early years of the pandemic).
Ensuring the secure handling and transmission of data across remote locations becomes crucial to protect the integrity and confidentiality of financial information.
Work-life balance and employee well-being
Remote work can blur the boundaries between work and personal life, which can have an impact on employee well-being. The lack of physical separation between workspaces and personal spaces may make it challenging for remote team members to establish clear boundaries.
Without a structured office environment, your team may find it difficult to disconnect from work, leading to longer working hours and an increased risk of burnout. Struggling to maintain a healthy work-life balance can result in reduced overall well-being and potential challenges in managing personal responsibilities effectively.
What does the finance industry think of remote work?
According to a recent report by Deloitte, most finance professionals support working from home post-COVID - and they say that most of their work can be done remotely.
Approximately 77% of surveyed respondents found that their organisations should continue to work remotely to a degree after the pandemic fades away. Around 15% said they should work from home all the time. Meanwhile in a separate survey, respondents indicated that 90% of their work can be done virtually, with 87% saying they’d prefer to work remotely a majority of the time.
How to effectively run a remote team (and mitigate the above risks)
Running a remote team effectively requires a distinct set of strategies and practices to overcome the challenges and maximise the benefits of remote work. Much of the below is not unique to BAS agents - this approach can be adopted widely regardless of the team or industry you are working in.
- Be transparent and clear when communicating to your team
Frequent and open, transparent and clear, communication among team members is absolutely essential to ensure everyone is aligned and informed.
Here are some ways you can ensure the communication remains robust across your team.
- Schedule regular check-ins and one-on-one meetings with your team
Regular check-ins and one-on-one meetings are essential for fostering clear and transparent communication between managers and employees. These interactions provide dedicated time for discussing work progress, addressing any challenges or concerns, and offering feedback and support. After all, according to the 2019 State of One-on-ones Report, 75% of managers will discuss and growth and development of their staff in one-on-one meetings.
By scheduling regular check-ins, managers can also keep a pulse on their remote team members’ workload, progress and overall well-being.
During these meetings, managers have a unique opportunity to create a safe and open space for employees to share their accomplishments, challenges and ideas. It is, however, crucial for managers to actively listen, ask probing questions and provide constructive feedback to ensure effective communication. Employees are 2.7x more likely to be more engaged with their work when they are provided positive and constructive feedback (Quantum Workplace, 2020).
Through these regular check-ins, managers can offer guidance, align expectations and provide timely recognition or corrective actions. Ultimately, this is more likely to foster a transparent and supportive work environment.
By the same token, one-on-one meetings provide an opportunity for employees to express their personal and professional aspirations, allowing managers to better understand their needs and create development plans tailored to individual growth.
- Set transparent goals and manage performance expectations
Some employees, regardless of whether they working from home or a conventional office, can lose track of their goals. Transparent goal-setting and performance expectations are therefore crucial for ensuring they are clear in what is expected of them, and that their work is aligned to meeting those expectations.
This means - when working remotely - it is essential to establish clear goals, milestones and performance indicators to guide employees’ work and assess their progress effectively. Clearly define project objectives, deliverables and timelines to ensure that everyone understands their roles and responsibilities. Establish key performance indicators (KPIs) and metrics to track progress and measure success.
Managers should involve employees in the goal-setting process, allowing them to contribute their ideas and insights. They can do this in 1-on-1 meetings or in a group setting. This collaborative approach promotes transparency and empowers employees to take ownership of their work. Clearly communicate the expectations for quality, quantity, and deadlines, ensuring that employees understand how their contributions impact the team and the business’ overall success.
Regularly revisit and review goals during team meetings or one-on-one sessions to ensure they remain relevant and achievable. By providing ongoing feedback and recognising accomplishments, managers can keep employees motivated and engaged. Transparent goal-setting and performance expectations foster a culture of accountability and enable employees to understand how their work aligns with the organisation’s objectives.
- Invest in open communication channels and virtual collaboration tools
When running a remote team, software and technology that works well and that your employee can navigate comfortably and seamlessly, is everything.
Establishing open communication channels and utilising robust virtual collaboration tools is vital for fostering transparent communication between both you and your and employees.
Provide multiple channels for communication to accommodate different communication preferences and needs, such as:
- Instant messaging platforms (Microsoft Teams, Slack)
- Project management tools (Monday.com, Trello)
Encourage employees to use these communication channels to share updates, seek clarification and collaborate with colleagues. Ensure that these channels are easily accessible and well-maintained, facilitating quick and efficient information exchange.
Both you and your IT team needs to be on the ball to ensure this. Managers should actively participate in these communication channels, responding promptly to messages and inquiries. While any problems with the technology itself shouldn’t be left to fester.
By leading by example, managers demonstrate the importance of open communication and encourage employees to engage in transparent dialogues. These open channels and tools overall promote transparency, encourage knowledge sharing and facilitate effective remote teamwork.
- Foster team engagement and connection
While your employees may be geographically distant from you and their colleagues, they should not be disconnected.
Creating a sense of team engagement and connection is vital for remote teams to thrive. Without it, your team will not communicate effectively, it will not achieve the business’ goals, and it may in turn lead to a high turnover rate and a poor workplace culture.
This is a huge challenge for many organisations. According to a recent study by Airspeed, 75% of C-suite executives think that their employees would give up quite a bit for another company where they would feel more of a connection. In that same survey, approximately 72% percent of workers said that they are not able to socialise enough when working remotely. Some 33% even expressed feelings of loneliness.
How can you prevent this from happening in your remote team?
- Encourage a culture of health and wellness
In a virtual workplace (and, indeed, in a conventional workplace setting), it’s important to prioritise the health and wellness of team members to foster engagement and connection. This is because a culture of health and wellness can have a positive impact on both physical and mental well-being, making your staff actually happy to work with you.
Businesses can do this by:
- Offering wellness challenges or competitions, where employees earn points or rewards for participating in healthy activities. This can include sharing recipes, hosting virtual exercise classes or challenges, or encouraging regular breaks for stretching or meditation.
- Providing resources and information on maintaining a healthy lifestyle, such as nutrition tips, mental health resources or access to virtual wellness programs
By creating a supportive environment that promotes health and wellness, team members feel valued and cared for, enhancing their overall engagement and connection to the virtual workplace.
- Running casual ‘hangouts’
In a virtual workplace, it’s important to consciously create opportunities for team members to connect on a more informal level.
Casual hangouts, such as virtual coffee breaks, virtual happy hours, or themed events, can help build rapport and strengthen relationships among team members. These informal gatherings can also provide a space for team members to socialise, share experiences, and get to know each other beyond work-related discussions.
Consider also introducing virtual team-building activities, such as online games, quizzes, or collaborative projects and other doings to promote interaction and teamwork. These activities encourage communication, collaboration, and friendly competition, enhancing team engagement and connection in a virtual setting.
- Ensure your team feels heard and valued
To foster team engagement and connection in a virtual workplace, it’s crucial to ensure that team members feel heard and valued.
This means creating a culture where team members feel comfortable expressing their thoughts and opinions, and where their input is genuinely considered. Not a place where workers feel they have to keep quiet for fear of ‘rocking the boat’.
Managers can help create this culture by doing things like:
- Actively listening to your employees’ ideas, thoughts and concerns
- Providing constructive feedback on their work
- Encourage open dialogue in team meetings and one-on-one catchups
- Keeping their ‘virtual door’ open so that employees can feel comfortably reaching out to their managers when they need to
- Responding promptly and providing guidance to their employees when needed
- Developing personal connections with their staff that goes beyond just checking in on work-related matters. Managers should take the time to get to know their team members on a personal level. This can be achieved through casual conversations that touch on personal interests, hobbies, or experiences. By showing genuine interest in team members’ lives outside of work, managers create a more meaningful connection.
By fostering these open and transparent communication channels, team members feel supported, valued, and connected to their managers and the organisation as a whole.
- Prioritise work-life balance and well-being
Supporting work-life balance and well-being is crucial for remote team members to thrive in their roles.
Encourage remote team members to establish clear boundaries between work and personal life by setting realistic expectations and promoting self-care practices. This means encouraging remote team members to:
- Take regular breaks
- Maintain a healthy work schedule
- Prioritise self-care activities
- Encourage in regular exercise and breaks during the workday
- Use their annual leave to recharge and rejuvenate
Foster a culture that values work-life balance by leading by example and encouraging open conversations about well-being. By prioritising work-life balance and well-being, you create a supportive and sustainable remote work environment.
Conclusion: Remote work is here to stay, so make it work for you and your team.
In today’s rapidly evolving work landscape, remote work has become an integral part of how businesses operate. The COVID-19 pandemic served as a catalyst, accelerating the adoption of remote work practices. However, even as the world gradually recovers and adapts to new realities, it is clear that remote work is here to stay. As professionals in finance, it is essential to embrace remote work and learn how to effectively run a remote team to thrive in this new era.
Remote work offers numerous benefits, including increased flexibility, improved work-life balance, access to global talent and reduced overhead costs. However, it also comes with challenges, such as potential isolation, communication gaps and decreased team cohesion. By proactively addressing these challenges and implementing the strategies outlined above, you can create a thriving remote team that achieves high levels of productivity, engagement, and employee satisfaction.
So, as remote work becomes the new normal, seize the opportunity to make it work for you and your team. Embrace the possibilities and leverage the tools and strategies available to create a remote team that is productive, engaged, and fulfilled.
Remote work is here to stay, and by harnessing its potential, you can lead your team to new heights and achieve success in the dynamic world of remote work.