Work Models: In Person, Full Remote, or Hybrid
We have recently had many conversations about work style and work location, both with fund managers and founders alike. Nimble funds are contemplating whether a physical office space is necessary or preferred. These same fund managers are discussing similar options with their portfolio companies, as startups decide whether their location matters as a variable for collaboration and attracting talent.
The data shows that employee productivity increases with remote work. In 2022, a Stanford study reported that remote workers were 9% more efficient than office-based workers. However, many business leaders are still wedded to the idea that in-person is "better" due to assumed knowledge transfer, improved communication, increased creativity, boosted productivity, and greater oversight.
90% of companies will require employees to return to office in 2023
21% of companies will fire workers who do not return to the office
88% of companies are offering incentives to get employees to return, including catered meals, commuter benefits, and higher pay
There is no right or wrong answer to work style and work location, with pros and cons lining up on either side. For every return to office example, there is a startup who views remote work as a strategic advantage. Meanwhile, major corporations from Apple to Disney and JP Morgan to Salesforce required employees to return to the office. Some companies even introduced sweeteners, like Google’s added 4-weeks annual benefit of working from anywhere.
In our Work Models Blueprint, we highlight three types of work models: (1) in-person, (2) full remote, and (3) hybrid. With many variations on the specifics of these models, we have taken a look at some interesting set-ups. Regardless of the work model that you decide to use, business leaders should consider flexibility as an important variable — for example, provisioning a physical office for employees who choose to come in, remote work access for those who prefer it, variation on days worked in-person, and freedom for each individual to make their own choice. Most companies in the venture and tech ecosystems view hybrid and flexible models as the best approach. Storm Ventures gave up their office at the beginning of the pandemic and is not looking back. Companies like Dropbox became virtual first. Startups like Automattic and HashiCorp view remote work as a competitive advantage and were fully remote long before the pandemic.
As our work world returns to a semblance of normalcy post-pandemic, many fund managers are asking what the right work model is for themselves and their investments. Do they return to an office for the perceived benefits of knowledge sharing and collaboration, continue to work remotely for the benefits of flexibility and productivity, something in between, or something entirely new? What does work look like today? In addition to our outlined Work Models Blueprint for comparison, here are some questions to help guide you and your companies to an answer that is a best fit for you:
Work Model Questions
What does my team want?
What working style is most aligned to our culture, values, mission, and vision?
Are we superimposing the preferences of the founders, GPs, or executives on the rest of the team? Is that choice synced with our values?
What is the cost to the environment for each option? E.g., commuting has a significant environmental impact
How are our decisions impacting our diversity efforts?
If a different set up was required during the pandemic, what works for us as an organization now?
Do we facilitate space for those who need to do deep work? E.g., engineers but also writers, content creators, finance personnel, etc.
Is location a key variable in delivering our product or service?
How does location play out in talent sourcing? Hiring? Budget and salaries?
If there are other work models that you would like to share, please connect with us! We are always interested in distributing more useful information with the ecosystem.
Remote Work Resources
How HashiCorp Works - This remote-first company shares its guides on everything from relationship building to writing practices and culture.
How We Work - Automattic provides its guides on no-office culture, including its Creed, its Distributed podcast and blog of interviews and resources for remote work, and its communication process and tools. Wish they would open source those travel guides!
The Ultimate Guide to Remote Work: Suddenly Remote Starter Kit - As a 100% distributed company with hundreds of remote employees in 17 time zones and dozens of countries, Zappier shares its guide to remote work for the newly initiated.
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By Shea Tate-Di Donna and Kaego Ogbechie Rust, authors of The Venture Fund Blueprint.
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Disclaimer: The providers, companies, examples, products, and services shared represent only a subset of available options and are based solely on internal fund manager conversations. These options are intended to be a general framework, not an exhaustive catalog, and should not be viewed as legal or tax advice, endorsements, recommendations, approvals, or rankings. We encourage you to do additional research into each category to find the resources that best fit your specific needs.
