Status of the Remote Industry

The remote industry is thriving. That is a fact. But what is rising more? Supply or demand? Remote jobs or remote workers? Are there platforms? What is the most important new job? This post will answer that.

Actual Status

If you are curios what the remote industry is, have a look at my blog post ‘What is remote work, a digital nomad or even a remote-first company?‘. If you are still wondering why so many people are talking about remote work, just read this: ‘The Ultimate List of Remote Work Pros and Cons‘.

I would summarize the status of the remote industry as follows:

  • there are lots of willing workers (this is also shown by many surveys, i.e. ‘State of the American Workplace Report 2017‘ by Gallup)
  • we have now all technological possibilities for collaboration (and the future will bring cheaper virtual reality devices on top)
  • there are best practices and knowledge bases
  • we have not enough job offers and career opportunities / too less long-time engagements,  mostly gigs (the quality and diversity of jobs should be the same as with on-site jobs)
Knowledge Bases

Lets have a closer look at the knowledge bases associated with remote work. They are a little scattered over the following fields with often overlapping topics:

 

Remote Work Consultants

What is this new job about? These consultants are advising people who want to work remotely, what kind of skills they need, which hard- and software they will need and how to find a job. But, they are also advising managers to enhance their traditional companies with remote work. That goes from letting people work from home some days, over changing companies culture, processes and tool all over to creating new teams or divisions which are completely remote.

Conclusion

Exactly with that, the remote work consultants are able to increase the number of remote positions, are spreading the word of remote work to more industries and are lobbying for remote work in our complete society including local and global politics. So that is the most important new job about remote work.

And because these consultants are gathering all the knowledge over remote work, they can establish the missing overall platforms for remote work, which will combine the important topics from the long list above.

The listed examples can never be complete. Did I miss an important service? Or am I wrong with my argumentation? Please let us know in the comments section.

Remote Work Will Save Small Towns

The struggling small towns, which lost so many people, first and foremost the young talented ones, to the big cities, will be thriving again with the already started wave of remote work.

Status quo

The entire world is in a long phase of urbanization (see also these UN report: 2014 Revision of World Urbanization Prospects from my post How remote work supports the health of our planet). But it is not only the movement from rural landscapes to cities – it is especially the skilled people, who have to move from small towns to the big cities to get proper jobs. That is the same in the US, North and Latin America, Europe, Asia, Australia and even Africa. And there are also some decreasing metropolitan areas; to name only two examples: the Rust Belt in the US and the Ruhr area in Germany, which were strong in coal mining and steel industry.

You can see the same pattern everywhere: Young people move away from home after finishing high school or studying to find higher education and work in big cities. And everywhere you see the big travel movement for christmas, chinese new year or the other big holiday breaks, when singles, couples and young families are travelling to their families to be together for a few days.

Future

But why will that change? Because of the advent of remote work. I am explaining the rise of remote work in all my other posts, but take this as summary: The Ultimate List of Remote Work Pros and Cons. Because it effects so many parts of our lifes, we should name it a new industry. With so many known advantages, it is clear that the remote industry will introduce itself even faster than the digital revolution.

Everyone with a location independed job can choose a place to live and work. There will be people, who want to live at their home town, at the place where relatives live (if it is not the same) or they will choose a ‘nice’ spot. Some will stay in big cities, because of amenities like good travel connections or cultural offerings. But the big movement will go from overcrowded cities where housing is expensive, the air is polluted and traffic is a nightmare to small towns, while some of them are already looking like ghost towns.

Home towns

We all need communities, and nearly all of us love the community of family, friends and neighbours where we grew up. So it is easy to guess, that a lot of people will move back to their home towns. And the returning inhabitants bring demand for services and spending capacity which will not only keep some dying small community alive, these towns will be literally reinvigorated.

Imagine the young high potential graduate who can still take care of an elderly family member and start a significant job from home. Or imagine a young family with remote working mom and dad, who are enabled to live in their small home town, neighbouring parents and other relatives to give their children the same feeling of ‘home’ like they experienced years before.

Vacation spots

All the others, who are not tied or not tied yet will choose a nice spot, which is affordable, has good weather and other amenities like security. In general that will be the holiday regions. There will also be much movement between these areas, because the migration will start again when the locations get crowded, which ends the quite and also rises living costs and traffic.

The vacation spots will get nomads, who are passing by on the one hand and new residents, who are settling down, on the other hand. It is important to grow the infrastructure to handle them in a balance with minimal destruction of the nature to keep the place attractive.

Responsibility of towns

The towns have to stop trying to attract big companies or manufactoring jobs. That will be a waste of time and money. Fred Perrotta explains it well with an US example here: No Jobs are Coming: How Remote Work Can Save Small Towns. Also the comments by Kristi E. DePaul, Michael DeHart and Deb Dutton are very well said.

The better way is attracting remote workers to move (back) to the town and reorganizing the infrastructure for the new situation. There will be an increase in service jobs if the population is growing again. But the actual residents should not rely on only that. They should be trained in the use of remote work tools and how to get a digital job with their capabilities.

Responsibility of big cities

First of all, the cities have to take it seriously. Lots of them are highly dependent on a few big companies (be it blue or white collar jobs), which is very dangerous. Germany has a number of cities which are highly dependent on big car manufacturers. Take Wolfsburg with Volkswagen for example. The treasurer of Wolfsburg declared a spending freeze at the day ‘Dieselgate’ went public, because they knew that VW whould not pay extensive taxes anymore.  They will have to deal with unemployment soon, because of the radical shift to electric cars, where Volkswagen will loose market share and lots of employees.

It is way better for cities to have a huge bulk of remote employees which work for many companies in different industries and even different countries. That is the best insurance against economic risk. Cities are still attracting big companies to get new jobs, but soon they will try to attract remote workers.

Big cities have to reinvent themself to keep a meaning. They have to take care of air pollution, traffic, security and they have to spend a lot for green infrastructure, parks and entertainment to be attractive in a very new competition.

If you are able to choose: Do you want to live in a big city or in a town? Let us know in the comments section!

Is remote work just possible for software and marketing companies?

Let’s resume at first the difference between partly and fully remote companies (read also that blog post: What is remote work, a digital nomad or even a remote-first company?). The partly remote company has offices with co-located workers on one hand and remote workers on the other hand. The fully remote company consists only of remote workers, also if some are co-working. The term ‘remote worker’ includes permanent employees, freelancers or contractors and is independent of their location (remote office, home, co-working or travelling).

Partly remote company

You can imagine every traditional company here, because a lot of them are enabling their workers to work from home partially. Needless to say, that this is not possible for people who are using tools or other equipment which is located at the companies property. So remote work is possible for everyone who needs only internet, laptop and phone for work. There are also positions where you need equipment only at some days. Imagine a tester, who is setting up a test jig at some days and programming test sequences and running tests with online access to its already functioning test rack on other days.

The companies are sending all their workers home these days, may it be engineers, accountants, lawyers, purchasers, managers, marketers and authors for sure. But is it even possible to have a fully remote company beyond software, marketing and journalism? My optinion is clearly yes!

Fully remote company

We said before, that everyone who just needs internet, laptop and phone can work remotely. So every company which employs more than 80% of those workers can go fully remote. Why are still so many people co-located at offices? The biggest point is, that the manager (middle and top management) are not used to it and are afraid of losing power over their staff.

But it is possible nowadays – the famous examples are showing it: Basecamp, 99 designs, Buffer, Trello and others. That are all software companies? Is the headline right in the end? No! My theory goes like this: it is much easier to build a fully remote company from scratch than transform an existing one. And with that knowledge ask yourself, which industry is fast growing and creates lots of new firms?

Thought Experiment

We will soon see fully remote companies in every industry. Lets make a thought experiment with a company which develops and produces components for construction machines.

A sales person will maintain contacts to customers remotely and personally like in the past. He or she will make an offer after consulting engineering and production people. After getting the order, a remote project manager will clarify all the open points with engineering, production and the customer and will start the developing. Mechanical engineers have a 3D-printer for fast samples or will get printed parts overnight.

Electronical engineers are soldering easy parts by their own or get SMT assembled modules in a few days (to wherever they work). Software engineers are developing inside simulations and can get hardware in a few days, as well. The industrial engineer, who manages sourcing, the kinds of manufacturing steps and the grade of automation can also work remotely. The only one who is linked to a location is the assembly guy. He is the one who manages prototype assembly and organizes everything for series assembly, may it be manually or partly or fully automated.

If you make something completely new, it will help if you arrange face-to-face integration weeks, where mechanical parts, electronical modules and software will be integrated by the developers. It also helps to work closely with the test laboratory which conducts mechanical and electrical environmental tests to avoid extra loops.

And of course it is great to meet the customer with the key people of the team. All the rest of the work – and I am pretty sure here – is possible remotely.

Please question yourself: how many of your tasks can you do from home?

For sure everything I write needs proper remote project management and very good collaboration and has trade-offs on top – but the benefits are clear (Why your company has to go remote). You have simply not the best talents for your jobs next to your office. If you are an employer, deal with that and start the transition of your company (How to start the transition to a remote company) or start your own fully remote company now. If you like to be employed, look around for remote work opportunities.

Please use the comment section for any suggestions or objections. And if you need a remote project manager for the scenario above, please let me know.

 

What a good remote project manager needs to know

What is a remote project manager? That’s easy, its a project manager of a remote team. So what is different between managing an onsite or a remote team?

Most articles about this topic are not highlighting, that most methods and approaches are the same. Time, resource and budget planning, controlling or stakeholder management are nearly the same with onsite and remote projects. But if you take the PMI methodology for example, it says that you have to adjust all methods to the specific circumstances of the project anyway. The location and composition of the team is, of course, an important characteristic.

What are the major different topics, the remote project manager has to deal with? They are:

  • Communications
  • Tools
  • Team Management
Communications

The known principle is ‘everyone has to know everything what is important to his / her work at any given time’ – not more and not less.

The diffuculties with remote teams are, that you don’t have talks from desk to desk and you don’t have the informal meetings at the water cooler or coffee maschine. According to the famous book Remote by Jason Fried and David Heinemeier Hansson, are the employers of Basecamp encouraged to use their chat software Campfire as a ‘virtual water cooler’.

Instead of that you have to assure that all inforamtion will be exchanged in written (i.e. design specifications) or via chat, phone or video conference. The advantage here is, that agreements are more binding, but on the other hand, it is hard to get the mood of the participants and the reading between the lines.

Use the communication tools according to the urgency of the information:

  • urgent: make a call (but think about the time zone)
  • less urgent: reach them via messenger
  • not urgent at all: use email

Be very cautious if there is a little misunderstanding or you sense a bad mood at any form of communication. Normally that is only the tip of the iceberg. Get over this with temporarly even more communication, be it written, via phone or video or even face-to-face if needed.

Tools

We can’t do remote work without a number of tools. Remember that only the tools enabled us to work with distributed teams around the world.

The variety of tools in unbelievable. Its very hard to get a good overview or to make suggestions. Its also continuously envoling as we know the matter with software. Let’s focus on the tasks we have to address with the tools:

  • project management (schedule, resources, timetracking)
  • communication (VoIP, video, chat)
  • document management
  • source code management with version control, if you create software

Commonly you will use the tools which are in place at your company or at the client. If you have the choice, check out tool comparisons and have a close look on what will help the team while avoiding unnecessary bureaucracy.

Team management

Together with communications, managing the team is the most important topic for the remote project manager.

The great advantage of remote work, that you can hire the best talents (for the best price) worldwide, comes with the challenge that you will maybe not work in the same time zone. And even if – you should maintain a plan with the actual (remember travelling digital nomads) time zones and preferred working hours of all team members.

Get a very good overview about everyones experiences, skills, characteristics, position in the company, etc. At best you make longer one-on-ones at the beginning of the project. It is very good, if you have a face-to-face kickoff or get-togethers once or twice a year.

To enhance the collaboration, allow some time for personal conversation. So start every phone conference with some small talk and encourage the team members to exchange some information about hobbies, family situation or about the home or current city or country at other situations.

The project manager is the critical role in a distributed team. He enables all the remote work benefits, if he / she makes a good job and can destroy the project and the reputation of remote work if he / she skews it up.

Contact me if you need a remote project manager or even a coach for your project manager!

What is remote work, a digital nomad or even a remote-first company?

The remote work movement gains more and more momentum. But what is ‘remote work’ really? And what are all the other terms in its context? See the following collection.

Remote Work

It is any kind of collaborating work, where not all participating members are colocated in one building. The definition diverges, some say all workers on one plant are not remote, but others say everyone who sits 30 meters away or on a different floor is remote. That hard definition comes from the fact, that this 30-meter-collegue will lose the connection to the project without proper communication and documentation.

With that definition you will get one point: you are already working remote in some kind. But the common understanding of working remote is to work part- or full-time from your home office or a cafe or coworking space in your home town or anywhere else on our planet.

Completely Remote / 100% remote

If you are talking about a person, it is someone, who works full-time remote (no matter if in the home town or abroad). This is not excluding project meetings at your company and visits of customers and suppliers from time to time.

If you are talking about a company, all their employees are able to work where they want. The company can even have offices, but some never had an office or headquarter anywhere.

Remote-friendly vs. Remote-first Company

All big companies are trying to be remote-friendly these days. They are offering flexible work hours, part- and full-time home offices and sometimes even single enployees, which are completely location independent. These actions are commonly taken on existing onsite staff.

A remote-first company is built around the remote philosophy with all its tools and processes, even if some employees are sitting together in the same office. These companies are hiring worldwide, with no connection to any location. That constellation is still rare, but there is a raising number of i.e. software companies. One of the first of that kind was 37signals, turned now to Basecamp (http://basecamp.com).

Freelancers / Entrepreneurs

There are 3 major working conditions for remote workers: freelancing, self-employment and traditional employment (permanent appointment). These conditions are often mixed, i.e. a freelancer who has its own side projects or an employed person with part-time freelancing. Anyway, the percentage of freelancers and entrepreneurs is very high under remote workers.

Digital Nomads

are generally people, who are working online with the help of laptop and smart phone (formerly known as telecommuting). While the term is correct for people in the home office and abroad, it is normally linked to remote workers, who are moving from location to location around the globe.

Co-working and -living

With the raise of remote work, some digital nomad hubs emerged (i.e. Chiang Mai in Thailand). In those cities the first co-working spaces appeared, commonly open offices with WiFi where you rent your desk per day or even hours. Co-living came up next, the easiest explanation is: a combination of co-working space and hostel. The co-working spaces are already spreading through our home towns, because remote workers, who cannot work at home, are tired from distractions and bad wifi at coffee shops.

Remote Industry

If you combine all that, you see that we have a rising industry branch here. The related businesses includes co-working and -living spaces, hostels, coffee shops, specialized travel agencies, organized digital nomad trips, specialized online education and blogging, software for online collaboration and a lot more (please feel free to put the things I missed in the comments).

Millennials / Generation Y

Everytime you read something about the future of work you will come across the term ‘Millennials’. The millennials (or ‘Generation Y’ if you live in continental europe) are, according to Wikipedia (en.wikipedia.org/wiki/Millennials): ‘the demographic cohort following Generation X. There are no precise dates for when this cohort starts or ends; demographers and researchers typically use the early 1980s as starting birth years and ending birth years ranging from the mid-1990s to early 2000s’.

Why are they (wait, I should say ‘we’) that important? Because this generation will have the highest percentage of working people soon and because the needs and desires of that generation are totally different to generations before. Security and stability at only one employer was desired over decades, but the millennials are looking for freedom, opportunities and self-fulfillment. And because that is combined with and enabled by the digitalization, it is the biggest challenge for all industries.

That explanation was helpful? Or do I missed an important point? Please let us all know in the comment section. Thanks for sharing!