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Future of business success in this digital age is adopting a distributed workforce model Increasingly, businesses are embracing a distributed team model as a modern means for workforce development. Distributed workforces are teams with people in multiple locations and often, multiple countries.

By Job van der Voort

Opinions expressed by Entrepreneur contributors are their own.

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In today's fast-paced digital age, a company's success strongly depends on its capacity to attract, train, and retain a talented and adaptable workforce.

Workforce development is the process of enhancing employees' abilities and knowledge in order to increase their performance and productivity and, eventually, the profitability of the business. Training, chances for professional advancement, and mentoring programs might all fall under this category. If companies want to remain competitive in the modern digital environment, they must make an investment in their people.

Increasingly, businesses are embracing a distributed team model as a modern means for workforce development. Distributed workforces are teams with people in multiple locations and often, multiple countries. Companies are quickly moving beyond international borders to access cost efficiencies, improve diversity, increase retention, and create new competitive advantages. Global employment platforms allow companies of any size to automate, streamline, and align international employee management, while also managing the risk and responsibilities of employing people legally in compliance with regulations in other geographies.

While arguments over remote work continue, a quieter movement is rapidly overtaking hesitancy in the headlines: the rise of distributed work. Employees discovered increased mobility and flexibility through remote work, and saw that it provided an opportunity to achieve better work-life balance and access careers independent of their geographic location. As economic uncertainty caused some to retreat into familiar offices, other businesses took the opportunity to think past local limitations — and found substantial rewards in doing so.

According to 2023 Remote Workforce Report: The Rise of Globally Distributed Teams, businesses and their employees in India, North America, Europe, APAC, and Latin America are optimizing their headcount and operational costs in the age of remote work. As per the report, businesses feel that distributed remote workforces have provided a competitive advantage. Decision-makers hire remotely, both in-country and internationally, to get top talent. Despite 53% of decision-makers in remote workforces saying headcount costs have increased, and more than half (55%) still would rather hire the best person for the job even if they live in a different country.

Opening roles to international candidates leads to higher-quality applicants. 60% of decision-makers say the number of quality applicants per open role has increased since their company adopted a distributed remote workforce model. Hiring internationally allows businesses to be more competitive in new markets. 35% of decision-makers say they can improve market competitiveness by serving more international locations when they hire international remote employees.

Here are some additional reasons why a distributed workforce model is becoming increasingly important for business success:

  • Increased Flexibility: With a distributed workforce, businesses can be more flexible in terms of where and when work gets done. This means that employees can work on their own schedules, which can lead to greater productivity and job satisfaction.
  • Access to a Wider Talent Pool: When businesses are not limited by geography, they have access to a wider talent pool. This means that they can hire the best people for the job, regardless of where they are located.
  • Reduced Overhead Costs: Operating with a distributed workforce can help businesses reduce overhead costs such as rent, utilities, and office supplies. This can help businesses become more financially stable and competitive.
  • Increased Resilience: A distributed workforce model can make businesses more resilient in the face of unexpected events, such as natural disasters or pandemics. When employees are working remotely, they can continue to work even if they are unable to physically be in the office.

The last few years have taught employers and employees alike that there are different ways to work. The quick shift to remote work began a global reckoning in which businesses and their employees had to decide what they wanted the future to be.

Job van der Voort

Co-founder and CEO at Remote

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