70 Virtual Team Statistics You Can't Ignore: 2024 Data Analysis, Benefits & Challenges

The pandemic has thrown a curveball to all industries, bringing the global economy to a near standstill. The goalposts have been moved, and now all we can do is to stretch our workplace policies further to keep our business going. However, even amid this calamity, you cannot afford to go about things blindly.

In this article, we’ve culled the key virtual team statistics and data to help you understand the state of affairs in this arena. By reading these statistics, you’ll gain helpful insights on telecommuting best practices and the use of remote work software. Moreover, it will help you get ideas on how to build highly effective virtual teams.

General Virtual Team Statistics
Benefits of Virtual Team Statistics
Challenges of Virtual Team Statistics
Virtual Team Technology Statistics
Virtual Teams Forecast
Cultural Differences in Virtual Teams

1. General Virtual Team Statistics

In this section, we’ve gathered the relevant statistics that highlight how organizations and employees are leveraging the opportunity to work remotely, especially on virtual teams.

Virtual Teams and COVID-19

80% of global corporate remote work policies had shifted to virtual and mixed forms of virtual team collaboration during the early part of the coronavirus crisis. (Meluso et al., 2020)
Zoom is the most used app by virtual teams in the US during the pandemic. (Clutch.io, 2020)
64% of organizations say that the shift to virtual team work will likely be a permanent one because of COVID-19. (Meluso et al., 2020)
97% of courts everywhere use video meeting platforms to continue the legal process during the pandemic. (Bloomberg Law, 2020)
75% of virtual teams worldwide say that remote collaboration allowed them to be more effective in their jobs. (Meluso et al., 2020)
62% of employees worldwide say that they might think of resigning from a co-located organization to a company that offers remote work. (GitLab, 2020)
91% of courts worldwide use remote desktop apps to conduct their virtual hearings. (Bloomberg Law, 2020)

Source: Clutch.io (2020)

The remote work situation for companies

The departments most likely to have virtual teams include HR (63%), sales (62%), IT (57%), operations (57%), and finance (56%). (SHRM, 2019)
Besides, 53% of companies are embracing more flexible teams compared to three years ago. (Inavero & UpWork, 2018)
Globally, 63% of all departments in an organization have team members who work remotely. (Inavero & UpWork, 2018)
According to the IWG workplace survey, 62% of businesses globally say they have a flexible working policy. (IWG, 2019)
Participation in virtual teams grew by 25% between 2010 and 2018. (CultureWizard, 2018)

The companies mentioned below have been using virtual working teams to achieve their organizational goals.

As of 2018, 70% of Trello’s employees were working remotely from home or co-working spaces across the globe. (Buffer, 2018)
Also, 100% of Buffer’s employees work remotely in virtual teams spread across 50 cities in the world. (Buffer, 2018)
Buffer is one of the many companies that have figured out how to thrive as a fully remote workforce. Others include PartnerCentric, Toptal, UpWorthy, and Toggl, to name a few. (Glassdoor, 2020)
By 2016, 25% of Dell employees were working from home either a few days of the week or full-time. (Indeed, 2018)
Dell says it saves $12 million per year in real estate costs by allowing employees to work from home. (Indeed, 2018)

The remote work situation for employees

At present, over 25% of employees worldwide work in a 100% remote work organization that observes virtual team collaboration, where every employee works in her or his own domestic time zone. (GitLab, 2020)
Around 12% of global workers work all-remote where employees must abide by a synchronized time zone set by their organizations. (GitLab, 2020)
56% of virtual team members said that everyone in their organizations can give his or her contributions in the areas of organizational direction, values, and process. (GitLab, 2020)
14% of remote employees are persons with disabilities or diagnosed with chronic illness and 83% of them were able to work because of the remote work setup. (GitLab, 2020)
30 million employees work from home at least once a week in the US. It’s predicted that by 2022, 60% of office-based employees in the US will work from home. (SHRM, 2018)
Good virtual teammates have the following traits: share information (19%), collaborative (18%), proactively engaged (17%), and organized (14%). (CultureWizard, 2018)
43% of employees in the US work away from their coworkers for at least a fraction of their workweek. (Gallup, 2017)
Besides, 85% of employees involved in global business activity work on virtual teams. Out of this number, 89% work in at least one team, whereas 27% are in more than four virtual teams. (CultureWizard, 2018)
Moreover, only 22% of corporate employees have received formal training to boost productivity on virtual teams. (CultureWizard, 2018)

Numbers don’t lie, so the statistics above paint the exact picture of the state of virtual teams. The workplace has clearly extended beyond the physical office environment, and more change is around the corner. While it’s not easy to accurately foretell what will become of virtual teamwork, the stats provide a sneak peek into the future.

2. Benefits of Virtual Teams Statistics

Companies are reaping a host of benefits by designing flexible workplace policies that formalize virtual teamwork. The benefits transcend better productivity, increased speed to market, reduced employee turnover, and overall operational success.

In 2018, employers say that the top benefits of remote working are improved morale (57%), reduced employee turnover (52%), reduced absenteeism (50%), operational cost savings (50%), and reduced health insurance costs (31%). (Indeed, 2018)
In 2019, the Society for Human Resource Management found that the biggest benefits to virtual teams include global perspectives (81%), diversity (72%), creativity (54%), access to talent anywhere (53%), cost-effectiveness (32%), and productivity (31%). (SHRM, 2019)
The same SHRM study also noted that virtual teams are highly collaborative. In fact, 48% of HR practitioners said that they have global teams that work closely and collaboratively daily. On the other hand, 86% of virtual teams work together at least once a week. (SHRM, 2019)
In addition, 53% of businesses with virtual teams struggle to manage their teams only sometimes. (SHRM, 2019)
Moreover, 82% of companies with virtual teams are growing, 15% have stagnated, and 3% are downsizing. (SHRM, 2019)
In another 2019 study, the International Workplace Group found that 85% of businesses think they are more productive, thanks to flexible working policies. (IWG, 2019)
Likewise, for the respondents of the IWG study, the benefits of flexible working include overall business success (79%), increased productivity (89%), improved risk management (54%), reduced CapEx/OpEx (65%), consolidated portfolio (53%), and better speed to market (64%). (IWG, 2019)
In 2020, 53% of the American workforce say that the main benefit of working remotely is having a more flexible work schedule arrangement due to COVID-19. (GitLab, 2020)
36% of the US labor force say that remote work during the pandemic allowed them to take care of the family, relatives, etc. (GitLab, 2020)
Further, employers report that the biggest advantages that remote work provides to them are increased productivity (52%), higher efficiency (48%), and improved employee morale (44%). (GitLab, 2020)

Remote working benefits for employees

The pervasiveness of virtual teams is a sign that companies and employees alike are willing to walk down this road. Particularly, reality has dawned on employees that working in a virtual team offers several benefits compared to office-based working.

90% of employees claim that flexible work schedules and arrangements would increase their morale. (Staples, 2019)
Top benefits of remote working according to employees are better work-life balance (75%), reduced stress (57%), reduced absences (56%), improved morale (54%), and fewer sick days (50%). (Indeed, 2018)
73% of teams agree that the benefits of working virtually outweigh the downsides. (CultureWizard, 2016)
88% of corporate employees say that virtual teams are critical to their productivity. (CultureWizard, 2018)

Source: GitLab (2020)

From the statistics above, we can deduce that having a flexible workplace policy that supports virtual teamwork is a win-win scenario for the parties involved. The employees enjoy the liberty of working remotely, have better work-life balance, improved morale, and reduced stress.

Similarly, whether a company goes fully remote or adopts a hybrid virtual teamwork policy, there is a benefit to be achieved. Precisely, employers benefit from the quality of work, reduce workplace expenses, and minimal absences.

3. Challenges of Virtual Teams Statistics

There is no doubt, the benefits of having virtual teams are mesmerizing. However, the benefits are not served on a silver platter. There are plenty of challenges that companies face in their quest to cultivate high-performing virtual teams. Getting the right remote work software, for example, is critical to addressing these challenges.

In 2016, only 22% of people engaged in global business activities have participated in virtual team training. (CultureWizard, 2016)
In 2019, a study found that the major problems that companies face with their virtual teams included sourcing candidates (40%), training issues (32%), conflict management (31%), onboarding problems (27%), personnel and management issues (27%), and concerns with benefits (26%). (SHRM, 2019)
Remote work problems are exacerbated when, in 2020, a study found that 28% of remote workers are challenged by burnout and being disconnected from work. (GitLab, 2020)
In the same year, another study found that 20% of virtual teams find it difficult to collaborate with their colleagues. (Buffer, 2020)
Likewise, 12% of remote workers say that they are challenged by the distractions in their homes. (Buffer, 2020)
10% of virtual workers were also found to struggle in collaborating with their remote teams in different time zones. (Buffer, 2020)

In the world of virtual working, communication is one of the hurdles that virtual teams face. Beyond this, teams face a host of other problems that emanate from language difficulties and working in different time zones.

According to Culture Wizard’s 2018 Virtual Teams Survey, the top challenges faced by virtual teams are time zone differences (88%), difficulty in communication (86%), managing conflict (86%), building relationships (86%), timelessness, and responsiveness (80%), understanding different accents (80%), and lack of engagement from all members (76%). (CultureWizard, 2018)
The same study found that for 84% of virtual workers, virtual communication is more difficult than face-to-face communication. (CultureWizard, 2018)
In the 2019 SHRM Globalization Partners Global Teams Survey, many teams said that they encountered issues such as collaboration across time zones (49%), international laws (44%), scheduling work across time zones (38%), cultural differences (33%), managing teams in different locations (29%), and language barriers (27%). (SHRM, 2019)
A more recent study that focused more on virtual employees’ well-being found that more than 45% of remote employees say they have worked from their beds for 11 hours per week. (Amerisleep, 2021)
Further, the same study reports that 26% of remote workers feel socially isolated. (Amerisleep, 2021)

Source: Buffer (2020)

Cultural issues for virtual teams

Virtual teams grapple with cultural issues, which are typified by multiple behavioral barriers. The potential impact of these issues can be devastating to teams, small and large. The stats below show that teams are aware of this hard fact, but it seems a majority of them aren’t ready to embrace cultural diversity.

Results of Culture Wizard’s 2016 Virtual Teams Survey indicated that 23% of virtual teams don’t capitalize on their cultural diversity. Indeed, 18% of virtual teams claim that intercultural misunderstandings have cost their company an opportunity. (Culture Wizard, 2016)
In the follow-up survey’s 2018 findings, 62% of corporate employees were found to work in virtual teams with three or more cultures. (CultureWizard, 2018)
Likewise, it was determined that 89% of virtual teams in the world included more than two cultures. (Culture Wizard, 2018)
Also, 76% of employees in virtual teams were found to value cultural diversity and reckon that it improves their work output. (Culture Wizard, 2018)
Besides, 49% of employees in virtual teams had inclusiveness and diversity training. (Culture Wizard, 2018)
Surprisingly, only 15% of corporate leaders reported having been successful in leading teams across cultures and countries. (Culture Wizard, 2018)
In 2019, an SHRM study found that 43% of virtual teams use at least two languages to do business, while 22% use at least five languages. (SHRM, 2019)

Keep in mind that cultures across the globe have different expectations regarding leadership, communication, meetings, and collaborations. As a result, problems are bound to arise correspondingly when virtual teams fuse a large number of cultures. Factor in the differences in time zones and language, and you’ll have a complex puzzle to solve.

Technologies such as robust communication software systems will help you overcome some of the glaring challenges mentioned above. However, some problems such as cultural issues can only be dealt with effectively through sound and thoughtful leadership.

4. Virtual Team Technology Statistics

The inability to meet physically takes away the benefit of visual cues and worsens communication between virtual teammates. As a result, many virtual teams continue to grapple with communications problems. Fortunately, communication and online collaboration software for virtual teams have made it possible for employees to connect and access company resources from any place. The statistics below show the technologies that companies are using to ensure better connectivity.

A 2018 study found that the most beneficial communication between virtual teammates were face-to-face meetings (93%), conference calls (93%), and video conferencing (84%). (CultureWizard, 2018)
The study also found that 39% of virtual teams leveraged video technology for more than half of their meetings. (CultureWizard, 2018)
Moreover, 15% of virtual teams leverage webcam or video technology in all virtual meetings. (CultureWizard, 2018)
In 2019, the outcomes of an IWG survey reported that technology requirements that businesses considered when transitioning to flexible working include site-to-site VPN (41%), data security solutions (41%), IP telephony solutions (39%), employee monitoring (33%), and remote cybersecurity systems (19%). (IWG, 2019)
Another study listed the technologies used by virtual teams to improve connectivity. These are virtual private networks (39%), cloud-based file management tools (36%), instant messaging service (34%), and collaboration software (13%). (Staples, 2019)
For the same year, SHRM reports that virtual teams bridge communication gaps with emails (98%), in-person meetings (91%), video conferencing (89%), phone calls (88%), instant messaging (50%), text (49%), and team collaboration hub (41%). (SHRM, 2019)
In 2020, a study found that almost 90% of virtual team members said that they are satisfied using the technology tools and systems that allow them to communicate and collaborate. (GitLab, 2020)
A recent online survey involving 4,102,940 organizations found that the top office productivity suite in the market for 2020 is Microsoft Office 365, used by 48.6% of all virtual teams. (Enlyft, 2020)
In second place are Google Apps such as Google Docs and Google Sheets, which are used by 45.83% of companies. (Enlyft, 2020)
Completing the top five productivity apps are Microsoft PowerPoint, Adobe Acrobat Pro, and Corel. (Enlyft, 2020)

Source: Enlyft (2020). *Note: Survey involved 4,102,940 organizations.

Initially, the technologies for remote teams were challenging in themselves because of interference, time-lags, and operational complexity. Fortunately, technological evolution has permitted the development of virtual team tools, including instant messaging, project management, collaboration, and video conferencing software.

5. Virtual Teams Forecast

In 2013, Richard Branson said, “one day, offices will be a thing of the past” (TechCrunch, 2013). While organizations still have some work to do before completely removing the physical offices, a new dawn is on the horizon. The workplace is rapidly changing, instigated by the convergence of three key forces: prodigious technologies, economic upheavals, and flexible work natives.

First, the entrance of Generation Z into the workforce has ignited one of the most transformative shifts in modern business history. Unlike the Millennials, the new entrants now more than ever prioritize greater workplace flexibility and exhibit unique traits.

Second, technological evolution has made the world a global village. As a result, it’s easy for companies to source, hire, and retain talents from any corner of the world. Lastly, economic upheavals keep serving the business fraternity, an endless thread of surprises.

The convergence of these forces is real, and companies should brace themselves for more radical workplace changes. The solution to all the emerging changes is the adoption of flexible work culture and techniques that support virtual teamwork.

In 2019, approximately 49% of organizations are leveraging an optimal combination (Condeco, 2019) of virtual and office-based working. This points to the fact that businesses are ready to make the transition but are very cautious about doing so. However, with the benefits to both the employee and the management evident, it won’t be long before virtual teams become the norm in the modern workplace.

6. Cultural Differences in Virtual Teams

Cultural differences play a significant role in the dynamics of virtual teams, influencing communication styles, work habits, and team interactions. Understanding these differences is crucial for fostering collaboration and enhancing team performance. Here are some key ways cultural differences can impact virtual teams:

Communication Styles: Different cultures have varying communication preferences. Some cultures may favor direct and straightforward communication, while others might prioritize a more indirect and nuanced approach. Misunderstandings can arise if team members are not aware of these differences.
Time Orientation: Cultures perceive time differently, impacting deadlines and scheduling. In some cultures, punctuality is highly valued, whereas in others, a more flexible approach to time may be common. This can lead to frustration if team members have differing expectations about meeting times or project timelines.
Decision-Making Processes: Cultural backgrounds influence how decisions are made within teams. In some cultures, decisions are made collectively, while others may empower individuals to make decisions independently. Recognizing these differences can help teams navigate conflicts and enhance collaboration.
Work Ethics and Attitudes: Attitudes toward work, hierarchy, and authority can vary widely among cultures. Some cultures may emphasize individual achievement, while others value teamwork and group success. Understanding these perspectives can foster a more cohesive team environment.
Conflict Resolution Styles: Cultural norms dictate how individuals handle conflict. Some cultures may address disagreements openly, while others prefer to avoid confrontation. Virtual teams should establish clear conflict resolution protocols to accommodate these diverse approaches.
Building Trust and Relationships: In many cultures, trust is built through personal relationships and social interactions. Virtual teams must invest time in team-building activities that foster relationships and understanding among members from different cultural backgrounds.

Use these Virtual Team Statistics to Your Advantage

Overall, virtual team statistics have shown that virtual teams are increasing in number, especially because of COVID-19. Post-pandemic, organizations are gearing up for the time when virtual teams will become a mainstay.

To address the cultural issues, install knowledgeable leaders at the helm of your virtual teams. Primarily, the leaders should know how to galvanize multiple cultures to form a cohesive unit that can make the most of the cultural diversity. Additionally, craft communication strategies to rotate timezones to get the best contribution from each employee, regardless of the location. Essentially, you’ll need a powerful collaboration software for virtual teams to schedule, assign, and monitor tasks.

Lastly, remember the inability to meet can take a disproportionate toll on your virtual team members. This can cripple personal connection and intensify generational differences. Luckily, all these problems can be mitigated by powerful communication software tools. As such, you need to invest in proper technologies to enable team communication and streamline operations in general.

Hopefully, with this guide, you were able to get a better grasp as to how virtual teams operate and why many companies are shifting from in-office to home-based setups. In case you want to learn more about this topic, be sure to read our article on how to work remotely. This covers the telecommuting essentials as well as industry tips to ensure a smoother transition for your team.

Key Insights

COVID-19 Impact: The pandemic has significantly accelerated the adoption of virtual teams, with 80% of global corporate policies shifting to virtual collaboration during the early stages of the crisis.
Permanent Shift: 64% of organizations believe that the move to virtual teams will likely be permanent due to COVID-19.
Remote Work Popularity: Zoom, Microsoft Teams, and Skype are among the most used apps for remote work in the US during the pandemic.
Employee Preferences: 62% of employees globally would consider resigning from a co-located organization to work remotely.
Departmental Adoption: HR, sales, IT, operations, and finance are the departments most likely to have virtual teams.
Benefits for Companies: Improved morale, reduced employee turnover, and operational cost savings are some of the top benefits of remote working for companies.
Employee Benefits: Better work-life balance, reduced stress, and improved morale are the primary benefits for employees working remotely.
Challenges Faced: Time zone differences, communication difficulties, and managing conflict are the top challenges faced by virtual teams.
Technology Use: Face-to-face meetings, conference calls, and video conferencing are the most beneficial forms of communication for virtual teams.
Future Outlook: The convergence of technological evolution, economic upheavals, and flexible work preferences is driving the shift towards virtual teams, with many companies adopting a hybrid model of remote and office-based work.

FAQ

What are the main benefits of virtual teams for companies? Virtual teams offer companies improved morale, reduced employee turnover, operational cost savings, and increased productivity. They also provide access to a global talent pool, enhance creativity through diverse perspectives, and improve speed to market.
How has the COVID-19 pandemic impacted the adoption of virtual teams? The COVID-19 pandemic has significantly accelerated the adoption of virtual teams, with 80% of global corporate policies shifting to virtual collaboration during the early stages of the crisis. Additionally, 64% of organizations believe that this shift will likely be permanent.
What are the most common challenges faced by virtual teams? The most common challenges faced by virtual teams include time zone differences, communication difficulties, managing conflict, building relationships, and maintaining engagement. Distractions at home and the inability to unplug are also significant issues.
What technologies are commonly used by virtual teams to enhance communication and collaboration? Virtual teams commonly use technologies such as video conferencing (e.g., Zoom), instant messaging (e.g., Slack), project management tools (e.g., monday.com), and cloud-based file management tools (e.g., Google Docs, Microsoft Office 365) to enhance communication and collaboration.
How do employees benefit from working in virtual teams? Employees benefit from working in virtual teams through better work-life balance, reduced stress, improved morale, reduced absences, and fewer sick days. The flexibility of remote work also allows them to take care of family responsibilities and reduces commuting time.
What steps can companies take to address the challenges of virtual teams? To address the challenges of virtual teams, companies can implement robust communication software, provide formal training for virtual team collaboration, rotate time zones for meetings, and install knowledgeable leaders who can manage cultural diversity effectively.
What is the future outlook for virtual teams? The future outlook for virtual teams is positive, with many companies adopting a hybrid model of remote and office-based work. The convergence of technological advancements, economic changes, and flexible work preferences is expected to drive the continued growth of virtual teams.

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By James Anthony

A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.