SHRM Survey Findings: Virtual Teams July 13, 2012 Definitions Virtual teams: A group of individuals who work across time, space and organizational boundaries and interact primarily through electronic communications. Project teams: Temporary teams whose members belong to different groups or functions and are assigned activities for the same project. Action teams: Teams brought together for brief performance events that require improvisation and performance in unpredictable, novel environments and circumstances. Service teams: Teams that use technology to generate products or services in assembly/manufacturing, maintenance, construction, mining, commercial airlines, sales and other industries. Quality control teams: Teams that identify products, services or processes that do not reach an organization’s minimum specified standards of quality. Top management teams: Teams of individuals at the highest level of organizational management who have the day-to-day responsibilities of strategy/mission planning. Virtual Teams ©SHRM 2012 2 Key Findings Are organizations using virtual teams? Almost one-half of organizations (46%) use virtual teams in their workplace. Organizations with multinational operations are more than twice as likely (66%) to use virtual teams compared with organizations with U.S.-based operations (28%). Why do organizations use virtual teams? Of organizations that use virtual teams, approximately onehalf use them to include talent in different geographic locations (53%) and to boost collaboration among employees in different geographic locations (49%). Other reasons for using virtual teams include improving productivity (39%), minimizing costs for travel (39%), and collaborating more across global business units because work projects are becoming more global (37%). What are the most successful teamwork behaviors resulting from the use of virtual teams? Nearly three-quarters of organizations (72%) indicated that brainstorming solutions for problems or issues was the most successful behavior for virtual teams, followed by setting goals for team initiatives or projects (68%) and developing plans for team initiatives or projects (63%). What are the obstacles that prevent virtual teams from being successful? About one-half of organizations reported that building team relations (51%) and time differences (49%) were the top challenges for successful virtual teams. Organizations also indicated that additional challenges to using virtual teams were distribution of work (32%), differences in cultural norms (26%) and leadership of these types of teams (25%). Virtual Teams ©SHRM 2012 3 Does your organization use virtual teams? Yes 46% No 54% Note: n = 335. Respondents who answered “Don’t know” were excluded from this analysis. Virtual Teams ©SHRM 2012 4 Does your organization use virtual teams? Comparisons by organization sector Publicly owned for-profit and privately owned for-profit organizations are more likely than government agencies to use virtual teams. Comparisons by Organization Sector Publicly owned for-profit (50%) Privately owned for-profit (46%) > Government agencies (9%) Comparisons by organization operation type Organizations with multinational operations are more likely than organizations with U.S.-based operations to use virtual teams. Comparisons by Organization Sector Multinational operations (66%) > U.S.-based operations only (28%) Note: Only statistically significant differences are shown. Virtual Teams ©SHRM 2012 5 Why does your organization use virtual teams? Percentage To include talent in different geographic locations 53% To boost collaboration among employees in different geographic locations 49% To improve productivity (i.e., spend less time on commuting/travel) 39% To minimize costs for travel 39% Work projects are becoming more global (i.e., greater need for collaboration across global business units) 37% To allow for greater flexibility for employees 28% Emerging technological advancements (i.e., improved technology that makes virtual work easier) 26% Other 5% Note: n = 137. Only respondents whose organizations use virtual teams were asked this question. Percentages do not total 100% due to multiple response options. Virtual Teams ©SHRM 2012 6 Why does your organization use virtual teams? Comparisons by organization operation type Organizations with multinational operations are more likely than organizations with U.S.-based operations to use virtual teams because their work projects are becoming more global (i.e., greater need for collaboration across global business units). Comparisons by Organization Sector Multinational operations (53%) > U.S.-based operations only (23%) Organizations with U.S.-based operations are more likely than organizations with multinational operations to use virtual teams to improve productivity (i.e., spending less time on commuting/travel). Comparisons by Organization Sector U.S.-based operations only (54%) > Multinational operations (26%) Note: Only statistically significant differences are shown. Virtual Teams ©SHRM 2012 7 For what formal or informal capacities does your organization use virtual teams? Percentage Project teams 79% Top management teams 52% Action teams 47% Service teams 37% Quality control teams 25% Other capacities (e.g., conference calls, training) 8% Other teams* 7% Do not use virtual teams in any of the above capacities 1% Note: n = 137. Only respondents whose organizations use virtual teams were asked this question. Percentages do not total 100% due to multiple response options. An asterisk (*) indicates that this response option was developed from open-ended responses. Virtual Teams ©SHRM 2012 8 What are the most successful behaviors for virtual and onsite/traditional face-to-face teams in your organization? Brainstorming solutions for problems or issues Setting goals for team initiatives or projects 68% 50% Developing plans for team initiatives or projects 63% 48% Coordinating the tasks of the team during initiatives or projects 59% 38% Designing strategy for the team 41% 46% 37% 35% Examining the progress of team initiatives or projects 25% 26% Resolving task or information conflicts during initiatives or projects 24% Establishing team norms for process and performance 37% 23% Developing trust among team members 16% Maintaining team morale during initiatives or projects 50% 24% 15% Monitoring the performance of other team members Virtual teams 22% 6% Resolving relationship or personality conflicts during initiatives or projects Other 72% 49% 30% On-site/traditional face-to-face teams 1% 2% Note: n = 112. Only respondents whose organizations use virtual teams were asked this question. Percentages do not total 100% due to multiple response options. Respondents were asked to select the top five options. Virtual Teams ©SHRM 2012 9 What are the most successful behaviors for on-site/traditional face-to-face teams in your organization? Comparisons by organization operation type Organizations with U.S.-based operations are more likely than organizations with multinational operations to indicate monitoring the performance of other team members as one of the most successful behaviors for on-site/traditional face-to-face teams in their organization. Comparisons by Organization Sector U.S.-based operations only (32%) > Multinational operations (15%) Organizations with U.S.-based operations are more likely than organizations with multinational operations to indicate brainstorming solutions for problems or solutions as one of the most successful behaviors for on-site/traditional face-to-face teams in their organization. Comparisons by Organization Sector U.S.-based operations only (61%) > Multinational operations (40%) Note: Only statistically significant differences are shown. Virtual Teams ©SHRM 2012 10 What are the most challenging behaviors for virtual and onsite/traditional face-to-face teams in your organization? Developing trust among team members 61% 35% 57% 57% Resolving relationship or personality conflicts during initiatives or projects Resolving task or information conflicts during initiatives or projects 49% Monitoring the performance of other team members 44% 21% Establishing team norms for process and performance 31% Examining the progress of team initiatives or projects 23% 41% 35% 24% Coordinating the tasks of the team during initiatives or projects 28% 19% 16% Brainstorming solutions for problems or issues 19% Designing strategy for the team 20% 12% Setting goals for team initiatives or projects 29% Virtual teams 13% Developing plans for team initiatives or projects Other 49% 28% Maintaining team morale during initiatives or projects 54% On-site/traditional face-to-face teams 18% 4% 5% Note: n = 112. Only respondents whose organizations use virtual teams were asked this question. Percentages do not total 100% due to multiple response options. Respondents were asked to select the top five options. Virtual Teams ©SHRM 2012 11 What are the most challenging behaviors for virtual teams in your organization? Comparisons by organization operation type Organizations with multinational operations are more likely than organizations with U.S.-based operations to indicate maintaining team morale during initiatives or projects as one of the most challenging behaviors for virtual teams in their organization. Comparisons by Organization Sector U.S.-based operations only (54%) > Multinational operations (34%) Note: Only statistically significant differences are shown. Virtual Teams ©SHRM 2012 12 What are the top challenges to the success of virtual teams in your organization? Building team relations 51% Time differences 49% Distribution of work 32% Differences in cultural norms 26% Leadership 25% Multidisciplinary expertise conflicts 24% 21% Technology barriers 18% Team composition 16% Overexertion 10% Language barriers Other 5% Note: n = 106. Only respondents whose organizations use virtual teams were asked this question. Percentages do not total 100% due to multiple response options. Virtual Teams ©SHRM 2012 13 What are the top challenges to the success of virtual teams in your organization? Comparisons by organization operation type Organizations with multinational operations are more likely than organizations with U.S.-based operations to indicate time difference as a top challenge to the success of virtual teams in their organization. Comparisons by Organization Sector Multinational operations (60%) > U.S.-based operations only (38%) Note: Only statistically significant differences are shown. Virtual Teams ©SHRM 2012 14 Demographics: Organization Sector Privately owned for-profit organization 39% Publicly owned for-profit organization 22% Nonprofit organization 22% 13% Government sector Other 5% Note: n = 296. Percentages do not total 100% due to rounding. Virtual Teams ©SHRM 2012 15 Demographics: Organization Staff Size 1 to 99 employees 2% 100 to 499 employees 8% 500 to 2,499 employees 52% 35% 2,500 to 24,999 employees 25,000 or more employees 3% n = 297 Virtual Teams ©SHRM 2012 16 Demographics: Organization Industry Industry Percentage Health care and social assistance 18% Educational services 17% Finance and insurance 13% Manufacturing 11% Public administration 9% Professional, scientific and technical services 8% Transportation and warehousing 6% Accommodation and food services 6% Arts, entertainment and recreation 5% Administrative and support and waste management and remediation services 4% Information, publishing industries 3% Note: n = 301. Percentages do not total 100% due to multiple response options. Virtual Teams ©SHRM 2012 17 Demographics: Organization Industry (continued) Industry Percentage Construction of buildings; heavy and civil engineering construction; specialty trade contractors 3% Retail trade 3% Agriculture, forestry, fishing and hunting 2% Religious, grant-making, civic, professional and similar organizations 2% Utilities 2% Wholesale trade 2% Repair and maintenance 2% Real estate, rental and leasing 1% Mining 1% Management of companies and enterprises 1% Personal and laundry services 1% Note: n = 301. Percentages do not equal 100% due to multiple response options. Virtual Teams ©SHRM 2012 18 Demographics: Other Does your organization have U.S.based operations (business units) only, or does it operate multinationally? U.S.-based operations only 73% Multinational operations 27% n = 307 Is your organization a single-unit organization or a multi-unit organization? Single-unit organization: An organization in which the location and the organization are one and the same. 21% Multi-unit organization: An organization that has more than one location. 79% n = 320 What is the HR department/function for which you responded throughout this survey? Corporate (companywide) 68% Business unit/division 18% Facility/location 14% n = 252 For multi-unit organizations, are HR policies and practices determined by the multi-unit corporate headquarters, by each work location, or by both? Multi-unit headquarters determines HR policies and practices. 50% Each work location determines HR policies and practices. 2% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 47% n = 251 Note: Percentages may not total 100% due to rounding. Virtual Teams ©SHRM 2012 19 SHRM Survey Findings: Virtual Teams Methodology Response rate = 13% Sample composed of 379 randomly selected HR professionals from organizations with 500 or more employees. Margin of error +/- 5% Survey fielded December 8, 2011 – January 3, 2012 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leaders: David Geller, SHRM Knowledge Development Christina Lee, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, director, SHRM HR Thought Leadership Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, SHRM Research Copy Editor: Katya Scanlan, SHRM Knowledge Center Virtual Teams ©SHRM 2012 20