The concept of company culture gets a lot of attention. Culture is usually one of the first talking points anyone has about their place of work. “Oh, you’re going to love the culture here.” You’ve probably heard this multiple times throughout your career but never understood exactly what it meant.
Culture is derived from various sources: the personalities of your employees, the priorities of your leadership team, the location of your headquarters, and the industry or market you play in, among other things. Historically it was forged within the office walls, but the exponential rise of remote and hybrid work following the COVID pandemic changed that. As of late 2023, a Flex Index Report by Boston Consulting Group found that 62% of companies offer workplace flexibility through remote or hybrid options.
This makes workplace flexibility one of the first decisions an entrepreneur must make as you scale your company. And it’s not a decision you should take lightly. It will likely inform how you grow, and with whom. But how do you know the right model for your company?
I’ve had this debate with my co-founders countless times since we started York IE in 2019. While we’re headquartered in Manchester, we also have an office in India and a few remote employees scattered across the U.S. We love hosting our clients and portfolio companies in the office, and we also have remote-first relationships with companies outside of the region and the country.
I’ve seen the pros and cons of both in-person and remote work. I’m not here to tell you there’s a right working model. But if you’re an early-stage entrepreneur, it’s important to understand what you’re signing up for.
Benefits of In-Office Culture
- Collaboration and Creativity: Proximity fosters spontaneous interactions and brainstorming sessions, leading to innovative ideas and solutions.
- Culture Cultivation: Physical presence enables the nurturing of a cohesive company culture through team-building activities, shared experiences, and face-to-face communication.
- Mentorship and Learning: In-office environments facilitate mentorship opportunities and on-the-job learning, as junior employees can
observe and learn directly from seasoned colleagues.
Benefits of the Remote-First Model
- Access to Global Talent: You can tap into a vast talent pool unrestricted by geographical boundaries, enabling you to recruit the best-fit candidates for your roles.
- Flexibility and Work-life Balance: Remote work empowers employees to craft their schedules, accommodating personal commitments and preferences, which enhances morale and productivity.
- Cost Savings: Eliminating the need for physical office space translates to significant cost savings for rent, utilities, and overhead expenses.
Hybrid Approach
The hybrid organizational structure offers a balance between the benefits of traditional in-office work and the flexibility of remote work. By having strategic roles in-house, organizations ensure that key decision-makers are easily accessible for collaboration and communication. This can help maintain a strong company culture, foster innovation and ensure that everyone is aligned with the overall goals and vision of the organization.
At the same time, allowing execution-oriented tasks to be carried out remotely lets companies tap into a global talent pool, access specialized skills, and increase worker efficiency.
Some hybrid models even work when executives’ roles are partly remote, but it requires companies to remember that culture is not just about where you are sitting but how you communicate. If you communicate like an in-office culture, where major decisions are made by discussing it with those who are present, then it doesn’t matter whether you allow employees to work remote. They will feel excluded. Subsequently, if you expect employees to be at their desks but communicate through all online mediums then employees won’t see the benefit of coming into the office.
Thinking this way is a major shift, which is why I believe a new approach is ready to take off.
Embracing a Lean Global Hybrid Model
Where is the future of work headed? While there are several paths, I’ve become fond of the lean global hybrid model. If 2023 and 2024 taught us anything, it’s that the growth at all costs era of startups is dead and gone. Investors appreciate efficient companies that grow strategically and incrementally.
That’s why staying lean is so important. Great companies should set a foundation with a team of adept, strategic thinkers. These leaders will set the direction of the company and its processes with a hybrid work model.
The York IE team in NH is hybrid, with some people choosing to come in daily while other team members come in a few days a week. That team is supported by our growing York IE India office, which has eclipsed 100 employees and has a strong in-office culture. When we interact virtually, we have a camera-on culture for meetings so we can see each other and build those beneficial connections. We’ve been able to combine a New England-based presence with tapping into a pool of talent in India.
This model provides maximum flexibility for growing, cash-strapped startups. You can dial your agency engagements up or down based on the company’s current needs. Plus, a tech-enabled foundation allows a lean team to achieve more.
Grow Your Company Your Way
The best part about starting your own company is that you get to decide what working model is best. No matter what you decide, be sure to come to your decision in a strategic way. Talk to your advisors, friends and partners. Think five or 10 years into the future.
There are many ways to grow a business, but it’s up to you to set a foundation for success.
Adam Coughlin is CMO and founding partner of York IE, a strategic growth and investment firm based in Manchester. He also serves as co-chair of the Startup Committee for the NH Tech Alliance. For more information visit york.ie and nhtechalliance.org.