We have full remote staff with ever reducing frequency of meetings etc... hasn't hampered work and provides tremendous flexibility to everyone.
Only downsides are that reduced socializing at work bores some people, especially the younger crowd and it is big enough reason for some to leave job. And 'some' people are going to misuse the freedom and be dishonest, such people need to be kicked out with no mercy, and quick. Unfortunately there is no other solution to this that has worked for us.
This does need a slightly mature team, usually won't work with freshers coming from college's freedom filled days where bunking lectures is top agenda and they also have more socializing needs.
Over time the team that remains is one which can work in remote environment. Effective work for just 4-5 hours per day can give tremendous productivity. And everyone can have great quality of life (no 3 hours of commute per day that so many people have to go through). Some are even finished with the day's work by 11AM, only having to do a few skype/phone calls during the day. And managers only need to manage the work and lead direction, much reduced day-to-day team issues.
Overall, any company that is in outsourcing business 'sells' to their client that their staff can work just as well from a offshore location with only digital monitoring options available for clients. And when these same people can't let their own staff out of sight it seems almost hypocritic :-) Someone is not practicing what they preach.
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