What are virtual workplaces?
Virtual workplaces are digital office spaces that attempt to recreate the in-office experience as closely as possible for remote teams and companies. These platforms are effective for hybrid, fully remote, and distributed businesses. High growth in available technology and an option to work from home exponentially increased the popularity of virtual workspaces in the last decade.
Virtual workplaces fill that space when entire teams can’t meet in person so co-workers can hold meetings, chat about work and life, and collaborate on projects.
Virtual workspaces may be the right fit for businesses trying to facilitate digital collaboration and productivity. Virtual workplaces often use video conferencing and internal communication software to make asynchronous, distributed work easy.
Features of virtual workplaces
One of the only features virtual workspaces can’t replicate is physical, in-person interaction. Otherwise, virtual workspaces are equipped with many components that help teams work together and get to know each other. Some of these features are:
- Conference “rooms” and reservations.
- Screen-sharing capabilities.
- Microphone and webcam access.
- Spatial audio for more than one conversation in a single room.
- Document sharing.
- Instant messaging.
- App integrations.
- Virtual, video game-like items to interact with and share.
Benefits of virtual workplaces
The increasing demand and success of virtual workplace platforms and tools mean that businesses see their value. Remote and hybrid work isn’t going away soon, and teams continue to lean on virtual workplaces for collaboration. Successful virtual workplace platforms provide benefits to the remote companies that use them.
- Significantly reduced cost (just video conferencing software cost, no building lease).
- Easier to scale as the business grows.
- Access to a bigger talent pool to hire from.
- Asynchronous messaging so businesses can keep moving across time zones.
- Reduced fuel and energy costs.
- Flexible work schedules.
Considerations for virtual workplaces
In-office companies persist for a reason. Even with all of the upsides, business owners should contemplate the downsides of virtual workplaces.
- Employees may feel unmotivated, disconnected, or isolated. Though they may spend more time with their loved ones, virtual workplaces make it difficult for social coworkers to thrive. Team building, in particular, can prove difficult for remote employees with different schedules.
- It may be harder for leadership to focus on diversity and inclusion. Businesses may unintentionally deprioritize their diversity, inclusion, and equity efforts when everyone's behind a screen.
- Security issues are always a concern. Running a virtual workplace naturally opens up risks for compliance issues and data breaches, especially for businesses that don’t keep a close eye on security.
- Some team members unaccustomed to remote employment may have difficulty embracing virtual work. Decreased productivity and communication can happen as a result, which creates departmental silos.
Best practices for running virtual workplaces
Virtual workplaces aren’t brand new, and many businesses have already created useful habits and traditions with their remote workforce. Companies with effective virtual work practices will:
- Overcommunicate. When working remotely, employees should assume that other team members don’t have all the details. Everyone must share important information about current tasks or projects often.
- Devise a plan to take advantage of asynchronous communication. By organizing work days and shifting task priorities appropriately, teams limit the dead time between responsibilities and any interruptions that might occur.
- Set an example as a business for collaboration and transparency. Leadership should model generous communication and transparency as much as possible concerning business updates, successes, and obstacles.
- Establish regular check-ins. Regular check-ins should be scheduled between team members, between managers and their direct subordinates, and between leadership and each employee. These can occur over a video call, instant message, or simple survey.
- Conduct in-person retreats. These are very popular for hybrid and remote-first companies. Once or twice a year, the team should gather in one location and plan team-building events to encourage connection.
Virtual workplace vs. virtual office vs. on-premise office
A virtual workplace is a fully digital office space where teams can work together as if they were physically in an office. It may also be referred to as a virtual office.
An on-premise office is a business space in a physical office where employees work in person.
Virtual workplaces are just one of the latest workplace trends; learn more about software to support those trends.

Whitney Rudeseal Peet
Whitney Rudeseal Peet is a former freelance writer for G2 and a story- and customer-centered writer, marketer, and strategist. She fully leans into the gig-based world, also working as a voice over artist and book editor. Before going freelance full-time, Whitney worked in content and email marketing for Calendly, Salesforce, and Litmus, among others. When she's not at her desk, you can find her reading a good book, listening to Elton John and Linkin Park, enjoying some craft beer, or planning her next trip to London.