Summary

• HR and People & Ops Are Not the Same: Understanding this distinction is a game-changer for managing remote teams. Treating them as interchangeable holds companies back.
• Insights from Industry Leaders: Learn from Brian Halligan (HubSpot), Blake Mycoskie (TOMS), and Vern Dosch (Wired Differently) on how top companies build thriving remote cultures.
• Remote Work Success Hinges on Both Functions: HR ensures compliance, payroll, and legal structure, while People & Ops drives culture, engagement, and long-term strategy. You need both.
• Hiring and Onboarding Can Make or Break a Remote Team: Discover how structured onboarding, strategic retreats, and virtual-first hiring set remote employees up for success.
• Culture Is NOT Just a Buzzword: People & Ops ensures company values aren’t just words on a slide deck but actively shape daily interactions and team cohesion.
• Performance and Productivity Depend on Strategy: Without an office’s physical presence, remote teams require intentional management, continuous feedback, and the right digital tools.
• Scaling Remote Teams Requires Optimization: Companies that fail to refine their remote work strategies risk inefficiency, disengagement, and high turnover. Learn how to stay ahead.

Both petrol and diesel are fuel. But put the wrong one in your engine, and you’re in for trouble. The same goes for Human Resources (HR) and People & Culture (People & Ops). While both power your workforce, they function in distinct yet complementary ways. Seeing the two as interchangeable can hold companies back. Especially in a world where remote work is becoming the norm. With employees spread across time zones, companies must navigate complex issues while keeping teams engaged and thriving.

That’s where understanding the difference between HR and People & Ops becomes a game-changer. In this article, we break it all down - with insights from top industry experts who have seen firsthand what works (and what doesn’t) in managing remote teams. Read on to discover how mastering HR and People & Ops can take your workforce to the next level.

Why Understanding Human Resources and People & Culture Matters for Managing Remote Teams

Remote work is no longer a trend, it’s our reality. According to a 2023 report by Buffer, 98% of remote workers expressed a desire to continue working remotely, at least part-time, for the rest of their careers. The reasons are hard to argue against. As explored in this article on the benefits of working remotely, remote work offers flexibility, increased productivity, and a better work-life balance.

As the world continues to adapt, one critical misunderstanding persists: the belief that Human Resources (HR) and People & Culture (People & Ops) are interchangeable. In reality, these functions play distinct yet complementary roles, each essential to the success of managing virtual teams. The stakes are high. Without the structure of a physical office, maintaining productivity, engagement, and compliance requires a strategic diversion. 

To condense it to the essence, HR ensures that the foundational elements of workforce management across time zones and jurisdictions are handled efficiently. Essentials like payroll, legal compliance, and employee relations. On the other hand, People & Ops focuses on the human side of the equation: building a strong company culture, fostering engagement, and aligning workforce strategies with long-term business goals.

While HR focuses on the tactical aspects, People & Ops fosters shared passion across remote teams, ensuring culture remains intact in digital spaces. Misunderstanding or conflating these functions can lead to gaps in employee support, and ultimately, in employee productivity. For example, while HR might ensure that remote employees are paid correctly and on time, People & Ops ensures those employees feel connected to the company’s mission and values, even from afar. 

By the end of this article, you’ll understand not only the unique responsibilities of each function but also how they collaborate to address the unique challenges of remote work. 

The Role of Human Resources (HR) in Managing Remote Teams

We know with certainty that human resources serve as the backbone of managing virtual teams. But to truly understand, let’s explore how they do it. 

Employee Relations in a Virtual World

We know that if you have a problem, a conflict or a concern, then human resources are there to help. Their job is to maintain a positive work environment. However, there are new challenges in managing a distributed workforce. For example, 86% of remote teams have faced difficulties communicating with colleagues, highlighting the need for clear and effective virtual communication strategies. In this new world, HR plays a crucial role in ensuring that team members feel seen and heard, even without in-person contact.

This ties in with Brian Halligan, CEO of HubSpot, who says, “The way I think about culture is that modern humans have radically changed the way that they work and the way that they live. Companies need to change the way they manage and lead to match the way that modern humans actually work and live.” Understanding the human side is essential to remote HR success. One strategy is making time for intentional culture-building initiatives. Engaging in fun virtual team bonding activities can boost morale and reinforce a sense of belonging. In other words, strengthening (virtual) employee relations. 

Recruitment and Staffing for Distributed Teams

Hiring remotely is, again, the same but different from hiring the traditional way. HR oversees recruitment, from crafting job postings to conducting virtual interviews. The lion's share of responsibility for hiring the right person is on their shoulders. Even once the new person has signed on the dotted line, they also manage onboarding, ensuring that new hires integrate smoothly into distributed teams through structured virtual orientation programs that emphasize connection from day one.

One way to sidestep this particular obstacle of managing remote teams is through a corporate retreat, early on. Off-site retreats are a great way to onboard new hires. These retreats provide opportunities for face-to-face interactions, helping new employees build relationships and align with company values faster and more permanently. 

Benefits and Compensation Across Borders

Human resources manages salary structures, benefits administration, payroll, and compliance with local employment laws. Compensation is more complicated in remote teams that work across borders. This includes navigating tax regulations, healthcare benefits, and other region-specific requirements to ensure all employees are fairly compensated and compliant with local laws.

In addition to fair compensation, retaining top talent requires a thoughtful approach, beyond money. Implementing proven employee retention strategies can help companies create a supportive work environment, ensuring employees feel valued and remain engaged in the long run.

Compliance and Legalities in a Global Workforce

Another notch on the managing virtual teams to-do list is all things legal. Labor laws vary across countries, and HR ensures that contracts, work hours, tax regulations, and employment policies align with legal requirements in each location. This is particularly crucial for remote teams operating in multiple jurisdictions to avoid any legal pitfalls and ensure fair treatment of all employees, regardless of their location.

Training and Development for Continuous Growth

Continuous learning is vital in remote work environments. HR oversees employee development through virtual training programs, mentorship initiatives, and career progression planning, ensuring employees have the skills and opportunities to grow professionally, even in a virtual setting.

However, let’s be honest - even the most well-thought-out and executed virtual training can be uninspiring. So take a leaf out of QuoIntellegence’s book. They supercharged their skill-building program through a team-building retreat in Rimini!

The Role of People & Culture (People & Ops) in Managing Remote Teams

Now it’s time to see the other side of the coin. We’ve seen how human resources are involved in a lot of admin. Your friends in People & Ops, however, are involved in a more strategic capacity. Let’s see how they apply their skills while managing remote virtual teams. 

While HR handles the administrative side of workforce management, People & Ops focuses on the strategic elements that drive engagement, productivity, and company culture. This function ensures that employees thrive in a remote-first environment.

Building a Strong Remote Culture

Maintaining a strong company culture remotely is challenging but essential. People & Ops professionals implement initiatives that foster a sense of belonging, such as virtual team-building events, employee recognition programs, and inclusive communication strategies. The key is to make sure that the company values are embedded in every interaction, not just fluffy words to show new workers during their onboarding. And more important still, is to create an environment where employees feel psychologically safe to express themselves, collaborate, and innovate. 

As Blake Mycoskie, Founder of TOMS Shoes, states, “I’m a large believer in hiring the right people and giving them unbelievable amounts of power and autonomy.” This approach allows employees to take ownership of their work and feel more connected to the company.

One effective way to strengthen company culture is through team retreats designed to boost company culture. These retreats provide employees with valuable in-person interactions, reinforcing company values and fostering deeper connections, even in a remote-first work environment.

Strategic Workforce Planning for Future Success

People & Ops align workforce planning with business goals. This includes forecasting hiring needs, succession planning, and ensuring teams have the right resources to succeed. They also focus on diversity, equity, and inclusion (DEI) initiatives to build a more equitable workplace, where all voices are heard and valued.

However, when managing a distributed workforce, this can get trickier. Even the best-laid strategies can be hindered by remote silos and digital fatigue. The most effective People & Ops leaders understand that sometimes, the best way to move forward is to step away from screens and come together in person. That’s exactly what FLC did when they brought their global team together for a retreat in the stunning Serbian mountains.

The result? A sharpened vision, commitment, and new strategic planning for their future success!

Performance Management in a Remote Setting

Unlike traditional HR, People & Ops takes a people-centric approach to performance. They design remote-friendly performance review processes. They implement continuous feedback loops and ensure employee growth aligns with company objectives. This includes setting clear expectations and providing regular, meaningful feedback that supports ongoing development.

The reason is that remote work isn’t just a logistical shift, it’s a cultural one. Without an office’s physical presence, managers face challenges that impact productivity, morale, and team cohesion. This article on managing remote teams highlights how top remote leaders tackle these challenges and adapt to new ways of working.

HR Tech & Automation for Efficiency

Without tech, managing remote teams is dead in the water. Remote teams rely on digital tools for efficiency. People & Ops manages HR technology. But the market for these tools is crowded with options. Choosing and implementing the right one to fit your organization isn’t easy. And remember, these tools aren’t for life. Unlike the pen and paper you use at the office, tech is constantly evolving, so if your People & Ops don’t keep pace, your organization might slow down.

Process Optimization for Scalability

And on the note of evolving, we’re not dealing with a sacred Italian pasta dish that can never ever be changed. We’re talking about businesses. For them to not only survive but grow, they need to be continually optimized and improved. The Japanese have a specific word for this: kaizen.

To surmise, in the context of managing virtual teams, this ranges from refining onboarding experiences to improving communication workflows. People & Ops continuously enhance operations to make remote work more effective and scalable. They identify bottlenecks, test new approaches, and implement best practices to ensure the organization runs smoothly, no matter how large or distributed the team becomes.

The Big Picture: How They Work Together

HR and People & Ops are two sides of the same coin. While HR ensures compliance, handles payroll and manages employee relations, People & Ops takes a strategic approach to culture, engagement, and efficiency. Together, they create a foundation for a thriving remote workforce.

For example, HR might handle the logistics of rolling out a new benefits program, while People & Ops ensures the program aligns with the company’s values and enhances employee satisfaction. Similarly, HR manages the legal aspects of hiring international employees, while People & Ops design onboarding experiences that make new hires feel welcomed and integrated.

As Vern Dosch, author of Wired Differently reminds us, “I used to believe that culture was ‘soft,’ and had little bearing on our bottom line. What I believe today is that our culture has everything to do with our bottom line, now and into the future.”

Conclusion: Building a High-Performing Remote Team

To thrive remotely, understanding the difference between HR and People & Ops is crucial. HR ensures smooth operations and compliance, while People & Ops shapes your culture and drives engagement. Together, they fuel your team’s success. 

Ready to transform your remote workforce? Book your free consultation today and start building a stronger, more connected team!

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