Do we really need shared physical offices to collaborate at work?

The Biden administration, under pressure from House Republicans, has been pushing federal workers to return to the office for the sake of increased collaboration. Yet surveys of federal workers show that most believe there is little benefit from coming to the office for collaboration.

Recent research shows they may have a point.

Traditional views emphasize the necessity of physical proximity for effective teamwork, but recent research suggests otherwise. An INSEAD working paper by professors Manuel Sosa and Massimo Maoret explores how collaboration can thrive through virtual means, leveraging social connections rather than physical proximity.

Organizations have long believed that physical proximity is crucial for effective collaboration. However, Sosa and Maoret’s research challenges this notion by examining the interplay between physical and social proximity. They found that while physical closeness does facilitate communication, social proximity plays an equally if not more significant role in collaboration effectiveness. This revelation opens up new possibilities for remote and hybrid work models, emphasizing the power of building strong social networks even when employees are not co-located.

The study conducted a quasi-natural experiment with a global pharmaceutical firm, which relocated two regional offices. This relocation provided a unique opportunity to measure interpersonal physical distances and social networks before and after the move.

The findings were revealing. Employees who maintained strong social ties with their colleagues, characterized by frequent communication and mutual trust, were able to collaborate effectively regardless of physical distance. This suggests that “affective closeness” — feelings of warmth, trust and mutual understanding — can substitute for benefits traditionally attributed to physical proximity.

With advancements in technology, virtual tools have become instrumental in bridging the gap created by physical distance. Platforms like Zoom, Microsoft Teams, and Slack facilitate regular interaction and collaboration among remote teams. No wonder a recent paper in Nature and subsequent research by one of the authors of the Nature paper found that distributed research teams had worse innovation outcomes compared to in-person teams prior to the rise of such technologies, but better outcomes after such platforms became widespread after 2015.

These tools not only support task-related communication but also enable informal interactions, which are crucial for building trust and camaraderie. Virtual coffee breaks, team-building activities, and regular check-ins can mimic the spontaneous interactions that occur in a physical office. By creating opportunities for employees to connect on a personal level, organizations can strengthen social bonds and enhance team cohesion, thereby improving collaboration.

One of the key insights from Sosa and Maoret’s research is the substitution effect of physical and social proximity on collaboration performance. When employees are physically distant, the positive impact of strong social ties is amplified. Conversely, when physical proximity is high, the necessity for strong social networks diminishes, as visual presence and direct monitoring naturally foster collaboration.

This finding has significant implications for organizational design. It suggests that in a remote or hybrid work setting, organizations should invest more in initiatives that build social networks. This can include mentoring programs, virtual social events, and collaborative projects that encourage cross-functional interactions.

The study offers a deeper understanding of the underlying mechanisms. Physical proximity naturally facilitates richer, more frequent communication, essential for resolving task interdependencies and fostering positive affect among colleagues. Yet the research highlights that this physical closeness is not the sole determinant of effective collaboration. Rather, social proximity, which encompasses affective closeness and the presence of strong, cohesive social networks, plays a crucial mediating role. This affective closeness helps in building trust, familiarity, and relational energy, all of which are critical for effective teamwork.

In light of these findings, we should prioritize robust social networks to facilitate collaboration. Practical steps include encouraging frequent and diverse forms of communication, both formal and informal. This ensures that employees have multiple channels to interact, share ideas, and build trust. Additionally, promoting activities that foster affective closeness is essential. Virtual team-building exercises, recognition programs, and opportunities for casual conversations can significantly enhance personal connections among team members.

Cross-functional collaboration also plays a vital role in strengthening social networks within an organization. When employees from different departments work together on projects — something physical proximity does not necessary encourage — it not only enhances innovation but also builds a stronger, more cohesive organizational culture. This cross-functional interaction, more than physical interactions, fosters a sense of unity and shared purpose, which is essential for effective collaboration.

It is already established that trusting employees to manage their work and encouraging a results-oriented culture can improve job satisfaction and productivity, further enhancing collaboration. Flexibility allows employees to work in ways that suit them best. It is only natural that this would lead to more innovative and effective teamwork.

Sosa and Maoret’s study provides a compelling case for rethinking the necessity of returning to office for the sake of collaboration. Strong virtual social networks can help organizations achieve high levels of collaboration and performance without physical proximity. As we move toward a more flexible future of work, it is essential to focus on strategies that enhance social proximity, ensuring that teams remain cohesive and effective regardless of physical location.

These insights can help organizations unlock the full potential of remote and hybrid work models, creating a dynamic and inclusive work environment that fosters collaboration and innovation.

The future of work is not bound by physical walls but by the strength of the social ties that connect us. This shift, toward valuing social proximity over physical proximity, marks a significant transformation in how we collaborate in the modern workplace. Organizations that adapt to this new paradigm will thrive in an increasingly digital and interconnected world.

Gleb Tsipursky, Ph.D., serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts, and authored the best-seller Returning to the Office and Leading Hybrid and Remote Teams.