Compensation and Expenses

How VT members are paid is as varied as the actual construction of the VT itself. There are, however, two main forms of recompense – Individual and Team.

Individual Compensation
• Traditional. When VTs are assembled by medium to large corporations, it's very common for the team members to be assembled from the corporation's current personnel. When this occurs, this individual's current compensation structure is usually rolled-over into the virtual team. From the member's standpoint, it's just another job (… or another part of their current duties). Yet, depending on the VT assignment, there can be increases (or even decreases) the member's current remuneration. These ‘incentives' will many times take the form of bonuses, expenses and/or per diem.
• Outsourced. Many VT members will not be regular members (in fact, the VT itself may only be transitory or temporary, depending on the project). These members may only be needed for the specialized expertise and usually negotiate their compensation and/or time on the team. This negotiation may also be ‘per project' as well – which includes the associated over-pay or under-pay. Bonuses and incentives are also negotiated. Some of these members will also be acquired for staffing agencies and will not require regular compensation (as this is managed by the staffing agency). However, true independent contractors will be paid by the VT (or those in charge of VT compensation) and will require special accounting (i.e. IRS Form 1099).
Startup/Other. In this rapidly changing, technical and service-oriented world, VTs are created and utilized more and more. Many times, in these startup situations, compensation may only include a percentage of the company's profits. This can be a highly volatile situation since profits may never be seen (meaning no money for the work you do). Or, the startup may explode (along with your bank account). It's a dangerous, yet enticing option.

Team Compensation
• Virtual teaming and teamwork is not necessarily a new concept, but Team Compensation is relatively new and, not surprisingly, rarely used. Team Compensation would be defined as paying all team members equally for the completion of a deliverable product/project. While this type of payment is occasionally tried, it usually ends in failure. This failure is usually tied to the fact that not all team members come into the team equally trained and experienced. This imbalance, coupled with the fact that not all VT members will contribute equivalent output or effort toward the final product, continually devastates the team compensation concept. More often then not, the ‘Team Compensation' plan is scraped for the more traditional individual compensation plans (as mentioned above) – with adjustments made to this pay, or bonuses paid, based on team performance reviews.

Expenses

• Traditional Company and Team Expenses . One of the great advantages of VTs is the reduction of overall expenses. Examples of these savings include all expenses associated with the office space (… rent/lease reduction, office hardware and software, supplies, etc.). The largest savings can be associated with travel. A “normal” company employee will endure travel hassles not only to and from the office location, but also to and from collaboration meetings and conventions held across the country. The expenses can be quite high and are generally counterproductive (not only due to the high cost, but also due do employee stresses involved with this traveling).
• VT Expenses. A VT is much more efficient then the ‘normal' office environment or even centrally located teams. There are, however, expenses involved with VTs. These expenses will initially fall upon the VT member. How the VT is organized will determine who actually pays for these expenses:
  
• Traditional. Many times the VT is structured in such a way to reimburse the member for any expenses occurred during the member's participation in the VT. These expenses may be accounted for up-front and an increase in pay/salary; or this may take the form of being directly and initially supplied (i.e. computer hardware/software, internet connection, phone service, etc.); or, an expense voucher may be require to be submitted when material/services are acquired by the member. It may also take the form of a ‘flat rate' expense account, or ‘per diem' payment upfront. Again, it all depends on the initial structuring of the VT.
• Outsourced. Expenses need to be accounted for in the original contract the ‘outsource' VT member agrees to. The exact details regarding the member's duties, established before work commences, will assist in determining the possible expenses to be incurred by the outsourced VT member. If the member is contracted through an outside agency, expenses may not be needed (and/or paid to the member by the outside agency).
• Start-up/Other. Very similar or identical to ‘Outsourced' above. Expenses need to be accounted for prior to commencement of project work.

Training

The type of training required to be a successful VT member depends a great deal on the ‘virtual' experience of the member. Even if this level of experience is high, a newly utilized technology may require supplemental training. But it not just training in the technical area that's needed…

• TECHNICAL. This is usually the first area where the new VT member will require training. Some of these areas should already be familiar to the incoming VT member:
  
• Telephone, fax and teleconferencing . These are the cornerstone to communication between members. While not technically advanced, it is still one of the simplest and most cost efficient methods available to VT members. Zero to very little training is required.
• Videoconferencing and related hardware . The level of technology is a little higher here, even when referring to the ‘traditional' videoconferencing hardware, which was always quite unreliable on the lower end. Nonetheless, it's still comparatively easy for most people to understand learn.
• Internet and related networking . Surprisingly enough, not everyone knows how to effectively use the Internet and related tools. Regrettably, the range in knowledge generally reaches from no knowledge or experience to the very experienced . This can be a dangerous situation if a VT is going to utilize the Internet for their communications and workspace. If so, specific training must be provide to those VT members who are ‘… not up to speed' in this area. This training should include basic Internet connection procedures (for dialup users), browser usage and basic URL navigation; email clients and basic emailing. Much depends on what the VT chooses to utilize. Basic levels of understanding need to be agreed upon prior to the project being launched.
• Collaborative Software and custom In-house Software Applications . Many times, custom software applications will be utilized for a particular VT project. In these cases, nearly everyone on the VT will need training related directly to this software or application.
  
• PERSONAL. Once all of the appropriate technical training is complete, a review of the VT members should be conducted to determine if any additional skills/training are required. The following basic personal skills are generally required to be a successful VT member:
  
• The ability to form team relationships quickly and effectively. This includes basic introductions to all VT members; asking questions and making suggestion to help the team get started/organized; showing general interest in others VT members (i.e. not being snobbish); quickly learning other VT members' styles and adapting to them if needed.
• Ability to communicate in a virtual environment. This usually requires written communication skills for utilizing email and software systems; making formal presentations through videoconferencing; managing rules about when to see people face-to-face, or via alternative methods (i.e. email, online chat room, etc.).
• Project management capabilities. Planning and organizing individual work to correspond to team schedules; developing and using methods to report progress and problems; monitoring and controlling project expenses; documenting and allocating other member duties and responsibilities.
• Basic teamwork skills. The ability to cope with and managing differences between members; participating effectively in group problem-solving and brainstorming; cooperating with others; setting VT goals; being a good listener is of high importance with VTs.
• Self-management skills: Establishing personal and professional priorities and goals; prioritizing work and setting limits; taking the initiative to change working methods and processes to meet the demands of the work.

The above trainings should be considered a guideline and not construed as an ‘end-all' for VT training. Much depends on the VT itself and the particular project and/or industry. However, the above training(s) could unquestionably serve as framework or boilerplate for a future VT creation.

Required Hours/Contacts

The hours required by a VT member must be determined at the beginning of the project – or at the beginning of the team member's initial participation in the VT. From a strictly technical standpoint, this timesheet tracking of individual VT members is fairly straightforward. There are many software/online tools available for this purpose. Depending on how the VT is structured, this may not even be necessary. Tracking this time spent per VT member can be tricky though, and much depends on the VT's initial organization and assigned projects and duties. This, however, is the infinite flexibility of VTs and what makes them so attractive.

If the member is brought on the VT for a known, specific duty (say accounting), then it's easy to track their progress against their time spent. The accounting ‘baseline' is already established and it's relatively easy to evaluate their VT work against ‘normal' accounting work.

On the other side of the coin, ‘required hours' can be redefined as a ‘required project.' More often then not, the VT member is required to produce a deliverable product or service within a specific timeframe. And while the required hours to be spent on this individual project will occasionally be delineated, it's normally the exception. The ‘rule' would be: as long as the project is completed correctly – “on time” and “on target” – then the VT manager/leader is generally satisfied.

The real key to these ‘hour' or ‘project' requirements is the required contacts with the VT leader, or the VT member's direct supervisor. Depending on the structure of the team and/or project, the required contacts every day, week, month, etc. is the critical factor for individual project success in a VT (see Communication with Team Members below).

Communication with Team Members

The categorical necessity for a VT's success is the communication between its members. Without this communication, failure is effectively guaranteed. This is a not a foremost undertaking in and of itself. Actually, it's quite easy. However, failure to abide by the following general guidelines can lead to breakdowns, and ultimately to project catastrophe:

• The first step to proper communications between VT members is to set the ground rules. If members do not know what, when and why they must be communicating, they never will. At least to the point of success.
• Next, the VT or the leader(s) must choose a method of communication that best fits the common needs of members and the situation. This may just be weekly phone calls or emails. Or, it may be daily, live, online brainstorming via some Internet collaboration software. Regardless of the method, this must be determined in the beginning.
• All members must be trained in the proper use of the above mentioned communication technology. They must feel confident with it's usage as well.
• Specific objectives must then be organized and established. When will the communications take place? And how often? What will the format be (i.e. open discussion, moderated, etc.)
• Once communications are taking place regularly, it's important to encourage all members to participate fully. If members feel they are being left out of the discussion, they will quickly get discouraged and will likely drop out of the VT.
• Once everyone is communicating, it's vital to employ proactive listening. This means that you must actually listen to what the other members are saying and react/respond accordingly. “Passive” participants generally tend to be passive members as well.
• It's also important to corroborate and double-check all team members' comprehension of the main message and what is expected from them in return (if anything). Example: at times, a virtual assignment might get misconstrued or misunderstood by the member. Double-check with the member – have them ‘reply' with their own interpretation of the assignment.
• If some members are not responding, ask for feedback from them. Maybe they were not trained properly for the chosen communication medium. Or perhaps they are confused about the project. It's important to get the member in question to respond in some way. If possible, a face-to-face meeting might help. If not possible, try the telephone. It's important to create contact with this member – but be mindful and do not ‘talk down to' or ‘put down' any member of the team.

Regardless of the tool or technique used to generate team interaction, it's important to remain steadfast and watch for breakdowns in the lines of communication. The entire VT project depends on this vital link between members.