A remote-first company is designed for remote work at its core. This means that all systems, policies, and communication workflows are built to support fully distributed teams.
For remote-first companies, remote work is not treated as a special benefit or occasional arrangement but as the standard way of conducting business. As such, employees are not required to work from a physical office, and where an employee lives has minimal impact on their career growth or ability to collaborate with colleagues.
Remote-first vs. remote-friendly vs. hybrid
Remote-first, remote-friendly, and hybrid companies all support some degree of remote work, but they differ in how deeply remote work is embedded in their culture and operations.
- Remote-first companies are designed for remote work, and they tend to value it immensely.
- Remote-friendly companies offer remote work as a benefit or option, but in-person work remains the norm. They typically maintain central offices and prioritize in-office processes.
- Hybrid companies blend both remote and in-person work, allowing employees to split their time between working onsite and remotely.
The table below illustrates the differences between the three models:
| Model | Core work environment | Office use | Policy priority |
|---|---|---|---|
| Remote-first | Remote by default | Optional (if an office even exists) | Optimized for remote work |
| Remote-friendly | Office-based with remote flexibility | Expected but flexible | Office-first, remote allowed |
| Hybrid | A mix of remote and required in-office days | Regular in-office presence expected | Optimized for both in-person and remote work |
Why employers are embracing remote-first models
Access to diverse talent
A remote-first work model enables companies to tap into a vast global talent pool by removing geographic barriers. Organizations can recruit the best candidates from anywhere in the world rather than just their local market (although this benefit can also lead to HR compliance headaches).
According to the Society for Human Resource Management (SHRM), remote-first roles are particularly attractive to employees who are caregivers, seek nontraditional lifestyles (such as digital nomadism), or have disabilities. These types of workers often seek flexibility in their roles, which remote work can facilitate.
Also, talent from underrepresented groups, such as people of color, women, and mothers, may find remote-first companies particularly compelling. That’s because more than 10,000 workers indicated that remote work creates a more comfortable working environment for such talent.
Reduced real estate and overhead costs
A remote-first work model shrinks a business’s footprint and overhead costs associated with physical office spaces. Companies can redirect resources for facility-related expenses (rent, utilities, and property taxes) to facilitate growth objectives.
Increased employee productivity, ability to attract talent
In addition to widening the talent pool and reducing costs for brick-and-mortar operations, remote work can also increase employee efficiency. The U.S. Bureau of Labor Statistics reports that remote work increased workers’ productivity across 61 industries from 2019 to 2022. The reasons for improved productivity include the elimination of in-office distractions, less burnout due to better work-life balance, and employees choosing work environments that meet their needs, whether a quiet home office or a bustling coffee shop.
Remote-first companies also benefit from attracting talent more easily than their in-office counterparts. FlexJobs 2024 State of the Job Search Report revealed that 87% of job seekers polled considered remote work the top factor that would attract them to a company.
Scalability and resilience in uncertain conditions
Remote-first companies are inherently agile. They can quickly adapt to changing market conditions and business needs without worrying about physical constraints, such as the location of employees or whether the office is too small to accommodate new talent.
Unlike traditional office-based companies, which face significant challenges when physical locations become inaccessible due to natural disasters, pandemics, or other crises, remote-first organizations have an established virtual infrastructure in place. Additionally, during economic downturns, companies benefit from not wasting valuable resources on maintaining office facilities.
Examples of remote-first companies in 2025
The following companies—both well-established and emerging—are known for their remote-first approach to work and for being proponents of the model:
- GitLab. Since its founding in 2011, the DevOps company GitLab has had a remote-first model. Founder and CEO Sid Sijbrandij explained the success of GitLab’s work model in part to “invest[ing] in working practices that enable asynchronous communication.”
- Doist. The creator of the time-management and asynchronous work apps Twist and Todoist, respectively, Doist has been aremote-first company since its inception in 2011. One of its core values is “Working without borders.”
- Zapier. Software integration company Zapier has been recognized for its culture that has embraced asynchronous work since its founding. Cofounder Wade Foster wrote that remote work has three main benefits for their company: access to talent from around the world, no real estate expenses, and more focus time for employees.
- Automattic. The company behind WordPress.com has been globally distributed since it began in 2005. “Everyone works from the location they choose, during the hours they choose,” the company states.
- Buffer. The social media post scheduler Buffer has a remote-first culture that values complete transparency (regarding company earnings and employee salaries, among other revealing company data) with employees from around the world.
FAQ
Does a remote-first company need an office?
No. Although some remote-first companies maintain optional coworking or regional hubs. The core operational model does not rely on office presence.
How do remote-first companies handle collaboration?
Through tools that allow for real-time and asynchronous communication (e.g., Slack, Notion, and Zoom), standardized workflows, and intentional documentation practices (such as GitLab’s remote work handbook).
What are the compliance risks in a remote-first model?
Employers must manage international employment laws, tax withholding, benefits, and risks associated with establishing a permanent presence when hiring globally.
How can companies transition to a remote-first structure?
By rethinking policies, reengineering workflows for async, investing in the right tech stack, and ensuring employment compliance across jurisdictions. They must also brainstorm how to maintain the culture remotely.
Is remote-first the same as distributed?
They’re closely related, but not the same. “Distributed” often emphasizes location dispersion, while “remote-first” emphasizes the underlying operational design and philosophy of the company.
Expert support for remote-first companies
Remote-first companies are free to hire the most qualified candidate for the job, regardless of their location. With this freedom comes the responsibility of complying with labor laws and regulations where the candidate works.
For this reason, remote-first businesses choose to partner with Velocity Global. Our Employer of Record (EOR) solution includes hiring, onboarding, and paying talent in over 185 countries. Now you can reap all the advantages of being a compliant remote-first business.
Contact us to discover how we support remote-first businesses that hire globally.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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