combine a retreat with cpe.
by jody grunden
with a brick-and-mortar company, there are a number of standard costs that you would expect to have, such as rent or mortgage, utilities, building repairs, furniture, technology, etc. the total amount of these kinds of costs typically falls in the range of 3-4 percent of the company’s annualized revenue. that amount can be pretty significant for a lot of companies.
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some business owners may think they can save the company all of that money by going remote, but i personally believe that’s a terrible idea. while it’s true that a distributed company doesn’t have the costs that come with having a physical space, the very nature of a remote work environment results in a completely different and unique set of needs that should be considered in the company’s annual budget.
the money saved on things like rent and utilities shouldn’t simply go toward profit. instead, those “savings” should be reallocated to things like company retreats and meetups. it’s important for remote workers to get together throughout the year – whether it be an annual companywide retreat, a leadership team retreat, a project get-together or simply for educational purposes.
we have an annual retreat where we get the entire team together for a week. this helps us get to know each other on a more personal level and creates a dynamic similar to what you would find in a traditional office setting. we have a leadership team retreat where we get our leaders together to discuss the vision and future of our firm. these types of get-togethers deepen our bond with one another and help us work together more effectively as a team. we also have departmental retreats that we try to piggyback with a cpe event to save on travel costs.
depending on our company forecast, we try to meet twice a year, once a year as a full team and a second time through cpe or departmental meetings. we’ve found that the cost of in-person events roughly accumulates to the same 3-4 percent of annualized revenue that a company would “save” by not having a traditional brick-and-mortar office. we try to keep our average price per person at or near $2,000-$2,500 for the team retreat, and $1,000-$1,500 for departmental and cpe events. travel includes hotel, travel, and meals. it may be a wash from a financial standpoint, but it’s a strategic use of company funds that will help the company become stronger and healthier as it grows.
an accountant on our team, alyssa colf, shared, “i have benefited greatly from every in-person interaction i’ve had with my coworkers. it’s just a different kind of connection that you can have when you’re face to face with someone. i think it’s an experience that people working in brick-and-mortar companies wouldn’t really understand. they are together every day, so it can be taken for granted. when they get together, it’s no big deal, but when we get together it is something really special. i think everyone cherishes that time together and makes the most of the time to connect on an entirely different level.”
get-togethers can be powerful bonding events for remote workers, and they are an important part of doing business remotely. if business owners think that they can save money by running the company as a distributed model, they are doing a disservice to the company and its employees. not investing money in healthy human interaction will only have a negative impact on the company in the long run.