What is a virtual employee?
A virtual employee is someone who works remotely instead of from your office. They may be based in the UK or overseas, working full-time, part-time or on a contract, while staying connected through digital tools.
Businesses often hire virtual employees to access specialist skills, reduce recruitment costs, and build a flexible workforce without being limited by location.
What does a virtual employee do?
A virtual employee performs the same core responsibilities as an in-house employee, with the only real difference being where they work. Their duties depend on the role and your business needs.
Common responsibilities include:
- Managing administrative and operational tasks
- Providing customer service and technical support
- Handling bookkeeping, payroll or finance tasks
- Running marketing campaigns and social media
- Developing software, websites or digital products
- Supporting HR, recruitment and other back-office functions
They work as part of your virtual team, collaborate through online tools, and follow your company's processes, just like any other employee.
Why are businesses hiring virtual employees?
Around 40% of UK employees now work remotely, with 14% working fully remotely and another 26% following a hybrid model. Remote working has become part of everyday business, making it easier for employers to hire talent based on skills rather than location.
Businesses are hiring virtual employees because they can:
- Access specialist talent across the UK and overseas
- Recruit faster for hard-to-fill roles
- Reduce office and operating costs
- Scale teams without expanding office space
- Build a more flexible and resilient workforce
What makes a great virtual employee?
The strongest candidates typically have:
- Excellent written and verbal communication
- Strong organisational and time management skills
- A proactive, problem-solving mindset
- Reliability and accountability
- Confidence using remote collaboration tools
- The ability to work well with distributed teams across different time zones
When these qualities are paired with the right skills and experience, virtual employees can become just as valuable as any in-house hire.
Challenges of managing virtual employees
Managing virtual employees comes with a few extra considerations, especially as your team grows. Common challenges include:
- Keeping communication clear across different locations
- Coordinating work across time zones
- Maintaining team engagement and company culture
- Monitoring performance without micromanaging
Virtual employee management checklist
- Set clear goals, responsibilities and deadlines
- Choose reliable communication and collaboration tools
- Hold regular one-to-one and team catchups
- Document processes so everyone works consistently
- Measure outcomes rather than hours worked
- Encourage feedback and recognise good performance
- Schedule occasional team-building activities to strengthen relationships
Virtual employee vs remote employee
A remote employee is anyone who works outside a traditional office, regardless of where they're based. A virtual employee is a type of remote employee who works as part of a fully distributed team, often hired through virtual staffing or an Employer of Record.
| Virtual Employee |
Remote Employee |
| Usually works as part of a fully distributed team |
Works remotely instead of from an office |
| May be hired through virtual staffing or an Employer of Record |
Can be hired directly by the employer |
| Common in international and offshore hiring |
Can be based locally or overseas |
| Often supports businesses without ever visiting a physical office |
May work fully remote, hybrid or occasionally attend company sites |
Example of a virtual employee
Scenario: A UK ecommerce business is expanding and needs dedicated customer support but can't find the right candidate locally.
Solution: The business hires a virtual employee in India through an Employer of Record.
Responsibilities:
- Responding to customer enquiries
- Processing orders and returns
- Working alongside the UK team during business hours
- Attending daily team meetings online
The employee becomes a fully integrated member of the business, delivering the same level of support as an in-house hire while working remotely.
Common misunderstandings about virtual employees
Several myths still surround virtual employees, but most no longer reflect how modern businesses operate.
- They aren't committed to the business. Many work as full-time employees for a single company.
- Remote means less productive. Performance depends on management and processes, not location.
- They're only suitable for admin roles. Businesses hire virtual employees across IT, finance, marketing, HR, sales, and customer support.
How Black Piano helps
Black Piano helps you hire top remote talent that works as a seamless extension of your team. We source, vet, and onboard candidates, while handling payroll, compliance, contracts, HR and local employment through our Employer of Record (EOR) service.
You get dedicated professionals without the complexity of international hiring. Learn more about our Employer of Record services.
