The rise of the “virtual-first” company represents a fundamental shift in how organizations operate, collaborate, and define their identity. This trend, which gained major traction during the COVID-19 pandemic, is continuing to reshape the role of physical headquarters, often making them increasingly irrelevant.
What Is a “Virtual-First” Company?
A virtual-first company is one that prioritizes remote work as its default mode of operation. While it may still maintain physical office spaces or offer co-working options, the core infrastructure, communication, and workflows are built around digital collaboration.
Examples of virtual-first companies include:
• GitLab (fully remote with no central HQ)
• Dropbox (converted offices into "studios" for collaboration only)
• Shopify and Twitter (shifted to digital-first models post-2020)
Why This Model Is Rising
Several forces are driving the rise of virtual-first companies:
1. Remote Work Proven Effective
During the pandemic, companies realized that productivity didn't drop—and in many cases, improved—when employees worked remotely. With the right tools, distributed teams can operate efficiently. One of those tools is MySammy, our cloud-based software designed specifically for managers of a remote workforce. MySammy measures productivity levels of work-from-home employees, giving managers peace of mind in knowing that productivity levels will remain high.
2. Global Talent Pool
Virtual-first companies are no longer constrained by geography. They can hire top talent globally, enabling diversity and skill optimization without requiring relocation.
3. Cost Savings
Maintaining large office spaces in expensive urban centers is costly. Virtual-first models slash overhead costs, redirecting funds toward growth, R&D, or employee benefits.
4. Employee Preferences
Many workers now expect flexibility. Remote or hybrid work options are a key consideration when choosing where to work. Virtual-first companies attract and retain talent by meeting this expectation.
The Diminishing Role of Headquarters
Traditional HQs served as the nerve center of a company: decision-making, collaboration, and culture-building all happened there. But in a virtual-first model:
✦ Headquarters Become Symbolic or Optional
HQs now function more as legal or administrative hubs than operational centers.
✦ Work Is Platform-Based, Not Place-Based
Work happens on Slack, Zoom, Asana, Notion, and other cloud platforms—not in conference rooms.
✦ Office Space Is Reimagined
Companies are converting HQs into flexible collaboration spaces or co-working-style studios for periodic in-person meetings, not daily attendance.
Benefits and Challenges
Benefits:
• Lower operational costs
• Broader hiring pool
• Enhanced flexibility and autonomy
• Resilience during disruptions
Challenges:
• Requires strong digital infrastructure and documentation
• Potential for employee isolation
• Need for deliberate culture-building
• Time zone and communication complexities
Looking Ahead
As companies continue to prioritize agility and talent access, the virtual-first model is likely here to stay. While some organizations may still maintain a hybrid model, the centrality of headquarters is fading. What matters now is how well a company adapts to digital collaboration, supports its people, and maintains cohesion—regardless of where work happens. Whether you’re considering utilizing a virtual-first model for your company, adapting to a hybrid model, or simply allowing a portion of your workforce to work remotely, MySammy can help you to more effectively manage your at-home employees. MySammy measures productivity levels of workers without using “spyware” or blocking websites. And MySammy produces a variety of reports that make your job as supervisor/manager easier than ever before. Sign up for your FREE trial of MySammy today!
