Remote work helped tech companies outside Silicon Valley grow

More than two years after the pandemic sent workers packing and hunkering down in their home offices, many companies are now doing everything they can to lure employees back to office buildings — at least for a few days a week.

But some companies that hired remote workers during the pandemic say going back to the office is not an option. Remote work made more normal by the pandemic has altered how companies operate, especially when it comes to hiring. Tech companies outside Silicon Valley have been able to grow because their talent pool has expanded.

Take, for instance, Craig Fuller, the founder of a logistics data analytics company in Chattanooga, Tennessee, who is used to recruiting software engineers and data experts who live outside the area. In the past, that meant making a case for why they should move to the midsize Southern city. He would emphasize the low cost of living and outdoor community. “We look for people who have families,” he said.

But during the past two years, these sorts of conversations have been unnecessary. Fuller’s company, Freightwaves, has doubled the size of its staff by expanding remote work. And of its 120 new hires, about 60% live outside Chattanooga.

“All of a sudden, the rules and restrictions of where we can hire no longer became an issue for us,” Fuller said.

That is also the case at Olive, an automation company in the health care industry in Columbus, Ohio, which grew during the pandemic to 1,350 employees from about 200. The company’s workforce is now distributed across 47 states.

“There’s no way that we could have scaled the way that we have without tapping into these national, more diverse talent pools,” said Brian Rutkowski, the company’s chief people officer.

For some startups outside Silicon Valley and other major metropolitan tech hubs, remote work has been crucial to unlocking rapid growth. Companies can recruit talent from anywhere without asking candidates to relocate.

This makes many keen to continue remote work after the pandemic. Revolution, a Washington-based investment firm with a focus on companies outside Silicon Valley, informally surveyed its 200 portfolio companies about their remote work policies this year. About 20% said they offered remote work options before the pandemic, and 70% said they would allow remote work going forward.