The post pandemic shift to hybrid work has led to flexible models balancing employee preferences and organisational needs. Yet, as virtual interactions increasingly replace in-person connections, maintaining social capital within teams presents a new challenge. New research by Nina Jörden and Josie Beal provides experimental insights on how virtual teams can build and nurture social bonds that drive teamwork and innovation.
As the dust of post-pandemic uncertainty settles, a clear trend has emerged: the return to the office is no longer an either-or question, but one defined by the widespread adoption of hybrid working models. Throughout 2023, organisations experimented with different hybrid approaches, ranging from fixed schedules—three days in the office and two at home—to more flexible patterns designed to balance employee preferences with organisational needs.
A survey conducted by Barrero et al (2023) among U.S. residents aged 20-64 found that most prefer to work remotely for two and a half to three days per week—only slightly more than what most employers envision. In knowledge-driven hubs like Cambridge, the trend is similar; surveys indicate that many young professionals favour hybrid work, with three days in the office and two remotely being the majority preference.
These preferences reflect a broader shift towards more flexible work arrangements, not only in terms of work location but also in working hours. Employers are increasingly supportive of this transition, and policymakers are also setting frameworks to make flexible work the standard. For example, when the UK’s Labour Government came into office, they prioritised “modernising” the world of work through their ‘Make Work Pay’ plan, which advocates for flexible working to become the default—particularly to help workers better balance their professional and family responsibilities.
While increased flexibility of work has the potential to enhance job satisfaction and work-life balance, it also raises a central challenge: this newfound autonomy may compromise one of the core drivers of long-term productivity—human interaction. We are inherently social beings, and our capacity for innovation and productivity is deeply rooted in our ability to connect, collaborate, and engage with others in meaningful ways, even more so in an increasingly knowledge-intensive economy. Nicolas Epley, Professor of Behavioral Science at the University of Chicago Booth, reinforces this idea in his book Mindwise, explaining that our species thrives because of our unique ability to understand and connect with the minds of others. However, in virtual environments, this becomes more challenging. For instance, emails can be easily misinterpreted, while technical issues, asynchronous communication, and time zone differences further disrupt collaboration.
This prompts a critical question: in a world where physical interaction is limited, how can teams maintain strong relationships and, by extension, high levels of productivity? The answer lies in building and nurturing social capital within virtual environments.
Social capital and the challenge of building it in virtual workplaces
Social capital is the invisible glue that binds a community together, enabling it to function effectively and thrive. In the workplace, it manifests as a network of relationships and connections that foster collaboration, trust, and mutual support. Previously, social capital has been built through face-to-face interactions—casual conversations, shared experiences, and spontaneous encounters in hallways, over coffee breaks, or during team meetings. These everyday moments help individuals form bonds, build trust, and create a foundation for high performance, teamwork, and career growth. When social capital is strong, employees are more likely to share ideas, support one another, and work enthusiastically toward common goals.
However, building social capital in virtual settings presents unique challenges. The physical distance inherent in remote work removes the subtle yet powerful non-verbal cues and spontaneous interactions that help us connect and understand each other on a deeper level. Recognising these obstacles, Cambridge Ahead’s Young Advisory Committee designed a virtual workshop aimed at nurturing social capital within virtual teams. The goal was to create meaningful opportunities for participants to build relationships and trust, even in the absence of face-to-face interaction.
The workshop approach: fostering social capital in a virtual environment
The workshop, hosted on Microsoft Teams, featured a series of exercises specifically designed to foster social capital among participants. Small groups of three to four people rotated through four different activities to maximise interaction and relationship-building. The open format attracted a diverse group of participants, many of whom had little prior connection. After each exercise, participants evaluated how well it promoted interaction and connection, offering valuable insights into the most effective strategies for building social capital in virtual settings.
What we learned
The most successful exercise, according to participant feedback, was the Scavenger Hunt, in which teams were challenged to find and present specific items from their homes, such as coffee mugs or a plant. This activity received the highest ratings across all dimensions—fun, engaging, fostering connections, and promoting teamwork. Several factors contributed to its success: the interactive, hands-on format actively engaged all participants; personal item sharing fostered deeper connections and understanding, allowing people to learn more about the other’s personalities and lives outside of work.
In contrast, the Decoding activity, in which participants worked together to decipher an encrypted message, received the lowest ratings. While it encouraged teamwork, its task-oriented nature limited personal interaction. The cognitive demands of the task also shifted the focus away from social engagement, making it more about problem-solving than connecting with teammates.
Key takeaways for managing virtual teams
From the workshop, we learned that building social capital in a virtual environment requires intentional, interactive, and thoughtfully designed activities. Here are some practical key takeaways:
- Interactive and hands-on activities are critical for building social capital. These activities can be seamlessly incorporated into daily workflows to ensure team members stay connected and engaged. Team leaders can for example use interactive polls or quizzes at the start or end of meetings to ‘break the ice’ and boost engagement. A quick quiz relating to a recent project or industry trends can energise the team, fostering participation and a sense of fun.
- Encouraging personal sharing helps to humanise the virtual work experience and strengthen bonds among team members. In practice, this could be a ‘Show-and-Tell Friday’ where once a week, one or two team members share something personal with the group—such as a favourite book, hobby, or item from their home that has sentimental value. These activities foster empathy and understanding as colleagues learn more about each other’s lives, interests, and experiences, creating deeper personal connections.
- Task-oriented activities, such as problem-solving, are an essential part of any job. However, it’s important to include opportunities for personal interaction and relationship-building within these tasks. Pairing team members for specific projects can foster collaboration and create space for these connections. For example, before diving into the task, encourage team members to spend a few minutes getting to know each other by sharing something unrelated to work. This approach strikes a balance between achieving work objectives and fostering meaningful social engagement.
- Cognitive load is an important factor to consider when aiming to build social capital in a virtual work setting. If work tasks are too demanding, they can lead to frustration and disinterest, especially in a virtual working environment. Instead of overwhelming team members with a large, complex task, break it into stages: first brainstorming general ideas, then refining those ideas into concrete plans, and finally, dividing responsibilities. Such progressive structures keep the workload reasonable while maintaining momentum and participation.
As virtual working environments become the norm, it is crucial for both organisations and policymakers to carefully evaluate their impact on productivity. Rather than rushing to implement drastic measures, such as requiring employees to return to the office, the focus should be on understanding and nurturing social capital within virtual teams. A key strategy is to provide targeted leadership training that recognises the subtle but important differences between managing in-person and remote teams.
At a policy level, ensuring equal access to reliable digital infrastructure is essential. Without this foundation, technical barriers could undermine productivity in hybrid work environments. It’s also vital to acknowledge that the relationship between hybrid work and productivity is nuanced, with long-term effects yet to be fully understood. Both organisations and policymakers must remain adaptable, refining their approaches as new challenges and opportunities emerge. By doing so, they can ensure that hybrid work models continue to foster productivity and sustainability in the evolving workplace landscape.
Read the report on the Cambridge Ahead website: Building stronger virtual teams: experimental insights on social capital
The views and opinions expressed in this post are those of the author(s) and not necessarily those of the Bennett Institute for Public Policy.
