In our high-tech world, it’s not unheard of for companies to allow employees to work remotely. With always advancing technology, gone are the days of standing around the water cooler at an office. Today, people can easily connect—and work—via video and social networking.

A recent Wall Street Journal article profiled several companies with remote workforces—staff work from home offices and typically conduct meetings via Skype or Internet chat. Depending on the business, some employees interact with one another when traveling to client sites.

Web-services company Automattic has 123 employees working in 26 countries, 94 cities and 28 U.S. states, all in home offices. Water cooler conversations take place via internal blogs. Design-review software company ProofHQ employs 32 staffers in 17 cities around the world. Kalypso LP, an innovation consulting firm, manages 150 employees around the U.S. and in Europe.

One of the benefits of employing a remote workforce is that it allows a company to tap into a wider talent pool not limited by geography.  Companies may also save money on office space, albeit travel budgets may partly offset that.

For employees, working remotely eliminates the often-dreaded commute and there are fewer interruptions from fellow workers “stopping by” their desk to chat. Mat Atkinson, chief executive of ProofHQ, says that his remote employees are more productive because of this.

But, according to the article, Atkinson also notes that managing “distributed” teams requires 25% more effort than a face-to-face team because managers must pay closer attention to whether workers are motivated and fully understand tasks and processes.

Working remotely isn’t for everyone. Many people enjoy human contact at an office and the ability to meet face-to-face on work issues. Others have difficulty creating boundaries between work and home life. One remote worker mentioned in the article got into his car every morning, drove around the block as a “commute” and then returned home to clock in.

Often what it comes down to for a company to decide its organization is the nature of the business. If a company hires the right employees and creates a cohesive culture, virtually or in an office, everyone—employers and employees—will benefit.