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What is a Virtual Employee?

A virtual employee is an individual who works remotely for a company, performing their duties and tasks without being physically present in a traditional office setting. Virtual employees can be hired directly by a company but work remotely or independent contractors who work for multiple clients. 

August 22, 2025
Updated March 5, 2026
1 min read
Glossary

A virtual employee is an individual who works remotely for a company, performing their duties and tasks without being physically present in a traditional office setting. Virtual employees can be hired directly by a company but work remotely or independent contractors who work for multiple clients.

How do Virtual Employees Work?

Virtual employees use digital communication tools such as email, video conferencing, instant messaging, and project management software to collaborate and communicate with colleagues and supervisors who are onsite.

They perform a wide variety of tasks including customer service, web design, social media management, bookkeeping, IT troubleshooting, data entry, software development, marketing, and more.

Employers must ensure that virtual employees have the necessary technology needed to perform their roles. This includes providing computers, software, and stable internet access to successfully deliver tasks. Managers must also schedule regular virtual meetings for updates, issue resolution, and performance feedback to keep remote employees in the loop.

Virtual Employee vs Traditional Employee

The primary difference between virtual and traditional employees is the location of their work.  Traditional employees typically work from a company’s physical office, whereas virtual employees perform their duties remotely. This distinction affects how they communicate, collaborate, and are managed, with virtual employees relying heavily on digital tools and constant updates between you and your employee.

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