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Virtual offices 'present advantages and challenges'

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Setting up a virtual office might be a good backup plan if things go wrong, but small firms considering doing this must make sure they get it right, one expert has warned.

Frances Coulson, a spokesperson for business recovery firm R3 explained that a virtual office can be used to spread risk and help firms get back on their feet if something goes wrong.

He said: "A virtual office can be a backup in terms of spreading risk, however, if your main office goes down, can a virtual office network take up the slack?"

Using a virtual office can also reduce costs, but workers might feel isolated, he added.

This could lead to a "lack of company sprit", Ms Coulson warned.

Yesterday, a government report suggested that workplace rehabilitation is a good way for firms to help employees back to work after a period of absence.

According to the Department for Work and Pensions, such schemes offer benefits for both parties.ADNFCR-873-ID-18723622-ADNFCR

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