The use of virtual teams has increased during recent years due to technological development, and the current Covid-19 pandemic has driven the pace of this growing phenomenon to the next level. This study has looked in-depth at a single company within the Swedish insurance industry, how managerial practices differ between a virtual environment and a co-located environment regarding motivating employees. It has been identified that the managers have adjusted their way of working and employed several new practices to motivate their employees. Motivation is a complex topic, and many potential practices could influence motivation. The managers have carefully taken actions that enables the employees to execute their work tasks. Further, the findings show that the managers, in this case, have employed a lower degree of virtuality, and actively employed solutions that facilitate interactions and structure. Additionally, the employees have been empowered and given the authority to engage in decisions to a greater extent than when they were working co-located. While most employed practices aim to motivate the employees, other practices aim to fulfill other purposes. Hence, these practices could still influence the employees' motivation.