If all your coders are editing files in one single directory all at the same time, well, that's pretty crazy. Not even CVS forces you to all work out of the same directory; it lets you check out your own local working copy and push changes to the server. Git is almost the same from the user's perspective, with the noted difference that you get an entire copy of the repo and not just one working copy of some of the files.

The most usual way to work with git is to pull a local copy of the whole server using "git clone"[1]. The only way to do a partial copy would be to do a shallow copy locally with only the last few commits, but then it will probably be harder to merge back... So it seems you are either wrong, or that your team is using a very very exotic workflow.

[1] it is explicitly called clone and not checkout to underline the fact that you are actually replicating all the data of the server.

What?!?

Git forces you to check out a copy in order to be fully functional. Are you saying they're working without version control? Why?