Learn more about Remote hiring
Why Organisations need to Embrace Remote Hiring
The expansion, highly qualified employees, cost savings and increased productivity. These are goals that every business must strive for in order to remain competitive in the marketplace. By embracing the idea of remote hiring, you can make great strides in the pursuit of all four of those goals.
The marketplace is global now. Long gone are the days of selling goods and services to those in your immediate community, or even country. As the market expands overseas, so too must companies become global entities. Remote working has changed too. In the interconnected word of the 21st century, remote employees are an invaluable method of adding highly educated talent, diversity and global leverage to your team.
Myths of Remote Hiring
Whenever remote hiring is brought up, the first thoughts in most peoples’ minds are still negative. Somehow the idea of hiring overseas employees still conjures up the same tired misconceptions that are completely inapplicable in the modern day. Some of the most common of these myths are:
• Hiring remotely is the same as outsourcing.
• Remote employees are cheap, but less qualified, and therefore less valuable than local employees.
• Because of distance and language barrier, they will never be truly a part of your team.
Remote Hiring is Not Outsourcing
This is the first myth that must be put to rest. The definition of outsourcing is hiring another company to supply goods or services. Outsourcing has become a dirty word, and for good reason. When labour is outsourced, that labour is not employed by you, but by their own company: they do not work for you, and they have no connection to your brand or organisation at all.
How this became conflated with remote hiring is anyone’s guess. It’s an entirely different thing. When you hire remote employees, you do just that: hire employees. The only difference is that they telecommute. Remote employees work for you directly and are as much a part of your organisation as any local team member.
One of the many benefits to remote hiring has always been the low cost. In fact, Reuters has reported that a 25 person company could save over $93,000 dollars annually by utilising remote employees. The reasons for this are threefold:
• Infrastructure and real estate.
• reduced salary requirements.
• increased productivity.
An often forgotten cost of doing business is the actual physical aspect of that business. Real estate for your office can be an enormous blow to your company’s bottom line. The more employees you have on staff, the greater this cost goes up. So too does the cost of electricity, heating and air conditioning, and whatever other amenities are offered on your campus. Global Workplace Analytics states that the real estate savings alone of a company utilising telecommuting is $10,000 per employee annually.
The salary requirements of remote workers are also much lower than their local counterparts. Student debt and skyrocketing real estate prices in the business hubs of major countries is an enormous factor in the salary requirements of local employees. However, the cost of living and education in developing countries is much lower. and without that incredible cost of living and student debt, the salary requirements of remote workers do not need to be unreasonably high.
It might seem counter-intuitive to suggest that remote employees can be more productive than local employees, but that is what the research suggests. Consider these facts from Global Workplace Analytics
• Unscheduled absenteeism costs employers $1,800 per employee annually.
• $600 billion is lost by businesses because of workplace distraction
• Businesses with a remote-work program saw a 63% reduction in absenteeism.
• Remote workers are 35% percent more productive than their local counterparts.
Remote employees save you money, but they do not cost you anything in the quality of work that you get. Education is not unique to the western world, and believing so would be a great mistake. There are incredibly talented and educated candidates in developing countries that cannot find employment because whereas the education and infrastructure are in place for those nations to be a global powerhouse, the economy has not caught up yet.
You Need Good Employees, and Good Employees Need Good Jobs
The nation of Serbia is a great example of the disconnect between qualified people and the available opportunities.
Education in Serbia is on the rise. Currently, 98% of Serbians are literate and the nation boasts 17 universities and 63 colleges. In 2016 the most awarded degrees in Serbia were organisational sciences, law, economics, and electrical engineering.
Despite all this, unemployment is still incredibly high, and the average monthly wage is lower than minimum wage in the United States.
What this means is that for a fraction of the cost of hiring a local employee, you can hire a candidate who is just as qualified and is in dire need of quality employment.
Setting Yourself Up In an Emerging Market
The world economy is always in flux. What is currently the biggest market, may not be in 5 years. Generally, you will see more education and the ability to hire remote employees in the years before the region’s economy takes off.
Returning to the example of Serbia, the world bank says this about the economic reform plan put in place after their 2016 election
“The Government’s economic reform program focuses on ensuring economic and financial stability, halting further debt accumulation, and creating an environment for economic recovery and growth to foster employment and raise living standards.”
Also, the city of Vranje was listed twice in FDI Magazine’s list of-of “Top 10 Micro European Cities for the Future 2016/17 for Economic Potential” for cost effectiveness and FDI strategy.
While they are not an economic powerhouse quite yet, they are poised to become one. By having employees in Serbia, you would be in a unique position to understand the market and culture and position yourself to profit when the government’s reforms begin to positively affect the economy.
True Team Members
Previously, the only downside to hiring remote employees was the distance. At such a great distance, it was impossible for remote workers to really be a part of your team. That is a problem of the past. Modern technology has progressed to the point where there is virtually no difference in communication between someone a few hallways away and a few oceans away. Consider these points:
• A large percentage of the world and even larger percentage of the educated world speaks English
• Video calls and e-conferencing allow remote employees to be just as much a part of the team as those in your office building (without the reduction in productivity that comes from having to physically be at a meeting
• The attractiveness of well-paying remote work in developing nations means that employees would be more likely to work 2nd or 3rd shift to be on the same schedule as your office.
We are in a global society now, with instant communication. Neither you nor your remote employee will be a faceless computer but will know each other as well as if they had an office right down the hall.
When you decide to bring on a remote employee you’re deciding to hire a more cost efficient, more productive, and just as a qualified candidate. Beyond that, though, you’re bringing on diversity, and that can be an incredible asset. With diversity comes new perspectives and ways of solving problems. It brings firsthand knowledge and insight into new markets that would be otherwise unattainable. Diversity in your workforce is the first steps to becoming just as global as the new marketplace, and that is something truly invaluable.