In 2023, the emergence of remote employment significantly changed the manner in which corporations operated. Although virtual teamwork was already gaining traction before the pandemic, it has now become the norm. Companies have begun to appreciate the advantages of employing remote workers, particularly in the IT industry, such as the ability to access a broader and more specialized talent pool than is available locally, as well as reducing costs and retaining valuable staff. However, is it appropriate for all companies to make such an investment? What are the primary benefits of utilizing a remote workforce?
Around two decades ago, I ventured into the realm of remote recruitment. Initially, when I heard about outsourcing, I believed it to be the ideal solution for any challenges encountered when searching for local workers. However, over time, I came to understand that outsourcing was not always the answer and, in some cases, had a detrimental effect. The optimal approach to acquiring distant personnel, also known as ‘offshoring talent’, has since become the preferred course of action.
Hiring remote employees offers a range of cost-effective advantages to businesses of all sizes, from single-person operations to multinational organizations. This is not only due to the availability of skilled personnel, but also a number of other benefits.
Here Are Nine Financial Upsides of Taking Advantage of the Growing Trend of Remote Work.
According to a recent Gartner poll, 80% of business owners are seeking to provide some of their employees with the option to work remotely in light of the ongoing pandemic, with 47% looking to make this a permanent arrangement.
It appears that remote working is here to stay for many businesses. After the pandemic, many organizations have already determined whether they will opt for a hybrid strategy, require employees to return to the workplace full-time or allow them to continue working remotely.
Let’s take a look at how employing remote workers might benefit your business and how much money you could save.
To start, the most obvious benefit is a reduction in housing expenses.
The increasing cost of property is a significant concern in numerous parts of the country. Even in areas with higher than average median incomes, such as Silicon Valley and Redmond, WA, the effects of the increasing housing prices are being felt. Ultimately, this has an effect on businesses and their employees, and there is potential for businesses to benefit from cost reductions.
One study found that companies might save up to $10,000 annually in real estate expenses for every remote worker.
It Helps Keep Staff Members from Leaving
The cost of training personnel is an area where remote employment may offer considerable savings. According to the Center for American Progress, turnover costs are substantial, yet are often overlooked.
The Centre discovered, following an analysis of data from 30 case studies across 11 studies, that the cost of replacing an employee was approximately one quarter of their annual remuneration. It was also found that the cost of leaving a position could be as high as 213% of the yearly salary, with this cost being significantly higher for highly skilled professionals.
Research conducted by Stanford University suggests that there may be a correlation between telecommuting and job retention. It was found that remote workers were more satisfied with their roles, leading to a decrease in turnover. Consequently, firms are able to save money on the costs associated with training new employees.
It was found that two-thirds of employees would consider seeking alternative employment if it meant a shorter commute. Additionally, 95% of organizations surveyed reported that remote working had a significant impact on employee retention. Companies that have a robust policy on working from home not only benefit financially, but also have an improved ability to attract and keep talented personnel.
Having Fewer Unplanned Absences Is Advantageous Because:
Research conducted by GlobalWorkPlaceAnalytics.com has revealed that businesses in the United States are losing an estimated $300 billion annually due to employee absenteeism, which equates to an average of $1,800 per worker.
Companies utilising a telework programme witnessed a 63% decrease in unplanned absences, thus telecommuters deliver substantial savings in this area. Equally noteworthy is the reality that many physical issues are now minor enough that staff can return to work rapidly, and that a number of tasks, including doctor’s appointments, can be accomplished without necessitating an employee to take a whole day away from the office.
Teleworking is an advantageous solution for employees who are feeling unwell, as it reduces the potential for the spread of illness throughout the workplace, as well as the necessity for prolonged periods of absence.
You Can Draw from a Large, Diversified, and Reasonably-Priced Talent Pool
Companies can potentially realise significant savings by utilizing virtual employees, as they have access to a broader range of qualified personnel. When recruiting remotely, businesses may be able to source skilled workers from areas with more affordable living costs.
It is essential to bear in mind that one should not take an extreme approach while looking for remote talent, such as considering that one can hire 10 staff for the same cost as two in their own country and build an empire. It is advisable to offer fair remuneration that reflects the skills, qualifications, experience, and location of the individual in order to secure specialized and exceptional talent.
One of the benefits of remote working is the potential to access highly skilled employees who are passionate about their role, without the expense of high wages.
In Silicon Valley, software engineers typically earn between $88,000 and $152,000 annually (PayScale). The average annual salary for developers in Seattle is $131,135, while in Portland, the average is $105,000. Developers in Denver can expect to make around $110,000 per year. As you travel eastward in South Dakota, the average salary decreases to $98,500 (Glassdoor). In Europe, developer pay drops to between $20,000 and $70,000 in countries such as Russia, Ukraine and Romania.
Increased Efficiency with Decreased Overtime A result of the many time zones
Hiring remote workers not only diversifies a company’s workforce but also allows it to provide higher-quality service to clients at lower costs.
For example, a corporation based on the East Coast that employs staff on the West Coast can provide telephone assistance for an additional three hours per day, for a total of 12 hours, without incurring any overtime costs. This can be beneficial for both the company, as it can help to reduce costs, and for customers, who may have fewer issues when attempting to contact help.
Conducted by CoSo Cloud, the Remote Collaborative Worker Survey has revealed that 77% of participants have experienced an increase in productivity as a result of remote working. Furthermore, 30% reported greater efficiency, completing tasks in less time than those who sometimes work remotely.
At the conclusion of the research, CoSo CEO Michael Fitzpatrick commented that “there are significant benefits to be gained by both remote workers and their employers, with employees driven to work harder and more efficiently to ensure they maintain the personal and professional benefits of working remotely.” He went on to state that workers’ enhanced wellbeing, reduced stress levels and increased productivity are beneficial not only to them, but also to their employers.
The Cost of Gas and Gas Miles Will Be Eliminated
There is potential for businesses and employees to benefit from remote working. According to a survey conducted by FlexJobs, 84% of participants expressed a desire to continue working from home in order to reduce their commute times. Moreover, the US Census Bureau have estimated that individuals could save up to $5,000 a year by eliminating their daily commute.
The cost-effectiveness of employing people in remote locations has been greatly improved due to the introduction of remote working. This has enabled businesses to avoid high expenses associated with employee business trips, such as attending meetings, conferences, and other work-related activities. As a result, businesses can save on average $949 per employee.
Businesses Have the Opportunity to Construct More Inclusive Teams
When managing a distributed team, it is common to encounter personnel from a variety of cultural and socioeconomic backgrounds. Whilst creating a bridge between these cultures can be challenging, it also presents an opportunity for businesses to expand their experiences, which in turn may lead to a positive financial outcome.
The Boston Consulting Group conducted a study of 1700 businesses across 8 countries, covering a diverse range of sectors. The results showed that companies which have a more racially and ethnically diverse executive team have the potential to see 19% growth in revenue due to increased creativity. This demonstrates the direct impact that diversity can have on a company’s bottom line.
Improve Your Marketability for Employment
Offering competitive wages and additional economic incentives, such as shop discounts and gym memberships, is a great way to remain competitive. However, if you are willing to consider remote employees, this may help you to stand out to a larger pool of potential employees.
Millions of people are still searching for remote employment following the pandemic. Many companies have adapted their policies to permit remote working, either through a hybrid model or a complete telecommuting system. Unfortunately, in some cases, it may not be feasible to operate remotely. Interestingly, workers are even willing to accept a reduced income in exchange for the flexibility of working from home.
A survey conducted by Breeze Insurance revealed that 65% of 1,000 respondents would be willing to accept a 5% pay cut in exchange for the opportunity to work remotely on a full-time basis.
Use a Remote Employment Agency to Find Remote Workers Quickly
Remote working has the potential to bring numerous benefits to businesses, including reduced overhead costs, increased productivity and a happier workforce. If you’re looking for qualified remote IT workers for your organization, please don’t hesitate to get in touch.
Works is a remote recruitment firm with the capability to provide expert advice on the best hiring practices and identify suitable candidates for your current vacancies. Our process is quick and efficient, with a turnaround time of approximately two weeks. All you need to do is provide us with a description of the ideal candidate and we will create a tailored list of applicants for you within a few days. Furthermore, you can rest assured that all legal and administrative responsibilities will be taken care of.