The year 2023 ushered in a new era of corporate operations as the world embraced remote work. Even before the pandemic, virtual teamwork was on the rise, and now, it has become the standard way of work. In the IT industry, companies have discovered the numerous benefits of having a remote workforce, such as the ability to tap into a wider and more specialised talent pool beyond local boundaries, cost-cutting, and employee retention. However, is it feasible for all businesses to invest in this model? What are the primary advantages of implementing a remote workforce?
Approximately twenty years ago, I delved into remote recruitment, thinking that outsourcing was the ultimate solution to any difficulty in finding local employees. But as time progressed, I realised that outsourcing wasn’t always the best option, and sometimes, it could have adverse consequences. As a result, the best way to acquire remote staff, commonly referred to as ‘offshoring talent’, has now become the favoured method.
Employing remote workers provides various cost-saving benefits to companies of any magnitude, including those with only one employee to multinational corporations. This is because they have access to a pool of skilled personnel and numerous other advantages. If you wish to learn more about this topic, you can visit our blog.
Discover Nine Financial Benefits of Embracing the Increasing Trend of Remote Work.
A recent survey by Gartner indicates that 80% of business owners are interested in offering some of their employees the opportunity to work remotely, with 47% considering making it a permanent solution given the current pandemic situation.
For many businesses, it appears that remote work is a permanent fixture. Post-pandemic, several companies have already decided whether to adopt a hybrid approach, mandate full-time workplace attendance, or permit employees to continue working remotely.
Explore the advantages of hiring remote workers and the potential cost savings for your business.
Firstly, the most apparent advantage is a decrease in housing expenses.
The escalating property prices in many parts of the country are a significant issue. Even places with above-average median incomes, like Silicon Valley and Redmond, WA, are experiencing the consequences of rising housing costs. As a result, businesses and their employees are impacted, and there is an opportunity for companies to cut costs.
A study revealed that businesses could save as much as $10,000 per remote worker each year in real estate expenses.
It Aids in Staff Retention
One area where remote work can result in noteworthy savings is personnel training costs, as discussed in our blog post. The Center for American Progress notes that turnover costs can be significant but are frequently disregarded.
Based on data from 30 case studies across 11 research studies, the Centre found that the cost of replacing an employee was roughly 25% of their yearly salary. Additionally, it was discovered that leaving a position could cost as much as 213% of their annual remuneration, with highly skilled professionals incurring even higher costs.
Stanford University’s research suggests that telecommuting and job retention may be linked. Remote workers were discovered to be more content in their positions, resulting in lower employee turnover. As a result, businesses can save money on the expenses associated with recruiting and training new personnel.
Research shows that 66% of employees would contemplate seeking alternative employment if it meant a shorter commute. Furthermore, 95% of firms surveyed revealed that telecommuting had a significant impact on employee retention, as discussed in our blog post. Companies that have a strong work-from-home policy not only benefit financially but also have a better likelihood of recruiting and retaining high-quality personnel.
The Advantages of Fewer Unplanned Absences Include:
According to research by GlobalWorkPlaceAnalytics.com, as discussed in our blog post, American businesses lose around $300 billion each year due to employee absenteeism, which is approximately $1,800 per worker on average.
Businesses who implement a telework program observe a 63% reduction in unplanned absences, resulting in considerable cost savings. Additionally, physical issues that would have previously necessitated a full day off work can now be resolved quickly, and tasks like doctor appointments can be completed without the need for employees to take an entire day away from the office.
Teleworking is a beneficial option for employees who are unwell since it minimizes the likelihood of illness spreading throughout the workplace and the need for extended periods of absence.
You Can Access a Wide, Diverse, and Affordable Talent Pool
Businesses can benefit from substantial cost savings by hiring virtual employees since they have access to a wider talent pool. By recruiting remotely, companies may be able to find skilled workers from regions with lower living expenses.
When seeking remote talent, it’s important to avoid taking an extreme approach, such as assuming that hiring ten personnel for the same cost as two in your own country will allow you to build an empire. To acquire specialized and exceptional talent, it’s recommended that you provide fair pay that reflects the individual’s skills, qualifications, experience, and location.
One advantage of remote work is the ability to recruit extremely talented and committed personnel without incurring high wage costs.
In Silicon Valley, software engineers usually earn between $88,000 and $152,000 annually (PayScale). The average yearly salary for developers in Seattle is $131,135, and in Portland, it is $105,000. In Denver, developers can expect to make roughly $110,000 per annum. In South Dakota, moving eastward results in the average salary decreasing to $98,500 (Glassdoor). Across Europe, developer pay is between $20,000 and $70,000 in countries like Russia, Ukraine, and Romania.
Maximizing Efficiency and Decreasing Overtime through Multiple Time Zones
As our blog post suggests, incorporating remote workers into a company’s staff not only diversifies the workforce but also enables it to offer clients better-quality service at reduced costs.
Consider a company headquartered on the East Coast that has employees on the West Coast. Such a corporation can offer phone support for an extra three hours every day, making it available for a total of 12 hours, without incurring any overtime fees. This approach can be beneficial for both the business, as it helps to cut costs, and for customers, who may have less difficulty connecting with help.
A survey by CoSo Cloud found that 77% of respondents reported increased productivity as a result of remote work. Additionally, 30% reported greater efficiency, finishing tasks in less time than when they occasionally work remotely.
Following the study, CoSo CEO Michael Fitzpatrick remarked that “remote workers and their employers can benefit significantly, as employees strive to maintain the personal and professional advantages of working remotely by working harder and more efficiently.” He added that improved mental health, reduced stress, and increased productivity are advantages not only for employees but also for their employers.
The Elimination of Gas and Mileage Costs
Remote work presents potential benefits for companies and employees alike. Survey results from FlexJobs indicate that 84% of respondents wish to continue working from home to reduce their commute time. In addition, the US Census Bureau estimates that individuals can save as much as $5,000 annually by eliminating their daily commute.
The cost-effectiveness of hiring personnel in remote locations has significantly improved with the advent of remote work. Companies can now avoid the high expenses associated with employee business trips, including attending meetings, conferences, and other job-related events. These measures can help businesses save an average of $949 per employee.
Opportunities for Businesses to Build More Inclusive Teams
Managing a distributed team frequently involves working with individuals from various cultural and socioeconomic backgrounds. Connecting these cultures may pose a challenge, but it also offers businesses an opportunity to broaden their experiences, which, in turn, can result in positive financial outcomes.
In a study conducted by the Boston Consulting Group, 1700 companies from 8 countries encompassing diverse sectors were examined. The results revealed that companies with a more racially and ethnically diverse executive team could experience 19% growth in revenue owing to improved creativity, demonstrating the direct effect that diversity can have on a company’s financial performance.
Enhance Your Employability
Providing competitive pay and other economic benefits, such as shop discounts and gym memberships, can give your business an edge in staying competitive. However, if you are open to considering remote employees, this can make you stand out to a broader pool of potential hires.
Following the pandemic, millions of people are still seeking remote employment. Numerous businesses have now adjusted their policies to allow remote work, either through a hybrid scheme or a complete telecommuting system. However, in some instances, operating remotely may not be feasible. Somewhat surprisingly, workers are willing to accept a lower salary in exchange for the flexibility of being able to work from home.
A Breeze Insurance survey found that out of 1,000 respondents, 65% would be willing to take a 5% pay reduction to have the chance to work remotely full-time.
Employ Remote Staffing Agencies to Expedite Your Search for Remote Workers
Remote work offers several advantages to businesses, such as lower overhead expenses, enhanced productivity, and improved employee satisfaction. If you’re interested in hiring competent remote IT professionals for your company, please do not hesitate to contact us.
Are you searching for a recruitment firm that specializes in remote hiring? Look no further than Works. We have the expertise to offer valuable guidance on the best hiring strategies and find suitable candidates for your current openings. Our process is efficient and fast, typically complete within two weeks. Just provide us with the type of job candidate you’re seeking, and within a few days, we’ll provide you with a customized list of candidates. In addition, we handle all legal and administrative obligations, giving you peace of mind.