Because of the unmatched advantages remote teams provide for both employers and employees, they are expected to continue to prosper even after the effects of COVID-19 wear off. Establishing a remote company is undoubtedly extremely profitable, but there are a few important factors to take into account before switching.
Before we get into that, let’s look at the advantages of hiring full-time employees remotely.
Competitive cost of acquisition
In a Harvard Business Review study, researchers discovered that having remote workers resulted in savings of more than $1,900 for each employee in simply office space and equipment expenditures over nine months.
It shouldn’t be a surprise that cutting back on employees is a cost-effective strategy. You won’t be required to pay for office space, furniture, supplies, cleaning services, technology, machinery, or even amenities like power and water.
Unlimited pool of talent
By giving the opportunity for recruiting talent without regard to regional restrictions, a company’s chances of connecting with job seekers who possess the skills and knowledge the company needs are boosted.
In addition, a lot of job seekers are ready to look for employers outside of their surrounding location. And over half of them, As many as 98% of people are interested in working remotely for companies with corporate offices.
Probably the biggest advantage of a global talent pool is that you get access to candidates with specialized & niche skills. Furthermore, the competitive nature of hiring globally allows for more savings without compromising the quality of hiring.
Surveys show that 85% of companies report better productivity from remote employees. Thanks to the elimination of the daily commute, remote workers end up saving a substantial amount of their time every day. Better time management and an increased level of control over their workday result in remote workers often reporting better productivity universally.
Research shows that hybrid & remote work can reduce employee attrition by 35%. Moreover, having the option to work remotely enables employees to achieve a better work-life balance, which in turn improves their general well-being. Increased flexibility at the workplace has a direct impact on employee engagement, consequently reducing attrition.
Ability to enter foreign markets
For a large chunk of companies around the world, entering new markets became easier as they could now set up remote teams and employ local talent. Many firms have been able to enhance productivity, foster creativity, and expand their worldwide reach by building distributed teams in different locations.
Building a scalable remote workforce positions companies to better meet the difficulties of expansion, despite the intimidating nature of developing a company with locations scattered over several cities, states, and even other nations.
Factors to consider when building your global team
An increasing number of workers are asking to work remotely for a variety of reasons, including a desire to avoid spending hours in commuting time, a desire to explore the world, to be able to spend more time with their families, or even concentrate on multiple projects.
Here are 10 things you need to know before you dive into building your remote workforce.
Find the right people
You must assemble the right team to lead it well. Check to see whether a candidate possesses traits that would help them succeed in a virtual work setting before hiring them.
- Self-motivation and discipline are the most crucial personality attributes in this situation, as it is impossible to keep checking in on each member of your team at all times.
- Time management is another important character attribute for all remote workers. Location-independent work requires meticulous planning and prioritization; if a candidate does not show signs of being good with timelines, they are not a good fit.
- Strong communication skills are imperative for all remote hires, as they will be communicating extensively with their team members via multiple media. Check for verbal and writing communication skills.
Access to the right tools
To achieve maximum productivity and efficiency, your remote employees will require the tools they need to perform their tasks. You’ll have to invest in a wide range of technologies because working remotely requires both synchronous and asynchronous communication.
Along with other things, you’ll need to provide your staff with project management tools like Asana and Jira, video conferencing software, and messaging apps like Slack. Being ready is always a good idea because your remote team won’t have the same direct exposure to IT support as an in-office crew.
Review your company’s readiness to hire, manage, and keep remote workers before deciding to implement remote recruiting. This might entail reviewing your whole remote hiring process, updating your hiring software, and confirming that the employees in your company who will oversee remote workers have the necessary qualifications.
You might also need to learn how to properly execute remote interviews and smoothen out your virtual onboarding to create a polished and professional experience for a fresh starter. Some businesses utilize an all-inclusive ATS (Applicant Tracking System), while many others choose to create an integrated tech stack of top-notch programs.
Taxation & employment laws
Recruiting for a transnational workforce may increase the diversity of your business and provide you access to a vast pool of candidates, especially for skills that are in high demand.
However, you must adhere to regional labor and tax laws and regulations if you want to hire and retain remote workers from around the world. This can be extremely challenging if you’ve never designed a payroll for remote teams. Additionally, non-compliance with tax and employment laws can result in heavy penalties and legal repercussions.
When calculating compensation for remote employees, you must take into consideration the expense of living in the region, as well as market and economic developments, to ensure that the remuneration you provide is reasonable and competitive. A systematic payroll for remote workers ensures minimal hiccups.
You must conduct thorough research and make sure you are ready to employ people from particular locations to develop distributed or remote teams quickly and effectively. Engaging an EOR platform that can manage your international payroll, employee benefits, and legal and regulatory issues without you having to set up a local business entity can be helpful in this regard.
Data & information security
It is necessary to have strict data protection and security protocols in place when hiring remote workers. Increased use of personal devices, unsecured wifi connections, and dangerous file-sharing behaviors might endanger sensitive data and result in legal violations.
Threats like this put your business at risk for security lapses, penalties, and even reputational harm. Strict regulations that outline how to utilize VPNs, private connections, and password management should be in place for businesses that wish to move toward a remote workforce.
You can also use encryption tools or provide encrypted devices to your workforce. This ensures a minimal risk of data leakage, especially for organizations working with sensitive information.
Remote work policies
Whether you’re thinking about moving your company permanently to a remote environment or just contemplating telecommuting as a backup plan, you should construct a thorough remote work policy.
Certain aspects of remote work ought to be integrated into your current policy to eliminate any uncertainty. Working conditions for remote employees should be adjusted, including vacation time, sick days, and other perks.
Flexibility and autonomy over work hours is a major benefit of remote employment. On the other hand, work hours should be expressly defined in your remote work policy. Members of distributed teams often work in different time zones. It is important to be clear about everyone’s working hours as well as the times for meetings, training sessions, and other events.
Culture & engagement
The in-house staff environment that characterizes traditional business cultures must be modified to fit the contribution that remote employees add. Focus on transparency to ensure that everyone, no matter where they are, is aware of what is happening and what to expect. Your company’s culture should place a high priority on encouraging employees to communicate with one another as frequently as feasible.
A minimum of once a year, find chances for the employees to physically be present together. Together, these factors ought to foster trust among all employees, but notably between local and distant workers.
One of your responsibilities as a leader is to support an employee’s growth and development so they are ready for the next stage in their career. If you’re not careful, giving this instruction to remote workers might be difficult and lead to development isolation. This can be providing them with a leading position on a task or offering them chances to learn new skills.
Remote employee compensation strategy
While employing remote workers transnationally, it is imperative to remember many countries have inherently different compensation laws and statutory rules. Before delving into any country, it’s best to do surface-level research on how compensation is calculated.
Career path for remote employees
Employees place high importance on professional development and advancement, which is very advantageous to businesses. Companies can guarantee that their workforce remains competitive and that the products and services they offer customers are of a high caliber by investing in their workers’ growth.
Offering employees growth opportunities, such as seminars, masterclasses, coaching and mentoring, tuition assistance, and new work opportunities is a great way to incentivize good performers.
Health & safety policies
Employee wellbeing has always been a top concern for the business as well as the workers themselves. But given that the COVID-19 epidemic has caused many individuals to consider their health more seriously, it is understandable why health and wellness initiatives continue to rank high among employment perks.
Health coverage and insurance have become one of the most widely desired benefits today. In addition to the same businesses can offer digital gym subscriptions or coupons for a fitness club that has several locations nearby, making it convenient for remote employees. To assist remote workers in maintaining a healthy diet, businesses might also provide discounts for subscriptions to healthy food delivery services.
There is little doubt today that the advantages of hiring full-time employees are limitless when done remotely. Although it is similar to hiring in-office, these seven suggestions will assist you to deal with some of the subtleties involved in finding and keeping the greatest remote staff.
Take the first step towards building your distributed team with Talent500. With our pre-vetted talent & AI-powered tools, we get to the core of your distributed teams and offer personalized solutions. Book a consultation now to learn just how you can get the best out of your remote workforce.