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Tackle the Great Attrition by leveraging a globally distributed workforce 1

Tackle the Great Attrition by leveraging a globally distributed workforce

Post pandemic, employee attrition was one of the biggest and most common challenges faced by businesses worldwide. Read on to find how companies can solve this problem by leveraging a global workforce.

At the height of the pandemic, there were record breaking numbers of people quitting their jobs. According to research firm Gartner, the attrition rate rose from 10% in 2020 to 20% in 2021. Some IT service providers were battling even higher attrition rates of up to 30%. One of the most talked about items in combating the Great Attrition is adopting a globally distributed workforce. 

This ‘new normal’ way of having a global workforce has its advantages. 

Increased employee productivity

One of the most understated benefits of adopting a distributed working model is its impact in increasing overall productivity. 99% of managers say their employees who are given flexible work options are more productive; additionally, 45% of remote employees believe they can work smarter (deliver much more with fewer resources). 

Note: As long as you invest in the right tools for communication, collaboration, project management, and specific for your business, you are likely to see increased employee productivity in the global distributed working model.

Access to talent anywhere in the world

According to Gartner, businesses think that talent shortage is the most significant barrier to the adoption of 64% of emerging technology. When restricted by geography, finding the right talent to fill the gaps in your organization, especially technical roles, can be a challenge. Distributed working model gives you the option of hiring from anywhere in the world and can be a very effective option for technical/specialized skills, saving time, money, and effort on training.

Note: Before entering a new market, it is important to do research to determine the right hiring strategy for your goals, and to fully understand the local employment market and pertaining laws.

Less costly

With fewer overheads like rent, furniture, electricity, cleaning and maintenance, and other costs, a distributed company can turn out to be more cost efficient than the traditional in-office working model. One study found that if a company allowed an employee to work from home just half of the time, it would save on average $11,000 per employee.

Note: There could be hidden costs associated with distributed working and the most critical of them being security – 73% of IT workers believe that remote workers especially pose a greater security threat.

Great diversity

Diversity matters because a diverse group of employees can produce more innovative ideas. When done right, diversity is a massive flex. Not only does diversity impact the bottom line, studies show us that 83% executives state that a diverse workforce improves their company’s ability to capture and retain a diverse client. Studies also show us that 85% of large global enterprises believe diversity is crucial to fostering innovation in the workplace. When you have different views, opinions, and thoughts at the table, you have more creative problem solving and a better understanding of customers. 

Note: When dealing with a distributed team, it could be a challenge to ensure that diversity is followed up with equity and inclusion, through all levels of management.

Improved retention

No company wants to lose good talent, and employee retention ranks as top priority for organizations across industries. The pandemic showed us that people who were forced to come in to work every day, preferred to move to another company who offered flexible working options. Distributed work models offer employees the flexibility they are looking for in terms of location and hours and can reduce absenteeism, tardiness, and associated costs.

Note: Employee behavior trends are seeing major changes since the pandemic. Staying in sync with the latest on what employees want from their workplace can go a long way in improving retention. 

Focus on mental health and overall well being

One of the best things of a distributed working model is that employees do not feel the pressure of daily commute or of being bound by fixed working hours. Employees can now choose to work according to their timely preference, barring scheduled meetings. They now have the option of focusing on their personal well being and have more freedom to plan their day based around their mental health.

Note: Organizations need to provide employees with access to mental health programs and initiatives to show that they truly care for an employee’s mental wellbeing. Only talking about it isn’t enough. 

It is no secret that a happier employee is a more productive employee, and perks and benefits like flexibility in how, when, and where they choose to work definitely adds to their happiness quotient.  Finding, building, and managing a distributed workforce doesn’t need to be daunting. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

Monica Jamwal

Monica Jamwal

Monica Jamwal is the Managing Director of Talent Solutions at Talent500. She has over 19 years’ experience across talent consulting, talent acquisition, process design, talent branding and recruitment operations. In addition, she has strong experience at strategizing, designing, implementing and delivering large scale green field recruitment projects in the areas of financial services and technology.

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