Benefits of a remote team
Covid-19 pandemic gave everyone a taste of what work-from-home
truly feels like. It took the stress off the plate of many employees and
employers around the world. The remote working model has been
practiced in the past by many companies even if it got popularized by
the pandemic. IBM, the multinational technology company was one of
the first top major corporations to experiment with the remote working
model. Gradually it led to other companies embracing it with time and
hiring remote teams keeping cost perspective in mind.
Remote teams help small and medium-sized businesses to attract top
talent, and hiring a large remote team is way more affordable as
compared to on-location employees. As well as widening the access
to a larger pool of talent and reducing overhead costs.
In this article, we aim to take SME decision-makers through an
understanding of the benefits of having remote teams.
Understanding remote teams and remote working
Remote working introduced employees to the concept of working from
anywhere whereas to employers, the benefits of having remote teams.
Remote working benefits employees as it subtracts traveling hours
and offers them a good work-life balance. Whereas, remote teams
present employers around the world with the opportunity to have
access to a larger pool of skilled talent. One that surpasses the
restrictions of limiting their search to local locations only. They can
leverage the advantage of expanding their search to other countries
and hire remote employees affordably as compared to their
on-location employees. Globally, CEOs are adopting remote hiring
because it gives them access to a larger pool of talent, ensures
employee retention, and lowers overhead costs.
What are the benefits of having remote teams?
Mercer’s 2022 Global Talent trends study shows that 74% of the
employees would join an organization if offered remote working or
hybrid opportunities. Mostly, remote working offers flexibility to
employees. The practice of remote working has stemmed in the past
but has relatively gained popularity after the Covid-19 pandemic
forced people to work from within four walls. This situation made them
realize they could contribute more by working from home.
Considering these statistics, remote teams give companies access to
international talent, reduce operational costs, employee retention, and
a competitive edge in the market.
Remote teams attracting top talent
Indians stepping in the forefront for securing C-level positions gives
global clients the opportunity to recognize the talent stemming from
India.
Indians are highly skilled in the domains of IT, digital marketing, big
data analytics, software development, etc. India houses about 75% of
digital talent around the world. All you need to do is rightly source
these skilled professionals. By sourcing talent from India, you will have
the opportunity to hire highly educated and talented professionals
remotely.
Remote teams give access to an explicit talent pool
Remote hiring presents you with an opportunity to look for a wider
pool of keen talent outside your local market, city, and country. The
literacy rate of India is 77.7% as of 2022, it has 612 medical colleges
and 23 Indian Institute of Technology (IITs) of National importance. It is
said, that by 2030, India will have 20 universities that will make it to
the top 200 universities in the world and climb the ladder to the top 5
countries for research output.
However, considering India’s population, the unemployment rate was
7.12% in May 2022 as per The Centre for Monitoring Indian Economy
report. Also, the availability of jobs in Indian companies is not
proportional to the number of engineers graduating every year. So in
such scenarios employees in India are always on the lookout for job
opportunities outside or remotely. Employees prefer remote work
compared to work-from-office, which in turn means you have a wider
horizon to narrow down on. Here, they won’t only bring in their skill
and expertise, but a deep-rooted desire to contribute to your company
brand. Remote work can turn revolutionary for such potential
employees.
The employees in India are immensely skilled in domains of shared
services like payroll, finance, HR, and Information Technology. As a
European-based SME or businessperson, you can tap into the Indian
market to access a more affordable labor force and avail the language
skills, educational qualifications, and cultural diversities of the
employees in India to benefits.
Remote work enables you to hire a large team
Hubstaff, Buffer, and Workfrom surveys suggest that 9 out of 10
employees would like to choose remote working throughout their
career.
It is way more convenient to hire a larger team and manage a remote
team from a cost perspective as compared to a local team onshore.
The average salary of a software developer in India is lesser than
compared in Western cities. Similarly, a larger team can be hired
keeping in mind the same affordability quotient.
When a large team is presented with the same comfort level, their
contribution will always be unanimous. After all, a common goal and
good head space go a long way in achieving a company’s goal. Also,
conducting remote team-building activities like conducting virtual
company events, encouraging employee recognition, and team
bonding sessions will help in employee retention.
Remote teams lower overhead costs
Organizations can cut down costs fixed or variable overhead costs like
of investing or renting out large office spaces. The utilities, other office
supplies, and equipment costs also get minimized. The cost of an
office space per employee is $18000 per year when multiplied by the
number of employees working for your company will generate a
tentative estimate for the overall headcount expense. According to a
report published by Global Workplace Analytics, companies can save
as good as $11000 per employee per year if they allow their workforce
to work 50% remotely. Flexjob saved $5 million through remote
working whereas IBM reduced $50 million in real estate costs.
By hiring remotely, you can move your team to a cloud-based
operation completely. You may rather invest in upgraded tools, project
collaboration software, document storage, and cloud services. Also
better VPN configurations, firewalls, antivirus software, and
cybersecurity tools. Having remote teams will turn out to be more
economical than operating local teams.
Salary differences also play a major role in cost savings. For example,
a US developer is paid three times more than $109000 annually
whereas the developers in India are paid $38000.
How an Employer of Record services/ International PEO can help in
finding remote teams?
You can have your own remote team in India without forming an entity.
An EOR (Employer of Record)/International PEO is aware of the
global clients’ need for a good remote team and helps you expand
your global presence in India without establishing an Indian office.
They conduct in-depth research about the fluctuating market
scenarios and hand-pick talent accordingly. An International
Professional Employer Organization will nurture your remote team
with the best-suited employees. Simply transfer all the
employee-related responsibilities like HR management, local
compliance, and payroll onto the on-paper employer of your companyan EOR.
Benefits of having remote teams the Remunance way
We, at Remunance, have conducted in-depth research for years to
understand what you need as a global business leader. As an
Employer of Record/International PEO, we ensure your company is
backed up with a skilled remote team. Our team of skilled HR
professionals spares no effort in hand-picking the right talent from the
corners of the country to groom your remote team. We support teams
in every possible way by extending our employee-like IT, logistical,
and infrastructure support. That is the Remunance way of helping you
manage your remote teams.
To know more about how we can iron out the wrinkles in your remote
hiring process
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