The concept of remote working has been there for a decade. However, it has become popular with the arrival of more digital tools, work applications, and process management systems. A remote team refers to a group of professionals who work from different locations across various cities and even countries. These teams come in various shapes and sizes, depending on the business requirements. Through the use of remote teams, organizations can leverage high quality talent anywhere in the world while also drive substantial cost savings.
How do Remote Teams help Small Businesses?
Having a remote team especially helps small business owners. While you may consider that only multinational companies can get the benefits of an offshore team, small organizations can actually get bigger benefits besides cost savings. However, it requires strong attention to recruitment, retention, and management to achieve business goals.
Optimar Consulting anticipates that remote work helps employers save around 55,000 dollars annually per employee. No matter what size the organization has, there are few benefits that apply to all types of business.
- 1. Cost Reduction- Saving cost is one of the perceived advantages that come with remote teams. The big salary arbitrage enables organizations to save more on employee compensation.
2. Saving on Infrastructure- As employees are working remotely, a company does not require to invest in infrastructure or office space
3. Core Business Areas– Companies hiring remote workers with specialized skill sets are able to maximize the business impact as they could focus on their core business operations and scale their services.
4. More Expansion Choices- With a remote team, it is possible for small companies to venture into new markets due to reduced costs.
5. Staffing Flexibility– Remote staffing offers flexibility in terms of hiring and working which is why it is preferred by many companies. Hire as many people as your business requires.
6. Compliance-There can be tax implications with the model. Organizations can develop a compliance policy that suits their needs and capabilities to manage the same.
Is your Company Remote Ready?
Since the internet became ubiquitous, hybrid (remote) teams continue to thrive even after the global pandemic ends. The unmatched benefits it has introduced for the employees as well as employers, clearly indicate how profitable it is. For instance, a study at Optimar Consulting states that organizations can save around $55,000 per employee per year with remote teams. By reducing expenses on the infrastructure, office space, and employee management, companies could increase their savings by up to 70% of their onshore cost. However, there are a few factors to consider before you bring remote teams into action.
1. Taxation and Compliance Management
Virtual hiring or remote hiring enables you access talent globally and they have become the norm and 78% leaders agree that the hybrid or remote model is here to stay. It contributes to the company’s diversity and helps you find & hire professionals, especially with scarce skills. If you wish to employ an individual from around the world, you will require to follow local employment, tax rules, and regulations. It is important to research and prepare for the same to establish an offshore team with speed. Hence, it becomes vital to join hands with a partner who will help streamline the compliance and legal processes. You won’t need to set up a local entity to manage all the responsibilities.
2. Competitive Salary
If a company offers a better package and benefits, it is natural to attract a quality candidate who will stay with you for a long time. Keeping your employees satisfied is a must. Depending on the market trends and geographical region, the cost of living varies. Engage with an offshore hiring partner like Optimar Consulting who can handle payroll and compliance on your behalf. This partnership will not only help you offer fair compensation to your remote employees in the competitive market but also enables you to save up to 70% on your cost.
3. Ensure Information Security
Hiring workers from different geography mandate the implementation of security and data protection. If there is increased usage of personal devices, unnecessary file-sharing activities, and insecure Wi-Fi connections, it may lead to a violation of data protection rules. According to sources, around $1.5 billion per annum of global damage is estimated due to cybercrime. These threats can expose your company to security breaches, heavy penalties, and reputational damage. Companies willing to hire remote team in India must have strict policies in place explaining the usage of VPNs, password protection, and secure networks.
4. Plan out Work Policy
A comprehensive work policy is mandatory for remote workers. To avoid any uncertainty, a few relevant factors should be included in your already existing policies. It should state the details and benefits like working hours, vacation time, and sick days for a remote worker. An important advantage that comes with this flexible style of working is the freedom and control over working hours. Your policy should specify work hours. Since people in your dispersed teams are located across multiple time zones, it is important to clarify the individual working hours. There should be a proper schedule of meetings, training, or similar activities.
5. Engage Your Employees Right
As per the Harvard Business Review, 62% of professionals believe working remotely positively impacts engagement. Companies need to be proactive in terms of their engagement efforts. It requires a strategic approach that involves a few important factors. Stay connected with remote employees through the communication tools you prefer. Streamline communication with Zoom, Slack or GoToMeeting to keep the employees on the same page. Give constructive feedback to help employees develop their skills. As remote workers tend to invest more hours than in the office, they need to be appreciated. A research found that employee recognition serves as a top driver for employee engagement. Support the new hires, provide required tools to them and be flexible to set time for meetings.
6. Varying Time Zones
Due to the work and lifestyle flexibility, offshore jobs attract a diverse talent pool which helps employers source well-qualified applicants for the role. Being the second-largest English-speaking country in the world, India is the preferred location to hire remote workers. To ensure the team efficiency of people working across different time zones, it is better to use collaboration and project management tools like Asana, Zoom, DropBox, Slack, and Microsoft Teams. It helps in bridging gaps between the time zones while keeping the workflows operational. Practice the work etiquette rules that ensure mutual respect and optimum productivity in the virtual workplace.
Top Roles for Specific Business Functions
- There are a few specific business functions that can be managed by a remote team. These include human resources, customer service, sales and marketing, operations, etc.
- Accounting and Finance-Finance professionals are in demand everywhere. There are different roles catering to functions like accounting, finance, bookkeeping, accounts receivable, and payable, tax auditors that can be managed by remote teams.
- Human Resources- HR functions are becoming more critical within every organization and remote teams can help in quick recruiting and workforce screening.
- Customer Service-By hiring a remote team, you can keep your customer service up 24/7 and beat the competition.
- Marketing-There is always a list of marketing activities in the company that requires time and money. A remote team can help in brochure design, print materials, web design, digital marketing, and others.
- Operations-Hiring remote team for operations helps businesses to increase efficiency, access to specialized skills, and quality output.
The Final Word
Remote work is here to stay. Most companies have adopted it as an inseparable part of their company culture. This shift introduces financial, cultural, and human resource concerns for employers. With tools and resources available for proper planning, industry foresight, and updated technology, it becomes easy to align your organization and deploy your hybrid team. Optimar Consulting is there as your offshore hiring partner to assist you with setting up and managing your remote teams with ease.