Remote Teams are No Longer the Future, it’s Now
Since the first lockdown, businesses around the globe have taken major steps towards integrating more remote teams into their workforce. Even if their offices still exist, a large portion of their workforce now remains at home.The consensus is, that even after the pandemic is over, most businesses that are capable of staying remote will remain remote due to the myriad of financial and logistical benefits. A new survey from The Conference Board reveals that 77% of human resources executives expect the trend toward remote work to continue, even one year after COVID-19 substantially subsides.
Remote Teams: Old Fashioned Perspectives Need to Change
Many business owners and managers had concerns about taking their team remote for fear that productivity would decrease. The fact is, that many major and very successful companies around the world already operate remotely (Including Facebook, Google and Amazon), and it’s an outdated perspective that productivity decreases when a line manager isn’t hovering over the employees back. In fact, providing employees with autonomy and trust in the business is proven to drive productivity.63% of the global workforce surveyed feel they are more productive working from home than when they were in the office. Infact, since the pandemic, 37% of businesses who already had remote workers saw an increase in productivity during the pandemic. (Source: Business Facilities) So if you haven’t started to build a remote team for your business then you are already behind.
Exponential Growth Through Global Remote Teams
As more companies go remote, the benefits become more apparent. One of which is the acquisition of cheap labour in countries with lower national average salaries. A strategic model that includes the outsourcing of certain skills to the global workforce allows businesses in the growth phase to expand more quickly, at a lower cost and with far fewer risks. Particularly when testing new go-to-market products and services.
The Silver Lining of Covid Shedding Light on the International Workforce
Yes, this pandemic has been a disaster for all of us but the difficulty and change in circumstances has put many businesses in a unique position. With large portions of the global population now unemployed, businesses looking to grow their international workforce have greater scope to decide what they want out of their new workforce including what time zone they work on. Businesses around the world are starting to realise that by outsourcing internationally they can fulfil more of their goals within a shorter period of time and with much less risk.International Remote WorkforceLocal In-House WorkforceLess commitment for the employer to individual employees, allowing for greater flexibility as the business grows.Salaried - Contractual obligations between company and employee causing greater rigidity in growth for both employee and the business.Outsourced workers often look after their own pensions, healthcare, insurance and don’t require paid holiday and sick leave.Salaried employees are usually legally owed a pension, healthcare, insurance and companies are held liable for the health of the worker during working hours.Skill sets are broader the further you look, you can find almost anything if you look in the right place.Your company is limited to a workforce within close proximity to your office or to people who are willing to relocate to your region. This drastically reduces the choices you have with regards to skillset.If your business is located in the west, you have the great advantage of hiring at least parts of your international workforce from countries with significantly lower national average salaries.Hiring locally requires you to pay workers the average expected in the area which will usually be much higher and will quickly decrease your profit margins.You can hire a workforce using an Employer of Record Service where an external body is completely responsible for your international employees absolving you of a multitude of legal responsibilities and need for training.Hiring locally will mean full legal responsibility of the employee lies with you including the health of said employee and all their training needs.
Why Successful Companies Choose to Grow their Businesses with Employer of Record Services
We’ve talked a lot about the cost efficiency associated with hiring an international workforce. These benefits increase with the use of an Employer of Record (EOR) Service. These benefits include:
- Allowing you to conduct business in these countries without needing to start your own company in that country.
- An Employer of Record Service already functions legally in that country with all the proper licencing so you don’t have to be concerned with local bureaucracy.
- This hands-free workforce enables a business to test uptake of new products and services in an emerging market with significantly reduced financial risk
- Without the logistical headache of dealing with the fine print of foreign countries, your company can focus on its core business.
- EOR Services stay above board and handle their own legal and tax issues, so you don’t need to worry about dealing with illegal contractors.
Why Business Leaders Outsource to the Philippines
The Philippines is a major destination for outsourcing due to the readily available, skilled English speaking workforce.It is home to a young and educated workforce. Worldometer statistics show that the median age in the country is 25.7 years old and the country’s Commission on Higher Education shows that in recent years, the country produces at least half a million post-secondary graduates.There is also a thriving business process outsourcing (BPO) industry in the country proving that the Philippines is a reputable location for outsourcing. It currently ranks as one of the top countries in which businesses can outsource customer service and back-office departments.To find out more about how your business can take advantage of an Employer of Record Service in the Philippines, fill in the form below.
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