Why are more and more startup hiring remote workers?
In recent years, the rise of startups and remote work has fundamentally changed the professional landscape. In 2019, only 15 percent of startups and small companies were building remote workforces. In 2021, the number shifted dramatically to 86 percent.
In fact, a recent survey shows that small organizations are considerably more likely to support and accommodate remote workers than their bigger counterparts. Why is that so? Why are the startups going for a remote workforce rather than a full-fledged in-office team? What benefits do remote work reaps for these startups? Should you opt for a remote setup as a startup?
Let's find out!
Reasons why you need to hire remote workers
In today's ever-evolving business landscape, startups are always seeking ways to adapt to rapidly changing technologies, streamline operations, and maintain a competitive edge. One of these adaptations is the growing trend of hiring remote workers. With advancements in communication tools, the ability to easily collaborate with a distributed team has become more accessible.
This shift in work culture is not just a fad; it's an effective strategy that can lead to increased productivity, reduced costs, and a globally diverse workforce. These are the reasons why you need to hire remote workers for your business:
1. Access to top talent
Hiring remote workers expands your talent pool beyond geographical constraints. This allows you to source the best candidates globally rather than being limited to your local area.
- It leads to better products, services, and customer experiences, which can help the startup to grow and succeed.
- By hiring top talent, you, as a startup, can have a competitive advantage over similar players in the market. The quality of the work produced by talented remote workers can set your startup apart in the market, thereby making it more attractive to customers, investors, and partners.
- Top talent often brings fresh perspectives and innovative ideas to the table. Therefore by onboarding top remote workers from different geographic locations, you can tap into a diverse talent pool with unique perspectives and experiences. This can help you to innovate and stay ahead of the curve.
2. Increased productivity
More such studies have shown that remote employees often have higher levels of productivity compared to their in-office counterparts. This can be attributed to the ability to manage their personal and professional schedule which further leads to reduced commuting stress, and increased job satisfaction.
Remote workers don't have to waste their time commuting to an office, which can be a significant time saver. Instead, this time can be used for work, which can increase the output of your startup. Furthermore, remote employees often report less stress than their office-based counterparts. This can be because they have more control over their work environment and schedule.
3. Cost savings
- No brick-and-mortar costs: By hiring remote workers, you can avoid the expenses associated with maintaining a physical office, such as rent, utilities, office equipment, and supplies.
- Reduced hiring costs: Hiring remote workers can help to reduce the costs associated with hiring, relocation expenses, and training costs.
- Lower salaries: In many cases, remote workers may be willing to accept lower salaries than on-site employees, as they do not have to factor in the costs of commuting or living in expensive urban areas.
- Fewer employee benefits: Startups can save money on employee benefits, such as medical or health insurance, retirement plans, and paid time off, by hiring remote workers who may not require these benefits.
- Reduced equipment cost: Additionally, remote employees typically use their equipment such as a chair, table, WIFI, etc. further reducing company costs.
4. Improved employee retention
Working from home has a favorable effect on employee retention, say 95% of businesses, according to Global Workplace Analytics. Organizations that allow remote work reported lower attrition rates by 46%.
Statistics don't lie, for sure. Remote work has increased levels of retention as:
- Increased job satisfaction: Remote work is often more flexible, allowing employees to balance their work and personal lives more effectively. Such flexibility can lead to increased job satisfaction and higher employee retention rates.
- Lower employee turnover: Remote workers often report higher levels of job satisfaction, which can lead to lower employee turnover rates which are highly significant for you to reduce the costs associated with hiring and training new employees.
- Reduced commute times: Remote work eliminates the need for employees to commute, which can be a significant source of stress and time consumption for employees. By eliminating your employees' commute, you can help improve their satisfaction.
- Increased employee autonomy: Remote work often requires employees to take more ownership of their work and be more self-motivated. Such increased autonomy and authority over one's work can lead to higher job satisfaction. Higher job satisfaction and better employee retention rates go hand in hand.
5. Reduced environmental impact
- Reduced carbon footprint: When employees work from home, there's a significant decrease in daily commuting. This translates into less traffic congestion and lower carbon emissions, considerably reducing your company's overall carbon footprint.
- Conservation of energy: Many people who go to the office daily feel their office temperature is too cold for them. Every 1 out of 4 people love to work in natural light. Thus, the established office environment is not suitable for all alike. By not maintaining a physical office space, you can save on energy consumption associated with heating, cooling, lighting, and other building-related expenses while simultaneously increasing your employee satisfaction. This can help to reduce greenhouse gas emissions and conserve energy resources.
- Reduced waste production: Remote workers are more likely to use digital tools for collaboration and communication, which can further reduce waste production.
- Conservation of natural resources: By not maintaining a physical office space, you can help to conserve natural resources that would otherwise be used for building materials, furniture, and office supplies.
- Increased awareness of environmental issues: Remote work can help to raise awareness among employees about environmental issues and promote sustainable practices, such as recycling, reducing paper consumption, and using public transportation if and whenever necessary.
6. Enhanced diversity
- Cultural diversity: Hiring remote workers fosters a diverse workforce by enabling you to hire individuals from various cultural backgrounds and skill sets who may not have been accessible locally. This creates a richer, more inclusive work environment that leads to unique perspectives and innovative solutions.
- Reduced bias in hiring: Startups hiring remote workers have reduced unconscious bias in the hiring process. When hiring remote workers, startups are more likely to focus on the skills, experience, and qualifications of the candidates rather than their physical appearance, gender, or ethnicity.
- Promotion of inclusion: Startups hiring remote workers can help to promote inclusion by accommodating individuals with disabilities, caregiving responsibilities, or other factors that may limit their ability to work in a traditional office environment.
According to Diversity and Inclusion Global Market report, diverse businesses generate 2.5 times more cash flow per employee, and inclusive teams are over 35% more productive.
7. 24/7 availability
- Round-the-clock service: With teams spread across different time zones, your business can be accessed around the clock, providing the opportunity for continuous support and uninterrupted project progress.
- Flexibility in work schedules: Remote work allows employees to work flexible schedules that can accommodate different time zones or work preferences.
- Outsourcing: Startups can also outsource certain tasks or functions to remote workers or contractors located in different time zones. This can provide 24/7 availability for specific tasks or functions, removing the dependancy on solely full-time employees and eliminating the pressure on them to perform continuously.
8. Lower risk during emergencies
- Work continuity: During times of crises or natural disasters, having a remote workforce helps minimize operational disruptions to your business. Remote workers can continue performing their duties without the struggles posed by traditional office closures.
- Reduced exposure to health risks: Startup hiring remote workers have reduced exposure to health risks. By allowing employees to work from home, startups can minimize the risk of exposure to contagious illnesses and protect the health and safety of their employees.
9. Increased employee autonomy
- Sense of responsibility: "On average, autonomy at work increased productivity by 5.2%". Remote work enables employees to manage their own schedules, leading to a greater sense of responsibility and self-reliance. This shift towards increased autonomy typically results in higher motivation levels and improved overall job performance.
- Reduced management burden: Remote workers require less direct supervision and management than on-site employees, which can reduce the management burden for startups. This can allow managers to focus on other tasks and responsibilities, such as strategy and innovation.
- More creative problem-solving: Remote workers often have greater autonomy to solve problems and make decisions on their own, which can lead to more creative problem-solving. Such effective decision-making capabilities help you to innovate and find new solutions to business challenges.
10. Better work-life balance
Surprisingly, 75% of Ergotron poll respondents claimed that their work-life balance has improved since they started working from home. In fact, information from the Future Forum supports this idea. The Future Forum discovered that remote workers had twice the work-life balance of full-time office workers in April 2022.
Flexible work arrangements allow employees to better balance their professional and personal lives.
- Better mental health: Remote workers who have better work-life balance are less likely to experience fatigue, burnout, and stress-related illnesses, which can lead to better mental health and reduced healthcare costs.
- Positive employer reputation: Startups that prioritize work-life balance for their remote workers can build a positive employer reputation, attracting top talent and establishing a competitive advantage.
Also read: Top 15 job posting sites in India
11. Expanded market presence
A globally distributed team allows you to penetrate markets that may not have been previously accessible, providing opportunities for international growth and expansion.
- Greater flexibility: Remote workers can work from anywhere, at any time, which can help you to expand your market presence and reach new customers in different time zones or regions. It will help your startup to adapt quickly to changing market conditions and customer needs.
- Enhanced customer service: Startup hiring remote workers can enhance customer service by providing support to customers in different time zones or regions, thereby providing a better customer experience and improving customer satisfaction.
- Increased brand awareness: Yes! Word-of-mouth publicity is the best publicity. Remote workers can help to increase brand awareness by representing the company in different regions and promoting the company's products or services. This can help your startup to attract new customers and increase sales and brand awareness. Moreover, when your employees speak praises of your startup's work culture, then the chances of you recruiting the top talent in the future increase. People like to work for companies that care about their employees.
12. Reduced office politics
In traditional office environments, employees may compete for resources such as physical office space, access to equipment, or even the attention of supervisors. Startups hiring remote workers are free from such chaos as these resources are often more distributed or shared virtually, reducing the likelihood of competition and office politics.
One of the major benefits of hiring remote workers is that in a remote work setup, there is a greater emphasis on outcomes rather than hours worked or office appearances.
Communication in remote work environments often relies more heavily on written or digital communication, which reduces the chit-chat environment. Only the to-the-point conversations take place, which leads to reduced office politics.
13. Reduction in distractions
In traditional office environments, employees may be distracted by social interactions, office noise, or interruptions from colleagues. In a remote work environment, employees can have greater control over their work environment and reduce distractions, allowing them to stay focused on their work.
Moreover, remote work often relies on video conferencing and digital collaboration tools, which can result in more efficient meetings and less time spent on non-work-related conversations.
14. The other's perspective
Different workstyles: Remote workers often have different work styles and preferences than in-office workers, such as different communication preferences, time management techniques, and approaches to problem-solving. By hiring remote workers, startups can gain insight into new ways of working and collaborating.
Industry expertise: Remote workers may have worked in different industries or sectors, bringing their unique knowledge and expertise to the startup. It can help the startup gain a competitive edge by offering innovative solutions or strategies that draw on different industry perspectives.
