With the increasing need for qualified employees, most companies have turned to remote recruitment as a solution. This new method of hiring not only attracts better talent, but also reduces company costs. It’s one of the most cost-effective ways to build a competent team while remaining competitive in the market. DistantJob, a remote recruitment agency with ten years of experience in headhunting top tech talent, is an example of one of the companies embracing this trend.
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Employers
With the growing popularity of working from home, employers are looking for new ways to attract and retain the best talent. A recent study by Harvard Business Review cited the advantages of recruiting remote workers. According to the study, 3.9 million people working at home at least half of the time would save the equivalent of six hundred thousand cars each year in emissions.
Recruiting remote workers can help a business meet workforce diversity goals. The ability to recruit from home means that a talent pool can be truly global. People of all ages, genders, and backgrounds are available to companies that hire through this means. The talent pool is not just geographically restricted, it can also be diverse and reflect the company’s values.
Despite the benefits of hiring a remote workforce, employers must be careful not to alienate workers. Studies show that a remote workforce is 35 to 40 percent more productive than an office-based one. In addition to the increased efficiency, employees who work from home also feel more loyal to their employer.
More employees are expecting and requesting remote work opportunities. According to a recent Buffer survey, 99% of current remote employees would like to work from home for the rest of their career. This is nine points higher than the same survey conducted a year earlier. In another study, Global Workplace Analytics found that 37% of remote employees would even accept a 10 percent pay cut to work from home. However, the reality is that many employees don’t want to give up onsite jobs for the sake of working from home.
Employees
The shift toward a remote workforce is a permanent trend, and it’s happening in all sectors. Big tech companies are leading the way in remote technical jobs. They’re saving money and office space by hiring remote workers to do the same work as their office counterparts. In addition to the obvious cost savings, remote workforce recruitment improves corporate culture and diversity. By hiring workers around the world, companies can attract a diverse array of consumers and diversify their teams, which can increase revenue by up to 19 times.
While the benefits of hiring remote employees are numerous, there are some drawbacks to this approach. Many remote workers don’t receive the same benefits as their coworkers, and they may have lower salaries. Some companies offer more flexible schedules. You can even choose to work at home for a portion of the time.
According to Global Workplace Analytics president Kate Lister, approximately 25% to 30% of the American workforce will work from home by 2021. As a result, more than 70% of CEOs and CFOs expect to shift some employees to remote work for at least 5% of their workforce in the coming years. By 2025, that could translate to 36.2 million Americans working remotely five days a week. This is an eighty-seven percent increase from the number of remote workers in 2015.
According to Workhuman’s January 2022 Human Workplace Index, employers are increasingly accountable for the decisions of their employees. Workers in 2022 feel empowered to hold their leaders responsible for creating a better workplace than they did in 2017, and 81.5% said they would be willing to wait at least 30 days for an employer to make necessary changes.
Programmatic recruiting
In addition to improving the efficiency of job advertisements, programmatic recruiting for the remote workforce is also becoming more flexible. It reduces the time and cost spent on hiring and helps employers attract better candidates. Programmatic recruiting can also help businesses improve their diversity and increase their ROI. It also frees up HR professionals’ time. For example, Domino’s recently switched to a programmatic model and saw a 472% increase in applicants. They also saw a 533% decrease in cost per applicant. In addition, Domino’s reduced their monthly recruitment budget by 19 percent, and their overall number of employees increased by 15%.
In the past, employers paid to post jobs in classified ads, but now, many job sites are free or low-cost. In addition to these free job postings, employers can also pay for each click on a recruitment ad. This means that the cost of recruitment advertising goes up and down depending on the difficulty of filling a particular position.
Job matching engines help employers improve the hiring process by sending high-quality traffic through the recruitment pipeline. These services use AI to predict the best time to advertise a role and send it to the right candidates. These platforms also use big data to help match jobseekers with the ideal roles.
COVID-19
The global pandemic has heightened the demand for remote workers, and this demand has spurred businesses to implement remote work models. The Global Workplace Analytics study, conducted during the early stages of the pandemic, found that 77 percent of office-based employees are working remotely full time compared to nine percent before the epidemic. Although some workers have since returned to the workplace, the percentage of employees working remotely remains above the prepandemic trend.
A recent Upwork study of 1,500 hiring managers revealed that 61 percent of companies plan to increase the number of employees working from home. The report also predicted that by 2025, 36.2 million workers will be working remotely, an 87% increase over pre-pandemic levels. The Global Workplace Analytics study also found that by 2021, approximately 25 to 30% of the U.S. workforce will be working from home.
Despite the increasing prevalence of remote work, some big companies have been resistant to the idea of a permanently remote workforce. Some big banks, such as Goldman Sachs and Chase, have turned their back on work from home policies. However, the Global Upside CEO concurs with the latest findings.
The economic benefits of remote work include decreased commuting costs and out-of-pocket expenses for employees. The disadvantages of remote work include the lack of meal vouchers from employers.
Costs to employers
Employers who hire a remote workforce can save a significant amount of money over the long run. Not only do they save on office space and operating costs, but they also have fewer distractions at work. This results in higher productivity, which translates to higher employee retention. However, cost savings from hiring a remote workforce will vary depending on the location of the company. For example, employers in lower-wage regions will benefit less financially than those in higher-wage areas.
However, employers should be aware of local laws and regulations before they decide to hire a remote workforce. This way, they can effectively evaluate their costs and benefits. They can also ensure that their policies are compliant with any local laws. In addition, they will be able to find the best talent in a larger talent pool.
Another benefit of recruiting a remote workforce is the cost savings that come from localizing salaries. Because of this, many companies are increasingly pursuing this strategy. This is particularly true if they are trying to save real estate costs. According to PGI, the average real-estate savings of hiring remote workers is $10,000 per year.
While a remote workforce can save employers money on office space, it still has its costs. Remote workers may still need to travel to do their work, and they may not receive the same benefits as their office-based colleagues. However, some companies offer to cover these expenses. Depending on the industry, country and policy of the company, some remote employees may have to travel to the company’s headquarters.
Challenges to employers
Hiring a remote workforce presents a unique set of challenges for HR professionals. Remote employees often don’t have the same skill sets as their local counterparts, and the distance makes it difficult to conduct a thorough evaluation. Another issue is complying with labor laws, which can be confusing for employers.
When hiring a remote workforce, it is essential to set clear rules about communication. The nature of the work may require the use of different communication tools, and the remote employees will have to use them effectively. Communication channels will need to be maintained during work hours. Employers must provide leadership and structure, as well as the right technology.
In addition to being expensive, remote working creates challenges for employers when it comes to hiring and onboarding. This new work style requires independent, responsible talent. Recruiting remote talent may be tricky, especially if a company doesn’t have a dedicated talent acquisition team. Hiring remote workers may also require additional screening and assessment processes because there is no way to see the candidate in person. However, remote working does offer many advantages, including greater productivity and reduced turnover rates.
Remote employees must be supported and encouraged to maintain a work-life balance. In addition to proper communication, employers should encourage virtual water coolers and virtual conferences, as well as recognizing them through awards and accolades. Moreover, they must feel valued, respected and included.