Should SMBs hire remote employees?

29 Sept 2023 | SME, Hiring, Digitalisation | 5 min read

The global workforce landscape has undergone a seismic transformation since the onset of the pandemic. Remote work, once considered a niche arrangement, emerged as a viable solution to keep businesses afloat in the face of uncertainty.

After all, 82% of companies worldwide now offer some form of remote work, a significant rise from the 57% in 2021. This underscores the trend that remote work has transitioned into a practice that companies adopt.

If you’re starting your own remote business, or thinking about scaling up your existing business, the benefits of a remote workforce are many.

Expanding horizons with a global talent pool

Remote work has shattered geographical barriers, opening new avenues for businesses to tap into diverse talent from around the world.

This means that business owners now have access to a global talent pool, sourcing highly qualified candidates irrespective of location. This unprecedented access to expertise empowers businesses to scale and thrive in ways previously unimaginable.

Reduced overheads and economical efficiency

Embracing remote employees also brings substantial cost advantages.

By adopting a remote workforce, companies can effectively trim operational expenses and enhance financial efficiency. On one hand, it optimises expenditure by reducing the overhead associated with traditional in-office setups. On the other hand, it opens doors to skilled professionals in neighbouring countries where labour costs are more budget friendly compared to hiring locally.

The result is a maximised return on investment that bolsters your bottom line while delivering top-notch talent. In essence, hiring remote employees serves as a prudent economic decision that offers both immediate savings and a strategic advantage for long-term growth.

Enhanced productivity

Importantly, remote work also often leads to heightened productivity and a notable increase in job satisfaction among employees.

There's mounting evidence to support this claim; a Stanford study examining a NASDAQ-listed firm in the travel sector found that remote workers showcased a 13% performance uptick compared to their in-office counterparts.

The rise in productivity can be credited to a few distinct factors. Firstly, employees tend to log more hours, in part because of reduced sick days. Secondly, the elimination of daily commutes reduces stress, allowing employees to focus better at work.

While hiring remote workers offers numerous advantages, it also presents certain challenges. The lack of face-to-face interactions can sometimes lead to miscommunications or a sense of detachment among team members. Notably, companies such as Meta have already stopped recruiting remote workers due to challenges in fostering collaboration and cultivating corporate culture.

Companies also face challenges in supervision. Overseeing daily tasks, gauging engagement, and addressing real-time issues become more complex. This diminished oversight has led to extraordinary cases where remote workers discreetly take on two or more full-time remote jobs.

As traditional management approaches might not be as effective in managing remote workers, it becomes imperative for management to adopt innovative strategies and tools to maintain productivity and ensure alignment with organisational objectives.

Collaboration Tools

One notable limitation of remote work is the absence of direct, physical collaboration. To bridge this gap, collaboration tools are essential. Features like file sharing, polling, and tools for facilitating small-group discussions, such as those provided by Singtel Teams UC, ensure smooth and effective teamwork.

Cybersecurity training

With remote work, exposing and equipping remote employees with comprehensive training in systems, tools, and security protocols becomes a priority. Cybersecurity training programmes, such as those provided by Singtel's Cyber-Readiness and Training programme, offer thorough guidance on password management and data protection. Ensuring that remote team members are well-versed in security measures boosts confidence and safeguards sensitive information.

Trust and autonomy

Empowering employees to manage their schedules and tasks independently is a crucial part of managing remotely. Trust them to deliver results while offering guidance and support when needed. This level of trust enhances job satisfaction and showcases the organisation's confidence in their capabilities.

As today’s digital landscape has enabled remote hiring, it is vital that businesses utilise it to stay competitive. The advantages of a global talent pool, reduced overheads, and elevated productivity for instance, are too compelling to ignore. Embracing this modern hiring strategy ensures that businesses not only thrive today but are also well-prepared for the evolving challenges of tomorrow.