Remote Working 101: Managing Costs and Teams for Your Business

If the past year ever taught us anything with over a year of enforced work-from-home experience, it’s that managing remote teams work and it’s here to stay.

Today, it is not just something forced on companies' management but is driven by various efficiency, comfort, and productivity of employees. It is no wonder that over 61% of employees surveyed by Forbes prefer working remotely while 97% of them refuse to work full-time in physical offices.

In this article, we will talk about why many companies are hiring remote workers, the costs that you should cover, and the things you can do to make outsourcing remotely more efficient.

Why companies shift to a remote workplace

According to Gartner CFO, over 74% of companies are planning to shift to remote work even after the pandemic permanently. This is because, unlike most people expected at first, this setup is actually effective and promotes the productivity of their employees. It also helps in saving operational costs because there is no need for a physical office and commuting every day.

Here are some of the benefits of a remote work setup:

It helps in Saving Operational Costs

The company doesn’t have to pay for office spaces, equipment, and travel reimbursement in a remote work setup. In addition, your wage rate offer for your employees can also be significantly lower based on their cost of living because of the demographic differences.

It removes geographic obstacles in finding the ideal employee

Because you only need a computer and internet connection to hire employees remotely, finding the ideal candidate for a position across the borders is easier.

It improves your employees’ satisfaction and retention

As mentioned before, many employees prefer a work-from-home setup as it gives them a better work-life balance. According to a study from Owl Labs, workers are 13% more likely to stay on their job with a remote setup.

It increases productivity

A lot of people automatically think that there are more distractions when working from home. However, it is actually quite the opposite, and a study from Stanford University states that remote workers tend to be 13% more productive than those in the office.

It offers diversity and inclusivity

A remote work environment promotes diversity as it makes hiring across borders no matter the ethnicity, gender, and age more convenient. It can be beneficial, especially for businesses that need fresh thinking and want to promote workplace diversity.

Due to these benefits combined, more and more business owners and CEOs consider staying remote and shifting their back and front office into a digital one.

Costs to expect when managing remote teams

Before we dive into the actual process of hiring competitive remote employees, let’s talk about what costs to expect in the process. While it is true that hiring remote workers is more cost-efficient than having in-house employees, you’ll still need to prepare for some expenses.

Here are some of the expenses you will need to consider when you hire remotely:

Setting up an entity or partnering with outsourcing companies. Setting up an entity in a country to make your employment legal often costs a lot of money and may take too much time. This is why most small to medium businesses partner with outsourcing companies who can hire remotely and at the same time ensure you are compliant to local labor laws of the country you are outsourcing from.

Read about setting up an entity vs outsourcing on our blog to dive deeper.

System. Providing tools and software for your team is a wise investment, but you have to prepare for the subscription bills that you need to pay.
Setting up a local payroll. For a more effective way of sending your employee’s payment, setting up a local payroll is ideal. While some use various digital remittances, outsourcing companies can manage your payroll locally.

How to cut your costs by partnering with an EOR company

One of the horrors of foreign businesses in outsourcing is spending too much money and time setting up an entity in a country and not finding ideal employees in the end. However, there is actually a cost-effective way to avoid the lengthy and expensive process of setting up an entity--partnering with an Employer of Record (EOR).

An EOR serves as the local employer of your remote employees while maintaining your jurisdiction and management prerogative for your team. EORs can help with complex tasks such as:

Contract Facilitation
Labor compliance
HR services
Payroll Management
Employee Engagement

On top of these, some EORs like Remotify can even help you source employees, conduct background checks, and assist you with the whole hiring journey from drafting a job description to closing the hire. Remotify also gives you the option to engage your team better and help you provide health benefits, procure essential equipment for your employees, and provide GDPR and cybersecurity training for an extra layer of security and a higher chance of retaining your team.

To learn more about what we can do for you, check out Our Services at Remotify.

Simplify outsourcing with Remotify now!

Hiring remotely is definitely something all businesses should consider where applicable due to its many benefits on cost, employee well-being, future-proofing, and productivity.

However, while shifting digitally is very accessible, there are still processes and procedures to look out for when hiring remote employees across borders legally and securely. Going through the process the right way is worth the benefit, security, and operational cost savings your company can have.

If you want all the complexities of hiring remotely done for you, partnering with an EOR company like Remotify is the ideal solution.

About Remotify

Remotify is your next-generation solution to growing your team remotely and cost-effectively in the Philippines.

Through our Employer of Record service, Remotify will employ and payroll your workers in the Philippines and do the heavy lifting for you. We will take care of local HR, compliance, attendance tracking, payroll, and reporting so you can focus on what is most important: growing your business.

This means you can quickly and securely hire employees in the Philippines, attracting top talents and keeping them engaged through the process. At the same time, you avoid the overhead of establishing your entity.

From complex local tax and labor laws to in-country capital requirements and compliant HR management, payroll, and benefits disbursement, getting started in a new country to tap on its low cost and great talents can be a time-consuming endeavor. But with the right partner, it doesn’t have to be. Remotify is here to keep things simple for you.