Running a startup is not a small feat by any means. Maintaining the balance between being cost-effective and finding a strong footing in the market is not easy. Therefore, startups are always looking for ways that can help them attain this balance better. Lately, it seems that one of the ways they have chosen to this end is to hire remote teams.
With the pandemic accelerating the adoption of remote working, the startups seem to be continuing with the trend even as the offices have started reopening. And here are some of the reasons that are motivating them to do so.
1. Ability to access a global talent pool
The first and foremost reason for the work from home trend to catch up among the startups is the ability to access an international talent pool. Nowadays, the job market is more candidate-driven and the startups are ready to give it all to find quality talent for different job roles. After all, the productivity and profits of the company are directly related to the talent that is hired.
Therefore, when the startups are open to hiring remotely, they do not need to limit their options to a particular region. They can access a global pool of highly qualified talent. It is particularly helpful when the startups find that the local talent pool is not big enough for the growing company.
In such a scenario, getting foreign talent can be really helpful in bringing fresh perspective and insights.
2. A smart way to reduce costs
Startups have come to realize that hiring remote talent can be immensely beneficial in reducing costs. For instance, if your employees are working from home, you do not have to worry about giving them in-office perks like office parties, coffee, or free food in the cafeteria.
Besides, remote employees are known to take less sick leave compared to office-based employees. So, your work will not be affected too often simply because the employees are sick and cannot come to office.
Of course, it is never advisable to reduce the paycheck of the employees simply because they are working from home. It is a good gesture to pay for the office-related costs, such as phone bills, wi-fi bills, or even some of the necessary equipment.
3. A way to boost productivity and creativity
Another reason for the remote work trend to catch up is because it boosts creativity and productivity among the employees. In fact, many startups vouch for the fact that their remote employees are more productive than the in-office counterparts.
It is also true that when someone is working remotely, they are away from the regular distractions found in an office. There is no colleague who engages in idle chats during a deadline or sudden office meetings to attend to. The employee can put all their focus in the work from a distraction-free space.
Also, startups tend to give a lot of flexibility to their employees and that is helpful when trying to encourage them to be more productive in their work.
4. Gaining major competitive edge in the market
Ask any startup owner and they will tell you the challenges of running a successful business in the highly competitive market found today. Regardless of the industry vertical, the competitiveness reins supreme.
In such a scenario, the people who work for you are assets in helping your company reach the position it wants. But the thing about top talents is that everyone wants them. They have more than one offer on the table to lure them.
So, how can you make your offer stand out in that situation? Simply by giving them the flexibility to work remotely!
A majority of employees nowadays are ready to take up or switch jobs because of the flexibility promised by the new job. Thus, offering remote work opportunities gives employers an edge over their competition.
5. Keeping the employees happy in their work
Startups hiring remotely also contribute to keeping the employees happy. Once again, the flexibility factor has a major role to play in this.
So, startups hiring a remote workforce typically encourages the employees to go by their own preferred productivity schedule. There is no need to be on the desk from 9 to 5 everyday. Maybe a particular employee wants to work late at night after completing his family responsibilities for the day. Or, maybe someone else wants to work early in the morning because that is when they feel the most focused.
Therefore, employees are encouraged to work as per their peak performance hours. It not only keeps them happy and more motivated to work but also improves the company’s bottom line.
6. Eliminating the need to travel anywhere
Eliminating the need to travel does way more than saving the time and money for the employers. Imagine how much you can help an employee by eliminating the stress of reaching the office right on time during the rush hours of the morning.
When you eliminate the need to travel, you also help the environment. Transportation accounts for a major part of the worldwide CO2 emissions. So, for any startup that wants to attract millennials, conveying the environmental impact can be a great value proposition.
Remember that millennials are more environmentally aware than their previous generation. Therefore, the fact that you are as environmentally conscious as they are can be helpful in talent acquisition. Ultimately, it will be helpful in reducing the carbon footprint of a startup.
7. Ensuring better communication and engagement
There was a time when remote work was not preferred simply because it meant a lack of communication and management. However, with a sudden spurt of remote startup jobs in the last three years, this issue has been effectively addressed.
Startups make sure that even their remote employees are sufficiently engaged. They strive to offer the same community feeling that they would have delivered if they were working from office. There are virtual parties, games, meet-ups, and more to keep the employees engaged and build up communication between the teams.
The idea is to ensure that the employees are only away from each other, and there is still the feeling of teamwork and oneness among them. Since the startups can offer such enhanced communication avenues at this moment, they feel ready to hire remote teams.
8. Reducing the chances of employee attrition
Employee attrition is never good for any company. After all, you have invested both your time and resources for an employee. If they leave, you have to start training an employee from scratch once again and that costs both time and money. Hiring Remote teams has proven to be quite beneficial in this regard.
The rate of employee attrition is lower for the remote workers and almost everyone loves the flexibility that comes from working from home.
There is no denying that an employer still has to play all the cards right to improve employee turnover. For instance, the company still needs to focus on engagement factors, flexibility, improved communication, and so on. But offering remote opportunities is definitely a good start.
9. Creating a workforce of varied culture
At present, startups are keener on promoting a diverse company culture where people from different backgrounds come together to form a team. When people from different lifestyles, religions, races, and cultures assemble, the problems get more creative and effective solutions. Think of it as a way to bring different perspectives under one roof virtually.
There is always more than one way to look at a problem and having a diverse workforce ensures that. Now, consider hiring the same kind of people from the same locality. They will think similarly and offer similar approaches to solve different problems. And when that approach does not work, the company lands in a major fix.
Thus, the startups know that a remote workforce and its diversity can be actually helpful to them in the long run.
10. No need to look for an actual brick-and-mortar office
There are startups now that have chosen to work completely remotely and have a fully distributed workforce. Such a decision helps them to save up on real estate costs as well. Given the rate at which the property prices are rising, especially in the popular commercial areas of the city, this is a smart choice financially.
Even if a company decides to rent office space instead of buying it, the cost will still be too high compared to working remotely. At the end of the day, you have to pay the overhead costs of running an office as well. You pay for the electricity bills, the maintenance costs, and so on.
Shifting an entire office to the virtual space costs nothing and goes easy on the pocket for a startup trying to be cost-effective.
The bottom line
A majority of startups have shifted to a fully distributed workforce model. In fact, many of them who are following a partially distributed model are working to transform to a fully distributed one. The future definitely looks bright for the employees looking for remote work opportunities.