Remote work is one of the best business models a company can implement to save on costs. However, managing remote employees who are scattered all over the globe may seem like a daunting task.
Implementing the correct management strategy can simplify the process and position your business to reap the rewards.
Project management tools – like employee time tracking software – and communication platforms for messaging and conferencing are designed to help you manage your global workforce efficiently and effectively. Employers also nowadays use leave management software to track leaves effectively.
Let’s discuss why employing a global workforce is the best way to reduce costs and what you can do to manage your remote employees.
How Employing a Global Workforce Reduces Costs
Many employees tout the benefits of working in flexible, remote positions. But did you know that employing remote workers benefits a business just as much as it benefits employees?
Tapping into the global talent pool is more cost-effective than hiring local in-house staff, and it also encourages more productivity from employees. Here’s why.
Global Talent is More Affordable
Tapping into the global talent pool reduces the cost of labor because international wage rates may be lower in foreign nations. For instance, a trained professional performing a task in Ukraine earns an average of three times less than an employee in America.
When you hire an international freelancer, you also save on training costs because you are hiring an expert in their field. Experts are also less likely to make errors that will cost the business time and money down the line.
Global Talent Enhances Brand Offerings and Deliverables
Hiring international employees can inject your business with new ideas, perspectives, and insights that a localized company would not have had otherwise. Encouraging diversity encourages innovation.
Employees who work in strategic locations around the world also enable companies to have a more significant global presence. Increased brand awareness can attract interest in a business’ product or service, which can positively affect the bottom line.
Remote Employees Take Less Time Off
Employees who work remotely tend to take fewer days off – around 75% of employees working in an office environment take sick days when they don’t really need them, using sick days for personal reasons or because they are unmotivated to come in.
Having a remote workforce reduces unscheduled absenteeism by 63%, which saves a company around $1,800 per employee every year.
Working Remotely Reduces Overheads
Having a remote workforce drastically reduces overheads. The cost of real estate, office equipment (like electronics, hardware, and stationery), and all the costs of running an office (like heating, air conditioning, WIFI, and cleaning) are all reduced or non-existent.
Working Remotely Boosts Productivity
Remote workers don’t have to commute back and forth to the office every day, which frees up time for them to spend on work.
Surveys have found that an employee’s general happiness directly correlates with the amount of time they spend in traffic on the commute to work. When the commute is eliminated, employees are happier. When employees are happier, they are more productive, which translates into more profit for the company.
Global Workplaces Enjoy Higher Employee Retention
The flexibility of remote work allows employees to have a better work-life balance. That’s why a third of employees would like to work remotely, and remote workers are generally more satisfied with their jobs.
Employees who have more job satisfaction are less likely to leave the companies they work for. A loyal workforce is more motivated, and businesses get more output for less money.
A Global Workforce Runs 24/7
Having employees in different time zones means better global coverage for your business. Having employees tackling projects over a 24 hour period means that your business is productive for more hours in a day without having to pay overtime.
Global Workforce Management Systems
Your business needs the correct management systems and tools to get the most out of a global workforce. These management systems will automate manual processes, eliminate unnecessary man-hours, and improve overall productivity.
Your management systems must do two things to ensure that you maximize the productivity of your remote team. They must provide fast ROI (return on investment) and ease of ownership.
Immediate ROI
A global workforce management system needs to provide immediate ROI by saving costs. It can do this by controlling the cost of labor, eliminating payroll inflation and fraud, and automating payroll processes.
Another opportunity for immediate ROI is to increase employee productivity for client retention in sales. This can be done with embedded analytics. Management can identify tasks and activities that are unnecessary in the work process and eliminate or reprioritize them by gathering data on the actual hours that employees The ROI of embedded analytics can be seen in many different ways, including an increase in customer lifetime value and a reduction in client churn.
Ease of Ownership
A global workforce management system should be simple to implement, and employees need to be able to access it from wherever they are in the world.
It should also be easy to use and require little intervention from IT or support if changes need to be made.
Employee Time Tracking Software
Time tracking software can effectively send accurate employee timesheets directly to the payroll system to eliminate fraud.
Time tracking software also increases productivity by gathering data on how long projects take to complete and what tasks employees spend most of their time on. Managers can analyze this data to optimize the workflow accordingly.
Video Conferencing Tools
High-quality video conferencing tools strengthen remote teams by allowing face-to-face communication. Studies have shown that up to 93% of all human communication is non-verbal, so being able to read facial expressions and other visual cues during conference calls is essential for effective communication.
Team Messaging Tools
Dedicated instant messaging platforms allow remote employees and managers to stay connected while ensuring that all data is encrypted.
Project Management Tools
Agile management tools are recommended for remote employees so that managers and team members can make sure that all projects are on track.
Project management tools are also indispensable when it comes to managing client expectations and meeting deadlines. Managers and stakeholders can easily see a project’s status and accurately estimate when it will be complete.
