Remote work has become a permanent fixture in business, and the pandemic has only accelerated its adoption. Many employees were forced to work from home for much of 2020 and the first half of 2021, but remote work was already gaining popularity.
Employers have realised that remote work is not only feasible but also beneficial. Companies can tap into a global talent pool by embracing remote work, as the location is no longer an impediment to employment. This approach also aligns with the desires of many employees, with two-thirds preferring remote work and the remaining third preferring flexibility.
Hiring remote workers can be a strategic opportunity for businesses to find the best candidates for a job. In this guide, we will discuss why hiring remote workers is advantageous, list the factors to consider when hiring remotely, offer tips on where to find remote workers, and provide a detailed process for hiring remote employees.
Remote work is an excellent opportunity for businesses
Employers have previously expressed concerns about hiring remote workers, fearing they will be unable to perform their duties without supervision or unavailable when needed. Nonetheless, with the advancement of technology, managing a remote workforce has become more accessible. Applications such as Trello and Slack aid in the organisation of remote teams, while hardware such as interactive displays allow teams to interact seamlessly even when not physically present.
Furthermore, remote work has several advantages for employers, including cost savings on office space and providing employees with a sense of freedom. We'll look at some of the top benefits of remote work for employers below.
Access to a global talent pool
Employing remote workers allows employers to select the most qualified candidates. Some companies can hire from anywhere in the world, while others may require workers to be in specific time zones or locations.
Regardless, there is likely to be a larger pool of applicants for remote positions compared to those advertised as in-office roles.
Cost savings
Remote work saves employers money in a variety of ways. To begin with, remote workers typically pay for their equipment, such as laptops and other devices, relieving the employer of this cost. This is especially true for self-employed freelancers who only work when needed.
Second, remote workers save money on transportation and meals by not having to commute to work. This means employers can offer a slight wage reduction, which remote workers frequently do not mind.
Third, remote workers frequently use their equipment, so that they may be liable for work expenses from home. For example, they will be responsible for upgrading their internet or purchasing additional software.
Finally, a remote team eliminates the need for office space, which can be costly to rent or buy. This saves money on utilities like electricity, water, and Wi-Fi. Remote work also reduces the need for in-person meetings and travel expenses, which saves employers money.
Increased productivity
Although some employers may worry about a potential decrease in productivity in work-at-home environments, the reality is often quite the opposite. Employees can create a comfortable and distraction-free workspace when working remotely, leading to a more productive environment than an average office.
In specific fields, such as the tech industry, employees may need to work in uninterrupted blocks of several hours. Therefore, having a space where they won't be disturbed is crucial. This is one of the main reasons why remote work has become increasingly popular in these industries.
Improved employee retention
Although it may seem obvious, hiring remote workers can offer several benefits that positively impact employee retention rates. This is because:
- Employees who move won't need to leave their job.
- Remote work allows for more flexibility, making it easier for employees to continue working during pregnancy or early motherhood, even if they need to reduce their hours.
- Having more flexibility in their work schedule is particularly important for millennials, which can help retain this demographic.
- These factors can lead to greater job satisfaction and longer tenure for remote workers.
Reduced absenteeism
Both workers and employers face significant issues with absenteeism in the workplace. While illnesses and appointments can often be unavoidable (although remote work can help mitigate these issues), absenteeism caused by commuting time can be significantly reduced by employing a remote team.
Employees generally dislike commuting, with many feeling that delays are as bad as taking a pay cut. Employers may find that remote workers are more motivated to start their day early since they don't have to worry about commuting. Additionally, as remote workers don't need to rush to catch a train at the end of the day, they may be willing to stay longer to complete any pending tasks.
Environmental benefits
Being perceived as an environmentally conscious business is always beneficial. When employees work from home, there are several positive impacts on the environment, such as:
- Reduced traffic pollution due to fewer employees commuting to work.
- Conservation of office space.
- Greater control over environmental factors, such as office supplies and lighting usage, can contribute to environmental damage.
Better diversity
A more diverse workforce can benefit a company by better representing its customer base and understanding its needs and preferences. This can lead to developing products and services catering to a broader range of customers.
Moreover, by bringing together people with different perspectives and ideas, diversity can foster innovation and creativity. Such teams can assist a company in remaining competitive and innovative.
A diverse workforce can also lead to better problem-solving and decision-making. A company can tackle complex problems and draw on broader knowledge and expertise by bringing together employees with diverse experiences and skills.
What to consider when hirng remotely
1. Permanent establishment risk
How about the taxes levied on conducting business in a foreign country? "Permanent Establishment" refers to companies with a continuous presence in a country. If you fall under this category, you may be liable to pay corporate taxes in that foreign country. Additionally, you may be required to comply with regulations other international companies may not have to follow.
2. Employee/ contractor misclassification
Misclassifying employees as contractors can have severe consequences, including fines, penalties, business bans, and legal employee disputes. Therefore, it is not recommended to do so.
When defining job roles, it is essential to exercise caution and clearly define the scope of work, the relationship between the employees and the company, and whether there are any existing contractors in other countries. In some cases, it may be necessary to convert contractors to employees, which can also be a complicated process.
3. IP and invention rights
In traditional office setups, intellectual property rights are relatively straightforward because offices are typically in one country. However, hiring internationally can complicate matters. Remote workers may not work in a company-owned building, use company-owned equipment, or work during company-designated hours.
Failing to understand international laws regarding intellectual property rights can result in significant problems, including legal disputes and damage to your company's reputation.
4. Communication
Clear and effective communication is essential in remote work arrangements. Companies should ensure remote workers have the necessary tools and resources to stay connected with their colleagues and supervisors.
5. Technology
Companies should provide remote workers with the tools and technology to perform their jobs effectively, such as laptops, reliable internet connection, and video conferencing software.
6. Time zone and location
If your company operates across different time zones, consider hiring remote workers in various locations that will enable the company to maintain coverage 24/7. However, the company should be aware of the potential challenges that come with this arrangement, such as scheduling conflicts and communication barriers.
7. Cultural fit
Remote workers, like in-office employees, should align with the company's culture and values. Hiring a remote worker who is a cultural misfit can create conflicts and reduce productivity.
8. Hiring Process
When hiring remotely, the recruitment process may differ from traditional hiring methods. Companies may need to adapt their recruitment strategies to attract remote workers, use video conferencing to screen candidates, develop new ways to assess candidates' suitability for remote work, and tailor their onboarding process to their needs.
By adapting to these differences and implementing appropriate measures, companies can hire and onboard remote workers and build a thriving remote work environment.
9. Onboarding
Companies must ensure their onboarding process is tailored to remote workers' unique needs. This may involve providing virtual training sessions, remote workers access to relevant documents and policies, and ensuring that remote workers know the company's communication protocols.
10. Legal and regulatory compliance
When hiring remotely, companies must consider several legal and regulatory compliance issues. Here are some key things to keep in mind:
- Employment laws (minimum wage laws, overtime regulations, and tax requirements)
- Data protection and privacy
- Health and Safety
- Worker's compensation, payroll and insurance
- Immigration law (visa and regulations)
- Employment contracts and policies
Where to find remote workers
There are many places to find remote workers, and using various resources to find the best candidates for your needs is essential. Here are some of the best places to find them:
Remote job boards
Websites like We Work Remotely, Remote.co, and FlexJobs are designed explicitly for remote job seekers, making finding qualified candidates interested in working remotely accessible.
Freelancer platforms
Freelance platforms like Upwork, Fiverr, and Freelancer are great places to find freelancers and contractors who work remotely.
Referrals through your network
Ask your professional network if they know anyone looking for remote work or post job openings on your company's social media pages.
Social media
Platforms like LinkedIn, Twitter, and Facebook can be great places to find remote workers. Use hashtags and search functions to find professionals with the needed skills.
Niche communities
If you're seeking workers with specific skills, consider joining online communities or forums related to your industry. You can post job openings or connect with individuals with the needed skills.
A step-by-step guide to hiring remote employees
Similar to an in-person recruitment process, it is essential that remote hiring is conducted with efficiency and ease, creating a positive experience for everyone involved. Moreover, it should result in excellent long-term hiring results and lower employee turnover rates. Here is a step-by-step guide to help you with the process:
1. Determine the job requirements
To increase the likelihood of a successful hiring outcome, it's advisable to devote more time to this stage. Engage in discussions with the hiring manager and key individuals to comprehensively understand the position and its demands. Considering how the role aligns with your organisation's broader People strategy is essential.
A precise job description is crucial for selecting suitable candidates, particularly when hiring remotely. Use appropriate language, such as "online remote jobs," to narrow down candidates actively seeking such opportunities.
Ensure that your job description is brief and unambiguous to avoid any confusion.
Your job description should encompass the following aspects:
- Company details, including its line of business
- Job requirements, including necessary skills and qualifications
- Preferred work experience
- Expected working hours
2. Review resumes and applications
Upon receiving resumes for your job posting, your primary task is quickly reviewing and filtering out low-quality applications. The format for resume delivery may vary based on your chosen platform.
Next, focus on assessing the applicants who meet the job requirements and evaluate them based on their skills and cultural fit. In particular, look for attributes that align with the role and your company's values.
When hiring remote workers, consider searching for these characteristics in a new hire:
- Potential for long-term support and growth
- Ability to produce results
- Strong work ethic and capability to work independently
- A clear understanding of projects and project management skills
- Positive and proactive attitude
- Basic skills and willingness to learn
- Good common sense
- Relevant experience with similar roles and team structures
- Shared values that match those of your company
- Interest in growing and possibly leading others
Please note that this list does not encompass specific job requirements or qualifications, such as programming languages for developers or writing experience for copy editors. Additionally, you can leverage various applicant tracking systems (ATS) to manage the application process, and screen resumes effectively.
3. Conduct interviews
The remote hiring process is similar to the traditional steps, with a few modifications. Instead of interviewing in person, you can arrange a video interview with the candidates you have shortlisted. You can contact the candidates through email or messaging and schedule a video call.
You can use various technologies to conduct online interviews, including:
- The most common method is conducting live videos calls using Zoom or Microsoft Teams.
- Another method is pre-recorded videos, also known as a one-way video interview, where candidates record their responses to interview questions or participate in an online skills assessment.
- Candidates can create video resumes as job audition-style videos showcasing their qualifications and abilities.
- Live chat is an option for text-based communication using platforms such as WeChat, WhatsApp, and Facebook Messenger.
- Chatbots are helpful in high-volume situations and can automate the application process.
4. Check references and background
Like any hiring process, it's essential to consider requesting references to authenticate a candidate's work history and work ethic. Professional references can verify the candidate's skills, job roles, and responsibilities within a specific company. On the other hand, character references can provide insight into the candidate's personality, communication, leadership, and different work styles.
When seeking professional references, it's best to ask someone who has worked closely with the candidate, ideally in a managerial position. For independent talent, past clients can serve as references and discuss previous projects in greater detail.
References can confirm the candidate's claims or offer valuable insights into their previous work experiences. One of the most insightful questions to ask a professional reference is if they would rehire the candidate and the reason behind their response.
5. Make an offer
Once you have assembled the contract and identified the preferred candidate, create an offer letter detailing the project, compensation, and contract terms. Express to the candidate why you found them suitable for the position and why you want to hire them specifically. You can send the offer letter via email or direct message.
Maintaining a shortlist of candidates for each project is vital if your first choice declines the offer. While hiring the top candidate is ideal, it's not always possible. If satisfied with a candidate's performance and references, make an offer and negotiate salary and other benefits if needed.
Keep in mind, to provide a compliant contract and hire a full-time international employee in a country where you do not have a presence, you must establish a local entity, bank account and register your business in that region. It can be costly, so engaging with an Employer of Record is becoming more popular as it allows employers to compliantly hire remote workers anywhere in the world without having to incur more costs.
6. Talk to compliance and payroll
Once the candidate accepts the offer, it's time to celebrate! However, there are several administrative tasks and paperwork that you must handle. For full-time employees, you must establish payroll, while for independent talent, you must manage payment details.
It's crucial to involve your HR and compliance teams immediately. Hiring and managing remote workers in different states or countries can have different tax implications and requirements. Complying with legal regulations governing work in your and remote workers' locations is also essential.
7. Onboard an employee
Once all parties have signed the contract and completed the necessary HR paperwork, it's time to onboard the remote worker. The onboarding process should include introducing them to your company policies and the tools they will need for their job. It's recommended to have a team meeting so that everyone can meet the new hire and discuss how they will interact with each other.
During onboarding, emphasise the training necessary for the position and the required tools. Start by focusing on communication and project management services, which are critical to engaging a remote worker. Since the new worker's journey has just begun, it's essential to set up regular check-ins and provide support to enable them to perform at their best.
8. Manage and support remote employees
It's essential to monitor the performance of your new remote hire and provide feedback to help them improve and develop in their role. Although managing and keeping an eye on remote employees can seem challenging since they are not physically present in the office, there are tools designed to manage and monitor remote workforces.
You can use performance tracking software to keep track of the time spent on specific projects, productivity, and other relevant metrics. Instant messaging applications are essential to maintain effective communication and connect your remote team during work hours. Additionally, implementing a project management software can help track progress and changes and enhance work efficiency.