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Are you a tech company looking to reduce overhead costs, increase productivity, and access the best possible talent?
If so, hiring remote workers may be the solution you're looking for.
In this article, we will explore how global tech companies are profiting through hiring remote talent, and provide you with the ultimate roadmap to successfully hiring and managing remote employees.
Download The Ultimate Guide to Hire Remote Talent in Tech Industry Here
Case Studies
Remote work has become increasingly popular in recent years, and it is no surprise that many businesses have embraced this trend. With the COVID-19 pandemic, remote work has become more prevalent than ever before, and many businesses have been forced to adapt quickly.
However, even as the pandemic recedes, it is clear that remote work is here to stay. Moreover, a survey by Upwork found that by 2025, 36.2 million Americans will be working remotely, an 87% increase from pre-pandemic levels.
In fact, several recent case studies demonstrate the benefits of remote work in driving profitability and growth for businesses of all sizes.
Automattic
One such case study is that of Automattic, the company behind WordPress.com. Automattic has been a fully remote company since its founding in 2005, and the company has seen incredible success in the years since.
Today, Automattic has more than 1,200 employees located in over 70 countries, and the company's remote work model has been a key factor in its success.
In fact, Automattic CEO Matt Mullenweg has stated that remote work has helped the company to attract and retain top talent from around the world, and has enabled the company to be more productive and efficient than traditional office-based companies.
GitLab
One company that has benefited significantly from hiring remote talent is GitLab, a web-based Git repository manager that provides continuous integration and deployment. GitLab is an entirely remote company with over 1,300 employees in more than 65 countries.
According to a recent study conducted by GitLab, the company's remote work model has enabled it to save $10 million annually in real estate and other costs. Additionally, GitLab has found that remote work has helped the company to attract and retain top talent, and has enabled the company to be more agile and responsive to changing market conditions.
The company has also been able to increase productivity, with an average of 47 merge requests per day per engineer, compared to the industry average of 14. Additionally, GitLab has a turnover rate of just 5%, compared to the industry average of 13%.
Shopify
Finally, Shopify, an e-commerce platform that enables businesses to create online stores, has also seen significant success with its remote work model.
Shopify has been a fully remote company since 2015, and today, the company has more than 7,000 employees located in over 30 countries.
According to a recent study conducted by Shopify, the company's remote work model has enabled it to save $5,000 per employee per year in office-related costs. Additionally, Shopify has found that remote work has enabled the company to be more innovative and nimble than traditional office-based companies.
How Exactly Does Remote Work Increase Profitability?
Remote work is not just a passing trend. It has proven to be an effective way to increase profitability for businesses.
In fact, it is estimated that remote work can save employers up to $11,000 per year for every employee who works remotely.
But how exactly can remote work increase profitability? Let's take a closer look at some of the ways remote work can benefit your business:
1. Reduced Overhead Costs
When employees work remotely, businesses can save a substantial amount of money on office space, utilities, and other related expenses.
This reduction in overhead costs can free up funds to invest in other areas of the business, such as marketing, product development, or employee benefits.
2. Increasing Productivity
Remote work can also lead to increased productivity. When employees work from home, they have more control over their work environment and schedule, which can lead to higher job satisfaction and less stress.
Additionally, remote work can minimize interruptions and distractions, allowing employees to focus on their work and complete tasks more efficiently.
According to a study by Global Workplace Analytics, companies can save up to $11,000 per year per employee by allowing them to work remotely. Additionally, remote work has been shown to increase productivity and reduce turnover, which can lead to increased revenue and profitability for companies.
3. Expand a Company’s, Talent Pool
It allows you to access a larger talent pool, regardless of location. This means that you can find the best possible candidates for the job, which can lead to increased productivity and profitability. According to a survey conducted by Upwork, 63% of companies now report that they can hire top talent regardless of location.
With geographical barriers removed, businesses can hire the best candidates from all over the world. This can lead to increased innovation and creativity, as well as a competitive advantage in terms of talent acquisition.
4. Improved Employee Retention Rates
Remote work can also help businesses improve employee retention rates.
When employees have the flexibility to work remotely, they are more likely to be satisfied with their jobs and less likely to leave for another job with a less flexible work arrangement. Just like the survey conducted by Owl Labs, companies that allow remote work have 25% lower employee turnover than those that don't.
5. Increased Flexibility
Employees can work from anywhere, at any time, which can lead to improved work-life balance and reduced stress levels. This can result in improved job satisfaction and better mental health, which can ultimately lead to increased productivity and profitability for businesses.
6. Reduced Commuting Costs
With no need to commute to an office every day, employees can save money on gas, public transportation, and other related expenses. According to a study by FlexJobs, remote workers can save an average of $4,000 per year on commuting costs alone.
7. Increased Innovation
With employees from all over the world working together, businesses can benefit from a diverse range of perspectives and ideas.
Additionally, remote work can encourage employees to think outside of the box and come up with creative solutions to problems. According to a study by Harvard Business Review, remote workers are more likely to come up with innovative ideas than their in-office counterparts.
8. Improved Disaster Preparedness
In the event of a natural disaster, terrorist attack, or other disruptive event, businesses can continue to operate with minimal disruption if their employees are working remotely. This can minimize the impact of such events on the company's bottom line, and ensure business continuity during times of crisis.
Conclusion
Overall, remote work can have a significant positive impact on a company: help businesses maximize profits and gain a competitive advantage in the marketplace.
Given the numerous benefits of remote work, it is no surprise that more and more businesses are embracing this flexible work arrangement.
However, not all businesses are equipped to manage remote teams effectively. For remote work to be successful, businesses must invest in the right tools and technologies, provide clear communication channels, and establish a strong company culture that supports remote work.
Talentport can help you to hire top talent for your remote team and navigate the challenges of remote work. Our team of experts is ready to assist you to build and manage a successful remote team that drives profitability and growth for your business. Contact us today and start transforming your business.
