Virtual staff outsourcing or remote staffing is currently the talk of the town, and why shouldn’t it be! With the onset of the pandemic, virtual staffing has come into the limelight even though it was prevalent since the 1960s. We want to reiterate that when we say virtual staffing, we are referring to remote employees and not those working from home due to the restrictions imposed by the pandemic.
In our previous article, we have discussed what it means to hire virtual employees and what virtual / remote staffing means.
Hiring virtual employees can have definite benefits for businesses as well as employees. It could just be the solution that many businesses have been looking for decades.
Let us Look at Some Problems that Virtual Staff Outsourcing Solves.
1. Helps in Saving Resources for R&D and Expansion
When employers opt for virtual staff outsourcing, they are not required to provide an infrastructure to these employees. Very few companies go to the extent of providing an internet connection to their remote employees or reserve seats for them in coworking spaces.
Employers save on infrastructure, office overheads, air-conditioning, heating, food and beverage for employees, and so much more. GoToMarket helps companies save more than 60% of these costs by helping them to hire and deploy virtual teams.
With these saved resources, companies can expand into regions or verticals that only seemed like a distant dream before.
Employers can also invest this money in research and development, product development, increase their marketing budget, improve salaries, acquire competitors and do much more.
2. Helps Employees Improve their Standard of Living with the Same Salaries
One of the main areas where employees spend their salaries is on commute. It could be on public transport, upkeep of their vehicles and money spent on fuel, carpooling or other modes.
To address this, companies often provide transport facilities for employees that, in turn, transfers the cost to employers.
Virtual staff outsourcing solves this problem at the root since employees work remotely and do not need to commute to work at all. Any other travel to their favourite cafe or coworking space where they would like to work from is taken care of by the employees themselves.
With an increased disposable income due to the money saved from the commute, employees can improve their standard of living and spend the saved money elsewhere. It can have a significant effect on employee performance and morale.
3. Removes the Geographic Barrier Associated with Hiring
Often companies would like to hire from specific regions, for example, software companies would like to hire from Silicon Valley. But to do so, they would have to set up quarters in Silicon Valley, and they might not have the resources to do so.
Virtual staff outsourcing opens up doors to a global talent pool where employers can invite applications from across the globe. With no need to set up a new office in another country, no need to provide infrastructure, they can even afford to pay a comparatively higher salary to onboard the best talent they can find.
With virtual staffing, employees no longer have to look for employees in their country, state, or even vicinity.
It also helps in addressing the geographic barrier that employees face where they may be forced to stay away from their families just because their dream job and the city their family is in are not the same. Virtual staffing helps employees work from their choice of location, helps them be closer to their families, and improves the overall sense of loyalty towards their jobs.
4. Improves Employee Satisfaction Without any Deliberate Efforts
While in-office, studies show that eight in ten employees are dissatisfied with their jobs. They often spend hours traveling to work; go home to an empty apartment as their loved ones stay in a different city; have no work-life balance; they spend half their salary traveling to work or buying expensive things to look good at work.
Virtual staffing tends to address almost each of these. Employees no longer have to waste half their work-life traveling; they can enjoy quality time with their families; enjoy an improved standard of living due to the saved money, and so much more.
All this happens without the employer consciously trying to make the employees happy. All of this happens just due to a shift from looking for locally placed employees to virtual employees.
5. Reduces Employee Turnover
With a heightened sense of satisfaction comes a lowered attrition rate. When employees are satisfied and content at their jobs, they seldom want to leave. Research shows that companies that adopt remote work and remote staffing see 25% lower turnover than companies that don’t.
With reduced employee turnover, employee acquisition costs stay low. While employers might still have to invest in the training and development of these employees, the lost costs of training and development also fall with the drop in turnover.
While all these do seem ideal for businesses to shift to virtual staff outsourcing majorly, it also depends on how companies collaborate with their employees and the experience they provide to their employees that makes the whole difference.
Employees expect that their employers instill their trust in them. While employers find it difficult to trust employees when they work remotely. With virtual employees working in different time zones, working in a team could become chaotic.
Even though technology helps address most of these gaps by offering different tools and software, the way they are implemented, the workflows, organizational charts, the SOPs, all define how successful a company will be as they hire someone they have only met virtually.
Let us talk about how a company can move to virtual staffing and also understand the challenges associated with remote staffing in our next article. Stay tuned!