Future of Talent is Remote and without Borders
As of the 21st century, the fourth Industrial Revolution is currently revolutionizing the world and challenging the conventional ways of businesses and work standards. From the invention of Printing Press in the 15th century to the emergence of the Internet, Machine Learning, Robotics etc., the world has witnessed it all. The most recent COVID-19 pandemic is the practical vindication that old and conventional ways of working cannot sustain newer and upcoming challenges. Globalization and the presence of the internet and social media have made the world more close knit than before. It’s wise to say that the future will be the era of remote work. Let’s discuss why this is the right time for a remote working environment.
Moving Abroad for Foreign jobs has Lost its Charm:
One of the key sources of talent in developed economies has been the immigration of talent from places like India, Eastern Europe, Latin America, etc. According to Boston Consulting Group, recent research on Global talent, in 2014 almost 75% of the people (survey correspondents) showed their willingness to move abroad for global working opportunities. However, the 2021 survey revealed that only less than 50% of the people want to move abroad for working assignments. Another research study “The State of Working from Home in 2020” revealed that more than 91% participants preferred working from home and 39% participants wanted to work from home at least 3-4 days a week (i.e. a hybrid mode of working: 3-4 days a week remote work and 1-2 days a week on-site work). While only 9% participants showed willingness to work from the office all the time.
Now, this decrease is primarily due to various reasons:
- With the onset of the digital revolution and fast and easily accessible internet, people are aware of remote job opportunities. So, they prefer to earn in foreign currency by working from their home country.
- Globalization and social media prevalence has made it possible for people to take a tour of the world virtually. Now, people don’t have that curiosity which they had in the pre Facebook and Instagram era.
- In underdeveloped countries, the income to tax ratio is quite less than compared to Europe, America and Canada. In developed countries, the income to tax ratio is around 20-45%. So, people who work remotely don’t have to pay such hefty taxes while earning in a different currency.
Remote working is a cost-effective option because it saves the time and money to commute to work. It also gives employees a chance to feel more relaxed while at work.
- Remote working for an international company, doesn’t require a visa or other costs of relocating. Working remotely is beneficial for employees in the long run. Although there is a visa process in every country, getting a visa depends a lot on luck. It is not always easy for employees to get a work visa. Also, remote work does away with the process of applying for employees’ visa processes and accommodation.
Why is the trend of Remote Working here to stay?
According to Forbes, by 2050, at least 70% of the workforce will work from home for at least 5 days a week. Earlier companies offered remote work as a perk but during the COVID-19 pandemic, it has become a necessity. Let’s ponder on why remote working is gaining popularity.
- Global talent pool: Today’s companies are at ‘War for Talent’ and companies need to find great talent at a reasonable price. Remote hiring helps you get talent beyond geographical boundaries.
- Remote jobs eliminate the need for large physical offices and its expenses, i.e. utilities bills, rents, stationery bills, furniture cost, electronics and so on.
- Companies can spend this revenue on employee’s training programs or can simply put this in the company’s profits.
Let’s understand it this way. Two countries that are known for their amazing tech talent are India and Ukraine. You can expand your team on a demand basis with exceptional talent from either of the countries. In India, an entry level Software Engineer earns 800 to 1300 USD. In Ukraine, an entry level Python developer earns between 1500-2100 USD per month. An entry level Software Engineer in the USA earns almost 6000-10000 USD per month, depending upon the organization the employee is working for. So, even if a firm pays half of the salary to a remote employee, which it is paying to its on-site employee, it will save 50%. The remote employee will get 200-300% more salary than they were earning in their home country. So, it is a win-win situation for both.
Having said that, remote teams bring with them a unique set of challenges.
Challenges with Remote working:
- The first and foremost challenge with remote working is the discovery of the “right” talent. Every company has limited technical recruiters. Besides catering to all HR-related needs of employees, it will be a gruesome task for HR departments to do a massive scale employee hunt for remote hires and deal with all intricacies.
- Every country has different labor and tax laws, and work regulations. Current HR teams don’t specialize in understanding the legal requirements of different countries. Besides, it is not humanly possible for a single department to get into the nitty-gritty of every country’s laws.
- The culture and language gap can also play a significant obstacle in remote working. So HR teams need to understand diverse work cultures to assimilate talent seamlessly.
Solution for Remote Working Challenges:
It is a famous phrase that “New Problems require New Solutions.” HR teams can overcome the above issues by closely collaborating with the new-age remote talent marketplace like ellow.io. These platforms specialize in hunting remote talent globally, vetting them and getting them on board. Furthermore, a remote talent-hiring platform like ellow.io will help HR managers to match the “right man for the right job” not just from technical skills but other skills like communication, fitment to culture, etc. They will save the hustle of understanding legal requirements and short-listing candidates from multiple geographical locations. With the help of new-age remote-talent hiring platforms, HR managers can find the most suitable candidate according to the company’s work environment and culture.
Undoubtedly, the remote working trend is just in the beginning phase, but it is here to stay. Everything comes with its pros and cons. But, to exploit the full advantage of remote working, governments have to make laws and regulations for remote foreign workers. The HR departments have to work closely with new-age remote talent-hiring platforms to create a sense of inclusivity in a diverse workforce across boundaries. For many organizations, they have to re-engineer their work SOPs to cater to remote work.