In today's fast-paced market, the ability to access a global talent pool can prove to be a game-changer for any organization. One effective way to tap into this pool of talent is by hiring remote employees who possess specialized skills that may be hard to find or too expensive to acquire locally.
However, managing remote workers can be challenging, espeically if you are not familiar with the intricacies of this type of work environment. Recruiting and retaining remote workers requires a nuanced approach that accounts for the unique complexities involved in working with a distributed team.
Is your company ready for it?
In this article, we will explore different ways you can effectively engage with remote workers and tap into the vast global talent pool.
Employer of Record
Opening a foreign entity may not be the best use of time or money for certain companies. It is frequently easier and more cost-effective to partner with an Employer of Record (EOR) that already has established entities in the countries where they want to hire. Among the many benefits of EORs are the reduced costs and complexity of worldwide employment. Hiring managers must also be aware of the hazards of misclassifying workers or violating labor regulations in foreign nations.
Benefits of hiring an Employer of Record:
Time Efficiency. With EOR vendors, business owners can find talent abroad and start working on projects right away, without having to cut corners.
Perfectly Compliant. EOR agencies understand local labor laws and business statutes and ensure all processes within a company are compliant. In the event of breach of law, the EOR will be responsible, not the business owner.
Flexibility. A high degree of flexibility is provided by EOR agencies when it comes to exploring new markets and closing global offices when the collaboration is no longer beneficial.
Cost Saving. By hiring an EOR, business owners can save money on hiring financial, HR, and legal consultants. EOR agencies offer a high degree of flexibility in exploring new markets and closing global offices when the collaboration is not as beneficial without having to worry about upkeep and HQ closure costs.
Less Control. Hiring another company to handle the recruitment process can leave you with less power over the employee onboarding process.
Weaken Internal HR. Using EOR services can take a lot of work from your HR team. It could lead to the outsourcing of too many jobs, causing your HR department to gradually fall behind. In order to ensure everyone grows along with the company, consider shifting your in-house HR department toward learning and development when you hire global employers through employer of record services.
Changes in Company Culture. Using EOR can have an impact on your corporate culture in general, causing some hindrances. So, it’s important to think about your company’s future vision and whether outsourcing your onboarding processes is the right way to go.
By hiring freelancers through freelancers’ marketplace, companies can scale their business and reach new markets. Currently, 34% of the global workforce consists of freelancers, and it is estimated that there will be 14% more freelancing projects over the next six years.
Benefits of Freelancing platforms:
A freelancer platform streamlines and expedites the process of finding and contracting with a freelancer or client.
Scammers are kept at bay by freelancing platforms' tight restrictions and rigorous registration processes. As a result, these platforms ensure the security as well as the timely and accurate payment of projects.
Using an online freelance platform broadens the options for both freelancers and businesses, allowing them to easily locate exactly what they are searching for.
Some online platforms offer effective features for tracking work time and results.
The most prominent characteristic of online freelance platforms is their ability to simplify the payroll process. Freelance platforms offer a safe payment method that prevents late payments.
Most freelance platforms charge commissions, which might eat into the savings you get from employing a freelancer. Furthermore, the seller's offered price may not reflect the quality or work required to accomplish the project.
Some market gig platforms exercise less control over their listings and service provider profiles, which frequently leads to companies being duped.
Freelancing platforms may lack a framework for assessing freelancers’ performance. Other customers' ratings and reviews can be deceptive and irrelevant to your organization's needs. Clients have no way of knowing whether a freelancer they hire is competent, trustworthy, or safe to work with.
Some freelancing sites make it difficult for freelancers to communicate with clients. This communication barrier can hamper the quality of work.
Outsourcing projects to a third party
Outsourcing is another approach companies can consider for specific tasks to reduce costs and improve efficiencies. Outsourcing might entail utilizing a third-party provider, such as IBM for IT services or FedEx Supply Chain for third-party logistical services.
Companies that choose to outsource rely on the skill of third-party suppliers in performing the outsourced services to reap these benefits. In light of these advantages, organizations often outsource supporting functions within their organizations in order to focus their resources more specifically on their core competencies, thus gaining a competitive advantage in the marketplace.
Broadly there are a few different types based on the distance between the two members of the relationship:
Onshoring: Relocating work or services to a lower-cost location in the company's own country.
Offshoring: Relocating work or services to third-party providers overseas.
Nearshoring: Relocating work or services to people in nearby, often bordering regions and countries.
Pros of outsourcing:
Outsourcing allows your company to focus on its strengths, allowing your employees to focus on their primary activities and future plan.
Choosing an outsourcing firm that specializes in the process or service you want them to perform for you will help to achieve a more productive, efficient, and higher-quality service.
Outsourcing might help you free up funds for investment in other areas of your organization by reducing costs.
Outsourcing can provide you with access to capabilities and facilities that would otherwise be unavailable or too expensive.
Outsourcing can also help your company become more flexible and agile, allowing it to react to changing market conditions and problems while saving money and improving service levels.
Disadvantages of outsourcing:
Service delivery may be late or fall short of expectations.
Confidentiality and security may be jeopardized.
Due to a lack of flexibility; the contract may be too restrictive to meet change in management challenges.
Hidden costs associated with provider selection or handover.
Difficulty in managing the offshore relationship due to time zones, different languages, or other factors.
The hiring process for remote talents is complicated, but with the right approach and strategy, it cam bring immense benefits to your organizations. Meanwhile, it’s essential for businesses and organizations to be clear about your HR needs and visions before deciding on the best approach.
Are you looking forremote talents to scale your business? Lynk has made the process extremely straightforward and cost-effective. Schedule a call today to learn more!