The Future of Remote Hiring and Working

Throughout history, the most pivotal watershed moments are often followed by almost irreversible change - either in our actions or the way we perceive certain issues. The events of the last two years have undoubtedly shaped the way in which companies do business and the manner in which workers think about the concept of work. This is where the seed of remote working has taken root, at the forefront of our consciousness now that it has become a mainstay.

Prior to the onset of the pandemic, the momentum for the offshore hiring narrative had been slowly but steadily gaining momentum. However, the onset of COVID-19 only helped to accelerate this practice and further raise its visibility and viability in the business world.?

One of the key drivers for the uptake of this practice is the global tech crunch that has been felt across the globe. Pulling some numbers from a report done by management consulting firm Korn Ferry, estimates indicate that by 2030, there will be a global shortage of more than 85 million tech workers, representing $8.5 trillion in lost annual revenue. The economies expected to be the most affected are Brazil, Indonesia and Japan, which could face shortages of up to 18 million workers apiece. The United States and Russia are expected to be short six million workers each, while China could face a deficit of 12 million.

Companies are finding it increasingly challenging to meet their hiring needs, even before they take into account the limitations of the markets they are working in in addition to the skill gap that exists between their expectations and the capabilities of the existing workforce.

Too good to be true?

A decentralised working arrangement is first and foremost a highly efficient way to scale operations while keeping costs manageable. To date, the most common adopters of this popular arrangement have been startups who have found success with it not only in their formative years, but even later in their company life cycle. However, the pandemic has pushed numerous organisations in the region towards this trend at an increased pace.

Taking data from the Southeast Asia Tech Talent Compensation Report, the difference in pay range for a position such as a Junior Backend Developer varies from $500 USD in Indonesia to $2400 USD in Singapore. This represents a significant amount of cost savings for just a single employee, imagine if this was scaled for an entire team. The tech talent pool in a country such as Indonesia is also significantly larger compared to Singapore, thereby potentially shortening the time taken to identify suitable prospects. Another consideration to bear in mind is the opportunity cost that such labour expenses incur. By saving on hiring costs, additional resources can be funneled into functions such as Marketing or redirected into technical infrastructure upgrades.

What about others who don't fit the startup mold, can they hope to make offshoring part of hiring strategy? Cost efficiency is the backbone of any financially sound company, and this rings true even more so for younger ones who lack resources. It makes sense to utilise the cheapest sources to achieve the most optimal results. More mature companies can take a page out of this playbook and consider integrating these practices into selected business functions to begin with, before introducing them to the rest of the organisation.

Backtracking to the point made earlier about the global talent supply issues, because everyone is vying for a common pool of talent, it is only logical to cast the net wider in the search for someone suitable. This is the impact that borderless hiring can bring - endless possibilities.

Pitfalls of success

While it is easy to espouse the merits of offshore arrangements, expectations need to be kept in check. There needs to be a constant reminder of the costs that these endeavours entail. The reality remains that looking beyond local shores translates to one less job being created locally, and this will always be a point of contention for many who feel that all local options should be exhausted before looking to foreign shores.

Surveys conducted on this issue also point to the fact that many are beginning to feel alienated from their colleagues due to the lack of physical interaction. The importance of a human touch cannot be underestimated in the organisation and team building process, in addition to fulfilling the need for social interaction. While the future is digital, nothing can replace the collaborative spirit and warmth of a shared working environment.

As an article in The Atlantic highlighted, remote working is a path that leads to loneliness, and with it other issues like depression, substance abuse, sedentary behavior, and relationship damage. Loneliness is the primary issue affecting remote workers with many indicating that an office environment is one of their primary means of establishing social ties.

Shifting the status quo

Change is never easy regardless of the form it takes, and this cannot be further stressed when making a case for offshore hiring. What may once have seemed alien, is now the core that is increasingly powering numerous organisations, size notwithstanding.

Leaders have spoken at length about the common challenges they encounter during their tenures, and one common recurring theme is the resistance to a cultural change. When people are faced with a new way of working, resistance is to be expected. Whether this stems from fear or a lack of understanding, or perhaps being so rooted in tradition that it cultivates a sort of tunnel vision.

While an optimal solution does not exist, leaders can ease their workforce into this new normal by conveying the reasons for this new practice alongside its many benefits. The importance of small victories over time and gradual change cannot be stressed enough, while implementations should not feel rushed or forced.

Looking to the future

So what now? Should organisations from startups to MNC’s start wholeheartedly embracing this new normal or is there some room for compromise? With any successful strategy, the key to answering this lies primarily in understanding the people that surround you. It goes without saying that there are some workforce compositions that work better than others in a remote working environment.?

Consider an established company with a mature workforce looking to transition into the digital age with the help of some fresh tech talent, they would fare better by having someone around to help ease them into this uncharted territory. In contrast, a startup which does not have roots in a specific market could easily implement remote working arrangements without much resistance.

The middle ground which seems to please all parties however is a sort of hybrid arrangement, where only specific functions or teams work remotely. Some companies also implement arrangements which see a predetermined percentage of their teams working locally, while the remainder are offshore.

Regardless of what path you settle on, know that remote hiring is here to stay and brings with it numerous benefits that work well with organisations of most ages and sizes.