In recent years, the rise of the internet and advances in communication technology have made so many things possible that would have been completely unfathomable just a mere decade ago.
As the world becomes increasingly interconnected and technology improves, the option to work remotely has become more popular and viable for many businesses. For IT startups, hiring a remote employee can be a tempting option, as it allows for a wider pool of talent to choose from and can potentially save on overhead costs.
However, it’s not always a bed of roses. Just like any other decision, hiring a remote employee for an IT startup comes with its own set of advantages and disadvantages. Imagine it like a coin: on one side, you have the benefits but flip it over and you’ll find a host of challenges and drawbacks. It’s important to weigh both sides of the coin before making a decision that could impact the success of your business.
In this blog, we will explore the pros and cons of hiring a remote employee for an IT startup and offer some suggestions for making the most of this arrangement.
The Benefits of Hiring a Remote Employee for an IT Startup
- Wider Pool of Talent
One of the main benefits of hiring a remote employee is that it allows you to expand your talent pool beyond your local area. This is particularly helpful for IT startups, as the demand for skilled IT professionals often exceeds the supply in certain regions. By hiring a remote employee, IT startups can tap into a global pool of qualified candidates and potentially find the best fit for their company.
Think of it like a treasure hunt, where instead of searching for a single, rare gem in your neighbourhood park, you are able to scour the entire globe for the most precious parure. With offshore staffing companies like Remote Resource (TM), you can cast a wider net and search for the perfect fit for your company, rather than being limited by geography.
This is not to say that the search for a remote employee is without its challenges. Finding the right fit for your company, whether local or remote, always requires careful consideration and due diligence. However, by hiring a remote employee, IT startups have the opportunity to expand their talent pool and potentially find the perfect fit for their company’s needs and goals.
- Cost Savings
Hiring a remote employee can be a cost-effective option for IT startups in several ways.
- Firstly, hiring remote employees allows you the benefit of outsourcing the job to countries with excellent yet cheaper education system like India, where the people might be just as talented as someone from USA or Europe, but would be completely fine with a lower salary due to the difference in currencies and lower PPP (Purchasing Power Parity) of that country. This could allow startups to save up to 50% on their employee wages while still getting the same results!
- Additionally, there are the obvious cost savings associated with not having to provide a physical workspace. This includes expenses such as rent, utilities, and office supplies. These costs can add up quickly, especially for a startup that is still trying to establish itself and build a solid foundation. By hiring a resource from a reliable remote staffing business, you can save on these overhead costs and potentially redirect those resources towards other areas of your business.
- Increased Productivity
What a well-founded offshore staffing company can offer is a guarantee of the best IT resources. Hiring from ISO certified can ensure that your business is in reliable hands, which means only better quality of work, enhanced productivity. Moreover, hiring from companies like Remote Resource™ would mean that you get to work with the resource in your time-zone, which means you retain 100% control over the tasks you want your dedicated resource to accomplish. End result? Increased productivity.
- Data Security
For an IT company, keeping your data safe in the current digital landscape is paramount. But you can shed your stress over data security if you hire from a reliable business. An ISO-certified company will make sure your data is secure from any outside threats. Moreover, they follow stringent non-disclosure norms and use the latest technology to protect your data.
- No Obligatory Term Contracts
If you are an IT startup, a major concern for you would be the obligation to maintain employee salaries and contracts. For any new business it’s important to set up business first without any baggage. However, hiring remotely from a trusted offshoring company you can bypass all these concerns. Businesses like Remote Resource™ offer pay-as-you-go model where you pay only on a monthly basis. And, you can cancel anytime you want with minimal notice periods. So, you can think of it as subscription to a software where you keep renewing it every month but also have the freedom to cancel the subscription when you don’t require it further. You can now have dedicated access to the best of IT talent in the same way.
- No Employee Liabilities or Compliance Hassles
No startup wants to face compliance related hassles or employee liabilities so early on. But remote hiring would mean rescuing your business from any such hassles. So, you will never face attrition issues or negative reviews online about your business.
The Disadvantages of Hiring a Remote Employee for an IT Startup
- Communication Challenges
Effective communication is essential for the success of any business, but it can be especially challenging when working with a remote team. Without the ability to have in-person conversations, it can be more difficult to build trust and rapport, and misunderstandings or miscommunications may occur. This can lead to confusion, delays, and frustration for both the remote employee and the rest of the team.
- Limited in-person Collaboration
In-person collaboration is an important aspect of many businesses, as it allows team members to brainstorm and problem-solve together in real-time. For IT startups, the ability to collaborate and innovate is especially important, as it can help drive the development and success of new products and projects. However, when hiring a remote employee, the lack of in-person collaboration can be a drawback.
- Difficulty in Building Company Culture
Company culture is a key component of many businesses, and it can be especially important for IT startups as they strive to attract and retain top talent. A positive company culture can help foster a sense of community and belonging among employees and can also contribute to overall job satisfaction and productivity. However, building and maintaining company culture can be more challenging with remote employees.
Remote employees may not have the same opportunities to interact with their colleagues or participate in company events, which can make it more difficult for them to feel connected to the company and its values. This can be especially true for IT startups that may rely on in-person gatherings and team-building activities to foster company culture.
- Lack of Proper Oversight
As a startup, it’s important to ensure that all employees are meeting the expectations and goals of the company. This is especially true for IT startups, as the success of their projects and products may depend on the efforts of the entire team. However, when working with remote employees, it can be more difficult to provide oversight and ensure that they are staying on track with their work.
While the disadvantages of remote hiring are real, technology has proven to be the best solution to the problem by bringing the whole business world together. You can now connect with the remote employee through several platforms like email, chat, audio/video chat. It’s almost like working with a person sitting in the next room. Moreover, as the resource would work in your time zone, you would not face availability hassles too.
By communicating regularly and utilizing the tools, remote workers can be included in your business process effectively. It gives them the opportinity to interact freely with other team members too.
And as far as supervision is concerned, the benefit of engaging a trusted offshoring company is that they will ensure the same level of supervision as on-site employees, which means better monitoring of their progress and ensuring that they are meeting their responsibilities.
To Sum it All Up
In summary, while there are certainly challenges to consider when hiring a remote employee for your IT startup, the potential benefits far exceed the disadvantages. By expanding your talent pool and saving on employee and overhead costs, you can find the best fit for your startup allowing increased productivity and enhanced data securing for you IT firm. With effective communication and clear protocols in place, you can successfully navigate any challenges and truly unlock the potential of a remote work arrangement.