Successfully managing a remote team takes some effort and requires rethinking typical office culture and processes. But the returns can far outweigh the effort. There are two main ways that building a remote team can benefit your company.
1. It helps you recruit the best talent in the world
When you’re not limited to the workers in your ZIP code, you can expand your search to find the best fit for the job and your company. This makes it much easier to land the coveted 10x workers. The Pareto Effect states that 20% of individuals produce between 80% and 98% of the output. This effect applies across all industries; it’s been found to be true for scientific discoveries, entrepreneurial pursuits and overall productivity.
It’s clear that FAANG companies believe in the Pareto Effect by the way they pay top 2% engineers. By expanding your talent hunt globally, you can recruit more of these high-octane stars. However, going remote won’t necessarily save startups money as exceptional talent requires exceptional pay. Remote top talents may earn slightly less than those who work in Silicon Valley due to the cost of living differences, but the cost difference is spent flying teams out to headquarters several times a year. For startups, going remote is mainly about accessing the best talent.
Fortune 1000 companies worldwide are restructuring their offices around employees’ de facto preferences. About 80% to 90% of the U.S. workforce reports that they would like to work remotely at least part-time, and studies show that workers’ desks are vacant at least half of the time.
The gig economy, coupled with tech tools that enable collaboration, and the hyper-competitive recruiting market found in heavy tech locations, all combine to create an opportunity for companies seeking exceptional talent. Remote workforces are here to stay.
2. It helps you supercharge your business’s growth
Let’s say your company has a goal of doubling its revenue each year for the first three to five years after launching its product. This is a top 2% outcome, so you’ll need top 2% workers to achieve that goal. However, you will be competing with other technology products across the nation or globe. So, if your most critical input is talent, how can you compete with global products with a local workforce?
You can’t. You will see a shortage of possible candidates in any local market if you require the top 1% to 2% talent, especially if you require specialized (e.g., domain knowledge) skills for any key functions. Hiring only local employees will become a barrier to success. Scaling at unnatural speeds requires you to tap into the national and even global pool of talent.
To support Moovweb’s tremendous growth while maintaining our bar for top talent, we shifted all but 20% of our team out of the San Francisco Bay Area. Going remote was a key enabler for our rapid growth. The money we’ve saved on San Francisco office costs goes toward salaries, marketing, recruiting and other business functions that actually translate to revenue growth.
In addition to saving money, your employees will save time because they won’t have to commute. Commute time is a beast, especially in big cities. The average commute in the U.S. is now nearly an hour a day. That translates to five hours of dead time each week. Remote teams, however, don’t have to commute, giving them back an hour a day they can use to complete the work needed to create the innovative products and solutions that will lead to your company’s growth. Moreover, the top 1% to 2% of workers acutely understand the value of their time and know that even an hour spent commuting is not the best way for the world to see the impact of their talent. They’d rather spend that time working or with family or friends.
Remote work is the future, and tech tools are making it easier than ever for companies to find success with a decentralized model. Workers benefit, but so do the companies employing them. With a larger talent pool to draw from, you can attract top talent for less and reach new revenue heights.