COVID-19 moved a big portion of our workforce remote. The latest data shows that 83% of employers say that shifting to remote work was successful, and most plan to keep some form of remote work in place. This has led many employers to wonder whether they even need the kind of real estate they once had. Technology has been the enabler of remote work and that changes who and where we hire. The next big thing, according to predictions, is the rise of a global workforce.
New Workforce/New Rules
According to the data, about 75 million Americans could work from home if the opportunity presented itself. That same data shows about 43% of the workforce was working at home at least some of the time before COVID. Employees say they like remote work and employers are surprised by the productivity that most at-home workers can provide. All of these trends and facts led one global analytics company to predict up to 30% of the workforce at home multiple days each week by the end of this year. Other estimates put the number higher.
How will this change things for employers?
First, there is a potentially massive cost saving associated with cutting the overhead associated with electricity, rent, and other office costs. Employers move these costs to the employee who is running up their own electric and water usage while working at home. While this may not be attractive to the workforce, the savings they gain in avoiding the commute more than makes up for a slightly higher electric bill. Employers say their employees aren’t at their desks 50 to 60% of the time even when they’re in the office. Its money wasted but it can be recouped when employees are work from home. Too, saving on the commute automatically reduces the carbon footprint of your company, something most employers agree they’d like to pursue.
There are also travel costs to consider. The data shows the typical employer can save $11,000 per employee per year if that person works remotely even half of the time. Sales teams that use video conferencing can close deals without traveling. Employees from other offices don’t have to fly in for meetings. Dispersed teams can connect quickly virtually as the new normal to get things done.
One of the biggest areas that will change with the rise of a global workforce is that organizations can expand their recruiting and hiring efforts. This is huge for competitive fields or areas where there’s a talent shortage such as IT. When companies are able to recruit with a wider net, they stimulate local economies and put people back to work. These opportunities can disperse opportunities more widely so everyone can benefit. Employers, in turn, can attract top talent wherever they can find them.
But there are also risks associated with a wider and more global hiring effort.
The Downfalls of a Global Workforce
Managing a global workforce is a risky, time-consuming job. It’s easy to run afoul of regional and state labor laws that constantly change, not to mention rules related to hiring from overseas. Fortunately, companies can form a partnership with FoxHire, an employee of record (EOR) company that specializes in complex hiring arrangements. We are geared for today’s global employment environment. Talk with us today to find out more.