Telecommuting is the 21st-century quick fix for reducing costs and boosting efficiency

Teleworking, telecommuting and remote-working are drawing the attention from startups and even established companies given their ability to provide numerous advantages for various types of businesses.

Telecommuting, though, is not suitable for all kinds of businesses. It also does not always work for all employees. However, you’ll probably be surprised that there are many businesses that don’t appear to be teleworking-compatible but would actually hire thousands of telecommuting employees.

Here are some examples:

  • Retail and manufacturing companies such as Amazon and Sears hire telecommuters to handle customer service and marketing tasks.
  • Banks and other financial service companies, which are usually associated with tellers and busy back-office workers, similarly hire teleworkers also for customer service and marketing purposes.
  • Business service companies such as Accenture and RAND Corporation also hire telecommuters. In fact, Accenture is notable for having one of the highest numbers of telecommuters. The company operates BPO offices (hiring traditional in-office employees) in a number of locations, but its workforce also has a significant percentage of regular telecommuters.
  • Even health, pharmaceutical, and health insurance companies such as Aetna, Health Net, and United Health Group regularly hire remote workers.

The point here is that telecommuting has its place in many kinds of businesses. It’s something that should not be quickly dismissed as an option, especially amongst startups. So, going back to the question in this post’s title, here are three of the most compelling points that make telecommuting the future of startups.

Cost reduction

Telecommuting does not only lower operating costs but also some capital outlays. Since a telecommuter works from home or from some other remote location, the need for office space is reduced or it may even be eliminated.

Huffpost has an interesting article on employee costs often forgotten, which approximates that employers may spend around US$65 per month for each employee for snacks/perks, US$6,900 per month for office space (for non-executive employees), and around US$30.84 per hour for employee benefits.

Also Read: Forget founders, here are 12 tips to being a successful startup employee

The actual costs for many startups may not be as much as the amounts indicated here. However, it’s still going to accumulate to a good amount of savings if a company decides to hire telecommuters.

In other words, a startup is bound to significantly reduce operation costs by not having employees work in a traditional office-based setup. These don’t even include the electricity costs attributable to computer use and air-conditioning.

On the other hand, startups can also cut down on capital expenditure by choosing remote workers. These capital expenses include the cost of acquiring new computers, software, office furniture, and fixtures. Based on Statista’s figures, computers cost around US$632 in 2019 while the price of cheap office tables on Amazon start at US$39. Office fixtures can go by the thousands.

No startup should disregard the cost advantage of telecommuting. This reduction in expenses may only be foregone if the required employees are to hold duties that cannot be done over the Internet.

Positive impact on job performance

A recent study by Florida International University found that teleworking contributes to job performance improvement especially when it comes to complex jobs. It has some negative impact, but it’s too minimal to mean anything even for jobs that typically involve frequent interaction and communication with co-workers and bosses.

Telecommuting’s benefits, for many, are usually tied to work-personal life balance. The researchers, however, emphasized how it goes way beyond the advantage of work schedule flexibility. The researchers discovered something particularly surprising – telecommuting has boosted job performance in cases when there was low social support from managers and co-workers.

This suggests that the lack or minimal personal relationships serve as a shield for employees against the negative impact of unsupportive work relationships.

It’s also an added benefit that teleworking is associated with the following:

  • Fewer absences
  • Greater employee satisfaction
  • Better health
  • Less stress

When working means simply going to the computer (or getting the laptop), there’s barely any reason to miss work. Working from home also means less exposure to polluted environments and unhealthy relationships with officemates or toxic office politics, which entails fewer instances to be stressed.

All of these bode well for startups as the managers or owners of newly established businesses rarely have the time and resources to nurture employee relationships (i.e. no team-building or employee incentives). Most of the time, their focus is on sustaining and growing the business.

Having employees who do well with complex tasks despite the lack of social support is certainly advantageous to startups.

Broader options for recruitment

It’s a no brainer – you can find considerably more high-quality candidates for a job post if you take away the geographical limit. Why make do with the best among mediocre locally-based candidates when you can hire the best job-seekers from different parts of the world?

Almost all job sites in different parts of the world take into account the telecommuting option. From Monster to Indeed, CareerBuilder, GlassDoor, and SimplyHired, it’s virtually impossible to not find telecommuting job openings. This only suggests that remote work is already a widely accepted setup.

There are also platforms particularly created for teleworkers. Sites such as Upwork don’t only allow jobseekers to look for jobs or employers to post job opportunities. They also provide a system to make sure that those who get hired are paid, and those who refuse to pay or work effectively are penalised for their undesirable actions.

With these, proficient workers no longer have to worry that the job they are applying for could be a scam hence they are more open to doing telecommuting jobs.

Moreover, it’s also now easier to find qualified employees online and verify their credentials. There’s just no excuse to consider hiring telecommuters even if they are based overseas,

There may be some challenges when it comes to the language barrier and cultural differences, but these can be easily addressed. The world, after all, is getting globalised that many are adapting to what the circumstances present and what job opportunities require.

Also Read: Cultivating innovation within the company

Startups wouldn’t go as far as hiring an interpreter to communicate with remote employees in the same way they would hire a business translations specialist to deal with clients. Still, these new companies are willing to tolerate language difficulties as long as they can hire someone with outstanding skills useful for the core operations of their respective businesses.

Language proficiency only matters when the job involves a perfect grasp of a specific language like creative writing, copywriting, and research.

The takeaway

There are three main points that support the idea that startups should consider telecommuting. These pertain to business costs, employee productivity, and access to a greater (global) pool of talents.

It’s important to remember, however, that hiring telecommuters do not automatically mean reduced operating and capital expenses, effective and satisfied employees, and access to the best workers in the world.

For these advantages to materialise, it’s important to carefully screen applicants to make sure they are suited for a remote work arrangement. Additionally, the setup should be carefully monitored to guide employees and implement policies or mechanisms that prevent the telecommuting setup from becoming a handicap.

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