Most academics define today’s business world as Volatile, Uncertainty, Complex, and Ambiguous, we face a VUCA environment. The companies that we used to know as the biggest lost their place to companies that have less than 20 years in the market, some startups as well are growing at a scale never seen before.
Adapted from: (Pitchbook, 2019), rounded figures
Because of COVID-19, we are facing some important changes that will redefine how we will work in the future. Companies have lost the fear of working remotely. According to Gartner, 74% or, nearly 3 of 4 companies are permanently shifting at least part of the team of previously on-site employees to permanently remote positions post-COVID 19. (Gartner, 2020)
Adapted from (Gartner, 2020), rounded figures
But, have companies measured the benefits of hiring remote workers? Is this economically justified? The (World Economic Forum, 2020) already pointed to workplace flexibility as a critical topic in the future of work.
The topic of the future of work is generating lots of attention. Some reports from companies already showed some benefits from remote working, but to ensure the information of this article is pure credible and not biased, Laurel Farrer, an editor from (Forbes, 2020) took a collection of statistics from the world’s leading research institutions, including Gallup, Harvard University, Global Workplace Analytics, and Stanford University. All of these researchers pointed out that workplace flexibility will boost these 5 categories.
The Global Workplace Analytics has proved that hiring a remote worker brings savings for the company, the worker, and the environment, companies can save at least $11.000 USD.
Adapted from (Global Workplace Analytics, 2020)
According to Stanford University (Bloom, 2015, 165-218), in a study made to up to 16.000 employees, Flexible workers are an average of 35%-40% more productive than workers from the office.
According to the previously mentioned study, the productivity of flexible workers also increases, due to the autonomy and independence workers produce results with 40% fewer quality defects.
According to (Gallup, 2020), there is an increase in engagement and satisfaction from flexible workers, highly engaged workplaces can claim 41% lower absenteeism, 40% fewer quality defects, and 21% higher profitability.
54% of office workers say they´d leave their job for one that offers flexible work time. This means a 12% turnover reduction after a remote work agreement is offered.
Bonus – Hire the talent that fits your budget
Hiring internationally enables the company to access the best possible talent worldwide for any specific case, any data science that processes algorithms or predictions, any manager with more than 20 years of experience in any sector or any previous country experience. As well, because of the specific development of each country, payments have huge differences between countries.
Bloom, N. A. (2015, February). Does Working from Home Work? Evidence from a Chinese Experiment. The Quarterly Journal of Economics, 130(1), 165, 218. https://www.gsb.stanford.edu/faculty-research/publications/does-working-home-work-evidence-chinese-experiment
Forbes. (2020, February 12). 5 Proven Benefits Of Remote Work For Companies. Forbes.com. https://www.forbes.com/sites/laurelfarrer/2020/02/12/top-5-benefits-of-remote-work-for-companies/?sh=546e69bc16c8
Gallup. (2020, January 24). Is Working Remotely Effective? Gallup Research Says Yes. Gallup Workplace. https://www.gallup.com/workplace/283985/working-remotely-effective-gallup-research-says-yes.aspx
Gartner. (2020, April 3). Gartner CFO Survey Reveals 74% Intend to Shift Some Employees to Remote Work Permanently. Gartner Newsroom. Retrieved 10 29, 2020, from https://www.gartner.com/en/newsroom/press-releases/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently2
Global Workplace Analytics. (2020, 3 1). Telework Savings Calculator-Lite. ROI Workplace Calculator Toolkit. https://globalworkplaceanalytics.com/
Pitchbook. (2019, August 27). Spiking exit value, massive valuations and 5 other charts about US unicorns. Pitchbook News and Analysis. Retrieved 10 29, 2020, from https://pitchbook.com/news/articles/spiking-exit-value-massive-valuations-and-5-other-charts-about-us-unicorns
World Economic Forum. (2020, January 16). Davos 2020: Here’s what you need to know about the future of work. World Economic Forum. https://www.weforum.org/agenda/2020/01/davos-2020-future-work-jobs-skills-what-to-know/