How to Assess the Cost-Effectiveness of Remote Staffing
Remote staffing has become one of the go-to models for businesses today, and it's easy to see why—it's incredibly cost-effective.
With the world more connected than ever, businesses can scale without breaking the bank. Instead of worrying about overhead costs like office space and equipment, companies can tap into a pool of remote talent. Plus, did you know that 40% of remote employees work longer hours?
Whether it’s a virtual assistant in the Philippines or experts in finance, accounting, healthcare, and beyond, remote staffing opens up many opportunities.
In this blog, we'll examine why remote staffing is a smart choice for businesses looking to scale efficiently.
A Break Down on the Costs of Local Hires
Hiring locally can be a great way to build your team and support your local economy. However, costs can quickly add up. The average cost per hire increased from $4129 in 2019 to $4,700 in 2023.
While local hires may offer benefits, businesses can still find it challenging to swallow their financial expenses.
Salaries and benefits
Salaries are usually the first expense that comes to mind when hiring locally and certainly take a good chunk out of your hiring budget. Depending on the industry and location, salaries for specialized skills can vary wildly.
But wait, there’s still your employee benefits.
These include health insurance, retirement plans, paid time off, and other perks. On average, they cost businesses about $13.04 per hour worked.
Other overhead costs
On top of payroll and employee benefits, hiring local employees comes with other overhead costs that can sneak up on you. These are the indirect expenses that aren’t tied directly to creating your product or service, like:
- Rent
- Business insurance
- Utilities
- Office supplies and equipment
- Administrative salaries
It’s easy to overlook these, but they can add up quickly!
Recruitment, onboarding, and training expenses
Having an HR expert might make you think recruitment costs you nothing—but that’s far from the truth. From advertising the role to conducting interviews, testing technical skills, and running background checks, you’re already dipping into your hiring budget.
And it doesn’t stop there!
Onboarding brings its own set of expenses, including paperwork, training, and the time it takes to fully integrate your new hire.
Did you know that the hours managers spend training new employees cost companies an average of $1,252 per hire? And that’s just the training!
Onboarding paperwork alone can take up about 10 hours of HR time, and new hires often don’t feel fully comfortable in their role until after 8 to 26 weeks.
These costs, whether direct (hard costs) or indirect (soft costs), can add up quickly and make a serious impact on your budget.
What Does It Cost to Hire Remotely?
What does it really cost to hire remotely, and more importantly, how can it save you money compared to traditional local hires?
Competitive salaries
One of the biggest advantages of hiring remote talent is the ability to offer competitive salaries without breaking the bank.
When you hire from countries like the Philippines, you can offer compensation that aligns with their lower cost of living. This means you can hire highly skilled talent—often for a fraction of the cost.
Instead of spending hundreds of dollars on a less experienced executive, you can tap into specialized expertise and save up to 80% on labor costs.
Little to no office-related expenses
With a remote team, you can say goodbye to worries about office rent, buying ergonomic desks and chairs, and covering other equipment and utility costs.
In fact, the only "office" you may need to provide is a laptop and an internet connection—making it an incredibly cost-effective solution compared to traditional on-site setups.
Lower recruitment costs
Your recruitment costs drop significantly when you hire remote talent. Since you're not tied to a specific location, you get to cast a wider net and find the best talent, no matter where they are.
And if you’d rather skip the “unsexy” HR stuff, you can hire through a remote staffing agency like MultiplyMii.
Do away with lengthy hiring processes, training, and employee downtime
The training and onboarding phase can take weeks or even months, and during that time, your new hire isn’t fully productive.
With remote hiring, get access to pre-vetted talent who are ready to jump into their roles, saving you both time and money during the interview process.
Plus, with remote work management tools and platforms, you get to encourage collaboration with your local and remote teams.
What Businesses Gain from Remote Staffing
Now that we’ve looked at the costs, let’s talk about what businesses gain from remote staffing. The savings are clear, but there are so many additional benefits that make remote teams a smart, long-term investment.
Gets access to specialized skills
Need specialized expertise but struggling to find the right fit locally? Remote hiring gives you access to the exact skills you need!
As the world becomes more connected, expanding your operations through remote hiring lets you tap into talent pools from other countries. This means you can hire specialized experts—whether it's experienced CPAs, skilled IT professionals, or other hard-to-find talent—that might not be available locally.
Increases flexibility and scalability
Remote teams provide the flexibility your local teams can’t match.
Whether you need to scale up quickly for a big project or scale back during off-peak periods, remote staffing makes it easy to adjust your workforce without the headaches of hiring or laying off employees.
Allows for delegation
Whether handling day-to-day administrative duties or overseeing specialized functions like digital marketing or software development, remote employees can take on the bulk of the workload.
This allows your local team to concentrate on higher-value activities that drive business growth.
Improves employee retention
Remote employees often enjoy a better work-life balance compared to their onsite counterparts, and there’s real merit to that.
Take Amazon, for example—its aggressive push to require employees to return to the office, scrapping its hybrid work setup in favor of a full-time, five-day onsite model, has sparked backlash.
About 73% of employees have said they’re considering looking for a new job following the eCommerce giant’s recent memo announcing the return-to-office mandate.
Provides an adaptable setup
Whether you need a virtual assistant in the Philippines or a marketing manager in the US, you can set up a seamless team with individuals who bring their tools, experience, and expertise.
This flexibility makes it easier to stay ahead of the curve and quickly adapt to new business demands, ensuring your team is always ready for what’s next.
Discover What Remote Staffing Can Do for Your Business
Looking to take your business to the next level?
Partner with MultiplyMii and unlock the true power of remote staffing!
Whether you’re looking to hire a virtual assistant in the Philippines or bring in specialized talent, we’ve got you covered. With our experience hiring Filipino talent for global businesses, you get to connect with highly skilled remote professionals who are ready to help drive your business forward.
Ready to focus on what truly matters? Reach out to our team and get started today!
