Remote hiring isn’t just a stopgap measure – it’s here to stay

US$18 trillion.

According to a report by Boston Consulting Group (BCG) last year, that’s the potential global gross domestic product loss between 2021 and 2025 if 25 of the largest economies in the world can’t find enough workers to meet their employment needs.

“It will only get worse as the deficit between new technology and the necessary skilled labor to support that grows,” says Charles Ferguson, general manager of Asia Pacific at employer-of-record firm Globalization Partners.

Charles Ferguson, general manager of Asia Pacific at Globalization Partners / Photo credit: Globalization Partners

Singapore, for example, will see its shortage of skilled workers reach 1.1 million by 2030.

To address this, several governments are upskilling and reskilling their existing workforce, but doing so takes time, effort, and money.

“This isn’t The Matrix. You can’t just sit down in a chair, get uploaded with a bunch of new skills, and suddenly learn kung fu,” Ferguson points out.

Given this hurdle, remote hiring has emerged as a growing alternative to address the employment gap. However, many businesses still have misconceptions about what it can bring to the table.

Busting myths about remote hiring

One of the common misconceptions held by companies is that remote hiring is only a temporary measure in response to the pandemic, and there’s no need to change their hiring processes because things will eventually go back to normal, Ferguson says. And should things go back to normal, some companies might “overcorrect” back to the state they were in pre-pandemic, believing that it gives them better control and productivity.

According to Ferguson, this could not be further from the truth.

He explains how companies that “don’t believe they’re going to be more productive or that they think they’re going to be less productive in this remote construct are just not paying attention to the reality.”

He also points out that there are “reams of data” showing that remote workers are more likely to be satisfied, which leads to an increase in productivity. A report from Forbes showed that remote workers are 35%-40% more productive than on-site workers, with 41% fewer instances of absenteeism.

Photo credit: Jason Strull via Unsplash

The increasing automation of work processes also means that companies and their employees have the ability to allocate work more efficiently. Employees could use the time normally spent on commuting or external commitments to provide value-added work instead.

Another common misconception is the idea that remote hiring is only about implementing a new capability. Ferguson believes that companies also need to be able to reevaluate their values, vision, and mission.

“One of the key drivers of the younger workforce is to find and embrace places of work that have a purpose, that really resonate with them, and are making a difference,” he explains. “If you’re resting on 20-year-old values, visions, and missions, you could conceivably miss that opportunity to attract great talent.”

Companies also need to revisit their criteria and look beyond just hard skills and competencies. Ferguson adds: “You hire for attitude and you train for skill.”

He highlighted important characteristics like having the determination to push through the “crazy” unprecedented working conditions of today, as well as having the empathy to be able to connect with others even while working remotely.

Of course, boosting the bottom line is also a plus point. By improving diversity and work culture, it’s been reported that companies can see improvements in what BCG calls “innovation revenue”, which refers to revenue that a company generates from new or enhanced offerings it launched in the past three years.

Knowing where to look

When looking to hire remotely, emerging economies could hold the key to expanding the available pool of talent and future-proofing a business.

According to a study conducted by Oxford Economics this year, the majority of the world’s college graduates come from seven top emerging countries: Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. Within the next decade, these countries’ share in the world’s college graduates is expected to rise from the current 54% to 60%.

Photo credit: Caleb Woods via Unsplash

Ferguson also notes that companies need to be aware of their own needs when looking to hire remotely. Sri Lanka, for example, could prove to be a treasure trove for accounting and financial businesses.

“There is a huge investment being made by [Sri Lanka’s] government in accounting and finance to educate and certify market accountants and finance professionals,” the managing director says.

On the other hand, countries like Vietnam, Bangladesh, Myanmar, Thailand, and Indonesia are a goldmine for open-source software developers. According to Ferguson, many of these countries typically did not have access to more expensive technology in the past. As a result, free software became the focus and rose in prominence.

Taking the first step

Still, companies implementing the remote hiring process on their own could find it difficult, especially for those trying to go about it the “traditional way,” says Ferguson.

It entails a large amount of research on the company’s part to navigate the relevant regulations in a new environment – labor contracts, payroll organization, and the process of contributing to local statutory benefits all need to be taken into account.

This makes the internal process a long and tedious affair ranging from anywhere between six months to a year, with disastrous results should companies run afoul of the law, says Ferguson.

To overcome this, employer-of-record firms like Globalization Partners help to grease the wheels by providing all the necessary resources and expertise in remote hiring.

This support lasts throughout the entire employee’s life cycle, from the time they get onboarded until they leave the company. It includes areas such as administrative support for salary and employee benefits, payroll management, and core functions like employee data protection and management.

The company’s global employment platform also has extremely strong coverage spanning 187 countries, with its own experts providing the needed guidance for each territory, says Ferguson.

Setting it in stone

With the labor market reaching more of an equilibrium between market expansion and companies looking to hire talent, Ferguson believes that remote hiring will see strong growth as more people see its positive impact.

Current digital trends will also have implications on what future generations expect from employers, he adds.

“How many people are going to enter into the workforce coming out of university this year? The entire experience they’ve had until now is virtual,” he says. “This is the way it’s going to work moving forward.”

Globalization Partners enables companies to hire global remote teams in a matter of days with its AI-driven and fully compliant global employment platform.

Learn more about how it can help your global hiring needs by visiting the Globalization Partners website.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.