The rise of digital technologies has made remote work arrangements a more viable option for many businesses, but this work setup was more of an exception to the rule rather than the norm for a long time. The COVID-19 pandemic changed all this by showing exactly how, when used the right way, such an unconventional work setup can help teams maintain and even improve their productivity levels. Many of the companies that leveraged remote work environments were able to continue their operations relatively unscathed by strict lockdowns. Moreover, they discovered early on how to fully harness the financial benefits of employing remote workers. It’s a goal that can be accomplished by scouting global talents and acquiring tools that can help their team members work cohesively despite the distance.
It’s been some time since many companies fully embraced remote work, and now is as good a time as any to examine how this move has affected their finances. Here are some of the most important financial considerations of businesses that manage a remote team of workers.
The Need for Financial Services That Facilitate Cross-Border Payments
Companies that are open to remote workers have the freedom to hire people from all over the world. To successfully recruit global talents and start their operations in other countries, however, a company has to partner with a dependable financial services provider that makes use of an efficient digital banking software to manage cross-border payments.
Cross-border payments refer to financial transactions where the payer and payee are in different countries, and it’s a function that enables companies to stay on top of their finances, regardless of their distance from their remote teams. This ability is key to processing payments and bills from a wide range of customers, suppliers, and service providers from all over the world. It also enables companies to pay employees who are based in other countries. Businesses that employ remote workers look to modern banks to make cross-border payments more affordable, accessible, and reliable for their global team.
Reduced Rental Expenses and Increased Cost of Supporting Remote Workers
Perhaps the most obvious financial impact of employing a remote team is that it eliminates the need for a business to rent a large office just to give its team members a space where they can be productive. The money that’s saved from renting an office and maintaining its utilities can then be redirected to providing team members with a much better home office setup. For example, the company can offer its team members the option to upgrade their computers, desks, or chairs after a period of time. It’s also an option for the company to set aside a certain amount of money to cover the cost of their team members’ internet services subscription.
Higher Financial Investment in Work Culture and Employee Activities
It can be a significant challenge to foster a strong company culture when most of the team members are working remotely. Adopting a shared ethos is best done in a shared environment—which is the digital sphere for most teams of remote workers. To keep remote team members aligned with the values, beliefs, and goals of the company, it’s of utmost importance for managers to reinforce online and offline activities and events that support company culture.
Among the activities that promote work culture are peer mentoring programs, events to celebrate the company’s achievements, and increased efforts to establish common goals and missions within the team. A company that employs remote real estate virtual assistants, for example, can set a monthly event to recognise the accomplishments of its well-performing team members. These activities require a boost of resources from the company so that they can reach and impact remote workers.
The Cost of Greater Dependence on Digital Tools and Service Subscriptions
Digital working environments and real-time communication channels are essential to the operations of a remote team. Should these tools fail, it would be quite difficult for the team members who are working remotely to fulfil their individual tasks and collaborate to reach their shared goals. It’s a must for companies, then, to invest in reliable and user-friendly communication tools and digital work environments for their remote team members.
While the team may use asynchronous communication tools such as chat boxes, emails, and messaging apps to touch base on their projects, it’s still a must for the members to be able to use other modes of real-time communication when the situation demands it. Video conferencing software and phone calls, for example, should always be made available to the remote team members in case they need to bring up a topic that requires immediate attention. Often, these tools are available to companies on a subscription basis.
An Opportunity to Improve Team Productivity and Nurture a Culture of Innovation
Adopting a remote work setup often enables companies to enjoy greater levels of productivity. Many employees appreciate the fact that they no longer have to commute to and from work, and this saves them time and energy. Instead of using these resources in the act of heading to the office, remote workers are now able to direct the majority of their efforts into the work that they are expected to accomplish as part of the team. In addition, they can also devote their free time to finding novel solutions for existing problems and inefficiencies in the system that the company is using. Such efforts can help the company accomplish more, streamline its processes, and save more money in the long run.
Remote offices are changing the way people work, but it’s also making great changes in how companies around the world allocate their financial resources. Shifting to a remote work setup has its particular challenges, some of which require more investment from the company. The good news is that these difficulties come with opportunities to find the right people, bring down certain expenses, and dedicate more resources to activities that directly impact the performance and long-term profitability of a modern business.