Top 5 reasons why companies adopt remote work

The sure-fire way to cut costs and boost margins is to break down geographical barriers and hire a remote team. Here are five reasons why.

Post author avatar
7 minute read


🙋‍♂️Accessing the best talent: Talent pool increases as you broaden your borders.

👯‍♂️Diversity: A team with different upbringings can come up with more diverse ideas.

🔧Culture: A different, often times better, culture.

💎Work-life integration: Being able to better integrate your life into your work, and vice-versa.

💰Cost: Mainly perceived on the arbitrage on salaries.

The sure-fire way to cut costs and boost margins is to break down geographical barriers and hire a remote team. Here are five reasons why.

Remote work increases talent options

In the next few years, it’s going to be harder to attract and retain the best talents for your workforce.

OwlLab's 2019 State of Remote Work report found that the option to work remotely will greatly influence employees' choice of employers during their job hunt. They've also found that remote workers are 13% more likely to remain at their job for at least 5 years, compared to their office counterparts. 

Zapier's 2019 Remote Work report found that 74% of U.S. knowledge workers would be willing to quit their job to work remotely. 

A 2018 CareerBuilder survey quoted that roughly half of all the hiring managers surveyed (45%) complained they were unable to find talent to fill urgent positions. 86% of their most qualified candidates were either already employed or not looking for jobs – while 40 % of their talented employees planned to leave in the coming year.

The bottom line?

Why settle for expensive, second-rate talent when you can easily pick the candidate of your choice for a fraction of the cost from any of the 195 countries on earth? Remote work increases the size of your talent pool so you can be sure to have the best team, regardless of where they are.

Remote work improves diversity

Breaking down geographic barriers allows for a more diverse team. Countless studies confirm that a mix of backgrounds lead to business success.

Take this study from the Journal of Financial Management. Researchers, Mayer, Whao and Zhao checked the results of 3,000 publicly traded companies in 2001-2014 across nine measures of diversity that included ethnicity, gender and sexual orientations.

The conclusion of the study was solid - higher diversity doubled their average return on investment (ROI) in any given year. Such companies also tended to be more resilient and glaringly more innovative.

A mix of backgrounds tend to derive more original and objective perspectives as they help with problem-solving. On top of that, a more diverse workforce tends to attract more diverse clients. Finally, diverse workforces have a halo effect to attract similarly skilled workers who also want to work for enlightened companies.

Small wonder that the Kalo 50 Best were Fortune 500 companies (like Google, Amazon and Airbnb), where each made it a point to hire freelancers.

Remote work improves culture

The remote culture is very different from office-based companies. In many ways, its culture may be healthier and more robust than those with on-site locations.

It’s true that building a remote culture can be frustrating. After all, many managers want their companies to wear a consistently distinctive brand. With workers dispersed all over the globe, it’s hard to achieve that. But managers only find this problematic when they define culture too narrowly. As futurist Dominic Price of Atlassian recommends, think of “culture” as multi-faceted, and your remote team will excel.

That’s why authors Fried and Hansson of “Remote: Office not required” want companies to get out of this mindset. “You don’t need everyone physically together to create a strong culture,” they wrote. “The best cultures derive from actions people actually take.”

In all cases, most experts agree the type of culture you outfit your remote team with depends on you. In an article for The Guardian, Cary Cooper, professor of organizational psychology and health at Lancaster University Management School, said that remote management takes a slightly different twitch than that of “regular” office management, though the skills are the same.

Employee engagement, good communication and organization are just some of the lubricants that makes your remote team work.

Remote work boosts productivity

Remote workers have the type of work-life integration that not only produces happier, healthier workers but also more productive workers.

They can straddle PTAs, call friends, volunteer or jog the block. Their work makes them more fulfilled and happy since it balances their other areas of life. They tend to work around the clock – definitely overtime, take few breaks, and value the labor.

Think that’s unique?

  • A 2014 Harvard Business Review found 53% of remote workers are more likely to work overtime compared to 28% of on-site employees.
  • A survey by the Society for Human Resource Management reported 83% of U.S. companies that have implemented flexible work policies have seen an increase in employee productivity.
  • Inc. noted 52% of remote employees say they are less likely to take time off, even when sick.

The most important opinion is that of the workers. In a recent survey from software-producing giant TinyPulse, of 509 remote U.S. workers and more than 200,000 on-location workers, studies showed that 91% say they feel more productive working remotely.

Remote workers may have less contact with their co-workers, but they’re undeniably happier at work than their “regular” teammates, which increases productivity. 

Remote work saves you money

Remote workers tend to cost less than half the price of less skilled workers from expensive cities like San Francisco or New York.

As the following studies show, a remote team saves you money in many ways:

  • British telecommunications company Vodafone reported that 61% of global respondents said their companies’ profits increased when they hired remotely.
  • A 2014 Harvard Business Review (HBR) found that employers who hired remote saved $1,900 over nine months for each worker. Furthermore, people who hired remote saved $1,800 a year over sick days.
  • A recent Stanford University study by Bloom and colleagues for the Quarterly Journal of Economics concluded that remote workers reduced attrition rates by half. Similarly, Owl Labs and TINYpulse found that companies that support remote work have a 25% lower employee turnover than companies that don’t. This saves a lot of money, since the cost of replacing highly-trained employees can easily exceed double their annual salary.

The savings are significant with remote work in many ways, from the cost of space to the salaries paid to the cost of replacing workers.

So why aren’t more business owners hiring remote?

The truth isn’t straight forward, as hiring situations are usually complex due to the nature of the jobs. Remote workers are a better fit for certain kinds of companies than others.

There’s a certain amount of skill and talent that comes into choosing your workers. Some companies simply prefer hiring locals whom they can supervise. It takes a different management style – as Cary Cooper in his Guardian article said – as not all bosses are able to straddle remote management. Some people are better remote workers than others. Some other managers have problems defining work quality and even communicating with foreigners. These and other reasons make remote work challenging, if not unfeasible, for certain companies.

The bottom line

Remote management doesn’t always work out, nor can everyone fumble it. But when you can, remote teams tend to give superior results across the board.

There’s no doubt that Dominic Price of Atlassian has it 100% correct – remote hiring is the Future of Work. In two years time, more than half of our workforce could be working remotely.

The benefits of hiring remote are immense. With remote workers, you can:

  • Reach into a global talent pool and pick a candidate you actually want. 
  • Gain superior performance for minimal pay.
  • Boost team health and happiness without top pay and perks.
  • Reap more innovation and a stronger culture.

See how going remote can work for you?