International Employment Laws
The Pros and Cons of Hiring an Employer of Record (EOR)
Lucas Botzen
Founder
Remote Work and Productivity
Published on:
March 25, 2024
Written by:
Lucas Botzen
Key Takeaways:
Your team working remotely can be cost-effective. It can also increase productivity and employee retention rates.
It can also impair communication, complicate onboarding, and create new security risks.
Whether remote work agrees with your business may depend on your team members and their individual preferences.
Table of contents
The Pros and Cons of Remote Work for Companies
It’s been a few years since the pandemic forced many companies to move their operations online and put locks on their offices. Almost all industries and companies experienced first-hand the pros and cons of remote work.
Years later, the debate whether in-office or remote work trumps one another is still going strong. Some people say going to the office is the only way to get work done. Others are no longer accepting jobs that require them to leave their house and praise remote work.
While it’s easier to see the pros and cons from the employee’s side, as a company, you might be questioning how to set up your global team. When hiring talent globally, remote work has many pros, but you might also be more comfortable with your employees in offices.
Let’s discuss the pros and cons of having the talent working remotely, and how it may affect your business.
When hiring a global team, businesses may find their employees working remotely the easiest option. Here are several reasons remote work might be a good option for global companies.
The option to hire top talent regardless of where they live is a great opportunity for your company. When the location isn't important, you can hire skilled and hard-working employees that you may not be able to find in your area. It can also be very cost-effective if you choose a good Employer of Record to assist you, as you don’t have to set up a presence in each country.
Plus, you don’t have to trouble your company with additional expenses if your global employees are working remotely. You can save a lot by not having a presence in each country. Plus, you'll save on office space rent and utilities. You also don't have to buy and maintain office equipment and supplies.
With an EOR, you can further save on global HR and tasks around maintaining compliance. These may require a whole team for companies that decide to manage it in-house.
Instead, you can put your budget to a more pragmatic use. You can provide bonuses or 13th-month salary to your employees to improve retention rates. You can also invest it in new technology or other necessities. Or, you can use it to scale your business further by hiring more people to help with the daily workload.
Many businesses aren't comfortable with the idea of a remote model. They fear their employees won’t be as effective as in an in-office setting. But, studies are certain working remotely doesn’t negatively affect productivity. In some cases, it also helps increase it.
The truth is, a distraction is a distraction. It can be a family member interrupting a meeting or an employee’s pet needing a walk when working from home. But, it is also common for employees to distract one another in an office setting. Their coworkers may look for help at the wrong moment, for example.
If your business has effective ways of tracking progress and tasks, your employee’s place of work won't matter. By allowing them to work remotely, you are showing that you trust your employees. It can create positive sentiment toward leadership, which can do wonders for company loyalty.
The flexibility to work from home and whenever is convenient for your employees will also open up your talent pool. For example, your company could accommodate people from different time zones. Remote work opens the door to talent that otherwise wouldn’t be able to meet the 9-5 office standards.
Happy employees are the key to a stable and productive work environment. Companies that struggle with high turnover rates are ineffective at best. They spend much of their precious time and resources on hiring and onboarding. The opportunity to work remotely may motivate employees to stay with a company and improve retention rates.
Whether they can work from home or not is a deciding factor for many employees. It reduces time spent commuting and preparing for work. It also opens their day to activities with friends and family they otherwise wouldn’t have time for. Most employees are unwilling to give this time to the company, despite being offered bonuses or other office perks.
Working from home usually means your employees save a large part of their salary. When working in an office, they spend a lot on lunch, gas, parking, and other daily expenses.
These are strong reasons your employees might be more comfortable working remotely. So, if your employees want to work from home, it might be good to consider it. If you provide your employees with the flexibility they need, they are more likely to stay with your company and not look for it elsewhere.
There are many pros to embracing remote work, especially for global companies. Still, there are cons you should know about and be prepared to overcome if you go with a remote model.
The main concern for companies is that the new flexibility will complicate team communication. And it’s often true for remote work.
Your managers won’t have the option to walk over to an employee and chat with them as easily. They may start setting up many meetings to compensate for in-person checkups. These can hinder your employees’ productivity in return.
Also, onboarding new people is a longer process with remote work. It may take multiple meetings or extensive messaging to help employees understand the processes in your company. Remote work often requires using different software. Providing your new hires with guidelines for using it may be complex.
However, some will argue that remote work improves communication. Proper task management processes reduce the time spent delegating tasks. It may be more difficult for your employees to ask for assistance with a task than it would be in an office setting. But, remote workers can message relevant coworkers and get their answers in seconds.
Work-related messaging is also more productive than communication in a traditional office. It cuts down a lot of mandatory pleasantries and chit-chat that's common in an office setting. Remote employees will likely get to the point faster and focus on completing the task.
In a traditional in-office setting, the employer has more control over security. The employer can establish a secure wi-fi connection and provide other secure work equipment easily. It would also be easier to keep sensitive data protected.
When you move your business to remote work, you will encounter some security challenges. Some companies choose to provide their remote employees with the secure equipment they must use for work. Others set up strong policies on personal devices and public places.
You should also inform yourself of relevant best practices of data security. You will need to set up multi-factor authentication or password policies.
There is software that can handle security for remote employees and their devices. While it may be a bit more expensive, it can provide you with peace of mind about the security of remote work.
Having a manager pop up in the cubicle now and then is the traditional way of supervising your employees’ day-to-day productivity. It ensures the workload is completed according to the company’s policy and standards. It also helps understand whether your employees are doing personal tasks during work hours.
However, this dynamic has already shifted in most offices. Employers put more energy into the interviewing and onboarding processes. They aim to familiarize their employees with the company’s policies upfront.
Employers and managers now rely on task management software to track employees’ progress. They usually engage with their coworkers to provide guidance and help when needed.
You will notice daily hiccups in processes with remote work. Still, closing or downsizing the physical office will free up a lot of money you can use to hire more people or invest in better software and infrastructure.
Having employees you can trust to complete their day-to-day tasks without having someone look over their shoulder is the key. If you have such a team, whether they work from home or the office will make no difference.
If you don’t trust your remote employees to complete their tasks, you might consider modifying your interviewing and vetting process to accommodate a different model.
Whether remote work will work for your team also depends on individual team members. Here are some factors that may work either for or against remote work in your company.
Many employees prefer rolling out of bed and starting working immediately in their pajamas. Others might not be comfortable working like that.
Commuting to an office may be helpful for your employees as they get to avoid the distractions of a busy household. At home, it can be compelling to multitask chores or childcare during office hours. They may be unable to focus on the workload of the day.
Some people also need the “water cooler talk” to feel better about their day. Working from home might make them feel isolated, especially if they live alone. Your employees might rely on the office setting and coworkers for social interactions. On the other hand, you’ll also have people on your team that don’t appreciate the office drama, and would rather skip it altogether.
Depending on your team, you can offer different solutions to accommodate both. If you have offices in countries where your teammates live, you might opt for the hybrid model. Employees can work in the office a few days a week to get the best of both worlds. If not, day passes at a local coworking hub might be a good option.
Lastly, you may decide to set up team-building activities. These provide you with an opportunity to get to know your employees better, communicate in person, and create a better connection.
Some people are well-organized and can complete their workload in the agreed time. Others may find it difficult to keep work from spilling and eating into their free time. If you hire people globally, different time zones may complicate the matter further.
An 8-hour workday can turn into a 10-hour workday with a remote team. Different time zones may pressure your workers to be available throughout the day. The fact that office space is at home can also make it difficult for people to shut off work. If they feel unable to enjoy their free time without thinking about work, it may result in burnout.
It’s essential to do your best as a company to keep your employees engaged and at the same time be respectful of their free time.
Many factors can affect whether remote work will be good for your business or not. Working with an EOR can help you hire top talent globally. But, establishing an office in each country to avoid remote work can be expensive, and you can’t expect your employees to relocate as easily.
Plus, if your employees prefer working from home, it may also be unnecessary. Still, it's not easy to fully switch to a remote model for many companies, so you may consider testing it out with a hybrid model first.
In short, the answer to which is better depends both on your business goals and on your team. Both options have a set of pros and cons. Either can be beneficial, but it’s essential to find the right way to remedy the cons of your chosen option.
What are the advantages of remote work?
Studies suggest there are several advantages to remote work. It reduces overhead costs and promotes better work-life balance for employees. In turn, this can improve productivity and employee retention rates.
Why do executives hate remote work?
Many executives have publicly stated that they don’t approve of remote work, but their answers as to why differ. Some of them feel it blocks creativity and innovation. Others find in-office work valuable for building company culture.
Is remote work harder?
Some workers find going to the office the best way to get the job done. Others say they get much more done working from home. The answer usually depends on the individual.
Are remote workers more loyal?
Allowing people to work from home may have a positive impact on company loyalty. It shows employees that companies trust them to complete their tasks without being micromanaged. It can create positive sentiment toward leadership, and promote loyalty to the company.
International Employment Laws
Lucas Botzen
Founder
Career Development and Leadership
Lucas Botzen
Founder
Career Development and Leadership
Lucas Botzen
Founder
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