47.8 million people voluntarily quit their jobs in 2021. We’ve seen this trend continue with the job market throttling up post-pandemic. The ‘Great Resignation’ phenomenon has upended many industries with new levels of employee turnover and career changes.
Studies estimate that replacing a fully-trained employee costs six to twelve months of compensation between the hiring process, gaps in staffing, and new-hire training. Losing a great employee will cost even more. If this turnover trend continues, replacement costs can exponentially impact your company’s bottom line. Employers need to shift their priorities and take a closer look at employee retention.
Luckily for employers, aside from the ‘Great Resignation’, the pandemic brought about a new era of workplace culture – fully remote teams. Remote staffing now dominates much of the white-collar workforce, and this change is stickier than experts predicted two years ago.
There are many benefits to remote staffing, but the most cost-effective advantage of a work-from-home model may be employee retention. Overwhelming evidence demonstrates that remote staffing reduces the likelihood of employee turnover through increased flexibility, a more impactful relationship between company cost and employee compensation, and a bump in employee satisfaction overall. In doing so, remote staffing can help employers directly combat the ‘Great Resignation’.
Flexibility
Remote work provides greater flexibility for employees. While this may seem like an arbitrary perk that will retain employees who enjoy a more relaxed environment or prefer less social interaction, this flexibility can actually be a critical decision-making factor for employees undergoing lifestyle changes.
According to Business Wire, in the past year, 3 out of 4 working moms considered quitting their job to focus on parenthood. Remote work options allow young parents to care for their children in different ways; with remote work, parents have the flexibility to pick up their kids from school and may no longer have to pay for after-school care. This allows parents to parent without sacrificing work, which may prevent employees from leaving positions.
Perhaps most obvious, remote staffing allows employees to work from anywhere, meaning they won’t quit their job to move. Americans moved to different states 20% more in 2021 than in 2020. In many cases, employees need to move for reasons outside of work. Thus, a remote workplace prevents employees from resigning due to relocation.
Cost & Compensation
Research shows that remote workers are compensated better than in-house employees. On top of that, the flexibility ‘perk’ of remote work minimizes transportation costs and saves employees time, which increases overall gains for remote employees. In the absence of a brick-and-mortar office, employers are also able to invest more money into their remote teams by providing other benefits or reinvesting in the company. These factors create a stronger value proposition for your employees by making their time and labor feel more impactful. Overall, the cost savings of remote staffing increases opportunities for company growth and development while also increasing the reach and impact of employee compensation.
Employee Satisfaction
Remote teams are generally much more satisfied with their jobs than non-remote staff. Flexibility, cost savings, compensation, and potential for company growth all affect the degree of employee satisfaction. As remote work becomes more permanent, more data will uncover why, and how, a remote workplace increases employee satisfaction. But one thing is clear: remote staffing can help any business cut costs and combat employee turnover.
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Extend Your Team was founded by business leaders who recognize the power of remote work and outsourcing when done right. We’ve built an exceptional offshore workforce that has helped hundreds of organizations add the labor and skills required to grow their business. Through our five-step process, we work to understand your unique business needs and curate a qualified list of top candidates, reducing the time, costs, and risks associated with the hiring process. Then, we provide ongoing support to ensure your expectations are fulfilled.
If you’re considering remote staffing for your organization, schedule a free consultation with Extend Your Team to learn more about our approach and talent pool.