Author: temp

EOR 101: Everything you need to know about Employers of Record

Posted on by temp

Global expansion is the logical goal for all businesses, whether it is for entering new markets, hiring global talent, or simply expansion. However, hiring across borders is no mean feat; it requires a deep understanding of local labor laws, the local taxation framework and other legal and regulatory compliance. In terms of the timelines, this can take anywhere between 3-9 months. 

An Employer of Record,  or EOR, is a mechanism to easily add employees in new international markets without having to incur the expense and risk of creating a corporation abroad. An EOR is a third-party organization that serves as the legal employer for a company’s foreign employees. The EOR undertakes the management of all workforce-related aspects – from hiring & payrolls to taxation, employee benefits, and legal compliances. 

Functions of an EOR

By entering into employment contracts with your international employees on your behalf, EORs enable you to hire across multiple countries without having to set up a legal entity. While acting on behalf of the employer, some functions undertaken by the EOR include: 

  • Ensuring compliance with all employment and labor laws: Every country has its own set of laws governing employment. Well versed with the legal regime of the country, the EOR ensures due compliance with all employment laws.
  • Management of payrolls: The EOR undertakes the process of negotiating compensation, and pays the employees through its local bank account. It is the responsibility of the EOR to ensure the application of the correct taxation framework in accordance with the country’s laws.
  • Management of perks and benefits: Being in the same geographical location, the EOR has a much better grasp of the perks and benefits, and ensures that your workforce has access to the benefits that are most valuable to them.
  • Connect with the local ecosystem: An EOR gives you direct access to the right resources within a specific geography – the right recruiting partners, legal and financial consultants, or even the workspace.

When speaking of functions of EORs, we often also hear another term – PEO. While they do have their similarities, they also have key differences. 

PEO vs EOR

Professional Employer Organization – PEO

A Professional Employer Organization (PEO) offers a comprehensive range of HR services, including payroll processing, foreign transactions, tax preparations, employee incentives, employee benefits, and compliance management. To manage their employees, PEOs collaborate with a nearby business that is a registered organization. The PEO’s name will appear on the employee’s payment invoice and any HR communication materials.

Employer Of Record – EOR

An Employer of Record is a third party organization that specializes in handling all the legal and operational requirements of building a global workforce for its client companies, like management of payroll and taxation, employee benefits, and other such administrative and legal obligations. 

While a worldwide EOR offers services comparable to those of a PEO, it also assumes all of the workers’ legal obligations. As a result, a company will be able to provide overseas personnel personalized HR services without worrying about compliance. 

Choosing the right partner

Knowing the difference is crucial, but when choosing between EORs and PEOs, knowing your use-case is more important. Consider these questions before selecting your choice:

  • How big is your workforce?
    An EOR is a common option if you want to recruit a small number of people in a country, irrespective of whether you possess a formal organization. However, the cost often rises when you recruit more personnel from a nation with a high level of talent. So, if you need to employ a large number of professionals quickly, a PEO is your best bet.
  • Do you own a local entity in the country of hiring?
    If you don’t possess a legal business in the employee’s nation, your sole option is an EOR. Different nations have different levels of legal entity formation complexity, taxation requirements and employer compliances. 
  • Are you hiring contractors, temporary employees or full time employees?
    Typically, when working with interim and contractual personnel, firms opt for an EOR. This is due to the fact that EOR offers the crucial HR solutions that are ideal for contract employment. On the other side, a PEO offers you access to all of its services, which improves your management of full-time staff.

Now that you know which one to select, there are certain things that you must keep in mind before engaging and EOR. The costs, legalities & other considerations are important factors when considering which EOR to choose.

The cost of engaging an EOR

An EOR manages payroll, employee incentives, bonuses, benefits management, talent retention, complies with changing labor costs, offers consistent HR assistance, and acts as a liaison between the business and the employee, to name a few tasks.

Without knowing the specifics, the cost of an EOR cannot be calculated with accuracy. These might include factors like the hiring area, the amount of employees employed, and the type of person hired (contractual vs. full-time), among others. So let’s examine what often influences an EOR’s price.

EOR pricing models

EOR pricing schemes may be divided into two categories: flat fee structures and percentage agreements. Avoid any potential partners that charge a percent rather than a set number if you wish to work with an EOR.

EORs using percentage calculations dissuade their client companies from paying employees appropriately. When you levy a percentage, you must pay a third party more money in order to provide an employee a bonus or a raise. Despite the fact that percentage-based EORs were previously the standard in the industry, things are beginning to change.

Factors affecting EOR quotes

Any taxes, required contractual perks, and other fees that the local authority may demand are costs to the firm when hiring an employee in a particular country.

The total cost to the company will vary based on the employing nation, specific area or region, and staff wages. For instance, in Canada, employers pay for the Canada pension plan, the occupational health tax, the parental health bonus, and workman’s compensation insurance.

Choosing the right EOR

If you’re ready to take the next step, the only question left for you is figuring out which EOR to choose, and how. There isn’t a lack of EORs out there, and they all offer different quotes and services. Here are some of the major things you need to keep in mind when selecting the EOR you’re going for.

Transparent costs & communication

When contrasting several companies, select a global Employer of Record that is transparent about its costs. They might add setup fees, taxes, or cancellation fees to their initial estimates. They may also later introduce hidden fees and surcharges, which would change your budget and have an effect on many departments inside your business. Request a complete price breakdown from prospective EORs upfront.

Accurate quotes & calculations

Pick an EOR that is honest and informed about employer burden costs. When calculating payroll expenses, the business must include extra social contributions like health insurance, social assistance, and paid time off. Due to the fact that these employer restrictions differ depending on the market, your EOR supplier must provide you specific rates on these parameters.

Track record

Read reviews on unbiased websites and get in touch with references to see whether current clients of the EOR are happy with the company’s services. Asking a potential partner for references from businesses that have goals and characteristics similar to yours, such as budget, industry, and types of people they work with, is also beneficial.

Pick a provider who has experience with EOR work and complies with global standards. This reduces the likelihood of breaching the law and angering the host country.

Help & support

Choose a proactive partner who can move quickly in response to your requests and the expectations of your team. Your EOR partner will regularly interact with both your present staff members and any future hires on your behalf. Make sure your EOR partner designates a client account manager who takes into account language barriers and regional time variations, reacts quickly to questions from your team, and onboards new supported people.

Businesses need a partner in EOR that can respond quickly and support your personnel. Look for a global EOR that offers a specialized client manager rather than one that will direct you to a chat window or a manual.

Benefits of EOR

Hiring across borders becomes easy when you have the right global recruitment partner. An Employer of Record (EOR) helps you hire superlative talent across the world, without spending a fortune. 

Let’s take a look at the different benefits of working with an EOR ~

Global talent made accessible 

Although there are many advantages to creating teams abroad (competitive cost of labor, a broader applicant pool, workplace diversity), many business owners are hesitant to hunt for talent abroad due to the difficulties involved in establishing a corporate organization abroad.

It might take months to wait for the embassy’s clearance to begin commercial operations overseas in nations with a high degree of bureaucracy. Business owners have been in a limbo for a while, unsure of whether to keep attempting to break in or concentrate on hiring local people and give up on a worldwide office.

In order to avoid having to circumvent red tape, engaging an EOR vendor enables company owners to begin recruiting personnel overseas and working on projects immediately.

Save time

It takes a lot of time to manage paperwork, handle benefits administration, process paychecks, and end employee contracts. Business owners who attempt to balance dozens of management responsibilities on their own wind up not devoting enough time to the company’s essential operations, such as developing strategy, enhancing the product, and cultivating deep relationships with customers or partners.

Company managers may spend much more time doing useful things if they have a trustworthy vendor handle their tax filing, payroll, and other formalities. Instead of spending hours learning foreign rules and regulations, company owners may work with an EOR to advance their abilities in areas they are knowledgeable and enthusiastic about.

Cost-efficient

Opening an office overseas entails significant expenditures. Building a team overseas from the start ends up costing business owners a fortune. 

Employers of Record enable company owners to save money by avoiding the costs of employing fiscal, HR, and judicial consulting firms. In case the relationship is not as successful as the business management first anticipated, the versatility of EOR agencies allows for the exploration of new markets and the closure of international offices without being concerned about maintenance and HQ termination fees.

Compliance with regional law

International enterprises frequently experience costly litigation as a result of failing to understand local trade and labor rules. Due to ignorance of the legal intricacies, a business owner may find themselves in hot water.

Organization managers rely on EORs to steer clear of such circumstances and manage teams in a way that complies with the law. EOR agencies will ensure that all corporate procedures are compliant since they have a thorough understanding of labor and business laws. 

Each expansion into a new overseas market has its own set of complications that need an expert staff. At Talent500, we understand that the transition to location independent working is a multi-layered process involving numerous stakeholders and factors. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

 

What is an Employer of Record (EOR)?

Posted on by temp

When a company hires an employee, it takes on all the duties, expenses, and obligations related to having that person on staff. This is a challenging and complex process, especially for multinational corporations managing international staff. 

The solution? EORs. An EOR, or an Employer of Record, is a third party organization that specializes in handling all the legal and operational requirements of building a global workforce for its client companies. Thus, traditional employment responsibilities like management of payroll and taxation, employee benefits, and other such administrative and legal obligations are undertaken by the EOR.

Functions of an EOR

A global Employer of Record enables businesses to hire professionals throughout the world without the need to establish a local entity, or running the risk of breaking regional labor regulations. In short, an EOR is like a  multinational HR company that is familiar with the intricate payroll rules and labor laws of the locations where personnel are situated.

A global EOR handles the regulatory and legal requirements for migration, recruitment, compensation, and perks when a company wants to hire across multiple countries. While the EOR is the  employee’s official and registered employer, you continue to have control over daily management activities including pay, job responsibilities, projects, and performance evaluation.

A global EOR helps you ~

  • Create and update employment contracts that comply with local laws
  • Pay salaries in a different country through their own local bank accounts
  • Oversee all salary and tax deductions and compliance
  • Pay international employees in their local currency and provide a full range of legal benefits
  • Ensure adherence to all company policies and guidelines
  • Provide updates on local labor laws and regulations and streamline planning
  • Help in the integration of the new talent with the parent company

Benefits of an EOR

A worldwide EOR partner has several advantages for businesses. It enables companies to recruit the best talent from any location, and support them in accordance with their local and cultural requirements. A lot of businesses lack the resources or in-depth knowledge necessary to employ legally in international locations; EORs, thanks to their local presence and experts, are able to fill these gaps.  

Let’s see some of the benefits of engaging an EOR

Reduced risk of violating laws

Depending on the nation, hiring internationally has  multiple legal implications. For instance, tax rates vary widely across the world, and every country has its own set of legal and regulatory compliances, making it difficult to stay on top of all obligations. To guarantee that their customers comply with various laws governing taxation, employee welfare, and retirement benefits, EOR businesses keep up with changes in these laws and advice their clients accordingly.

Cost and time effective

Once they engage an EOR, companies are no longer required to set up a legal entity in the foreign country, thus saving up on the cost of registration, opening up of a bank account and other such formalities. Additionally, hiring through an EOR gives enterprises access to talent that is available at highly competitive cost. 

Easier onboarding

EORs are able to ensure smoother onboarding as they are already aware of the various cultural, economical and legal requirements of hiring in the employee’s home country. They undertake the task of background verification and documentation, setting up of statutory benefits, as well as management of payroll and taxation, thus delivering a smoother overall onboarding experience for the employee as well as the employer. 

Scalability

For administrative and tax considerations, several nations demand that foreign businesses or investors form a corporation domestically. Since an Employer of Record serves as the local registered entity, it removes the need to set up a new company.

An EOR enables you to make and implement quick decisions in terms of hiring, operations and expansion, thus ensuring a high level of scalability. The fact that the existing EOR is in charge of all legal compliance, rules, and administrative tasks, however, may be where the true value resides, freeing them to concentrate on scalability and expansion.

How to choose the right EOR

Even though an EOR partner will assist in achieving hiring and management goals for remote teams, selecting the right one is key. Here are a few things to keep in mind.

Transparency

Choose a worldwide Employer of Record that is open about their cost when comparing different firms. In addition to their original quotations, they could also charge setup costs, taxes, or termination fees. Additionally, they may subsequently add undeclared costs and markups, which would alter your budget and have an impact on several divisions of your company. Ask potential EORs to explain all aspects of their price up front.

Track record

To find out whether current customers are satisfied with the EOR’s services, read reviews on independent websites and contact references. Asking a prospective partner for references with companies that share your company’s objectives and traits, such as budget, sector, and the sorts of people they work with, is also helpful.

Choose a service provider who has handled EOR work and complied with international requirements. 

Accurate quotes

Choose a provider who is knowledgeable and truthful on employer burden charges. The company must include in additional social contributions such as medical insurance, social welfare, and paid leave off when determining payroll expenditures. Your EOR partner must provide you precise prices on these criteria because these employer constraints vary by market.

EORs bill different amounts for their services. Before you sign any contract, be sure the business is honest about the costs. It is unacceptable to have any fees or expenditures that aren’t disclosed up front.

Global presence

With different parts of the world emerging as talent hubs, global teams today are seldom restricted to a few countries. Your primary reason for engaging an EOR is access to talent in multiple countries, which is why it is imperative to ensure that your EOR partner has a global presence. Check the list of 50+ countries where Talent500 can help you build your teams here.

Support

Pick a responsive partner who is proactive at responding to the needs of your team and leadership, as the EOR will act as the primary link between you and your distributed workforce. Ensure that your EOR partner assigns a client account manager that responds to inquiries from your team promptly, onboards new supported personnel, and takes into consideration regional time differences, cultural differences and languages.

Each expansion into a new overseas market has its own set of complications that need an expert staff. At Talent500, we understand that the transition to location independent working is a multi-layered process involving numerous stakeholders and factors. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

 

 

Calculating the cost of hiring an EOR

Posted on by temp

Remote work is the new normal. Organizations are no longer restricted to hiring within a 40-mile radius, and now have access to limitless talent from across the world. For any business aiming to scale and grow, entry into foreign markets is a priority.

But with entry into a foreign market, comes the hassle of  compliance with local rules and regulations, tax policies, worker benefits and perk schemes, payroll management and more. Calculating and managing these things costs time and money. Partnering with an EOR changes this.

An employer of record (EOR) is a third-party organization that specializes in handling all the legal and operational requirements of building a global workforce for its client companies. Thus, traditional employment responsibilities like management of payroll and taxation, employee benefits, and other such administrative and legal obligations are undertaken by the EOR. 

Cost of an EOR

Maintaining employees for another employer can get costly. This is because the EOR will take care of more than just hiring and onboarding. Their responsibilities  include payroll management, employee bonuses, perks, benefits management, retaining talent, complying with evolving labor costs and providing steady HR support. In addition, the EOR will also act as   a link between the employer and the employee. 

Thus, the exact price of an EOR cannot be determined unless the specifics are known. These could include region of hiring, number of employees being hired, type of employee being hired, relevant taxation structure and the statutory employer benefits, (contractual/full time) among other things. That being said, let’s see what usually affects the pricing of an EOR.

Types of EOR pricing models

There are two types of EOR pricing models: flat charge structures and percentage arrangements.

In the flat-rate pricing structure, you only pay for the service per employee, regardless of the employee’s compensation. An EOR will typically charge $250 – $500 per employee monthly, depending on the requirements for each employee.  

Under the percentage pricing, EORs get their own cost from your employee’s salaries. Thus, in the long run, a percentage-based pricing structure disincentives you from raising wages or hiring more employees. To offer an employee a bonus or a raise when you pay a percentage, you must pay a third party extra money. 

This is why a flat fee costing structure will always be more beneficial, even though a percentage structure might seem more enticing initially. 

Factors which affect EOR costs

The expenses to the company when recruiting a worker in a certain nation include any taxes, obligatory employer  benefits, and other charges that the local government may impose.

Depending on the country in question, its taxation regime and statutory requirements, the overall employer cost will change. For instance, the Canada pension scheme, occupational health tax, parental health bonus, and workman’s comp insurance are all covered by employer costs in Canada.

Why should you engage an EOR?

The complexity of international employment legislation increases when you take into consideration hiring across multiple nations. It’s better to know when you will need to use an EOR, and when you can survive a DIY adventure into a foreign market.

EORs make the experience smoother and streamlined. However, engaging with an EOR is an integral part of your global expansion plan, and choosing the wrong partner can result in considerable loss financially. Here are the top benefits on engaging an EOR ~

Explore new markets

An EoR enables you to  test out expansion into a new nation without the obligation of entity formation, if your firm wants to explore a new geographical market. It enables you to employ professionals  in new international markets, create new income streams, and attract new clients. In short, it makes global expansion more achievable for companies of all sizes.

Attract & retain global talent

In today’s job climate, the flexibility to work from anywhere is a highly prized perk. Since it’s so difficult to find top talent these days, more and more businesses are choosing to employ remote workers. Additionally, recruiting without regard to location expands your talent pool and enables you to focus on a staff with the precise skill sets you need.

A worldwide EOR enables businesses to recruit people from all around the world. A worldwide EOR also enables you to retain your top people without having to create an organization when workers desire or need to migrate.

Hassle free tax and payroll management

The EOR is listed as the employee’s employer with the tax authorities. This indicates that they must deduct specific taxes from employee paychecks. They must also adhere to any reporting obligations and regularly submit such sums to the appropriate authorities.

All workers’ payroll is processed by the EOR in accordance with the local laws that are in effect. Managing appropriate deductions, cost reimbursements, and leave entitlements are all included in this.The manner and cycle of payment will be determined by the client company’s preferences, local tradition, and regulatory requirements.

Most people may assume that employing an EOR will be expensive, however this is frequently a cost-effective choice, especially for new firms. The taxes that must be paid when recruiting staff are already included in the cost of an EOR.

Each expansion into a new overseas market has its own set of complications that need an expert staff. At Talent500, we understand that the transition to location independent working is a multi-layered process involving numerous stakeholders and factors. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

 

Digital Transformation Trends Changing the Retail Industry in 2022 & Beyond

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The retail industry has been in the midst of massive transformation over the last two decades. From adopting eCommerce and omnichannel customer journeys to implementing intelligent supply chains, deploying automated warehousing, and testing new retail concepts, retailers must adapt to a rapidly changing environment. The way consumers shop and what they expect from retailers have changed significantly in the post-COVID era. Consumers are moving their money toward retailers that offer better, more personalized digital services. 

As straightforward as it may seem that consumers want both physical and digital shopping experiences, retailers continue to find innovative and meaningful ways to address this need. Increased connectivity, social media, and mobile adoption have changed consumer behavior and forced retailers to keep up with the latest digital trends. Today, every retailer is a technology company. The global digital transformation market in retail was valued at nearly USD 144 billion in 2020 and is expected to reach USD 389 billion by 2026. And according to a recent survey, only 20% of retailers feel prepared for the retail innovation trends. The industry is so competitive that 88% of retailers are developing these disruptions in-house and 91% are working with their IT partners to rise above the fray and stay competitive. 

Digital is more than just a channel, it’s a mindset. It’s about how you think about customers, products & services, and how you engage with them every day. Retailers need to stay ahead of the curve and understand how emerging digital trends can help them improve their business. 

Here are five disruptive digital trends you should watch out for that will change the retail industry over the next four years.

Trend 1: Personalized customer experience 

Customers want brands to remember them as individuals and make recommendations based on their past behavior. This is why optimizing the user journey and developing intuitive navigation are of utmost importance. It’ll guide shoppers through the buying process from start to finish — from product discovery through checkout — without frustration or confusion. The customer journey has evolved from a linear path to a multi-channel one that is based on the customer’s interest, purchase history, location, and other data points. The goal for retailers is to deliver an engaging experience that aligns with the customer’s intent, which can be achieved through personalized product recommendations, content, and navigation.

Shoppers want convenience above all else. 76% of consumers say convenience is a key priority in selecting a retailer. So retailers are creating apps with intelligent buying options that allow them to scan products using their mobile devices and make purchases without needing to go through a checkout process. AmazonGo stores are a game changer with their scan-and-go technology that has taken the convenience factor up by several notches. Brands like Walmart and 7-Eleven have also recently introduced their checkout-free store successfully.

Trend 2: Monetization opportunities with unified commerce 

The rising popularity of eCommerce has led to the emergence of unified commerce platforms – with 86% of all spending on retail software globally focused on this. With unified commerce, retailers can combine all the business systems such as inventory management, customer relationship management (CRM), order fulfillment, and point of sales into one platform that serves as an end-to-end growth driver. Retailers can keep an eye on the performance of each channel and simultaneously offer customers greater convenience and a smoother process of order fulfillment. 

Additionally, to help customers find products more easily, retailers are investing in automated product categorization solutions that can be used to organize inventory according to different attributes such as color, feature, or brand. This allows customers to browse through categories rather than search through thousands of items manually. Product categorization can also help retailers improve their marketing efforts by highlighting certain products over others. Buyers want interactive experiences that provide them with valuable information before they make purchases. This is where digital advertising comes in handy – by using rich media banners or video ads with dynamic content, businesses can deliver relevant messages that resonate with consumers at just the right time during the buying cycle when these messages will have maximum impact on their purchasing behavior.

CRM is one area that has been impacted the most by digital disruption. The data gathered in the CRM is used to improve customer service, marketing, operations management, and to create unique experiences for each customer so they will return again and again – with loyalty schemes. Understanding how long the customer’s been with you, how frequently they purchase from you, and whether or not they’re likely to purchase again makes it easier for retailers to offer loyalty programs that will encourage customers to stay loyal while rewarding them for doing so. There is a massive opportunity today in the loyalty management market with studies forecasting over 2x growth in the global market size valued at USD 18.2 billion by 2026. The lifetime value of a customer should be considered when setting up a loyalty program so that retailers are not wasting resources on people who are unlikely ever to buy from them again in the future.

Trend 3: Increased emphasis on security and privacy

A recent study listed the retail industry as more likely to be impacted by a security incident. Yet, a Deloitte survey reported merely 5% of consumers ranked the digital retail sector among the top three at the risk of a security breach.

As the retail industry continues to evolve, security and privacy concerns are becoming more crucial. And when it comes to customer information, there is no room for error. Security breaches are back in the spotlight due to sophisticated cyber-attacks. 44% of retail organizations were hit by ransomware just last year!

The 2017 Equifax breach has made clear that companies must be aware of the risks involved in working with sensitive customer data and make sure that their platforms and solutions are secure. It’s not just about protecting our customer’s data, but also about protecting their trust in the brand. A study by KPMG found that two-thirds of consumers are willing to pay more for products from companies they trust.

It is no longer enough just to have good security policies in place; companies must also ensure that they have sufficient resources available to them in order to improve their security posture. Data loss prevention (DLP) technology can help retailers protect customer data by preventing unauthorized access or sharing of sensitive information. Some DLP solutions can also detect and prevent malware from being introduced into systems before it can cause damage or harm customers’ information. And encryption software prevents unauthorized access to confidential information even if attackers manage to break into your system — it protects your customers’ personal information against data breaches.

Trend 4: Focus on supply chain agility

In recent years, pandemic disruptions exposed inefficiencies in the supply chain, making some retailers realize how ill-equipped they are to anticipate and meet sudden market disruptions and inflated consumer demand.

The opportunity exists for retailers to centralize control over inventory through a single platform that provides visibility across all channels and locations, with automated replenishment and analytics capabilities to empower faster decision-making based on real-time data points rather than historical ones. AI-based sales forecasting tech can provide insights to decipher buyer patterns and therefore optimize lead times and eliminate chances of stock outages, failures, and defects. This will allow companies to become more agile and resilient when responding to market changes.

Demand for integration services and the implementation of solutions to optimize inventory and supply chain management increased with the global market value significantly rising from $15.85 billion in 2019 to $37.41billion in 2027.

Predictive analytics/forecasting is just one aspect of AI-based tech in supply chain management. The application of AI has significant value for the entire supply chain management process – everything from supplier relationship management to computer vision systems that can automate and improve the quality assurance of finished products. Additionally, AI-powered with big data can make supply chains more sustainable and greener. Most of the companies’ indirect emissions are through their supply chains. AI can optimize logistical routes to minimize carbon emissions.

Trend 5: Maximizing staff productivity with tools

Hot take: You may be setting even your very best employee up for failure if you don’t provide them with the right tools. Collaboration and performance management tools are invaluable in a distributed workforce. And so are tools that enhance productivity to perform the core activities. We know that a more productive workforce leads to a better customer experience. With capability centers across emerging hubs powering innovation and digital transformation for the retailer, there is no longer one central location where employees work and interact with customers. To ensure that these employees remain productive, retailers need to adopt the right productivity tools and CRM systems. 

CRM systems allow managers to have real-time access to customer data. With the right productivity tools and data dashboards, retailers can gain better insights into their operations and provide greater clarity into how important metrics impact the bottom line. The retail industry has highly variable demand patterns, sales volumes, and unpredictable workloads that can change dramatically from one month to the next. Productivity must be measured against these changes in order for companies to make informed decisions about staffing levels at any given time.

The pandemic coupled with digital transformation has accelerated the demand for skilled talent globally. To meet this demand, organizations are looking to build their own capability centers. The current hiring trends show a significant uptick in hiring for roles in solutioning, core growth, virtualization, and enterprise mobility among others.

The most impactful roles being hired in global capability centers

  1. Product engineering: Java, Javascript, React, Full-stack Engineer, Automation Tester
  2. Mobile engineering: Android, iOS
  3. Analytics: Data Engineer, Data Analyst, Data Scientist
  4. Infrastructure: Cyber Security, DevOps, Cloud
  5. Artificial Intelligence: ML engineer, Chief AI Officer, AI Strategists

As the retail industry continues to transform, companies that adapt to emerging digital trends are forging new opportunities for growth, including the ability to close the gap between online and offline experiences and constantly provide value, convenience & selection. And the #1 champion in this journey to success is talent.

Take the first step towards global hiring with Talent500. Request a free consultation and gain access to exclusive insights into talent strategy in over 50 countries.

 

8 reasons to start hiring remote workers today

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In recent years, remote work arrangements have become the new standard for many organizations. By 2024, remote workers will account for 32% of all employees worldwide. As we transition out of the pandemic, businesses across various industries are making remote work the status quo, by choice more than compulsion.

And you can’t blame them.

Whether it’s better productivity or superior retention, remote hires are running the future of work. If you’re contemplating hiring remote workers, here are 8 reasons why you shouldn’t wait any longer.

Increased productivity

Surveys show that 85% of companies report better productivity from remote employees. Furthermore, 77% of employees say they work better remotely.

A remote hire doesn’t need to commute to the. This minimizes the chances of any delay and bolsters focus. They won’t be distracted by their coworkers and can concentrate on their tasks. Having greater control over their workday and being able to work according to their schedules enables employees to be substantially more productive. 

Greater employee satisfaction

Studies say 58% of workers would be ready to leave their job for a remote option. A massive 74% of employees would stay with their company if they kept working remotely.

Having the option to work remotely enables professionals to achieve a better work-life balance, which in turn improves their general well-being. Flexible schedules and the ability to work from home gives employees better control of their workday – this is especially beneficial for primary caregivers like working mothers.

Cost-effective

Office lease/rent obligations can be quite expensive, especially in the time of recession. Other overhead expenditures like furnishings, cleaning, and office equipment all increase the price. And that’s not it. Setting up workstations, arranging for electricity as well as internet and civic amenities require a continual monetary investment. The general upkeep and maintenance of an on-site workstation tend to get exorbitant!

Workers themselves are more likely to save employers money through remote employment. A Glassdoor survey found that 30% of employees would trade pay raises for an option to work remotely. Dell also saved a whopping $39.5M since 2014 through flexible working solutions!

Access to a better talent pool

A firm’s chances of interacting with potential employees who have the skills and expertise the company requires are increased as recruiters now have access to skilled talent without the barrier of geographical limitations.

Additionally, many job searchers are eager to pursue companies from outside of their immediate area. A study found that more than half of them are interested in obtaining entirely remote jobs with businesses headquartered in other cities or states, as this helps them increase their salary without an increase in the cost of living.

Recruiting locally is constrained to the skill you can find in the neighborhood in which the office is located, or incur relocation costs. For companies who are not located in big cities, this means the number of talented individuals you can hire is much lower and you have a hard time competing for those candidates that enjoy the big city life

Better time management

By eliminating lengthy trips to and from work, employees’ quality of life is improved. Employees who don’t commute to work or attend offline meetings can save up to 5 hours daily!

Many prospective workers find remote employment enticing because of this. So much so that 67% of employees say the biggest perk of remote work is choosing how to spend their time.

Increased agility & scalability

Businesses across all sectors would not have been able to maintain operations throughout the pandemic without remote labor. Because they are aware that a remote work model will enable them to develop and keep the competent staff they will need to thrive in the post-pandemic market, many businesses are now eager to implement it on a long-term basis.

Building a scalable remote workforce may position firms to better meet the difficulties of expansion, despite the intimidating nature of developing a company with locations scattered over several cities, states, and even other nations.

Distributed teams and conventional outsourcing techniques are frequently confused by traditional organizations and executives. But today, more than half of all businesses employ remote work as a norm, including well-known brands like Github, Automattic, Invision, and Buffer.

Ease of global expansion

Businesses that had previously explored some sort of digital transformation at the beginning of the pandemic were able to transition to all-remote work fast and quite efficiently. They could sustain an “anywhere workforce” and easily recruit more remote workers as needed since they had relevant virtual collaboration and communication technologies in place. Entering new markets became easier as companies could now set up remote teams and employ local talent.

Many firms have been able to enhance productivity, foster creativity, and expand their worldwide reach with new goods and services thanks to the acceleration of the future of employment and the complete adoption of the remote model — and this amid a period of intense business instability, no less.

Reduced carbon footprint

Working from home just one or two days a week can help cut down on the number of vehicles on the road, which in turn minimizes traffic jams, the amount of wear on the road, and greenhouse gas emissions. If 3.9 million people would work remotely just half the time, they would cut greenhouse gas emissions by the same amount as eliminating 600,000 vehicles off the road for a year!

Commercial buildings are getting more energy-efficient, but lighting, heating, and cooling still consume a lot of energy. Removing all that means a reduced Carbon footprint, and a better means to achieve your CSR goals.

Better employee retention

74% of employees say that they’re less likely to leave their current job if given the ability to work remotely.

This is because working remotely gives employees flexibility and autonomy on what to do with their free time. Having a better work-life balance is extremely important for any employee to be happier and more productive. Hiring remotely helps employees do just that.

Common challenges with remote work

Everything has its pros and cons, and remote work isn’t any different. For those new to hiring remotely or working remotely, there will be a few common problems. Whether it’s adapting to the new changes or having clear communication, what matters is how to get around the issues to get the best of remote teams.

Time zone differences

Employees can explore cultural differences, share ideas, and gain a wealth of knowledge by collaborating with a transnational team. 

However, because the team will be operating in various time zones, coordinating might be difficult. Working with a global remote team could cause a delay in obtaining replies, overall communication, and decreased engagement with the team. Working with teams with a little overlap in working times is recommended.

Employee distractions

While working remotely, it’s easy to become sidetracked by even the simplest distractions, such as smartphones, social media, or simply the persistent temptation to get up and move about. Goals can get sidelines as a result.

Much like working at a physical office, setting up a dedicated workspace enables remote workers to minimize distractions and increase productivity.  

Communication

Collaboration amongst distant teams is the most typical issue that disturbs workflow. How, for instance, can a group of designers collaborate on a single project when they are dispersed throughout the nation or the globe? Team members may engage with files, products, projects, and one another without any practical restrictions if they meet in the same office.

However, remote teams are quite constrained, and even collaborating on the same text presents difficulties. The good news is that there is a tonne of collaboration tools available that can assist in removing those hurdles to remote co-working, just like there are for project management software. Tools like Miro, Google docs, and Canva enable different members of a remote team to collaborate simultaneously.

Building company culture

Without a feeling of community between team members, working can get monotonous and a lack of trust would eventually lead to friction. The greatest thing to do here is to develop a set of common values, goals, and strategies. While it’s a good start to articulate them, it is also important that the entire team also practices the same culture and core values.

A culturally enriched and responsive team is more cohesive. They’ll work better together and get work done in a superior and timely manner. They build the brand and culture of the organization altogether as well.

Future = Remote.

The number of people working remotely weekly has risen a mind-boggling 400% from 2010. The remote hiring process is simple & easy, not to mention highly cost-effective. As we’ve already seen, there are numerous unquestionable benefits of hiring remote workers.

Recruit remote workers to see just how much they can do for you. Not only does remote working allow your employees satisfaction, but it also opens up the gate to scalability and profits.

Remote work is here to stay. Take the first step towards building your distributed team with Talent500. With our AI algorithms and proven vetted global skillbase, we provide you with personalized and accurate talent acquisition & management solutions & more. To find out more, request a consultation today!

 

Six tips to overcome challenges in managing a global team 

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‘Distributed teams’ refer to teams where members are physically away from each other while working. There is no limit to distance as they could be working even from different time zones! This means the best developer based in Delhi can connect with the best Marketer located in Paris. Distributed teams allow for superior flexibility in the way teams function which leads to a myriad of benefits.

Thanks to technology, we can connect right away. Whether our staff is located in the same city or in various time zones, video conferencing and group messaging solutions keep us in continual communication. Distributed work has never been easier. There are many challenges to working with and managing global teams. However, the advantages of a global workforce are just as prevalent.

Advantages of globally distributed teams

There is more to globally distributed workforces than just revenue and retention. From savings to productivity to culture, global teams cover everything your organization needs and more.

The workplace is evolving due to remote work. With the help of technology, team members from all over the world can connect and work together while contributing their own special ideas, insights, and experiences. Let’s look at a few benefits of forming a worldwide team.

Access to a massive talent pool

A massive 80% of tech leaders feel that the availability of skilled talent is the biggest challenge in recruitment. Hiring across a global pool of talent enables organizations to access highly skilled talent at extremely competitive costs. Superior talent can be up to 8X as efficient as typical workers. Organizations can access and hire the top workers on the market, wherever they may be, by thinking beyond location-dependent teams.

Cost-effectiveness

The annual cost of office space per employee is, on average, $18,000. An organization’s main office footprint can be significantly reduced using a globally distributed staff. Cost factors for businesses include overhead expenses for things like office space, internet, power, water, and more. Decentralization and lower IT expenses are also made possible when businesses move applications off-site to the cloud. Managing

Increased productivity

Remote employees reported that working from home enhanced productivity by 77%. Businesses can save money on various resources and boost productivity by giving employees access to the tools and technologies that enable distributed working. Motivated workers can complete more work in less time, in addition to being more disciplined.

Boost employee retention

Additionally, remote workers are 83% happier in their employment than on-site employees are, and they would accept a wage drop of up to 10% to work remotely. Most individuals can agree that greater pay paired with better work-life balance, professional advancement prospects, and lower conflict chances boost the likelihood of sticking with a company over the long term.

Challenges to nanaging a global workforce (& how to solve them)

Each organization has its share of global workforce challenges. However, issues and challenges of managing a global workforce have easy and direct solutions. Let’s see.

Managing communication issues

A distributed team has to communicate with a deliberate purpose. Clear regulations that specify the appropriate cadence and optimal mediums for various forms of communication are beneficial. Set clear expectations with respect to working hours and availability, and factor in the differences in time zone when setting up team meetings. Make use of multiple channels of communication, synchronous and asynchronous to ensure that all members of your team have the space to plan out their workdays. Employees want the freedom of managing their work at their own pace.

Keep in mind that working remotely often gets lonely. When there are no proper conversation channels, employees become less friendly and trusting of each other. This leads to disruption of workflow dynamics and even conflicts and arguments. Set up multiple, two-way channels of communication across all stages to ensure that your team members have the means to communicate and share their ideas. By making sure that each employee feels respected, heard, and supported, you can boost engagement.

Tracking performance

Lack of face-to-face interaction may have a detrimental effect on morale and productivity. Moreover, when not working in visual contact, it can be hard to manage just what and how well an employee is doing. Managers must refrain from constantly bombarding their team members for updates and indulging in micromanagement.

A simple solution is checking in regularly and using productivity-centric tools. Task managers like Jira can track tasks as they are finished with Jira and include them in performance results. These tools provide a “quick peek” at current progress and assist you in compiling all of your significant outcomes in one location.

Cultural barriers

Company culture must be intentionally strengthened when it comes to distributed teams. It’s crucial to provide opportunities for interactions that are unrelated to business. It enables employees to get to know one another better, fostering closer bonds and a more cohesive team. In assessing employment possibilities, 57% of job searchers across all professional levels consider culture as essential as salary.

To build and reinforce business culture, managers and leadership must schedule regular, non-work-related events with the aim of team building and recreation. This could include relaxing sessions, meet-and-greets, gaming sessions, or even just talking for fun while having tea in the evening.

Differences in time zones

Another challenge when managing global teams is integrating time zones. Since a globally distributed team is always working at different times, it is important to have a proper structure in place with well-defined guidelines for communication.

Care must be taken to set up team meetings at times that are universally convenient, and managers must ensure proper documentation so that members who miss the meeting might still have access to the discussion. Managing this isn’t too complicated if your team is aware of the overlap they have.

A combination of flexible working hours, dexterous planning, and asynchronous communication can solve a major chunk of time-zone-related issues.

Lack of transparency

There are many possibilities for interaction between coworkers in the office. These seemingly little moments of connection help to improve team dynamics, foster a sense of community and spark cooperation among groups and group members.

A team that works well and performs well is a production machine. Teams should be provided with well-defined briefings that point them in the direction of a certain goal. Make sure you include detailed milestones and timelines so that your team has a clear idea of what is expected from them. This will stop low-quality production as well as burnout brought on by extended hours of effort.

Building trust

Working remotely generally results in less amount of in-person interaction time. People who interact offline on a daily basis are more likely to build friendships and trust. Talking to someone online every day doesn’t bring the same amount of trust and care, but it doesn’t have to be that way.

Host off-site or online gatherings for socializing and team-building so that distant workers may meet up in person or through a video conference. Making time for your team to unwind and have fun alongside when they are spread out is more crucial than ever because the connection is sometimes harder to come by online.

Companies like Automattic are great at managing this. They make sure their employees unplug and unwind on their holidays to keep the mood set. The morale of your distributed workforce may be significantly affected by these social gatherings.

Conclusion

There is a huge disparity between the advantages of global teams and challenges to managing a global workforce. When contrasted. the challenges to managing a distributed workforce are but a smear on an otherwise crystal clear screen of benefits including but not limited to productivity, revenue, retention & success.

Irrespective of the issues with global workforces, teams, and companies are rapidly changing to this model. And not without reason. Globally distributed teams are the future of working. They redefine what we’ve been doing in traditional offices and are better in almost every single way. There’s no reason not to opt-in. Once the managing part is done, you’re on your way to a successful distributed team.

Take the first step towards building your distributed team with Talent500 With vetted professionals and AI-powered tools, we offer talent acquisition and management solutions like no other. To know more, book a consultation and overcome any issues you’re having with your remote workforce.

 

How to get the best out of your distributed agile teams

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Agile is a sequential method to program administration and software design that enables distributed teams to provide value to clients more quickly and with fewer difficulties. Agile work occurs in small, yet consumable, increments rather than putting all on a “big bang” launch. Continuous evaluation of objectives, plans, and outcomes provides businesses with a natural process for adjusting rapidly to change.

An Agile team is a group of workers, contractors, or freelancers who are in charge of carrying out an Agile project. Distributed agile teams are often co-located and completely devoted to the project within its schedule, with no other commitments. Every member of an Agile team is needed to generate the final product or service. The distributed team is often cross-functional, with responsibilities varying based on the demands of the project and the kind of distributed Agile methodology used.

Benefits of distributed agile development

Teams pick Agile so that they can adjust rapidly to market developments or consumer input without sidetracking a year’s length of planning. Planning and releasing in small, regular increments allows your team to receive feedback on each modification and incorporate it into plans for the future at a low cost.

But it’s not simply a numbers game; it’s about people first and foremost. Authentic human connections, as defined by the distributed Agile Manifesto, are more vital than strict processes. Predefined plans are less crucial than collaborating with clients and coworkers. Either way, there are undeniable benefits to implementing agile teams.

How do distributed teams work?

A team that operates in multiple time zones and has members who are geographically separated from one another is referred to as a “distributed team.” This might imply that team members are working alone, whether it be from their homes, cafés, or co-working facilities.

Distributed teams usually work in a remote and virtual environment.

Implementing Agile in a distributed environment

There are many challenges faced in distributed Agile development. Agile claims that development teams must collaborate daily throughout the Agile methodology, but in a distributed environment, this is not possible. On one hand, while face-to-face meetings are prioritized in Agile (for scrums, project schedules, and backlog management), members of a remote team might never meet.

So an Agile distributed team could sound oxymoronic, but it does work. The fundamental goal of adapting Agile for a distributed team is not to adhere to every concept laid out in the Agile Manifesto or to strive to apply them all but to try and translate its fundamentals vis-a-vis a distributed team. Distributed collaboration will inevitably impact the development flow, but this does not exclude Agile from functioning.

Here are 10 things you should keep in mind so as to make the most of your agile distributed teams.

Team size & structure for distributed agile development

Setting up the team to maximize results is crucial when implementing the Agile approach in a remote team. A successful distributed agile team has anywhere from 3 to 9 members. Even in a face-to-face regular conference, a person has a specific ceiling to how much they can recall at once, therefore a larger team may have an impact on communication quality.

Distributed workload

Of course, the advice to divide the task equally among the team members applies to both co-located and distributed teams. The uneven workload might, however, have the worst effects on remote teams.

Due to time zones or scheduling conflicts, the delay caused by an overburdened team member might cause it to take much longer for other teammates. As a result, an overload may jeopardize the team’s ability to stick to timelines. Those who have inadequate work may also lose motivation and become unwilling to put up their best efforts on the job.

Backlog management

The Agile approach recommends daily sync-ups, which are used, among many other things, to identify any problems that are impeding the work of other team members. This issue is more critical in remote Agile teams since a blocker might force developers to delay finishing their work until a teammate on the other side of the world begins working on the problem. As a result, a great deal of valuable time is lost.

Tools for agile distributed development

Make sure you give the right collaborative and communication tools when setting up a distributed Agile development team so that your teammates are able to easily contact one another and attend daily meetings.

  • Using GitHub as your site for code creation and review makes sense given that your business generates software. 
  • If you require a more complete collaboration solution with increased features, use Microsoft SharePoint or Google Drive to handle your project documentation. 
  • One of the best tools for agile distributed teams is Jira. Users create roadmaps for projects, which gives you a visual method of tracking. You can manage each project with a drag-and-drop interface that lets you plan sprints and assign tasks to team members. 

By setting up an online connection like Slack or Skype, you may ensure communication among your virtual team. The same technology may be utilized for your everyday meetings as well.

Build culture

The organization gains a lot from inviting experts from other locations, including cost savings and the opportunity to use various software development methodologies. While managing a remote team, it’s important to be aware of regional cultural differences and adjust management and communication strategies accordingly. Globally distributed teams in Agile development bring a lot to the table.

Offline activities

Plan physical conferences and site visits even if your remote team has been able to use Agile successfully. Naturally, this calls for more planning and funding, as you must take into account the price of travel and accommodations, issues with visas, and the task distribution that will allow certain coworkers to go.

Measure productivity 

In the end, production is what counts. You can clearly see who is engaged on what assignment and what must be changed to render the process more effective by tracking the productivity of your distributed Agile team.

You need to utilize the following metrics to gauge how productive your remote Agile teams are:

  • Velocity is a measurement of how many narrative points on average a distributed team produced during the previous sprint cycles. You may gauge how much work your Agile team can do in forthcoming sprints using a velocity report.
  • Sprint Burndown gives you a real-time report on how many story points your team has finished in a particular sprint. The most effective technique to keep abreast of project status is to use sprint burndown.
  • Cumulative Flow Diagram (CFD). With CFD, you may monitor user story modifications and project progress across a range of statuses, including in progress, review, and finished. A jagged curve in CFD implies inefficient resources and bottlenecks, hence the curve should be smooth.

Ensure project status visibility

The lack of project progress visibility is one of the main problems faced by remote teams using Agile methods. Project status transparency is a component you cannot compromise on in the Agile era, as the project needs to change regularly.

You must ensure that your program status reports are posted and transparent even before the start of a new sprint cycle if you are the project manager or team owner of a distributed Agile team.

Nurture team agility

Since agility is a mindset that you instill in both you and your employees, it requires ongoing care. Every new product may bring with it a fresh set of issues that can never be resolved in the same way twice. Agile must be ingrained within teams for them to be able to respond to such a high frequency of changes.

Outsourcing

Without a seasoned Agile team, you cannot embark on an Agile transformation. The management of your resources is made simpler by outsourcing. You may concentrate more on enhancing what you’re creating when you have fewer personnel to handle. Additionally, a seasoned Agile remote team brings extra value to your team due to their considerable past expertise.

Significant talent shortages may be filled by outsourcing, which also controls expenses that could otherwise soar.

What is Scrum?

Agile project management methodologies like Scrum give teams a framework for incremental delivery while emphasizing effective planning, teamwork, and continual development. 

Most Scrum teams must be dedicated to creating and sustaining a successful Scrum environment in order to meet the need for quick, iterative development. The scrum distributed model has seen good success. This led to experts thinking the scrum distributed model is better than the waterfall model or the Kanban model.

Agile + Distributed = Effective.

If leveraged right, Agile methodologies can help speed up  high-quality software development in distributed teams. However, improper project management of remote workers can result in delivery delays, subpar performance, and worse ROI. In addition to helping project managers successfully  manage distributed Agile models, the best practices and tools listed above can help leaders of distributed Agile teams greatly enhance productivity.  

If you’re looking to better manage your remote teams, look no further than Talent500. With our vetted talent & AI-powered tools, we get to the core of your distributed teams and offer personalized solutions. Book a consultation now to learn just how you can get the best out of your remote workforce.

 

 

 

8 tips for managing a globally distributed team

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It’s 2022, and there is no denying that there are numerous benefits to having a distributed workforce. From access to a wide pool of highly skilled talent, to a direct reduction in operational costs – going global is a good idea for companies of all sizes.

However, managing a global workforce is not without its challenges. The lack of in-person communication can often lead to disconnects within the team, making team members feel alienated and unappreciated. Add to that the difficulties of working with multiple time zones and cultural backgrounds, and you know that leading a distributed team is no child’s play. Even the most seasoned of managers are bound to face difficulties.

Thankfully, a combination of the right people, processes and tools can help managers of distributed teams tackle any difficulty and lead their distributed tech teams to growth and productivity. 

Hire the right people

The first step towards managing global teams is to choose the right team members. Remember that you will no longer be able to stroll over to a team member’s desk to check-in on their progress. When recruiting for your distributed team, try to look for people who are 

  • Self starters: A key component of being an effective remote worker is self-sufficiency and the ability to take on projects without needing constant management and oversight. Self starters are professionals who want to learn new skills and take on new challenges without being told what to do by their managers or bosses. 
  • Effective communicators: Whether it’s during the stages of planning and ideation, or execution and implementation, clear communication maximizes productivity and reduces turnaround time. 
  • Problem solvers: Members of your team will often be required to adopt new technology or improvise a quick solution to ensure smooth functioning. Look for candidates who show creative and strategic thinking.
  • Good at time management: The stop and start nature of remote work demands extreme punctuality and time management. It is important to find individuals who will be able to understand which tasks are necessary and prioritise those.

Set effective goals

The transition to location independent work, although necessary, may not always be easy. It is natural for team members to struggle with initial uncertainty and confusion, and the best way to lead global virtual teams is by setting the right goals and expectations. 

Set effective long-term and short-term goals, and communicate these clearly with your team members to get buy-in. Setting objectives for specific periods of time – weekly, bi-weekly or even monthly, is a great way to help distributed teams keep on pace. Having a common written standard will make it easier for your team to follow these goals. 

Develop a working structure

One of the most important parts of setting up a physical office is setting up the necessary infrastructure, from electricity and civic amenities, to work desks, conference rooms, telephones and Wi-Fi routers. Setting up your distributed office is no different – with the slight difference of putting in place the right working structure and tools that will help your team. 

Establish a working structure that clarifies each aspect of daily functioning, like the tools that you will be using, the different methods of communication, working hours and availability, vacation and leave policy. 

One of the best ways to augment the performance of your team is by supplying them with the right tools and procedures. Put in place an effective work structure by demarcating communication channels, formulating standard operating procedures and documenting everything. GitLab’s Remote Manifesto is a great example of how an effective working structure can help distributed teams function like a well oiled machine.

Champion asynchronous communication 

Working with multiple time zones is a problem inherent to managing distributed teams. Asynchronous communication solves this by enabling every member of your team to work according to their own schedules. By eliminating the pressure to respond immediately and reducing interruptions, it leads to increased productivity and an increased level of control over the workday. 

However, extracting the complete potential of asynchronous communication requires a little bit of homework. To begin with, team leaders must ensure that all relevant details are stored at a central place, available to every stakeholder in the project. Similarly, channels of communication should be divided  into synchronous and asynchronous according to urgency and importance.

Empower local leaders 

As the leader of a distributed team, it is important to understand that your team members are working from multiple geographical locations, which is bound to result in differences of cultural backgrounds and time zones. This is especially true for large multinational companies having bases in multiple countries.

In such cases, taking the help of local leaders across various locations can help you effectively manage multiple distributed teams. Empowering regional leaders helps establish a strong local foundation, creating a hierarchy of leadership when working with multiple international teams. Today, companies like Airbnb, Walmart and Target are establishing their global capability centres (GCCs) as independent, fully-functional units within themselves with the help of strong local leadership. Empowering regional leaders to facilitate the daily operations helps global leaders concentrate on the bigger picture. 

Listen & iterate 

The importance of effective, two-way communication cannot be overemphasized when it comes to distributed teams. Working in co-located offices meant that managers had visual cues on how their team members were feeling; in the absence of the same, they now need to work harder to gauge the pulse of the team.  

Be it through 1:1 meetings, weekly brainstorming sessions, surveys or just general check-ins, leaders of distributed teams must continuously seek feedback and look for ways to implement it. From setting goals and deciding project timelines, to the adoption of new operating procedures and tools – when employees feel heard, it has a direct impact on their levels of engagement and satisfaction. 

Include rituals and Ceremonies 

According to this survey by Buffer, the top two challenges faced by remote workers include “barriers to communication & collaboration” and “loneliness”. For employees at co-located offices, occasions like birthdays and cultural celebrations are often the times when a large chunk of bonds are formed. For globally distributed teams, this occurs through shared rituals, practices and ceremonies. 

Shared team rituals help foster trust between team members and make them feel like they are part of something special. Fun Friday activities, virtual happy hours, or any other such team bonding rituals are crucial to forming interpersonal bonds and directly impact team dynamics. Managers can start with something as simple as a monthly team lunch where all members share the same menu. 

Recognize your team members

82% of employees consider recognition as an important part of their happiness at work. Rewarding and recognizing your team members is a good idea universally, and this applies squarely to dispersed teams as well. The lack of interpersonal interaction is often the biggest challenge faced by most distributed teams. Having a culture of appreciation helps employees feel valued, directly impacting employee engagement and consequently, retention. 

While verbal recognition is a good start, team leaders today have access to a wide range of recognition softwares and applications created specifically for globally distributed teams. Applications like Nectar, Bonusly and HeyTaco can be integrated directly with Slack.

 

Worldwide, the percentage of people working remotely has risen from 17% in 2019 to 32% in 2021. Additionally, 73% of all departments are expected to have remote workers by 2028. Regardless of the industry you’re in, leading global teams is an essential skill-set for all managers today. 

At Talent500, we understand that the transition to location independent working is a multi-layered process involving numerous stakeholders and factors. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

 

6 things emerging and established leaders can learn from the failure of startups

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Learning from the success of unicorns is wise, but there’s equal, if not more, insight to glean from startups that crash and burn. A forerunner to success, failure is part and parcel of any undertaking and those that succeed usually learn from what went wrong. For leaders, whether it comes to policy reform, employee management, revenue generation models, or any number of business practices, startups are a goldmine of tested theories. This is mainly because a vast number of startups are launched every year, with nearly 90% failing. Quite a few don’t make it past the first year, and knowing why can give leaders an edge.

In many cases, the answer to the why of it all comes down to insufficient capital and dwindling market demand. If not these, company culture comes into question, which without the right ideals, is merely a buzzword. A lack of policies that reinforce company culture or poor employee management at senior levels can put viable startups on the path to failure. Further, as the millennial workforce grows and finds its footing in startups, newer enterprises can find it hard to adapt to the modern employee.

All of these factors pose a challenge for modern leaders, and to get the formula to success right, learning from those that have come up short definitely helps.

Here are a few learnings for leaders looking to thrive in the competitive landscape of modern business of startups.

Get the team right – From partners to employees

Building a team with identical values and goals as the company goes a long way to ensure success. A partner or a co-founder who is simply a ‘yes person’ does little. It is crucial to see that their skills and talent complement that of the other members of leadership. In fact, not having the right core team members is one of the top reasons why startups fail.

Besides management, having the team members on the same page is essential to ensure that problems do not escalate and lead to the company’s downfall. This is where diversity comes into play, as such teams are known to broaden the company’s horizon. Be it through professional opinions, innovative mindsets or simply fresh perspectives on a number of problems, leaders stand to gain a lot from team building appropriately.

Balance the finances, business model, and product/service

The business model, finances, and product/service of the startup are vital aspects that build the foundation for success. As a result, balance and harmony between these aspects are non-negotiable, yet many companies fail to establish them. Research reveals that 38% of the startups fail because of insufficient or improper management of the capital gathered. Similarly, if the business model is not functional, it will hinder internal processes too. Further compounding the issue, the product or service may also fail to hit its mark. All of these combined inhibit startups and it all stems from imbalance. Modern leaders ought to assess their frameworks to see if there’s balance, and fix where there isn’t. 

Encourage innovation to stay competitive

Innovative enterprises will often find success more easily than their counterparts, but achieving it is easier said than done. Most startups are built on innovative advances and there’s no doubting the fact that it is key to getting ahead and staying there. However, failure on this front can lead to massive losses, especially if the competition innovates at a faster pace. As a matter of fact, nearly 20% of the startups are defeated by their competitors, and innovation, in one aspect or another, has a huge role to play.

An effective way to organically ensure innovation is to focus on diversity and inclusion (D&I). A diverse and inclusive workforce creates an environment where people can freely think out of the box. Moreover, their different backgrounds provide new outlooks on various problems. Research shows that organizations who practice and excel at establishing D&I can deliver almost twice the economic profit.

Ensure that there is a demand for the service/product offered

As mentioned above, dwindling demand is among the top reasons why most startups fail. In fact, many start out with the determination to “stick through the rough patch”, even when there’s no sense in doing so as the market demand isn’t there. Data suggests that nearly 35% of the startups fail because there is no need for the product or service offered. Innovation for innovation’s sake shouldn’t be the end goal.

As mentioned above, dwindling demand is among the top reasons why most startups fail. In fact, many start out with the determination to “stick through the rough patch”, even when there’s no sense in doing so as the market demand isn’t there. Data suggests that nearly 35% of the startups fail because there is no need for the product or service offered. Innovation for innovation’s sake shouldn’t be the end goal.

Create a company culture that promotes longevity and stability

The company culture is a critical aspect of any enterprise, and especially so for fast-paced startups. Unfortunately, startups can struggle with this, and failing here has dire consequences. For one, it comes across as a failure on the part of leadership, as a large part of the responsibility to influence company cultures rests on their shoulders. Secondly, in the nascent stages, unfavorable practices of bullying, misconduct, or disregard for policy can be disastrous. 

This oversight should be an eye-opener for leaders as should noting the importance of establishing a company culture. One that looks out for its workforce is key. It can help avoid other pitfalls common that come naturally with time, and help with more serious issues like burnout. In fact, a strong culture can help avoid the failure caused by burnout, which nearly 5% of the startups experience.

Focus on employee satisfaction along with customer satisfaction

Employees are just as crucial to the mission as customers, especially in the pursuit of success. This is because engaged employees increase productivity as well as customer and employee retention. For startups, this means lower costs and better margins. In addition, satisfied employees can help improve employee engagement. Increased and improved employee engagement can lead to a 10% increase in customer loyalty, an 18% increase in productivity, and a 23% increase in profitability.

Considering what we’ve learnt, leaders ought to take a few plays from the startup playbook when looking to increase employee satisfaction. These smaller enterprises are often more willing to experiment with policies and come up with winning formulas to attract and retain the best talent. 

Failure is a part of achieving success, but leaders don’t have to fail all the time to get there. Learning from those that have been there and done it helps, while being cost-effective too! Remember, enterprises that succeed do so because they bounce back and learn from their mistakes. According to research, the timing of execution plays a pivotal role in ensuring the success of a startup. What’s more, the team that executes is just as important, and building an agile team capable of rising to the task is easy with Talent500.

Equipped with AI-powered solutions, we can help you build global teams quicker and more efficiently, all the while ensuring employee engagement. Besides this, we offer talent management services to establish diverse remote teams and in adherence to country-specific regulations. Request a consultation to know more about the solutions on offer.

Why employee referrals are crucial for hiring in tech, and how to get them

Posted on by temp

Tech companies are in a tussle for talent like never before. Back in 2018, a LinkedIn study highlighted the industry’s Achilles heel: a chart-topping turnover rate, 13.2% at the time. With the pandemic easing, the problem seems to have resurfaced and compounded. Multiple sources now reveal Indian IT majors grappling with an attrition rate upwards of 20–25%. Nevertheless, the silver lining, experts suggest, is that the massive churn in the employee talent pool should settle down as 2022 progresses.

Hiring teams find themselves amidst considerable buzz and tension in the job market. Employees who may have earlier not considered changing alliances, now aspire for value in different shapes and sizes, be it a fatter paycheck or a flexible work schedule. They are open to jumping ship. Simultaneously, the rapid pace of digital acceleration juxtaposed with the sparse availability of highly-qualified, domain-specific talent means that hiring managers must act swiftly and smartly.

There may be no way to entirely ‘short-circuit’ the hiring process. However, treading the plank of employee advocacy has proven benefits: better talent, shorter hiring time, reduced cost per candidate – the works! Here’s why employee referrals are too crucial a hiring method to be left underutilized in 2022.

Why do employee referrals work?

Statistics show that employee referrals amount to a large percentage of any given company’s total hires. Data by Gary Crispin published on SHRM pegs this figure at 28–30%, and this can rise to about 45% if more emphasis is placed on the method.

From the perspective of the candidate, a referral establishes an element of trust. Job listings and company websites provide a minimal amount of data about working in the organization. Getting invited by someone who’s ‘been there, done it’ can create a crucial bond between the potential hire and the company. It’s similar to booking one hotel rather than the other, if for no other reason than the reviews. Candidates are likely to go where they have good reason to believe they will succeed.

From the perspective of the employer, a referral means the candidate is, to some extent, already pre-qualified. The fact that a candidate is referred to the company by someone privy to the work culture and demands can drastically improve the quality of the hire. In other words, candidates coming through employee referral programs are vetted by more than the HR team.

It’s a win-win for candidates and hiring teams, and this is reflected by the fact that referrals enjoy a much higher job-offer rate than regular applicants.

Top advantages of employee referral programs

88% of employers agree that employee referral programs are the best source of recruitment, backed by data from Zippia . Here are some reasons why:

Larger talent pool

An employee referral program grants instant access into the employees’ networks. The best talent may very possibly lie outside the company’s reach, and employee networks can help expand the talent pool exponentially. Moreover, many potential employees may be “passive” about wanting a new job and so, may simply not appear on job boards, search engine ads, career pages, and so on.

Higher conversion rate

Data from software company Jobvite shows that referred candidates enjoy a conversion rate of around 40%. Having such a high number of successful placements vis-à-vis the jobs available is extremely beneficial to the budget. It means spending less on the recruitment process. What’s more, compared to the copious amounts of résumés received through other channels, employee referrals are normally few in number. Companies have access to high-potential candidates through referral programs. 

Quicker turnaround time

In a tech world of fierce competition and unrelenting product development deadlines, time is not just money – it’s survival. Here’s where a referred candidate can be gold. The fact that a referral makes candidates and recruiters confident of success translates into a more pleasant recruitment process. Statistics reveal that it implies a shorter recruitment time: 21 days versus the 39-day average, according to data from software company ERIN.

Longer service tenures

Statistics from ERIN also reveal that referred employees stick around longer. Compared to those who come through job boards, nearly double the amount stay committed to a company for double the time frame. Why do referred employees budge less easily? It is probably because they have the inside scoop before joining. They know what they are getting into and make an informed choice to join the company.

Better culture fit

Job listings seek to match technical skills with project requirements. However, will the candidate fit into the team? How will the candidate fare in the company in the long run? A current employee who knows both the company’s culture and the candidate’s personality can help bridge this divide. In fact, recruiters see this culture fit reflected in a high level of employee engagement. 

Lower costs per hire

Multiple sources agree that employee referrals are less costly than other sources of recruitment. Companies sidestep the fees they’d encounter along the traditional hiring routes. More importantly, when putting together domain-specific skill, a low time to productivity, and a high retention rate, the result is a better quality employee – at a cheaper price tag!

How to inspire great employee referrals?

Invest in the program

Employee referrals are cost-effective, but they aren’t free! Here’s what companies can offer.

  1. Cash bonus: Keep it attractive and inclusive. That is, the amount should incite action, and it may be beneficial to open the program up to all levels of employees, be it executives or interns.
  2. Non-cash rewards: Incentives such as a ‘paid vacation’, ‘raise in seniority level’, ‘public recognition’, or ‘dinner with the leadership’ can work better than cash equivalents. They build the referrer’s interest in the company and strengthen the company culture

Keep it simple

Devise a referral program that does not have too many terms and conditions. If it is overly complicated, employees will not participate as eagerly. Moreover, create a straightforward process for candidates to be referred: an online form is great. If the referral program can integrate with social media, even better!

Question and respond

Employee referrals are no magic handshake. They don’t have to work: they can fail! Because the quality of the hire depends on your current employee’s experiences with your company and with the candidate, it can be beneficial to get some data on this during the referral process. This will help sift high-quality referrals from those of a lesser grade.

On gaining a referral, respond to the candidate and referring employee promptly. This keeps all parties interested and the program rolling. A quick response gives the candidate the preferential treatment they may expect. Updates to employees tell them their work is valuable.

Employee referrals are extremely valuable, but cannot be the sole plank. They can suffer from low data and a lack of diversity. Ideally, employee referrals should complement other recruitment methods. For instance, when you partner with Talent500, you get access to over 200,000 pre-vetted professionals gunning to fill the ranks at quickly-growing start-ups and Fortune 500 companies. Our AI-powered tools provide access to 5x faster hiring, data-driven profile matching, and multichannel sourcing.  Schedule a consultation and learn how to put top-draw talent from renowned talent hubs across the globe within your reach today!

 

Talent500 helps the world’s fastest growing businesses build their global workforce.

We help companies hire, build and manage global teams. We are trusted by industry leaders across the globe – from Fortune 500s and larger enterprises, to some of the world’s fastest-growing startups. We are backed by Accel Partners & ANSR, a global leader and enterprise transformation platform.

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