Will hiring remote workers pay off?

By STEVE NICASTRO

NerdWallet

More people are trading in commutes and cubicles for couches and coffee shops: As of 2016, 43 percent of employees worked remotely at least part of the time, up from 39 percent in 2012, according to Gallup’s State of the American Workplace report.

For small businesses that don’t need employees onsite, high-speed internet, communication apps, and video conferencing make it easier to hire people located virtually anywhere. But forming relationships with remote workers may be more challenging.

Here are some pros and cons of hiring remote employees, along with tips on making it work.

PROS: COST SAVINGS, FLEXIBILITY

Businesses that are fully remote don’t need to pay rent and other expenses that come with a physical space, and partially remote businesses can make do with a smaller office.

Joe Scott, owner of Vault Cargo Management, says he always intended to have a remote team because of the flexibility. Lower overhead has been a bonus: Moving his six employees into an office in Green Bay, Wisconsin, would likely cost $1,500 per month.

“It would have hamstrung us as far as being able to grow as quickly as we have been able to, especially early on,” says Scott, who launched the outdoor equipment business in 2015.

And with remote employees, hiring isn’t limited by location. You can select from a larger talent pool and reach candidates with more diverse skills, knowledge and experience.

Remote hiring helped Scott find candidates that best fit his company’s culture. The team includes two employees in Texas, one employee in Wisconsin, one in California, one in New Jersey and one in the Philippines.

“We’re centered around an outdoorsy type of community with our business, so it’s very important we find people who fit that mold,” Scott says.

Employees are also more engaged when they work remotely most of the time and benefit from improved technological support, according to the Gallup study.

CONS: LOSS OF CONNECTION AND DISCIPLINE

Forming relationships with and among fully remote employees can be harder than in a traditional office.

Employees who work 100 percent remotely have the lowest engagement among remote workers, with engagement levels the same as employees who never work remotely, according to the Gallup study.

Everyone loses the in-person interaction, such as elevator conversations and after-work happy hours. Remote workers might also miss out on morale-boosting team-building events.

“It’s easy to kind of forget they are people on the other side of the screen, simply because we don’t ever really see them,” Scott says. “You have to keep in touch like you would in a physical setting.”

Candidates should also have the self-discipline and independence that’s required to work from home without being distracted by TV, social media, house chores or family and pets.