The hiring landscape is changing quickly, and a new era of hiring has begun. Businesses are embracing the distributed team model. Companies have adapted to remote work environments and virtual hiring processes, which have opened up new possibilities for how and where talent can be sourced.
In the future, the limitations and boundaries of traditional hiring will continue to fade away, opening up a world of possibilities for employers and job seekers alike. As per the 2023 Remote Workforce report by Remote ‘employees discovered increased mobility and flexibility through remote work, while businesses grappled with uncertain budgets and new challenges in measuring productivity and engagement. As economic uncertainty caused some to retreat into familiar offices, other businesses took the opportunity to think past local limitations — and found substantial rewards in doing so.
There are several reasons why the trend towards globally distributed teams is on the rise, one of which being the increasing need for businesses to attract and retain the best talent – regardless of their location. By building teams with diverse skill sets, experiences, and perspectives, businesses can ensure that they can tackle complex challenges and take advantage of a range of opportunities. The report emphasises that ‘Opening positions to overseas candidates attracts applicants of a higher calibre. 60% of decision-makers claim that since their organisation adopted a distributed remote workforce model, there are now more qualified applicants for each open position.’
In addition, the rise of communication technology and collaboration tools has made it easier than ever for teams to work together despite being geographically dispersed. As a result, businesses are no longer held back by the need to have employees located in one specific place. Throughout the past year, distributed remote workforces have grown considerably. The percentage of full-time workers who work abroad has increased by 44%, while the percentage of full-time workers who work remotely has increased by 54% and the percentage of full-time workers who work in the country where their employer is based has increased by 42%. This pays off for the business overall: As per the report ‘Businesses can increase their competitiveness in new markets by hiring globally. When hiring international remote workers, 35% of decision-makers claim companies can increase market competitiveness by providing services to additional foreign locations.’
Another factor driving the rise of globally distributed teams is the cost savings that can be achieved by not having a physical office – although many businesses still overspend on office space when hiring abroad. Currently, distributed international remote workforces have more offices (41% report having 6 or more locations) compared to their in-country remote (19%) and in-office (18%) counterparts. To add to the expenses, most companies hiring abroad are opening their own entities, which can take up to 12 months and significant costs to complete. With remote workers, businesses can save on rent, utilities, and other expenses associated with maintaining a physical workspace. Hiring for ability and talent regardless of location leads to higher retention and greater productivity, which can reflect positively in a company’s bottom line. A growing portion of businesses accomplish this using an employer of record (EOR) to hire international workers, which can be done in days instead of months and doesn’t require upfront capital or in-country expertise. The future of hiring is likely to be more agile, more tech-driven, and more focused on tapping into a diverse and global talent pool. As technology continues to evolve, the possibilities for how and where we work will expand, creating exciting opportunities for both employers and employees.
Overall, the future of hiring seems to be moving towards globally distributed teams, where businesses can leverage technology and build teams with the best talent from all over the world to achieve their goals wherein there are no boundaries and limitations.