Insight: 4 reasons to pay remote talent well

A lot of articles have been written about the keys to outsourcing success. Tens of thousands of words detailing tips and advice to help companies get the most out of a resourcing strategy that can deliver huge benefits when done well but the risk of tears if enacted poorly.

Define your goals. Choose the right model. Craft effective job descriptions. Document your internal processes. Communicate clearly with your provider. It has all been said many times but there is one piece of advice you rarely hear but can significantly impact your chances of outsourcing success.

Pay your remote talent well.

Saving money is the number one reason that businesses choose to outsource so it makes sense that many organisations are focused on getting the best deal they can for their remote talent. A Deloitte study found 70% of companies pursue outsourcing to reduce labour costs and there is no doubt it is a cost-effective solution for accessing talent.

However, it is not uncommon for businesses to get blinded by the promise of ‘cheap’ labour and learn the hard way that using bargain talent can be costly.

Why it pays to pay well

Hiring remote talent is a proven way to reduce costs but there are various reasons why paying a little more can go a long way.

Quality – befitting an industry valued at almost US$262 billion in 2022, outsourcing is home to countless providers and, like any sector, the level of quality on offer ranges from the very best to the not-so-good. Businesses that put too much emphasis on paying less for remote workers are likely to restrict access to top-tier talent pools, which can have a detrimental effect on operations. Quality recruits may come cost slightly more but they are more likely to have the expertise, skills and experience needed to help grow your business.

Retention – outsourcing is an increasingly competitive field, with remote talent having no shortage of providers they can partner with. Investing in cheap labour lends itself to high employee turnover rates because staff are more likely to seek better-paying roles elsewhere. Money then needs to be spent on further hiring, onboarding and training, negating the initial cost savings. Savvy companies know that paying above-market wages for talented remote workers will help boost retention rates and prove more cost-effective in the long-term.

Morale – hiring remote talent has repeatedly been shown to have a positive effect on the morale of in-house employees. By handing repetitive and time-consuming tasks to outsourced staff, onshore staff can spend time and energy on more rewarding and valuable work. However, problems arise when those remote workers are not of a quality standard and their in-house colleagues are forced to deal with the fallout of their poor work. Paying more to access better talent is a simple way to send a company’s culture in the right direction.

Long-term gains – outsourcing is a guaranteed way to reduce costs but businesses who prioritise saving money over quality put themselves at risk of failing to realise its potential. Not investing enough in quality talent can lead to poor performances from remote workers and, in turn, inspire decision-makers to walk away from outsourcing altogether. This would be a great shame given the significant benefits their companies would forgo, including missed cost-saving opportunities for years to come.

Summary

It is important to highlight that paying above-market wages for talented remote workers still makes great financial sense. While costs vary depending on circumstances and needs, outsourcing to staff in low-cost economies such as Pakistan can save businesses up to 70% in labour costs including wages, training, office space and equipment.

The key is to team with a partner that prides itself on the quality of its talent pool and its commitment to paying the best remote workers what they are worth. Providers such as flexhive by Hudson know that outsourcing is about much more than providing cheap labour, with just as much emphasis placed on quality talent, premium systems, superior technology and risk mitigation strategies.

Connect with one of flexhive by Hudson’s experts or learn how to reduce or eliminate seven risks associated with remote staffing.