Many companies found themselves forced to abruptly implement company-wide work from home policies due to the pandemic. While creating the policies and procedures necessary to support a fully remote workforce may seem like a daunting task at first, transitioning to remote work also offers easily quantifiable value like lower overhead costs, better employee retention, and access to a wider pool of talent.
In this article, we’ll examine the benefits of hiring remote software developers as compared to hiring onsite developers. At Blue Coding, we’re a fully remote company with ample experience hiring and managing remote development teams, but we’re not basing this article on our own experiences alone. We’ll also link to studies and other helpful sources to help you decide whether remote development is right for you. Let's start out by looking at why developers want to work remotely in the first place!
Reasons People Want To Work Remotely
According to Owl Labs, remote workers report that the top four reasons they want to work remotely are: better work-life balance, increased productivity/better focus, less stress, and finally, to avoid having to commute.
The Rise of Remote Work in the Tech Industry
The tech industry has been at the forefront of embracing remote work, a trend that has reshaped the sector's employment landscape. In recent years, particularly since 2020, there's been a dramatic shift towards remote work in tech. For instance, a survey by Buffer shows that 98% of tech employees would like to work remotely, at least some of the time, for the rest of their careers. This staggering statistic highlights the overwhelming preference for this mode of work among tech professionals.
Remote work in tech is no longer just about preference; it's about practicality and productivity. A study by Stanford found that remote workers are 13% more productive than their in-office counterparts. This increase in productivity is attributed to a quieter work environment, fewer distractions, and a customizable workspace that remote work offers. Additionally, remote work has led to broader, more inclusive hiring practices in the tech industry. Companies are no longer limited by geography when scouting for talent. This expanded access allows firms to hire the best, regardless of their location. According to a report by LinkedIn, remote job postings in the tech sector saw a 457% increase, indicating a significant shift in hiring strategies.
Now, the rise of remote work is also proving beneficial for both employers and employees. Employers save on overhead costs like office space and utilities, while employees save time and money on commuting. Global Workplace Analytics estimates that a typical company can save about $11,000 per year for every employee who works remotely half of the time. Let's dive into why the decision to hire remote developers benefits your company!
Benefits of Hiring Remote Developers
Increase employee retention
Implementing remote work policies can greatly increase retention rates and employee loyalty. If one of your top performers leaves the company, you’ll need to spend significant time, money, and resources to hire and train a replacement.
The will of the workplace is changing. Research finds companies that don’t meet employees’ needs will have trouble competing in the labor market and holding on to their existing employees.
Employee turnover is expensive. One tactic we’ve found that helps us keep our employees happy is letting them work from wherever they want as long as it doesn’t affect their performance.
Recent surveys found:
51% of workers are actively looking for a new job or are open to one
Coincidentally, 51% say they would switch to a job that allows them flexitime
55% of remote workers would be likely to look for another job if they were no longer allowed to work remotely
61% of remote workers would expect a pay increase if they were no longer allowed to work remotely
According to Indeed’s remote work survey, 72% of companies with remote work policies say workers are more productive, while another 22% say remote workers are equally as productive, and only 3% say that remote workers are less productive.
While both remote workers and on-site workers report working over 40 hours a week, it’s often for very different reasons. According to a survey by Owl Labs, on-site workers are working longer weeks because it’s required, while remote workers report doing it primarily because they love what they do.
Interestingly enough, 72% of both remote and on-site workers feel they're working the right number of hours each week.
Access to more talent
HackerRank asked 7,000 employers what the biggest challenge they face is when hiring talent, and 41% said talent shortage.
A number of industries are experiencing an increase in demand for skilled developers. This can make finding experienced developers in your area difficult at times -- especially if you’re looking for developers skilled in a specific tech stack or a niche technology.
Opening up remote software development roles nationally/internationally gives companies access to untapped domestic markets and an endless stream of qualified foreign talent.
Lower Infrastructure costs
Appealing and well-designed workspaces, fitted with the latest technology, and in a convenient location can be costly to acquire and maintain. By working remotely, you’re saving a lot of the money you would be spending on installing and maintaining technology systems and infrastructure.
The only limitation remote workers have as to where they can work is the need for a reliable internet connection. Other than that, just about anywhere is fair game. You’ll commonly find remote workers set up in coworking spaces, coffee shops, restaurants, and even overlooking a beach occasionally if the internet connection is sound enough.
Not only do you save money on infrastructure and maintenance, but employees enjoy the freedom of choosing their own tech and work environment.
Ready to hire remotely?
Overall, while there will always be considerable benefits to working with someone in person, the advantages of hiring remote programmers are undeniable, offering everything from lower costs to access to better talent. At Blue Coding, a nearshore software development company, we offer staff augmentation services to bridge the gap between LATAM’s top remote talent and North American companies in need of IT solutions. If you’re looking to find the right software development talent for your team, our technical recruitment team can help you hire remote developers while taking the heavy workload off your plate. Contact us today to schedule a free discovery call and find out how our specialized staffing and recruitment services can help!