The overhead costs of a business are reduced if a business chooses to opt for a larger switch of hiring predominantly online employees. It may take more time to see the benefit of not having to pay the rent on an office building or for the utility bills if you still have a physical office location. There is also the option to blend a business to downsize an office space to have fewer employees onsite and more online that would see this benefit.
Typically there are no overhead costs like computers, office and parking spaces, benefits, utilities etc. According to a study from Sanford University, a company can save about $2,000 per year, per employee who works from home. Even if you provide funds for the employee to set up a home office, costs remain significantly lower than renting an office space.
Use time zones to your advantage. Timezones are a great and terrible thing. On one hand, I know what it’s like to wake up at 6 a.m. for a meeting. Or sleep at 3 a.m. waiting for an update from the team. I’ve also seen the benefits of having a person online at all times for our customers. This is especially powerful in customer support. It allows for 24/7 support with just a few strategically placed (literally) people. Time.is is a great way to compare what time it is (and will be) in other places and can help you keep track of the time where your other team members are. And don’t fret, because you’ll get the hang of it. I often forget what time it is where I am. But after working on a remote team for 3 years, I’ve learned how to do timezone calculations almost subconsciously. Just be sure to set an alarm for Daylight Savings.
The answer is you hire someone. You trade with someone. You trade them for two hours. That’s what I did in the beginning. Because I remember… I was just really young in my career, very in the early days, and I was running to get to the dry cleaners so I could get my only two suits because if I didn't get them, you know, then the place closes and I can’t get on the plane.
Return on investment is the very close cousin of cost-benefit, but in this case, I will apply it in a strictly financial sense, and use my real-life work as an example. My personal assistant, whose name is Eric, does a lot of research, logistics, and planning for me as a journalist. Because he expands my efficiency, I’m free to take on more assignments and make more money. I would estimate that for the $50 investment I make for each week I hire him out, I make twice as much money minimum because of his help. So if I pocket $100 I wouldn’t otherwise make, and pay him $50, the return on investment is $50. Makes sense? (By the way, that’s during a slow week. Sometimes the return on investment is two or three times as much.)
Actually – the work of a personal assistant should NOT be issued a 1099. The work they perform is that of an employee, and not a contractor. Misclassifying them as such can result in steep fines from the IRS, who are cracking down on this behavior (businesses trying to save money by not being a accountable for their workers and properly giving them a W-2. If you can’t afford to offer a W-2, then maybe you can’t afford an assistant.
Virtual offices, telecommuting and telework all mean essentially the same thing: employees work from another location outside of the traditional office. Virtual offices and telecommuting have become immensely popular for some employers, and met with trepidation by others. The concept is a relatively new one, which makes it difficult to construct definitive policies that set clear parameters for working outside the traditional office environment. As with any work arrangement, there are advantages and disadvantages to virtual offices and telecommuting.
GlobeSmart ProfileSM Debrief: Aperian Global offers GlobeSmart, the industry’s leading online cultural intelligence resource for improved cross-cultural understanding. This program will help business professionals leverage the GlobeSmart online learning tool and use cultural intelligence to work globally. Learning objectives include gaining knowledge into common behaviors influenced by culture, learning to overcome cultural gaps, and more. The GlobeSmart Profile is an online cultural inventory that allows users to learn about their own unique working styles, while also providing them with advice about working successfully with colleagues and people from other cultures. The profile is available in 13 languages.
Allowing workers to work from home or from wherever they choose allows them to have flexible schedules for their work and personal lives. It allows them to create their own time frames according to company-set deadlines and to make up time if they need to attend to an appointment that they normally would have to request a whole day off from work for.
For employees, having the ability to telecommute thanks to having a virtual work place provides them with savings on commuting costs such as fuel. A paper from The Mobility Choice Coalition found that if 10 million employees who have the option to telecommute do so just twice a month, 21 million barrels of oil would be saved a year. With gas prices close to $4.00 a gallon, this would amount to $1.7 billion of fuel cost savings a year.1
If you're an overworked entrepreneur wondering why your to-do list always seems unfinished, look into hiring a personal assistant. I once had a mentor tell me that a key to day-to-day success is to hire a PA to keep the trains running on time while you focus on big picture ideas. At first, I thought it was a waste of money, but now I completely understand where he's coming from.
Web Site Designer/Administrator – You will find a pool of virtual assistants who specialize in website design and management. You will find a lot of virtual assistants in this arena who are experts in web creation using software such as WordPress and others like it. Specifically, you can easily find virtual assistants who promote WordPress as their niche. If your company needs assistance with its website, which includes a blog, using this type of virtual assistant would be great for your business.
Saving on Hiring a Full-Time Employee – A key benefit to using a virtual assistant for your business is the saving aspect. By working with a virtual assistant, you will save on the expense of hiring a full-time employee. This includes the amount of time and money spent on interviewing and training a new employee. This also includes the cost of employee benefits such as health insurance, employee-related benefits, and tax savings. As independent contractors, virtual assistants are responsible for their own bookkeeping and taxes. You will not have to worry about incurring such costs.
If you hire locally in your own city you are greatly restricting the available talent pool that you can draw upon. You can also use the cost savings from virtual teams to pay more to your team members. The combination of being able to hire from anywhere, and potentially pay more will greatly increase the level of talent that you can attract in your business.
"Managing Virtual Teams (MVT) provided workable solutions that could be implemented right away for long term success. I went into the course hoping to grab a few tips and tricks but instead experienced a hands-on workshop that was tailored to my organization's needs." Megan West, Digital Communications Manager. Private Academic Library Network of Indiana (PALNI)
Often expanding the employee count also means expanding the office space to hold more employees. The cost of upgrading and expanding a space is saved by delegating some of the work to online employees. This allows the employers to save time and money searching for a new space and also gives them the access to many talented employees who may not be available to work the typical 9-5 hours.
Having worked remotely for my whole career (25 years) I found this to be a great read. I certainly agree with the elements as provided. It does take a certain personality to be able to stay focused and committed without the boss watching. wink wink. The biggest challenge I find is actually separating from work. With the advent of PDA this is really the norm rather then the exception.
The cost of a personal assistant will be more than a virtual assistant and you will be responsible for employing them. But you will be receiving 100% of their time and whilst this requires a certain amount of administration on your part there are companies such as Staff Tax in the UK for private staff who can help with payroll, employment contracts and pensions. For an idea of how much a PA would expect to be paid you can read more here.
Virtual work or telecommuting requires self-discipline, motivation and a tremendous amount of focus. Individuals who do their best work independently are often the happiest with telecommuting than workers who need to have regular contact with others. The managers who supervise telecommuters bear a large responsibility as well. Managing employees remotely can be very challenging, and it is ultimately the manager's responsibility for determining which of their employees demonstrate the necessary skills and traits for performing successfully in a remote location.
The conversation is twofold: Employees who work from home help companies reduce overhead costs, experience greater satisfaction in their jobs, and they’re more productive, but companies ultimately have the discretion to not offer work from home policies — or revoke them — if company leaders believe that managing a virtual workplace decreases speed or hinders collaboration.
Reflecting the global reach of remote work, a survey in Ireland found that about two-thirds of the country’s workers weren’t adequately equipped to work effectively from home on snow days. The survey by Ricoh Ireland, conducted in collaboration with TechPro magazine, was based on questions put to IT professionals at more than 75 organizations across Ireland. Failing to offer technological support that supports working from home when needed can be detrimental to a company’s bottom line, the survey found.
Establish an onboarding process. Be sure that every employee who collaborates virtually has the same onboarding experience. They should be given access to the same communication systems and handbooks that explain the company processes. Everyone should be given the same advice and tools for success as they’re brought on board. If possible, it can even be very valuable to have an initial onboarding done face-to-face in an office location.