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Hiring is one of the biggest pain points for companies, especially startups looking to scale rapidly. The majority of companies we spoke with pointed to hiring as one of the primary reasons they’ve embraced remote work. One of the clearest benefits of remote teams to companies is a global talent pool that is not restricted to highly competitive, expensive urban tech hubs.
importantHiring a single employee can cost between $4K-$7K (and often more for highly technical or specialized roles), and can take upwards of two months.* Hiring remotely opens up a world of candidates, greatly reducing the time and costs companies incur to find talent. Fully distributed companies take 33% less time to hire a new employee (4.5 weeks vs. 7 weeks).
Increased Employee Satisfaction and Retention
Hiring is expensive, but hiring people who don’t stick around very long is even more costly. The 2019 State of Remote Work report by Owl Labs and Kate Lister of Global Workplace Analytics have some of the most compelling results about the power of remote work to improve employee satisfaction with their job and increase willingness to stay with their current company. They found that companies that allow some form of remote work have 25% less employee turnover than companies that do not allow remote work, and that remote workers are 13% more likely than on-site workers to say that they will stay in their current job for the next 5 years. The benefits don’t just apply to full-time, remote-only employees, either—even people who work from home occasionally report higher levels of job satisfaction.
Remote work also means that companies won’t lose people if they have to move for any reason. If their spouse gets a job in another city or they need to be closer to family when they have kids, a remote employee can relocate and keep doing their exact same job with almost no impact (although time zones are the potential complicating factor here).