hidden costs of having a remote team

The Hidden Costs of Having a Remote Team

You are probably familiar with the numerous benefits of running a remote team, such as generally lower expenses and a wider talent pool. And yet, having a remote team still entails some additional costs that you might not be aware of.

In this article, we’ll go over some hidden costs of running a remote team.

We will also give you some tips on how to minimize these costs.

So, let’s start.

Collaboration Tools Costs

When it comes to remote teams, communication is the key to success.

In an office, it is easy to stop by a co-worker’s desk and consult with them. However, that’s not really possible for a remote team. 

If you want your team to work efficiently, you have to make sure that they have all the necessary tools for communication. Tasks need to be organized and team members who work from different sides of the world need to know exactly what’s happening.

That’s why you have to consider the cost of collaboration tools.

Regardless of the type of your business, you will probably need a basic messaging app such as Slack and a project management tool like Asana. Some business-owners also use time-tracking software to track the productivity of their employees.

Thankfully, there are a lot of affordable or even free options available – and most of these apps offer free trials so that you can determine if they are right for you without paying a dime.

You can also check out this list to find the best tools you can use to manage your remote team.

If you need more than the free tier of these tools provides then make sure you account and budget for these costs.

paypal payoneer internatonal payments and fees

Payment Costs

Having team members all over the world means that you will have to send payments to your workers internationally. While some common systems like PayPal and Payoneer may work well for domestic payments, sending payments internationally means paying additional transfer fees.

Some Eastern European workers have even reported delayed payments and additional ATM transfer costs.

Fees of 3% might not seem like a big deal but consider that you have to pay each of your workers every month. After a longer period, these fees accumulate into a substantial amount.

So how do you handle this problem?

Well, different payment options offer different solutions, and it’s important to choose the one suited for business owners running remote teams all over the world.

Finding the right option requires extensive research – but you don’t have to worry, because we already did that research for you.

We compared costs and figured out the best options to minimize your costs. You can read the entire article on how to pay remote workers in 2020 here.

Costs of Hiring Remote Workers

Every hiring process takes time and money.

If you want to find a high-quality remote employee, you must be prepared to invest in the right platform for advertising.

No matter where you post your job ad, you will either have to pay a membership subscription or service fees. And different websites charge different amounts of money.

We Work Remotely, for example, charges $299 for posting a single job post on their website. Freelancers looking for a job on Upwork are charged up to 20% service fee with employers having to pay an additional 3% fee for payment processing.

So, the best thing to do is to find the right website for finding the remote workers that you need.

Don’t just think about the price; pay attention to the quality of workers the platform is offering.

Here at JobRack, we are experts in finding the perfect high-quality remote workers from Eastern Europe. When it comes to the price, you can post your job ad for $199, or you can post three job ads for $399. (Why Eastern Europe? You can read this article to find out why Eastern European remote workers are the best in the world and why more and more business owners are successfully outsourcing to Eastern European countries.)

remote employee

Conclusion

There are a few additional expenses you need to consider if you’re hiring remotely. However, with careful preparation, these additional remote team costs are easily manageable.

And with all the benefits of hiring remote workers, you will still save a lot more money than if you hire an in-office worker.

You won’t have to pay for office space, equipment, or employee travel costs Also, your workers won’t have to waste precious hours on commute time (which was, on average, 27 minutes in 2018).

And all the time and money you save on these things, you can reinvest in growing your business.

And what better way to reinvest than to hire a new employee that will help you expand your business? You can find excellent remote workers on Jobrack. We have thousands of high-quality job seekers looking for opportunities right now. Whether you are looking for developers, designers, virtual assistants, or any other remote workers, we guarantee we will find a great team member for your business. Click here to find out more.