COVID-19 has forced both workers and companies to reconsider their approach to remote work – not just how to navigate this temporary shift but also explore how and where they hire in the future. Put simply, many companies will look for global talent as they ease back into growth mode.
But, how much does it actually cost to build a global team from scratch? How quickly can you do it? At Terminal, we specialize in building, operating and scaling remote teams for companies of all sizes. We’ve heard these questions often over the years, and observed companies approach their remote work in a variety of ways, oftentimes incurring unexpected costs along the way. There are not nearly enough partners or transparency to help companies comprehensively build and execute their strategy.
That’s why we created The Cost of Remote: 34 Real (and Hidden) Costs to Consider when Building a Remote Team to help you and your team understand every step of the process.
As companies continue to reassess their budgets given the economic impact of the pandemic, we expect many to continue their cost cutting measures. While there are countless benefits to building remote teams beyond lower compensation – access to more talent, diversified perspectives, less competition, and much more – it’s important to understand the true cost of employing and scaling your remote workforce.
Our guide breaks down every cost you’ll need to consider when scoping out a remote team, and outlines the timeline for each phase to give you an idea of how long it will take before your new remote employees are meaningfully contributing at your company.
So, in this new era of distributed work and economic uncertainty, how should leaders approach and budget for remote scale?
The most successful remote companies prioritize attracting the best talent by offering full time work, benefits, and additional resources to improve retention and time to hire. While it’s easy to be lulled into building contract teams abroad to keep costs down, it’s not the only way and it surely isn’t the best way – especially if quality is important. Many companies realize this and pursue the “DIY” method so they have more control.
If this is a route you’re considering, we want to help you understand all of the costs involved – from hard costs like real estate to hidden opportunity costs to how all of it impacts your hiring timeline. In our guide we illustrate the costs for each phase of building a remote team: Market exploration, business setup, recruiting, employee support and retention, and ongoing administrative costs, and break down costs for each area:
Your choices aren’t just “dev shop” and “going it alone.” Partners like Terminal support companies through every step of hiring and retaining a team:
As you continue to explore how to make remote work for your company and your budget, remember to arm yourself with information and set expectations accordingly. To learn more, explore The Cost of Remote guide from Terminal and our checklist to remote.