Why remote hiring is the new key to business success

Alongside changes in so many other aspects of the economy over the last five years, the art and science of hiring has undergone a revolution.

The lockdown years made us more reliant on connecting online to work, play and communicate, and now we're far more aware that our businesses operate in a talent pool that's worldwide in nature.

Job van der Voort, co-founder and CEO of global HR platform Remote, says the transformation from hiring locally to globally was already underway, but like in so many other fields, the pandemic was a proving ground that showed it could work.

"The economy becoming more globally connected, advanced software, the shift in valuing work outcomes over office hours and younger generations' preferences for flexibility were already contributing to a changing landscape," he said.

But just like consumer preference drove the rise of streaming services, it was workers who ushered in a new hiring age, and some companies are still struggling to keep up – van der Voort thinks the belief physical presence equals productivity and morale is still deeply rooted in many employers, and some just haven't realised they're competing in an increasingly global economy.

But things are changing. Many others – especially businesses established by younger people – are embracing the need to hire globally, knowing they risk being left behind if they don't.

They realise we live in a landscape where you can find and hire the best person in the whole world, not just the best person here in town.

Van der Voort adds that some industries are catching on faster than others. "Businesses in more traditional sectors like manufacturing, hospitality and healthcare prioritise in-person collaboration because of the nature of their work, regulatory requirements or security concerns."

But industries like tech, consulting and creative that value flexibility and results over physical presence are leading the charge. "It's a spectrum – the adaptability of a company depends on its specific norms, business model and the nature of tasks."

So how does the recruitment industry change the hearts and minds in industries that are holding out? Partly it's up to the new generation of platforms that connect global talent to educate business users on how seamless it can be.

The numbers certainly don't lie. Remote's Distributed Workforce Report found that 72 percent of employers with international remote teams saw increased productivity, with 69 percent experiencing increased retention and 57 percent saying it was easier to hire and retain talent with a remote workforce.

Then there's the anecdotal evidence you hear everywhere about how many organisations have embraced remote work and will never go back. "You hear about more and more companies asking employees to return back to the office, but fully remote companies are really flourishing," van der Voort said. "It makes scaling much easier, especially when it comes to accessing new markets or retaining the best talent."

But the question remains, what exactly accounts for all the success being had by remote work companies? The answer comes down to two challenges recruiting has always faced which are only becoming more pronounced.

First is the skills gap crisis. Jobs and Skills Australia reported that technicians and trades occupations had the highest persistent staff shortages, and an industry group reported that 75 percent of employers across the Australian economy are having trouble filling roles.

But van der Voort said talent shortages aren't the most common reason to hire globally. After surveying hiring managers all over the world, 58 percent said a more urgent imperative was to diversify their teams – only 24 percent said they couldn't find the right talent locally.

So now, the global recruitment industry is in a great place. Standardised tools and platforms make it easier than ever to interview and onboard staff and let remote staff work effectively, and the technology ecosystem to connect it all is getting better all the time.

But as van der Voort says, the technology can only go so far. You need a paradigm shift when you're in the market for new talent, and now you have the means to do so, you need to be ready to go to the ends of the earth to find it...