Firms ‘neglecting key parts’ of remote recruitment strategies

Firms are largely unprepared for the barriers they encounter when hiring employees in remote locations – particularly when hiring overseas.

That’s according to Omnipresent, an Employer of Record that helps organisations employ people globally, and comes after research from Aon showed that companies focus on certain aspects of their remote location strategies but neglect others.

For instance, 75% of organisations consider the eligibility of individuals to work remotely and 68% consider the technological requirements of remote work. Despite this, just over a third (35%) review the impact on compensation and benefits in their remote working policies and fewer than 1 in 8 UK organisations (12%) adjust pay differentials according to geographic location.

Consequently, Omnipresent states that failure to go beyond planning the technical logistics of remote work and remote hiring strategies means that organisations risk losing their competitive edge and as a result, could lose out on key talent and could even face retention issues among current workforces.

Matt Wilson, co-CEO and Founder at Omnipresent, said: “When creating remote hiring strategies, particularly in different countries, employers must consider benefits and compensation, pay brackets as well as cultural differences and communication methods to ensure every employee can work well and is part of the team.

“Remote offerings can be based on pure legal requirements of local laws and regulations but most employers understand the best strategy is to look after employees’ needs so each is motivated and productive. Overcoming key hiring barriers to attract and retain the best talent is often about putting employees first and understanding, culturally, what they expect from their employers in their particular location.”

Problematically, however, Omnipresent says that many organisations are not getting the relevant guidance to understand how to tailor offerings to different locations. Aon’s global HR pulse survey emphasises this issue, highlighting that organisations struggle to adjust geographical differentials due to a variety of factors.

For example, over two-thirds of organisations (68%) feel that internal communication is a barrier, two-thirds (66%) state that a lack of market data is problematic, 58% state that employment related regulations and compliance is a barrier and 56% feel that tax related regulations is an issue when modifying geographic differentials.

Wilson added: “How organisations set their benefits and salary benchmarks is key to promoting fairness and transparency within an organisation – ultimately showing the right level of care here helps attract and retain the right employees. While most employers understand how to set benchmarks based on roles, we can see that more struggle to adjust this based on location – especially when the location is in a different region with different pay and benefits expectations. Should you pay equally for equal work regardless of location, pay local rates, or something in between? Should you offer the same benefits package globally, or tailor benefits packages to local expectations and needs? These are difficult questions that organisations must think carefully about how they build a fair, competitive and sustainable global compensation strategy that aligns with their values.

“There are a few more key steps that can be taken to ensure that remote recruitment strategies and benchmarks are planned effectively. Firstly, don’t simply put ‘remote’ on a job description aimed at anyone – target specific markets so that remote job descriptions, their translations, as well as the pay and benefits advertised are tailored to the candidates the company is hoping to find. Localisation is key. Seek guidance, too, on local job markets, employment laws and employment related costs as information is available to help adjust strategies.

“Ultimately, the benefit of remote recruitment for employers is that they can find the best talent to suit their requirements, so putting time into developing a remote strategy that caters for logistics and peoples’ needs is essential.”