remote workers

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Beat the pinch with great Performance-based Bonuses for Remote Workers

By Kate North

Remote working has become a staple for many organizations and professionals across the world, allowing for a better work/life balance, higher productivity and greater efficiency. However, with the increasing cost of living, remote workers are facing many financial challenges. One report in 2023 found that 48% of companies have lowered pay since the pandemic. Even if their pay has remained the same, professionals feel like it isn’t stretching as far due to the increases in the price of food, fuel and energy.

As individuals and businesses alike feel the pinch, one solution to help offset the burden is to offer great performance-based bonuses. In this short guide, we explore how performance-based bonuses can be a lifeline for remote workers.

Benefits of performance-based bonuses

There are multiple benefits to receiving a bonus as a remote worker, which also extend to benefiting the business itself. These include:

Financial relief for low-income households

The most obvious benefit to receiving a bonus is immediate financial relief. This can help employees offset the rising costs of inflation, and provide an extra financial buffer to allow them to manage their daily expenses. Though remote workers often don’t have to worry about commuting costs, the strain of affording to survive is a constant worry – especially for junior members of staff or those on lower wages.

In April 2024, only 27% of Americans on low-income salaries said they were able to live comfortably on their current income. And while some lower-paid employees working in-person roles – such as those in the hospitality industry – can rely on tips to supplement their income, remote workers are unlikely to receive any compensation above their standard salary.

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More motivation and higher productivity

Knowing that exceptional performance can lead to financial rewards also encourages remote workers to stay engaged and maintain high productivity levels. This will help to push the top line and grow the business as a whole. Plus, bonuses serve as a wonderful way to recognise and appreciate employees with tangible rewards for the hard work and dedication they put into their roles.

Boosted morale and job satisfaction

Feeling appreciated by receiving financial incentives can significantly boost morale and job satisfaction among all employees, remote or on-site. Of course, there are other ways to show value to employees, but such a tangible reward as money is never going to be ill-received.

Higher skilled workers and a thriving business

Offering performance-based bonuses drives employees to improve their skills and take on more challenges, fostering professional growth and ultimately raising the performance of the business as a whole. When team members are driven to do their best, business owners reap the benefits tenfold, boosting their output and results which in turn help the business grow and thrive.

Increased retention rates

By tailoring performance criteria to fit individual roles and contributions, remote workers can focus on areas where they excel, and companies can benefit from higher employee retention rates. The Consumer Technology Association found that 88% of companies view incentive compensation and bonuses as key to retaining employees. The cost of recruiting new employees often outweighs the cost of rewarding existing workers, so it’s definitely something worth considering to help cut costs in the long run.

Ambitious employees need to feel like their careers are progressing, and offering performance incentives acts as a reassuring way to pay them back for their loyalty. Feeling valued in this way comes back full circle and further boosts motivation and productivity. As a result the business itself will grow from the top level through to the bottom.

How to offer effective performance-based bonuses

regular feedback

It’s clear that implementing a performance-based bonus system can not only enhance employee satisfaction but also improve overall business outcomes – so, how could you implement them?

Transparent criteria: It’s crucial to have transparent criteria for any bonus targets. The criteria need to clearly outline the performance metrics used to determine any financial rewards, to ensure fairness and avoid any misunderstandings or conflict in your teams.

Feedback: Providing continuous feedback and support to remote workers is key in helping them reach their goals. Leads and managers should understand their employees’ progress and which areas they need to improve in order to receive any bonuses.

Regular reviews: While performance-based incentives can go a long way to keeping the top talent satisfied in their roles, it’s important to regularly review employee feedback and results individually. This will ensure that top performers are also recognized and rewarded with promotions, where appropriate.

Win-win

Performance-based bonuses present a win-win situation for both remote workers and employers, offering financial relief, boosting morale, and fostering a culture of achievement. For businesses of any size, these bonuses can also be an effective tool in talent management and organizational growth.

About the Author

Kate North has worked in the corporate landscape for many years, so understands the trials and toils of balancing the tasks of keeping employees happy whilst also growing a business. She also enjoys water colouring and cold-water swimming when she isn’t supporting ambitious professionals and entrepreneurs.

working remotely
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Hiring Remotely? Considerations to attract top talent

By Bill Higgins

The rise of the internet, advances in communication technology and the recent world-wide epidemic have made it possible for businesses to operate and hire remotely. This has led to a growing trend of companies hiring employees who work remotely. There are many advantages to this arrangement, including increased flexibility and decreased overhead costs.

Hire remotely to attract top talent

However, there are also some challenges that come with remote work, such as managing team dynamics and ensuring clear communication. When done correctly, remote work can be an excellent way to attract and retain top talent.

First, it’s important to have a clear understanding of your company’s needs.

What type of work can be done remotely?

What skills and experience are required?

Once you have a good sense of the role you’re looking to fill, you can begin your search. In addition to reaching out to your network of contacts, there are a number of online job boards that specialise in remote work. One example is Braintrust, an innovative talent network with good benefits.

While hiring remotely, keep in mind the following important considerations.

#1 The cost of hiring remotely

Before making the decision to hire remotely, businesses need to consider the potential cost savings as well as the potential drawbacks. One of the biggest advantages of hiring remotely is that businesses can tap into a global pool of talent.

Hiring remotely to attract top talent

However, businesses need to know that remote workers may require additional training in order to be productive. In addition, businesses will need to invest in reliable communication and project management software in order to stay organised. While there are some costs associated with hiring remotely, businesses should also keep in mind the potential savings in terms of overhead costs. When done correctly, hiring remotely can be a cost-effective way to build a strong team.

#2 The time difference between your location and the remote worker’s location

hiring remotely

When hiring remotely, it’s important to consider the time difference between your location and the remote worker’s location. While this may seem like a minor detail, it can have a big impact on the effectiveness of communication and collaboration. If there is a significant time difference, it may be difficult to arrange conference calls or video chats during working hours.

Additionally, urgent messages may not be received in a timely manner. As a result, it’s important to take the time difference into consideration when hiring remotely. By doing so, you can ensure that communication and collaboration are as effective as possible.

When interviewing candidates, be sure to ask about their experience working remotely. Find out how they stay organised and motivated, and whether they feel they are able to effectively communicate with team members who are not in the same location. It’s also important to give candidates a chance to ask questions about the role and how the company typically manages remote challenges, such as any time differences.

#3 How to manage communication with a remote worker

Hiring remote workers and communication

There are a few reasons why managing communication with a remote worker can be difficult. First, it can be challenging to keep track of all the different channels of communication (e.g., email, instant messaging, video conferencing) that are being used.

Second, there may be differences in time zones which can make it difficult to coordinate meeting times.

Third, remote workers may not have the same level of access to company resources and information as those who are working in the office.

Finally, remote workers may feel isolated from their colleagues and have difficulty building relationships.

When you manage a remote worker, there are a few things you need to keep in mind to ensure smooth communication and a successful relationship:

  • Schedule regular check-ins via video chat or phone call. This will give you both the opportunity to touch base and make sure that tasks are on track.
  • Be clear and concise when communicating expectations. When working remotely, it can be easy for miscommunications to occur, so it is important to be as clear as possible from the outset.
  • Make use of project management tools to keep everyone on the same page. Services like Slack or Asana can be helpful in keeping track of deadlines and ensuring that everyone is aware of their responsibilities.

By following these simple guidelines, you can ensure that communication with your remote workers runs smoothly.

Therefore, companies hiring remotely, can tap into top talent, recruit them faster and retain them with less overhead costs by simply making important considerations like costs, time zone differences and communication rules part of your remote work policies.

Author bio:

Bill Higgins is a business owner and consultant who provides advice on how to successfully work remotely. He has been working from home for over 20 years, and he knows all the tricks of the trade.

Bill is a passionate advocate for remote work, and he firmly believes that it is the future of the workforce. He loves helping people learn how to telecommute because he knows that it can be a transformative experience for both employees and employers alike.