For years, startups have basically followed the traditional path to getting their business set up. Make a plan, find an office space, hire employees, and hope you start making enough to pay for everything you’ve just invested in. It is a very risky venture taking on a high overhead before you even know how best to run your business. This way of thinking is quickly going out the window as modern startups realize they don’t need to waste money investing in office space right away. Teams can be formed globally and a business can be run using remote tools. With all the changes in tech and with more research into what makes employees and teams be the best they can be, the smartest startups are rapidly abandoning the old ways and are growing the remote way. Here are some of the reasons for this paradigm shift.

Lower Overhead

So you’re starting a new business and cash may be tight? Well, one of the biggest costs is office rent and filling that office space with furniture, computers, in-office consumables, and staff to keep it operating. What if you can shave off 60% of those expenses? Building a remote team doesn’t require you to pay for a large down payment for rent or furniture. Instead, you can put that money towards more important goals like investing in relevant tools and giving more benefits to your employees. Saving thousands of dollars a month can be the difference between making it or not in the startup game, and a lower overhead puts you in the best position possible to thrive.

Happier Employees

A recent study by TINYpulse found that remote workers are happier in their work because of the flexibility and freedom it allows them. A full 91 percent of responders said they feel more productive overall in their remote work. The choice of being able to work remotely gives employees the freedom to live a better life and live their lives on their terms. No more long, stressful commutes. The ability to focus on family and friends. The ability to exercise or pursue passions. Better mental health translates to higher productivity and performance. These are just a few of the important reasons why most remote workers prefer to work from home. What company wouldn’t want that for their employees?

Retaining Top Talents

Top talent doesn’t always mean loyal talent. When top performers can find a better position with more flexibility that suits their lifestyle, why wouldn’t they leave?  A recent article in the Harvard Business Review cited Ctrip, China’s largest travel agent, and their 9-month experiment of allowing some employees to work remotely 4 days a week. When compared with the control group, the employees allowed to work from home had a 50% reduction in turnover. The result is staggering, and one that all companies should mull over seriously. If you want to retain the best and brightest talents, you need to give them great choices in how they work and live. Giving them the option to work-from-home can play a huge role in that.

Long-Term, Performance-Based Work Culture
Remote work isn’t only about saving money or making your employees happier. It is also about letting performance speak for itself. Remote workers are not judged by how long they sit at their desks, but by the quality of work they produce. Because your new top talent wants to stay with you long-term, they have to keep producing at a high level. This creates a values-driven team that is in it for the long haul. Your business will thrive when your employees are working their hardest to be part of your team.