Why you should not hire a remote employee in 2019

Why you should not hire a remote employee in 2019

Everybody in an organization wants for their business to grow as fast as possible. Many must be thinking about adding a few more skilled employees to their arsenal, and the idea that must be popping up in your mind is “Should we go for hiring Remote Employees,?”. Let’s explore the pros and cons of this decision.

“Isn’t hiring someone local more convenient?”. There is an advantage to meeting a person face to face, wandering around their desks and checking in on what they are doing and how much of the work they have actually completed. Catching up with them on coffee breaks and water cooler talks, engaging in interesting (sometimes futile) conversation. You can’t do any of that fun stuff with a remote team, can you?

Well, you must have read a lot of blogs telling you all about why you should hire a remote employee, let me tell you why you shouldn’t.

01. I would rather hire from a small local pool of talent

The Internet has led to the rise in remote workers becoming integral parts of organizations. The ease of communication and various collaboration tools have further led to an ease in acquiring talented employees from all over the world.

But why to look for someone who is physically distant when you can hire someone who you can meet with every day?

Granted, this local person might not be as skilled as the remote employee, but at least you have the benefit of being around him, checking in on him whenever you want, addressing and solving the issues he might be facing.

To do all this with your remote team, you’ll have to have access to a simple collaboration tool, a communication channel

02. I hate having extra money to reinvest into my business

Yes, it’s true, hiring a remote employee can save you a lot of money.

You don’t have to worry about the employee’s desk, computer or any other thing that is needed to work efficiently: remote employees take care of themselves.

But if you hire a local employee, you have the chance to go furniture shopping, buying a brand new, high tech computer sounds so fun, and you wouldn’t want to miss out on that, would you? And if you build a team big enough that it can’t possibly fit in your current workplace, you have the option of finding a new and bigger place!

Remember the scene from Batman where Joker burns down a whole pile of cash? You can enjoy a very similar feeling.

03. I don’t like increased productivity

According to a recent survey, remote employees are more productive than the in-house team.

You know what happens when employees become more productive right? Goodbye timepass!

Feeling bad that you aren’t getting more time to have those fun, futile conversations with your team? Tired of seeing your employees pour their heart into their work and delivering the best results and that too at the expense of the precious fun time? It’s a blessing that the in-house team isn’t as productive all the time as the remote team. I mean they are productive no doubt, but they can always take some time out during important work to have some fun.

04. I prefer a higher turnover rate

If you treat your remote employees right, they are the most loyal employees you will ever come around, which reduces your employee turnover rate. But do you really want to be stuck with the same old faces for the rest of your life? Hiring new employees is a good thing, meeting new employees, introducing them to your company culture, training them, and teaching them new skills is such a great activity to bond, and definitely one to look forward to.

05. I don’t care about global warming

Who doesn’t enjoy a long commute? Bring on the one hour journey to my office in heavy traffic, turning up the music as loud as I can (to drown the honks), burning up gas, and causing pollution. More of that please!

Remote employees miss out on the fun journey; they work from home or a coworking space. Or a beach. They don’t get to turn up the music in their cars or contribute to the already clogged roads.

06. I don’t mind employees taking unexpected vacations and sick days

Remote employees tend to take fewer leaves of absences than the in-house team. Sounds boring right? Being available all the time to work, delivering projects before their deadline, being productive and proactive.

The real fun is in taking a vacation, turning off all modes of communication with your office, and just lying on the beach sipping on a pina colada. We can always get back to work after a good time spent away from it.

I wonder how digital nomads manage to work and travel all at the same time; I find it dreadful to even look at my laptop while I’m on vacation. Who cares about work, right? We’ll be at the office after a couple of days doing the same thing.

Well, I’ve run out of sarcasm, and I hope I have given you enough reasons to start 2019 with remote hiring. What I described above sounds like a complete disaster.

That’s because remote work is the future of work. You already know all the benefits of having a remote team, such as increased productivity, reduced turnover, reduced leaves of absence, etc. But if you’re still unsure, then you can start with one engagement first, and then keep building more efficiency than an in-house team.

If you need to know the current trends of remote work and how to manage a remote team, we have an entire report dedicated to it; you can DOWNLOAD IT HERE.

And, if you need any help building a team, RemotePanda is just a click away



What really went wrong with Appster?

What really went wrong with Appster?

Appster
Image Source: Mobileappdaily.com

When a colleague shared an article today that Appster filed for liquidation, I was a bit taken aback. My relationship with Josiah Humphrey goes around 5 years back…when he was someone looking for devs on Upwork (then Elance) for one of his clients and I was among the ones looking for work for myself. Things have grown from there. Both I and Josiah do not visit Upwork anymore. While I dedicated my time to build an Upwork alternative — RemotePanda, Josiah has become an industry stalwart with Appster consistently being ranked among the top agencies.

Our connection has been limited to Skype and Linkedin now but yes I do often check his profile for inspiration and getting to know whats going on in the app world.

Today as I saw Appster news, I thought of reasons what could have gone wrong for the guys. Here is my take.

1) App development demand is drying up

App development saw its peak between 2010–2015, thats when the industry was new and you could ask for whatever price you wanted and the client would pay for it, but now in 2018/19 that is not the case. The market has become saturated with App Development companies, so any company whose revenue is completely dependent on developing apps is in a tricky situation right now.

“Paul Vartelas of BK Taylor & Co has been appointed administrator. He has said the main reason for the collapse was a “sharp drop” in available work over the last six months”

https://www.channelnews.com.au/appster-goes-into-liquidation/

The demand is down because there is no more incentive for new players to come in and build apps. Almost all of the top 30 apps on any Appstore have remained the same year on year, with the only exception of Flappybird. Nobody is beating Skype or Google duo in the video chatting vertical anymore, they might be getting a fight from WhatsApp but WhatsApp is a leader in another vertical. So its like they are all just fighting amongst themselves to be leaders in most categories. Thus, the economics does not work for people to build new apps because most verticals are now saturated and the chances of coming in the top 100 apps are like slim to none.
http://fortune.com/2016/09/16/smartphone-users-apps/

2) Deal size does not justify the lifetime value of the client

Contrary to typical IT sales, size of an app deal is usually 3–4 months long (50–100K in revenue). This means that the sales engine should be running fast enough to keep bringing new demand. If demand diminishes you can still get a new sale every 3 months…isn’t it?

Well, thats where having a bigger size could be a problem.

With an average deal size of around a 100K means, they need around 100 new clients every year. Now, this is possible when the tide is high but not in the markets like I mention in point a – where the market has lost the incentive to build new.

“Surprisingly we were in one of the best cash positions the business had been in, just four months ago, but things spiraled out of control very quickly. We missed forecasted sales targets by about 50 percent four months in a row … with expenses of roughly $1 million per month, our cash reserves were depleted very rapidly despite attempting cost reductions,” they said further.

https://www.mobileappdaily.com/appster-collapses-into-liquidation

In addition to this, having ambitions to be the premier company requires a lot to be spent on overheads and on experiments that may not convert to profits instantly.

This brings me to my next and most important lesson

3) Do not mix products and services growth plans

In 2014, Forbes quoted Appster to “expect to hit $100 Million in annual revenue within the next four years. To fuel that revenue growth, the company is currently opening offices in Canada, the U.K., and Germany and ultimately aims to scale to forty-two countries”

https://www.forbes.com/sites/jlim/2014/08/06/aussie-start-up-appster-adds-former-founding-paypal-cfo-and-virgin-australia-executive-to-its-board/#34a6938b54f3

They even had people like Former Founding PayPal CFO And Virgin Australia Executive as part of their board.

Sounds like the recipe to success. No its a recipe to disaster because the ingredients that you are buying are for building a product growth strategy and not service growth strategy.

A services business is linear in scale and so are its costs and profits. No amount of funding or add-ons can change the linear growth model to a nonlinear model of a product.

A quick glance on Appster website shows their commitments towards building IP, trademarks and so on but were they really required?

Appster services

In the end, I would add that though I pointed out things that could have been done right and what not, I the guys would have seen that already and must have taken decisions that were best at the time. I have actually adored Josiah and Mark for their zeal and contagious enthusiasm in building Appster to what it is today. It started at $3000 and still remains a multi-million dollar company.

A salute to the guys who dreamt and built it on…