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Remote done well is as expensive as running an office. Not philosophically or in opportunity cost, literally in $ and £.
Here’s why (based on years doing it)
A thread. /1 https://twitter.com/fdestin/status/1315403720117702656
Here’s why (based on years doing it)
A thread. /1 https://twitter.com/fdestin/status/1315403720117702656
Your staff need desks and chairs and storage cupboards and everything else they would have in an office. It needs to be high quality or life is awful.
Buying it causes problems (what if they downsize etc) so you’ll probably lease. /2
Buying it causes problems (what if they downsize etc) so you’ll probably lease. /2
And *shock*, they’re also going to probably need a coworking membership.
Why? Because people still need to socialise occasionally and no matter how nice a home office is, 5 days a week, 52 weeks a year is a killer. /3
Why? Because people still need to socialise occasionally and no matter how nice a home office is, 5 days a week, 52 weeks a year is a killer. /3
Okay and then there’s going to be the cost of get togethers. Some stuff just needs to be face-to-face. The guys at Miro don’t have it 100% down yet. Engineering whiteboards, leadership sessions, whole team retreats, you name it. Travel costs $ /4
And what’s more, they’ll be travelling from further because you’ve hired people from all over (because you could). More expensive mid-distance flights.
Plus congrats, at any reasonable co size, you need someone FT to coordinate this. People cost $ /5
Plus congrats, at any reasonable co size, you need someone FT to coordinate this. People cost $ /5
And you’re going to have to start thinking much more deeply, much more quickly about codifying culture, mission, vision etc.
You can get by internally with this for a while but then at scale, outsource and more $ /6
You can get by internally with this for a while but then at scale, outsource and more $ /6
Plus, all of your new found geographic hiring freedom comes at a cost. People need to be employed in their local jurisdiction, by subsids or payroll cos or aggregators.
Mucho dinero /7
Mucho dinero /7
Finally - and YMMV - the average salary per head will go up as you can no longer hire very junior people.
You can’t work closely enough with them remotely in most cases and they’re far, far less effective than in office.
This is not offset by hiring in cheaper areas because /8
You can’t work closely enough with them remotely in most cases and they’re far, far less effective than in office.
This is not offset by hiring in cheaper areas because /8
Remote-first and async-first are two VERY different things and you’re not going to be keen on transitioning to the latter yet. As such:
Most hires will be in similar time zones. Far enough that they’re slightly cheaper but not far enough for massive savings. /9
Most hires will be in similar time zones. Far enough that they’re slightly cheaper but not far enough for massive savings. /9
Much like anything, remote done well is not cheap. Don’t run the risk of thinking it is. /10
