When it comes to hiring employees, there are plenty of things to be considered. You have to know what types of skills you want them to have, the hours they will be available, where to look for them, what questions you will ask them during the interview, and much more. Moreover, you need to decide whether you want to hire employees who live in your area or those who live out of state. With that in mind, here is a list of the pros and cons of hiring out of state employees.
The Pros of Hiring Out of State Employees
Hiring out of state employees offer certain advantages. Below, we’ll go over some of the pros of hiring people who aren’t based in the same state as your company.
Find Top-Tier Talent
One of the top benefits of hiring out of state employees is that it allows you to better utilize the talent pool. While there are quite possibly plenty of qualified candidates in your area, this does not guarantee that you are hiring the best person for the job. This is especially true when you’re located in remote areas or areas that are otherwise lacking a sufficient talent pool. By expanding your talent search to other areas, you will have a much better chance of finding the perfect candidate for the job.
For example, if you live in an area that is behind on certain skills, you may take the time to research the areas in which candidates are most likely to possess these skills. This means you will have a better chance of finding the employees with the exact skills you are seeking.
Cost-Effectiveness
As we all know, not all job markets are created equal. Therefore, hiring in other areas can be an effective way to save money. Since some job markets pay less than others, hiring out of state employees can be an excellent way to find top-tier talent without breaking the bank.
In addition, hiring out of state employees makes it more likely that you will hire independent contractors. Since working with independent contractors means you will pay fewer expenses (in the form of benefits, materials, office furniture, etc.), this is another way hiring out of state employees can be cost-effective. Since you will be able to cherry-pick your employees, you will also be able to save money on training by hiring those who already possess certain skills.
Time Optimization
No matter how talented your workforce may be, there are only so many hours in the day. However, hiring out of state employees can allow you to get more done each day. For instance, if you are running an online news publication, hiring out of state employees can make it much easier to publish stories around the clock. By properly managing your employees and their availability, you can easily optimize everyone’s time and make sure you are using your work hours in the most efficient manner.
Employee Retention
Hiring out of state employees can also help with employee retention. This is because you may have employees that need to relocate on a permanent or temporary basis. If you’re not open to out of state employees, then it can be difficult to accommodate these workers who need to relocate for one reason or another.
However, by allowing out of state employees to work for you, you will be better able to retain your employees. Rather than being forced to terminate positions or exclude candidates based on location, working with out of state employees can be a great way to boost retention rates.
The Cons of Hiring Out of State Employees
While hiring out of state employees comes with certain advantages, there are also a number of drawbacks you should keep in mind. With that being said, let’s take a look at some of the cons when it comes to hiring out of state employees.
Remote-Only Communication
One con of hiring out of state employees is that it requires remote-only communication. In other words, the only way you will be able to communicate with your employees will be through email, telephone, video chat, or other electronic methods.
Although remote communication can be sufficient the majority of the time, there are likely going to be instances where you want to have a face-to-face meeting with these employees. While it is obviously possible, in-person meetings are not the norm for out of state employees. Also, it can be hard to quickly get a hold of employees when they are scattered around and in different time zones.
Training
Training can be difficult when it comes to out of state employees. This is because everyone learns differently and at their own pace. So, rather than being able to work with them in person, you will have to settle for remote training. While remote training can be easier in some situations, there are plenty of times in which in-person training is more beneficial. Nevertheless, it is unlikely that you will be able to train many of your employees in person.
Company Culture
No matter what type of company you may have, company culture plays a major role in every aspect of your business. While building an effective company culture can be a challenge in general, these challenges are magnified when your employees are scattered across the country.
With everyone in the same place, it is much easier for your employees to bond and get to know each other. However, when everyone is working from different locations, company culture often takes a backseat. While it is possible for companies to thrive despite the lack of a well-developed company culture, creating a tight-knit culture can be one of the best ways to keep your employees motivated, drive sales, boost productivity, and so on.
Overall, hiring out of state employees can be both rewarding and problematic. On the one hand, if you hire out of state employees, you will likely have a much better chance of finding top-tier talent, reducing costs, optimizing your man-hours, boosting employee retention, and more.
On the other hand, hiring remote employees may cause your company culture to suffer, which is highly important when it comes to building a thriving organization. Moreover, you will also have to worry about training and communication. So, when you are deciding whether or not you should hire out of state employees, this entirely depends on what your organizational needs are. Be sure to take the time to weigh out the pros and cons before making your decision.
Author bio:
Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys the San Diego life, traveling and music.
