Remote work doesn’t work

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Forgive the clickbait subject line, but I’m tired of seeing the same old debates online about remote work.

Let’s set the record straight: there is no study proving that remote work or in-person work is more effective than the other.

HOWEVER, there’s a sense among managers that in-person work is better for a variety of reasons we won't get into here.

So, what does the math really say about remote vs in person work?

It’s simple. 

The Math of Remote Work

Let’s assume for the sake of argument that in-person work is 10% more productive than remote work.

Let's compare two Account Executives with similar performance, one in person, one remote.

In-Person Account Executive:

  • Base Salary: $70,000

  • OTE (On-Target Earnings): $140,000

  • Benefits/Overhead: $25,000

  • Total Annual Cost: $165,000

  • Annual Revenue Generated: $500,000

  • ROI: 3.03x

Not terrible. You made roughly $3 back for every $1 you spent. But hold on a second. What if this rep had been remote?

We’ll again let’s assume 10% less productivity. This hypothetical rep would have generated $450k against a total cost of $165k. The ROI is way worse. 

Only $2.73 was generated for every dollar we spent.

This seems like the nail in the coffin for remote work, right? Well, it could be, but not if you’re using South African sales talent.

South Africans speak fluent English and will work US time zones, so there’s no difficulty using them in advanced sales teams.

Let’s look at the numbers again…

Senior South African Account Executive:

  • Base Salary: $30,000

  • OTE: $60,000

  • Benefits/Overhead: $10,000

  • Total Annual Cost: $70,000

  • Annual Revenue Generated: $450,000

  • ROI: 6.43x

Even with slightly lower revenue generation (10% less), the South African hire delivers more than double the ROI.

(The hidden secret here is often that my South African reps outperform my US reps. In a country with 60% youth unemployment, these guys just want it more.)

Now I’m not saying you shouldn’t hire US talent.

What I am saying is you should look carefully at the trade-offs.

Need higher productivity at all costs? Grab a US team and get to work.

Need higher ROI? The right international talent is going to thrive here.

Need help finding elite sales talent in South Africa?

If you want to see for yourself how to DOUBLE your sales ROI book a call with one of my (South African) recruitment specialists. They’ll analyze your current team and hiring process and see if it makes sense to bring in international talent.

It’s 100% free and we’ll even send you videos and resumes for no charge so you can SEE the difference for yourself

Until next time,

Nathan