Remote Work vs Distributed Workforce: Deciding The Future of Work

Voice of the Enterprise: Coronavirus Flash Survey, conducted by 451 Research showed that 38% of participating companies expect work-from-home models in a long-term or permanent way of managing their workforce. As the pandemic prolongs, more companies are seriously considering adopting a work-from-home model and policy. Either way, as a result, more companies are looking to better understand the difference between a remote workforce and a distributed workforce, along with its advantages. 

What Is a Distributed Workforce?

A distributed workforce can be simply described as an overarching ethos for the way work is being done – in relation to business productivity. While a company may still have a physical office, employees have the free will to operate from anywhere in the world, on a full or part-time basis. Regardless of an employee’s location, a company’s workforce works in a blended schedule, that enables clear channels of communication and highly effective collaboration. 

The Difference Between Remote Work and a Distributed Workforce?

The key difference between remote work and a distributed workforce hinge on the scale and culture of a company. Where remote work enables employees to work out of the office, distributed work is where your entire organizational structure focuses on the outcome of the work, and not the location where work is done.

“So in summary, remote work is a model of work, whereas distributed work is a central mode of productivity for an organization as a whole”.

The initial challenges in this paradigm shift are obvious — therefore foresight and planning are important to preserve a cohesive context in your workplace culture, without the physical rhythms of “turning up” at the office every day. But once a company and its employees overcome these hurdles the benefits of a distributed workforce are clear as day.

Employer of Record – Setting Up A Distributed Workforce In Indonesia. 

Indonesia has the largest labor force in ASEAN with over 130 million working-age population. Its lower wage rates (ranging from US$115 to US$28), young workforce (averaging 30 years of age), and vibrant economy are a few factors luring foreign companies (without offices or a registered company) to legally hire from Indonesia, through a service known as an Employer of Records (EoR).

Young, Motivated and Driven – An Entrepreneurial Mindset Found Amongst Indonesians. 

A study conducted by Boston Consulting Group showed that 65 – 70% of Indonesians recognize their jobs will be affected by technological advancements, and understand the importance of reskilling and upskilling to bridge their skill-gap. It also showed. Indonesian youths (from the age of 15 to 35) have a tendency to possess a mindset that is inclined to be a job-creator, more so than a jobseeker, as a third of them in the study, desired to hone their entrepreneurial skills, in hope to one day start a business of their own.

The startup culture in Indonesia is largely motivated by the recent string of booming tech unicorns. Prominent young Indonesian entrepreneurs, including the CEO of Traveloka and the founder of GoJek, both in their 30s, have demonstrated that small startups by young entrepreneurs have the potential to transform into lucrative businesses that can positively affect their nation’s economy.

Companies could reap benefits from this entrepreneurial spirit among Indonesians, as this mindset usually comes with a high level of ownership over an individual’s work and learning journey – a much required mindset for growing companies in our innovation-hungry world. Independent human resource consultant – Jay Canchola, associates having an entrepreneurial spirit with taking calculated risks, as it encourages employees to find innovative ways of getting the job done. This attitude affects not just a company’s bottom line but also employee satisfaction, retention, public image and productivity – from a HR perspective.

How To Legally Hire Indonesians Without Establishing a Company in Indonesia?

A legal way for foreign companies (with no offices or registered entities in Indonesia) to hire from Indonesia’s labour force is through an Employer of Record (EoR) service. Outsourcing this hiring process through Employer of Record company in Indonesia offers the following incentives:

Quick Market Access

Foreign investors and companies setting up a company in Indonesia need to note while the process to set up a foreign-owned company is relatively quick, the business sector your company operates must be fully open to foreign investments. Also, human resource positions in Indonesia must be held by an Indonesian citizen. Considering the cost, time and resources required to manage a company incorporation in Indonesia and hiring a human resource manager.

Compliance with Indonesian Labor Law and Regulations

As a Labor and immigration policies in Indonesia undergo reforms, corporate compliance can become an enormous obstacle, if a company is unfamiliar with Indonesia’s company law and investment law. To mitigate any legal violations, EoR enables a company to transfer all employment responsibilities and duties to an EoR service provider. For more information, click here.

Outsourcing HR Duties To Focus On Core Business Functions

In Indonesia, only its citizens are eligible to work in human resource and all aspects of human resource management are undertaken by an EoR service provider. Cekindo’s Full EoR Services:

• Recruitment and Candidate Shortlisting
• Appointments and Employment Agreements 
• Payroll processing and Salary Adjustments
• Income Tax Calculations and Reporting
• Employee Benefits and Insurance
• Visas and local sponsorship applications

Learn more reasons why Employer of Records is the best solution for your company’s recruitment process through our previous article.

Cekindo as Your Employer of Record Provider in Indonesia

Cekindo offers full and tailor-made such services, including setting up an Employee of Record agreement in Indonesia and Vietnam. To understand how Cekindo’s tailor-made solutions can help you, please fill out the form below for an initial consultation or chat with our chatbot.