3 Highly Effective Tips for Managing Remote Teams Successfully (From A Private Wealth Management Firm Who Were Focused About Compliance)
Offshoring is often among the smartest business moves that a company can make. It’s also one of the most challenging ones, so there are a few things to know before you consider it.
Offshoring has been a hot topic for a long time now. Advocates claim that it can be good for both the business and the offshore location.
Whatever the case may be, there’s no doubt that it’s a good business decision. Remote work allows the company to take advantage of variations in productions costs, thus ensuring larger profits. It brings a variety of other benefits, which you’ll see a bit later in this article.
Case Study: Private Wealth Management
The founders of a successful private wealth management company believed that there were too many financial institutions that had ceased offering trustworthy advice to their clients. For this reason, in 2014 they started a company that would deliver services that the clients can trust.
There are two main types of services this firm provides. It offers all the information that its clients need to make informed financial decisions. It also provides services aimed at maximising the clients’ risk-adjusted, after-tax wealth.
It’s the only independent company of its size that covers these services.
To run the first businesses of its kind means that you have to experiment a lot. This is exactly what the principals did, and it’s what led to the company’s success.
As the company continued to grow, they made a decision to create an offshore team for their business.
Due to the many advantages of offshoring, they decided to expand overseas. There were three main reason behind this.
The first reason was the availability of competent and passionate people. They would be able to build a stable, long-term relationship with the foreign markets.
The second reason was to have offshore team members who are insulated from the interruptions that working in an Australian office can bring. They would still be connected to the Australian core but get to work in their own surrounding.
The third reason for offshoring was competitiveness. With offshoring, they would be able to secure skills and productivity at a cost that makes them more competitive at home.
Right now, there are five main areas that the offshore team covers:
- Accounts payable and receivable,
- Management information,
- Accounting (statutory and management).
The team consists of five people, with plans on expanding further with the help of ASW’s support.
This will help the firm expand both the Australian and the offshore team to increase their responsiveness… which in turn should allow them to meet their clients’ changing needs without sacrificing productivity.
Essential Tips for Successful Offshoring
Managing remote teams is not an easy job. The most important thing is preparation. There are many things to take into account, so you should cover all of them if you want to do it successfully.
The most important thing to avoid is rushing into this process. If you don’t do your homework, you might encounter many tough challenges.
Here are some of the most important things to keep in mind:
Tip #1 – Compliance Is Paramount
This is probably the most important aspect of offshoring that you need to cover. Compliance refers to everyone in the company following the appropriate regulations and laws.
These include local and foreign government regulations, as well as company rules. It’s also related to the way that the company treats their employees and consumers.
It’s critical that you enforce compliance in your corporate policy. This means educating your offshore team about the policies that they need to follow. It also means ensuring that every employee understands them fully in order to avoid potential issues.
If you can manage to do this, there are many benefits that you can expect. Here are some of them:
Public image has an incredibly large influence on a business’ success. If your company is involved in legal matters, your customers will lose trust in you.
To attract clients, you need to make sure to maintain a stellar reputation. Aside from the clients, the stakeholders will also notice your good business practice.
Compliance can make this happen. It paints a positive image of your company, which can only result in many benefits. You can build customer loyalty, attract sponsors, and grow your company much easier.
Internal compliance is extremely important to your company. It includes compliance to wages, safety, benefits, and other aspects of your business.
Internal compliance creates a good working climate, which translates into higher productivity. You can keep your offshore team motivated and ensure that everyone feel valued and protected.
You need to set clear rules that your employees can follow without confusion. Keep in mind that you shouldn’t impose too many strict rules, as this can often backfire. Keep important matters under control, while still allowing your employees some flexibility.
Compliance doesn’t mean the same thing for every company. There are many aspects of compliance that vary according to different factors.
Some of these factors are the company’s size, goals, scope, and structure. They influence the way companies manage compliance, and the benefits that they’ll be able to reap. As a result, not every company does it equally well.
The importance of compliance is well-understood by most companies. This means that they’ll do their best to enforce it. This makes compliance a differentiator that pushes companies towards better outcomes.
Tip #2 – Keep Offshoring Data Security in Mind
No matter the kind of business you’re running, information is vital. You know this, and so do your competitors. Unfortunately, there are many cases of stolen and misused information out there.
This is why ensuring data security should be one of your top priorities. Failing to secure your data can result in significant losses and even put your business in a precarious situation.
In an offshore environment, there are a number of rules that you should follow if you want to keep your data secure.
Use a Strong Encryption Technology
In an online world, you can never be safe enough. This is why you need to make sure to encrypt the data that you’re sending overseas. This means that nobody should be able to see it besides you and the person you’re sending it to.
The only people with the encryption code should be the sender and receiver. If you firewall your database on top of that, you can keep your data away from prying eyes.
Transfer Personal Data Carefully
You should never send any personal data to another country unless it can provide an adequate level of security. EU even has a law that prohibits this. You need to keep this in mind when choosing the country for your remote work.
Social and political stability are the main factors that influence data security. You need to ensure that your offshore country has strong security measures. Once you do this, you can transfer any data you want without exposing your company to the risk of breaches.
Perform Regular Checks
If you conduct regular inspections of your database security, you can prevent many issues from occurring. Network security audits help you identify potential issues and allow you to be proactive about them.
It’s important that you discuss this with your offshore provider. Make sure that they have the necessary security measures in place.
Tip #3 – Stay on Top of Changing Regulations
This piece of advice is in close relation to the first two. Both compliance and data protection rely on regulations, which are subject to change. In order to ensure stable offshoring, you need to keep track of these changes.
Doing this will ensure that you can enforce new compliance measures if needed. You can make sure that your offshore team is familiar with the changes.
Here are some ideas for staying up to date with the changes:
- Participate in seminars and conferences related to regulations.
- Subscribe to newsletters of regulatory bodies and law firms.
- Review your internal regulations and procedures to check whether you should update them.
- Appoint a compliance officer that will help you handle remote work.
As you can see, there are many benefits to offshoring. It can give your company a big boost and help you expand your business to other markets. Your business’ productivity can increase significantly, and you can improve its cost efficiency
To reap all the benefits, you need to make sure to implement offshoring the right way. If you follow the tips you saw here, you’ll be closer to ensuring this happens.
If you decide to create an offshore team, master compliance management. This is something that can make a world of difference to your offshore company. Unless you’re familiar with how it works, seeking professional help might be a good idea. Companies that hire remote workers are familiar with all aspects of offshoring, so make sure to consult with them.
ASW Global has helped many businesses and we can do the same for you. We can provide all the information you need to ensure the stability of your offshore team’s growth. If you wish to take a look at what we have to offer, make sure to contact us today for a FREE consultation.