Singapore’s entrepreneurial scene continues to burn bright. Yet, the surging rental property prices are dimming the light on the sunny city’s SMEs. Their rising obstacle? Inflating overhead costs and falling profitability. With the current business environment, small and medium-sized enterprises are thrown off course.

The pinch on profitability feels intense in light of employee expenses. How can you steer your company on these unsettled currents? By assembling an all-star team of remote workers.

This article explores how hiring remote staff can reduce overheads like office rental and utilities in Singapore’s expensive market. We’ll delve into the specifics on why remote professionals can help companies maintain sustainable operations.

Understanding Singapore’s Overhead Costs

First of all, overhead costs are the ongoing expenses in running a business. It’s an essential but indirect expenditure to support your day-to-day operations, which impacts your profitability substantially.

In Singapore, the overhead counts for the office space, IT equipment, utilities and compensation benefits like health insurance. Over time, these outlays become heavy financial shackles to SMEs, especially in a dynamic market like Singapore.

And with the technology adoption curve going up, controlling the overhead costs is even more complicated. That’s why businesses must invest wisely to efficiently manage the overheads, which leads to exploring innovative solutions like building a global remote team.

Yes, your overheads are fluid and changing based on economic conditions and trends. Thus, as your company scales, your administrative expenses will most likely swell. That’s why it’s a good thing that remote hiring removes the traditional overhead burden.

However, it’s important to understand that overhead management is not as simple as trimming the expenses. Think about this strategically by allocating resources right to unlock greater efficiency.

What’s Up with Singapore’s Expensive Market?

Did you know why Singapore is a dream destination for investors and entrepreneurs seeking solid ground to grow their business?

• Skilled workforce.
• Business-friendly regulatory framework.
• Excellent infrastructure.
• World-class connectivity.

Did we miss anything?

The culmination of all of these factors contributes to Singapore’s high-income economy. The country has always been about creating its national wealth by means of sound macroeconomic policies directed towards sustaining a stable business climate for enduring investment growth.

However, the gravity that pulls Singapore away from its economic dreams is the heavy force of its soaring property rental prices. This got many companies, 7 out of 10 of them, thinking of moving out of the region and transferring operations somewhere else. Surely, the number of employees having psychological distress over the matter did not help the case.

To curb inflation and maintain a defensive financial position, small and medium-sized enterprises are turning to a smarter approach—remote hiring.

How Singapore SMEs Save With Remote Workers

So, how does “cost efficiency of remote workers for Singapore SMEs” work?

Here’s the idea—you can run a small team in Singapore and have other functions performed outside the country, significantly eradicating the need to house workers in a central workspace. Sounds good?

Learn more about the benefits of hiring remote workers in Singapore startups.

Cost Savings

Outsourcing remote assistants allows extreme cost flexibility, which will do you good in times of economic downturns and skyrocketing admin costs.

The timing is spot on, considering the number of Singapore’s expatriates who want to vacate the sunny island city due to the rental price scare. Hence, if you were to shift to a remote work model, you could keep the talents you have and alleviate the retention issues completely.

Let’s break down how you can reduce office overhead with remote teams Singapore:

• No Traditional Office Space
  Remote workers perform their tasks outside a physical office space. They can play their part straight from their homes—literally anywhere with an internet connection. So, if you were a small business looking to cut down on the overheads, a remote team Singapore is your best bet.
  With remote work Singapore, you can clear out the usual traditional expenses of building a team, like rent, utilities and equipment. The savings will give you 70% on operational costs alone in a year. That’s a substantial sum that you can reinvest in other revenue-generating activities.
• Cut Down on Transportation Costs
  Since remote professionals can work in the comfort of their homes, they don’t need to commute and get stuck in traffic. This leads to savings for both the company and the workforce.
  Of course, the financial gains go beyond infrastructure or transportation expenses; as mentioned, it also positively affects retention and morale.

Enhanced Productivity

Employees who can choose their own working hours are more productive than those corporate people who don’t. The more freedom they can exert in their schedule, the better control they have over their time plan, allowing them to enjoy a healthy work-life balance.

You’d be surprised to know that many remote workers excel in their jobs as well as the next in-house office clerk. As the Stanford Study reports, the extra flexibility they wield made them more productive by at least 13% than their traditional counterparts.

This level of autonomy results in fewer distractions and stronger engagements. Beyond this, the “no commuting” allows your remote support more time and a sharpened focus on the task at hand. In effect, you can gain more, increasing efficiency and overall performance without ramping up resources.

Increased Job Satisfaction

Remote work puts power into your staff’s hands, calling the shots as to when and where to work. They thrive in a working environment where they can exercise almost all sorts of freedom in how they perform their job. This leads to contentment, with a positive emotional response when working, which makes them more effective.

According to the Institute of Policy Studies, more than half of the Singapore workforce favours a freedom-focused work setup. On top of that, a good 35% of them firmly believe that remote working is the best way to move forward into the future.

When a strong 77% of employees admit that job unhappiness drags their work performance, the case for a happier workforce being a productive workforce is evident.

Access to a Bigger, Better Talent Pool

Global teams are embraced by the masses like it’s the next best thing, which it is. It’s a fairly clever hiring move that can yield maximum results. The world becomes your hiring playground; you don’t have to settle domestically and recruit the best talent with no limits.

It’s about breaking boundaries and expanding your reach globally. This gives your Singaporean SME access to niche skills that your business needs to move forward.

Think about it this way—your startup can enlist the support of a remote e-commerce site operator and enjoy the privilege of remote working while also tapping into skilled expertise.

This is strategically beneficial when you’re entering a new market or expanding overseas, as remote work enables you to streamline operations during economic distress.

Drive Up Diversity and Inclusion at Work

Remote work is a rare opportunity to diversify, creating a welcoming workplace environment for everyone involved in the business. Regardless of colours or backgrounds, you can bring a team together and experience intercultural viewpoints.

This route allows you to participate in the working world and thrive with a richer pool of ideas. In effect, your Singaporean SME will be better equipped to handle the evolving global market and remain responsive.

Outsourcing Virtual Assistant: Cost Efficiency Remote Work

Outsourcing the most time-consuming parts of your business is a powerful move for Singaporean SMEs. It is a smart strategy to cut expenses, specifically the overheads, and boost efficiency.

The first step to effective delegation is to determine your essential but non-core business functions, such as admin work and technical support.

By handing off these responsibilities to specialised providers, you can redirect your resources to core competencies and maximise your impact.

Now, choosing the right partner to take this journey with you is key to outsourcing success. Align your business with a provider with a history of driving results like VAV. We not only have trained professionals; we also offer budget-friendly pricing packages, flexible contracts, immediate availability, continuous support and tailored matching.

So, if you care about entering a result-driven outsourcing relationship, talk to one of our experts who understands your Singapore business's specific needs.

Read on: Virtual Assistant for Singaporean Business

Conclusion

As a business owner in Singapore, you’re faced with mounting pressure to efficiently manage your overheads so you can monetise opportunities and fill your piggybank.

The emergence of remote workers and all the benefits they bring forward is your saving grace amidst the persistent price escalation of property rentals. From expansive talent access to cost-effectiveness, building a global remote team is how you effectively respond to economic slumps and expand to Singapore.

This is the remote work strategy that can help you thrive in the competitive Lion City and ensure sustainable growth with the talent you need.

Do you want remote manpower cost savings in Singapore? Partner with VAV! We have trained remote professionals with diverse experience in different domains who can help you realise your goals.

Each candidate is tailored-matched to ensure you get the remote assistant you deserve. We can make it easy for you with our 3-step recruitment process.

Connect with VAV and explore our virtual assistant services for SMEs.