We are in an age where traditional business models may no longer be enough to scale and grow your business. The ability to be flexible and adapt to ever-changing horizons is key to not only survive but flourish.
One specific model gaining traction over the past few years is the blended business model – a hybrid org chart capable of cutting your labor costs by over 60% while simultaneously increasing your productivity and offering flexibility in department labor allocation. You can put the blended business model to work in your own business by leveraging virtual assistants.
What is the Blended Business Model?
Basically, it is engineering a blended org chart with part of an in-house organization and another part working virtually.
If you are in any of the following scenarios, it might be time for you to consider adopting the blended business model:
- Your workload is starting to get overwhelming, and the quality of your life is suffering.
- Company revenue productivity is suffering because your time is spent on non-revenue efforts.
- Your growth curve is flat because you’re stuck with administrative work.
- You know you need support but do not want to go through the tedious hiring process, only to have your hires leave after a period of time, thus putting you in a vicious cycle.
Hiring Virtual Assistants solves a lot of problems and actually brings many benefits. For example, a full-time Virtual Assistant will cost you 25%-30% of the cost of an in-house employee. A Virtual Assistant will have their own equipment and software and will not take up any precious office space, so overhead costs are cut down. In addition, organizations like MyOutDesk cover HR concerns, benefits, and even things like paid time off, while all you do is pay your monthly subscription.
Building a blended org chart with Virtual Assistants is an extremely cost-effective way to grow your business!
Stanford Studies have shown that remote workers show increased productivity by 16%. In addition, those who work from home seem to be more focused with fewer distractions. They also found that employees working in open offices took 62% more sick days than virtual employees.
Deloitte’s Millennial Survey 2017 found that remote work arrangements are “strongly linked to improved performance and employee retention.” Furthermore, 38% of respondents reported they were likely to leave their current employer within the next two years, with most citing work/life balance and flexibility as major contributing factors.
Large companies are benefitting from using a blended employment model. In fact, a new regulation stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act has given us a clearer picture of the extent to which some of the largest U.S. companies employ global talent. As part of this act, publicly traded companies must disclose how many foreign employees they employ. While this act was passed back in 2010 in response to the 2008 global financial crisis, the SEC only approved guidance for companies outlining how to implement and comply with the mandate in September 2017. Therefore, data regarding the degree to which these major corporations use global talent is only just beginning to emerge. However, even after just one-quarter of such reporting, it is clear that many of the most recognizable U.S. brands hire workers in lower-cost countries as a means of leveraging their businesses.
You might be surprised at the high percentages of global talent that successful companies have reported so far:
- Kellogg: 80%
- General Electric: 66%
- United Technologies: 68% Whirlpool: 80%
- Merck: 55%
- Honeywell: 58%
- Hanes: 80%
- Mattel: 78%
- Wal-Mart: 35%
If these major companies employ this strategy, there is no reason that you cannot for your own business as well.
The fact that the Internet and other modernizations have globalized our economy gives you a chance to scale your business faster and further than ever before, using Virtual Assistants. As a result, the demand for virtual talent is increasing because it works for most business owners. Simply put: it is good for business.