Work From Home (WFH)

 What is WFH?

WFH is an acronym for “work from home”, which describes a modern working arrangement where employees perform job responsibilities remotely, typically from their own homes instead of an office. It offers flexibility, improved work-life balance, and cost savings for employers. 

The following synonyms can be used interchangeably with WFH: 

• Work from home
• Working from home
• Telecommuting
• Remote work
• Working remotely
• Virtual work

The rise of WFH

There is no doubt that work-from-home (WFH) arrangements are a popular way to work. This could be because of the economic problems caused by COVID-19, the ease of access to technology, or just a change in how people feel about work culture.

The idea of working from home (WFH) has gone from being just a trend to a way of life and a necessity for many people as our ideas about what it means to "work" change. The usual way of working has been changed by the ability to do work-related tasks effectively from home.

As per a recent McKinsey survey, 58% of employed individuals, equivalent to 92 million people from various job sectors, now have the opportunity to work remotely for all or part of the week. This finding comes after more than two years of observing remote work and predicting that flexible working would continue even beyond the COVID-19 pandemic.

Challenges of WFH

While offering numerous benefits, working from home also presents several challenges that individuals and organizations may face. 

According to Forbes, 40% of employees do not have a dedicated workspace, 20% work from their living rooms, and 30% encounter various challenges while working remotely.

Advantages of WFH

Disadvantages of WFH

Reference

What is WFH? (2023, November 9). WalkMe^TM - Digital Adoption Platform. https://www.walkme.com/glossary/wfh/#:~:text=WFH%20is%20an%20acronym%20for,and%20cost%20savings%20for%20employers.

Americans are embracing flexible work—and they want more of it. (2022, June 23). McKinsey & Company. https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it

https://carajput.com/blog/wp-content/uploads/2020/09/advantages-working-from-home-1.png

Disadvantages of Working from Home. (2022, October 1). Collidu. https://www.collidu.com/presentation-disadvantages-of-working-from-home

[online] [Accessed 02 April 2024]

ELECTRONIC HUMAN RESOURCE MANAGEMENT SYSTEM (e-HRM)

What is an Electronic Human Resource Management System (e-HRM)

Electronic human resource management (e-HRM) is the use of web-based technologies to provide human resource management services to an organization. E-HRM is all of the HR tasks that use computers and the internet to make businesses more valuable. It can take care of basic HRM tasks automatically and improve processes that make things better. E-HRM includes e-learning and e-recruitment, which were the first areas of human resource management to use the web for a lot of their work.

e-HRM can help businesses keep track of new ideas and feedback loops. It can also automatically sort through information about employees, which can help HR and employee services get things done faster. E-HRM can also help the HR department be more efficient and save money, and it can even turn HR into a strategic partner.

OBJECTIVES E-HRM is designed to achieve the following objectives:

What is the advantage of eHRM?

Using e-HRM for performance management has many benefits for businesses, such as making decisions based on data, streamlining processes, lowering administrative work, and saving money.

Disadvantages of e-HRM: Here are some disadvantages of e-HRM:

Data security: E-HRM can cause data to be lost, changed, or hacked. Most of the time, the data is safe, but if there is a leak, private data could get into the wrong hands.

 
Cost: For e-HRM to work, you may need to buy software licenses, upgrade your hardware, and train your workers. Some tech solutions may also need help and maintenance over time.

 
Loss of face-to-face interaction: E-HRM can make it harder for managers and employees to talk to each other in person, which might not be good for workers who need personal support.

 
Break between HR professionals and employees: relying too much on technology could cause a break between HR professionals and employees, which would take away from the human side of HR.

 
Loss of subjectivity: HR management systems can make a list of all the things an employee has done, certified, and graduated with. This may make managers want to promote based on the facts.

 
Problems with analysis: The system may have a lot of data, making it hard to study.

 
Limited usefulness: E-HRM may not be useful for some companies. 

Reference

http://www.ijstm.com/images/short_pdf/265.pdf

https://core.ac.uk/download/pdf/287192844.pdf

http://journalglobal.in/uploads/paper/21.pdf

Kumar, N. (2023, October 15). E-HRM: An Emerging Trend in IT Sector. https://www.linkedin.com/pulse/e-hrm-emerging-trend-sector-nitish-kumar-49mxf

[online] [Accessed 02 April 2024]

  

STRATEGIC DRIFT THEORY & THE EXTERNAL ENVIRONMENT OF THE ORGANIZATION

What Does the Term ‘Strategic Drift’ Mean?

Johnson came up with the word "Strategic Drift" in 1998 to describe when a company's internal strategy and focus start to shift away from the outside world and don't adapt to changes in the outside market.

A lot of businesses just try to keep up with pressures from outside, but Apple is one of the few that is a market leader, which means they not only keep up with changes in the market but also start them.

Strategic Drift Theory

Strategic drift occurs when the strategy pursued by a business no longer fits with the external environment and trends around it. Therefore the service or product the business is currently selling is not suitable for the current trends or market conditions.

Therefore the business will need to look into transformation and changing the way it is operating, providing a service, or selling a product.

Strategic Drift Theory - Diagram

The Four Phases of Strategic Drift

Phase 1 – Incremental Change

In the first part, it is made clear that the outside world hasn't changed much. By making small changes to their business, the company can stay competitive in the market.

Phase 2 – Strategic Drift

Now that the outside world has changed a lot, the small changes the business has been making aren't enough to keep up with the competition.

Phase 3 – Flux

This phase shows that managers are having trouble making decisions because there is a big difference between what the business offers and what the outside world wants. This might make management start to change their plans, but it's still not clear enough to make the big changes that are needed right now. It's possible that the top managers don't agree on how the company should move forward.

Phase 4 – Transformational Change or Death

This is the point where management has to realize that the business needs to change right away and go in a new planned direction. They are doomed to fail if the management doesn't change quickly. 

Discuss the  External Environment of the organization 

PESTLE looks at 6 important types of outside factors to explain the external environment.

Political: Tariffs, trade restrictions and change, environmental rules, tax policy, and the stability of the government

Economic: Interest rates, exchange rates, inflation, wage rates, minimum wage, working hours, unemployment, credit availability, cost of living, and economic growth or decrease.

Sociology: Cultural norms and expectations, health awareness, population growth rates, age distribution, views toward work, safety, and health.

Technological: Changes in technology, like AI, and how quickly people accept them

 
Legal: Changes in the law that affect jobs, quotas, resource access, imports and exports, and taxes

 
Environmental: Global warming, sustainable resources, ethical sourcing, supply chain intelligence
Taking a look at all of these things can help you make smart decisions by revealing which parts of your business are affected by different changes in the outside world and what you need to do to lower the risks these changes may bring.

Reference

Kacinova, S. (2021, June 8). Strategic Drift: Understanding What It Means and Its Impact on Your Organisation. https://www.linkedin.com/pulse/strategic-drift-understanding-what-means-its-impact-your-kacinova#:~:text=In%201998%2C%20Johnson%20coined%20the,up%20with%20external%20market%20changes.

Strategic Drift Theory – The Tutor Academy. (n.d.). https://www.thetutoracademy.com/revision-notes/strategic-drift-theory/

http://www.jcreview.com/fulltext/197-1580283115.pdf?1580292009. (2020, January 1). Journal of Critical Reviews, 7(01). https://doi.org/10.31838/jcr.07.01.52

T. (2016, May 31). Strategic Drift Explained | Busness Strategy. YouTube. https://www.youtube.com/watch?v=arvSGys2lfQ

[online] [Accessed 02 April 2024]

We are Living in a VUCA world

What is the VUCA World?

The VUCA world is a term that describes a situation of constant, unpredictable change and is an acronym for volatility, uncertainty, complexity, and ambiguity. It was first used at the U.S. Army War College in 1987. It's based on ideas about leadership put forward by Warren Bennis and Burt Nanus. People now talk about the VUCA world in business, leadership, and the stock market, among other places.

Today, We discuss the meaning of VUCA and popular examples in this blog.

Meaning of VUCA:

Volatility

refers to the rate at which an industry, market, or the world. It is well-known in the writing on industry dynamism that it is linked to changes in demand, market turbulence, and short time frames.
Things change more and faster when the world is more unstable.

Uncertainty

is the degree to which we can confidently predict the future is referred to as uncertainty. It is thought that uncertainty comes from not being able to understand what is going on.

Uncertainty, on the other hand, is a more objective feature of an environment. When there is real uncertainty, there is no way to know what will happen, not even using statistics.
It is harder to make predictions when the world is less certain.

Complexity

refers to the number of factors that must be considered, as well as their variability and interdependence.

The more factors there are, the more diverse they are; and the more interconnected they are, the more complex an environment is.

It is impossible to fully analyze the environment and reach rational conclusions in the presence of high complexity. It is harder to understand the world when it is more complicated.

Ambiguity

is defined as a lack of clarity regarding how to interpret something. When there isn't enough, the wrong, or enough contradictory knowledge to draw clear conclusions, the situation is ambiguous.

In a broader sense, it means that thoughts and words aren't clear or precise. It is harder to figure out what is going on in the world when it is not clear.

This implies that leaders are:

• Getting ready for as many different realities, challenges, and issues as possible
• Market, technological, economic, and other trends, opportunities, events, and risks are all anticipated.
• Increasing the level of change readiness
• The ability to change strategy in response to both expected and unexpected change
• There is a need to practice leadership agility and hire employees who can adapt to change.
• Creating a supportive and adaptable corporate culture in the face of change and uncertainty
• Using a non-linear decision-making approach and encouraging “out of the box” thinking

Things that happen in the real world of business that show VUCA

In a realm defined by volatility, uncertainty, complexity, and ambiguity, real-world examples vividly illustrate the impact of the VUCA world on diverse industries. These situations show how companies deal with and adapt to the changing problems that come up because of the VUCA world. Come with us as we look at these real-life examples that show what VUCA is all about and how it affects the business world.

Example 1: Tesla's Challenge to the Auto Industry

Automobile companies have made a big mistake by ignoring potential, most especially with Tesla. Tesla's promise was ignored for a long time, but things have changed. German car industry leaders and manufacturers are having a hard time catching up to their Californian counterparts.

Notably, electric cars driven by batteries weren't supposed to come out from Porsche, Mercedes-Benz, and other brands until 2019. Elon Musk has been leading Tesla to great progress in areas such as self-driving cars, entertainment systems inside the cars, and performance measures like range, speed, and safety.

To stop Tesla from becoming too popular, big automakers have started specialized innovation teams. Daimler created CASE and BMW created D+ACES, which are departments within their companies that are solely responsible for shaping the future of mobility. With this strategic reaction, it's clear how important it is to change the future of the industry to keep up with Tesla's innovations.

Example 2: Turbulence in Telecommunications

 
The meaning of VUCA can be seen in the way that telecommunications are marked by sudden changes. As technology improves quickly, gadgets and services become useless at a rate that has never been seen before. Samsung's experience shows how the changing smartphone market and new technologies like 5G can affect a company's ability to make money. Samsung, a major player in memory chips, smartphones, and TVs, saw a big drop in profits because chip prices went down. This shows how market instability affects market leaders.

Example 3: The Kodak Tragedy in Digital Photography

 
The story of the famous American company Kodak is a powerful example of how uncertainty can lead to mistakes.

Steve Sasson, a Kodak worker, made the first digital camera in 1975. But Kodak's leaders didn't adopt this new idea because they were afraid it would hurt their main business, which was camera film.

When Sony, a strong rival, released their digital camera in the early 1980s, Kodak's leaders ordered a large-scale study to figure out how dangerous it was for their film-based business. Even more surprising, the study said that digital cameras would replace film cameras in 10 years.

At this crucial point, Kodak's leaders were presented with unclear information. Despite predictions of decline, the company maintained strong film sales through the mid-1980s. Without much planning for the digital world, the expected ten-year shift happened without much getting ready.

During the late 1980s, sales dropped sharply, forcing Kodak to take strict steps to cut costs. Kodak didn't make its first digital camera until 1991, but the company never got back to where it used to be. After 120 years in business, Kodak finally went bankrupt. It was technology that caused its demise, particularly technology that grew inside the company.

Example 4: E-commerce and Retail Transformation

 
The VUCA world's disruptive power can be seen in the retail sector. When online stores like Amazon came along, they changed the way stores used to work. Traditional stores often don't realize how powerful internet shopping can be. Because of this mistake, many well-known store chains had to close. The move from traditional stores to online sites shows how uncertainty can hurt a business's ability to stay in business.

Example 5: Financial Services and Fintech Disruption

 
With the rise of fintech, the financial services industry has been unstable and unsure. Innovative companies that offered streamlined services and better user experiences posed a threat to traditional banks. At first, incumbents didn't see how powerful these disruptors could be, which let fintech companies get a big part of the market. The VUCA forces at play can be seen in how hard it is to keep up with changes in technology while also following the rules.

Example 6: Healthcare Innovation and Regulation

 
The healthcare industry deals with VUCA by adapting to new technologies and changing rules. As new medical technologies, treatments, and therapies come out all the time, healthcare workers need to be able to adapt quickly. However, it's hard for people to make decisions when there is uncertainty about governmental changes and reimbursement policies. Finding a balance between new ideas and following the rules is important in this complicated world.

Reference

VUCA - Leaders with Vision, Understanding, Clarity, Agility! (2024, March 27). VUCA-WORLD. https://www.vuca-world.org

FDieffenbacher, S., & FDieffenbacher, S. (2024, January 10). VUCA World – Meaning, Examples And Management Steps. Digital Leadership. https://digitalleadership.com/blog/vuca-world/

The importance of leadership in a vuca world - Eaton Business School. (2023, November 17). Eaton Business School. https://ebsedu.org/blog/leadership-in-a-vuca-world#:~:text=A%20VUCA%20leadership%20approach%20can,risks%20that%20come%20with%20it.

[online] [Accessed 02 April 2024]

Interpersonal Skills

What are The Interpersonal Skills?

Individual and group communication, interaction, and work are all things that interpersonal skills help you do well. People who are "good with people" are good at communicating both verbally and nonverbally. Whether they’re used in your career or personal life, these skills are important for success.

Importance of Interpersonal Skills

People with good interpersonal skills can talk with confidence and understand what others are saying through their body language and facial expressions. They are also very charismatic and have a good attitude that draws people in. In job interviews, these skills are important. According to CNBC, 70% of the reasons companies hire someone are based on their personality.

Also, people become more bold after learning different ways to improve their social skills. These people can set good limits at work. That way, they can only concentrate on their work. People who are assertive are also good at negotiating when they want a raise or a job.

Types of Interpersonal Skills

Below are the various types of interpersonal skills.

1. Verbal communication

One of the most basic ways to improve your social skills is to talk to more people. Talking to people face-to-face is an important part of the work setting. Talking to customers and other companies is an important part of building long-lasting relationships.

Also, good conversation makes it easier for coworkers to share their ideas and thoughts. This skill also guarantees more work gets done, fewer mistakes happen, and things run more smoothly.

2. Non-verbal communication

Physical cues like handshakes, eye contact, gestures, and facial expressions are used in this type of conversation. A lot of people don't pay attention to their body language. But they are very important for showing care, trust, dependability, and involvement. In business, it's important to make strong eye contact, use the right facial emotions, and stand tall and confident.

3. Assertiveness

The best workers aren't the ones who don't say anything and just do their job. Instead, it's better to have workers who voice their concerns, thoughts, and ideas. People who are assertive politely explain themselves and stand up for what they believe in. They also set limits, like not taking on more work than they can handle. To be aggressive and still earn respect, you need to have a lot of emotional intelligence.

4. Negotiation skills

There is no doubt that negotiating is useful in the job. Sixty percent of people see negotiation as a way to reach an understanding. To negotiate, you need to think about the problem, be ready, communicate clearly, and keep your emotions in check.

Also, bargaining stresses how important it is to have good people skills. It is very important to keep good relationships with other people while you are bargaining. The best result of a discussion is for everyone to be happy. In this case, the end agreement takes both sides' needs into account.

5. Listening skills

Active hearing changes how people interact with each other and how well they do their job. Face the person, don't talk over them, and repeat what they say to make sure you understand are all examples of good listening skills. When employees are carefully listened to, they feel like they are important.

6. Collaboration

Getting better at working with other people changes how people work together and coordinate. This trait became even more important during the pandemic, when more people worked from home. As more people started working from home, they had to work together to make their schedules more efficient. These habits included setting up meetings, being on time, and talking to more people.

7. Respectfulness

Respect is an important part of managing relationships. There are many ways to treat people with respect at work. Being on time is one of the most forgotten examples. Remember to value other people's time and work. One could, therefore, ask their coworker when the best time is to have a meeting or talk with them instead of telling them without first making sure. People at work should also respect each other's places and things.

8. Conflict resolution

To improve your social skills, you need to learn a lot about how to handle relationships. Managing disagreements is an important part of having good partnerships. Conflicts will happen, but they can be handled. In fact, 85% of workers have some kind of disagreement.

People who work together should know how to quickly settle any mistakes or pointless arguments. Managers and HR staff should figure out how to help workers improve their social skills so that the workplace is a good place to work where everyone gets along.

9. Empathy

In the past few years, emotional intelligence has gotten more attention. People who can figure out what other people need and react in a genuine way are highly valued in the workplace. These people can figure out how someone is feeling by reading their body language. Also, people like them more because they are more empathetic, which makes connections more real.

10. Openness to feedback

Feedback is the part of working in teams that people hate the most. As you might expect, everyone likes to be praised and told they did a good job. Critics say that some people take criticism personally or don't change their behavior after hearing it. A person with a high PQ, on the other hand, knows that feedback helps them get better.

11. Positive attitude

It's not always true that being positive makes you do better. In any case, it's a great example of how to get along with others. People who have a good attitude give off energy and awareness. They are also less stressed and can concentrate better on their work.

12. Self-confidence

People who are sure of themselves are more likely to take risks at work. For instance, they might sign up to give a talk or speech even though they are afraid of public speaking. So, people who work on their social skills boost their confidence, get better at technical skills, and figure out where they need to improve.

13. Reliability

Everyone on a team has a job to do in an office. It is assumed that each member will do their job as well as they can. People who work for you and your coworkers trust you to do your job right with little or no control. Also, trustworthy individuals take the initiative to find answers.

14. Sense of humour

People who are charming often find humor funny. People learn how to improve their social skills and realize how important it is to connect with others when they talk. A sense of humor is the fastest way to connect with someone.

15. Leadership skills

A boss is someone who figures out all the different ways to improve their people skills. They learn to be charming, caring, trustworthy, and good at talking to others. These psychological traits are very important for management and leadership. Along with that, a good boss gets along well with their coworkers and encourages them to do their jobs. 

Reference

Vipond, T. (2024, March 5). Interpersonal Skills. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/interpersonal-skills/#:~:text=by%20Tim%20Vipond-,What%20are%20Interpersonal%20Skills?,be%20%E2%80%9Cgood%20with%20people%E2%80%9D.

Reddy, M. M. (2024, January 9). Interpersonal Skills: Importance, Types, and Ways to Improve Them | Empuls. Empuls. https://blog.empuls.io/interpersonal-skills

[online] [Accessed 02 April 2024]

Employee Welfare

What is Employee Welfare?

The word "employee welfare" refers to a lot of different services and benefits that a company can provide to its workers. There may be health insurance, dental insurance, eye insurance, life insurance, disability insurance, paid time off, and 401(k) plans as part of this. Things like on-site daycare, exercise centers, and free meals can also be considered employee welfare.

What are the benefits of Employee Welfare?

For the well-being of employees, there are many perks, such as:

1. More motivated and productive workers—If workers feel valued and their basic needs are met, they are more likely to be happy and productive at work.

 
2. Less employee turnover—Happily employed people are less likely to quit, which can lower employee turnover and make the company more stable.

 
3. Better business image—The public may think that a company that cares for its workers is more compassionate and caring, which can help the company's image.

 
4. Cost savings: Putting money into the well-being of employees can save the business money in the long run by lowering staff turnover and raising output.

Who uses Employee Welfare?

While the word "employee welfare" is usually used in HR, it usually refers to a group of services and benefits that are given to employees. In this group are things like health insurance, dental insurance, 401(k) plans, and other perks. Services like on-site daycare, gym memberships, and other types of perks and rewards can also be part of employee welfare. Employee Welfare is usually given to workers as a way to get and keep good workers, as well as to make workers happier and more productive.

How do you build an Employee Welfare system?

As each company has its own goals and culture, there is no one set way to build an Employee Welfare system. Instead, the best way will depend on those factors. But here are some important steps for making an effective Employee Welfare system:

1. Write down your plans and goals. What do you want your Employee Welfare system to do? Would you like to boost employee morale, boost production, or lower staff turnover? Make your goals and aims clear from the start, and make sure they can be measured so you can see how you're doing over time.

 
2. Set up a committee or task force to plan the method and put it into action. There should be people from all levels of the organization on this group, as well as experts from outside the organization if needed.

 
3. Make a set of policies. The policy system should have rules about who can get benefits, how they should be given, and how they should be managed.

 
4. Make a plan for how you will communicate. All workers should be told about the Employee Welfare system, and the committee should be available to answer any questions or address any concerns.

 
5. Use the method and keep track of how things are going. After setting up the system, it is important to keep an eye on it and make any changes that are needed to make sure it is meeting the initial goals and objectives.

Reference

Perkins, J. (2024, January 22). Employee Classification: A Practical Guide for HR. AIHR. https://www.aihr.com/blog/employee-classification/#:~:text=reliability%20and%20trust.-,What%20are%20the%20types%20of%20employees?,Leased%20employees%20(the%20extra%20type)

Solutions, Z. T. (2022, November 29). What is Employee Welfare, and How Do You Manage It? | Zoe Talent Solutions. Zoe Talent Solutions. https://zoetalentsolutions.com/what-is-employee-welfare-how-do-you-manage-it/

Employee Welfare a top priority for MAS amid economic crisis. (2024, March 19). MAS Holdings. https://www.masholdings.com/media-centre/mas-makes-employee-welfare-a-top-priority-amid-economic-crisis/

[online] [Accessed 01 April 2024]

Employee Classification

 What is an Employee classification?

Employee classification is a way to put workers into groups that affect their pay, taxes, and perks. It also sets out what workers are responsible for and what companies are required to do. There may be different rules for each group when it comes to paid time off, overtime, taxes, and superannuation.

Employers classify their employees into five main types, plus one extra type:

1. full-time employees
2. Part-time employee
3. Temporary employees
4. Interns
5. Seasonal workers
6. Leased employees (the extra type)

Let’s explore each type of employee in more detail.

1. Full-time employees

People who work full-time usually put in 40 hours a week, get benefits, and may not have a set end date for their contracts. They are what are known as "permanent employees." Also, if the company or group has more than 50 full-time workers in the US, it has to provide health insurance to these workers and their families.

People often think that full-time work is one of the safest and most reliable types of work because companies offer a fixed salary plus hourly overtime pay.

But if the job only pays the minimum wage, working full-time can be a drawback, which makes it hard for companies to keep good employees.

2. Part-time employees

These people usually get paid by the hour and work less than 40 hours per week. Still, some part-time workers would rather be paid a salary, so it depends on the business.

People who work part-time can also become full-time if their contract doesn't have a set end date. Still, these people might not be able to get benefits.

3. Temporary employees

On the other hand, temporary workers (or temps, if you prefer) have a set end date on their contract. Most of the time, these people stay with the same company for six months to two years. There are also people who are hired just for a job. After that, when the job is done, their contract is over.

Now, you can have temporary full-time workers and temporary part-time employees based on the number of hours per week. Temporary workers are great for short-term jobs and can help get more done when things are busy.

Hiring temporary workers is also a good way to check out the job market and see how skilled people are without having to give a full-time job.

4. Interns

Most internships are only for a few months at most, and interns can be paid, partly paid, or not paid at all. Most of the time, they are high school or college students looking for their first job. You never know when an internship could lead to a job at your business.

5. Seasonal workers

Seasonal workers are another type of temporary worker who is hired when a business needs extra help during certain times of the year. This need usually comes up at a certain time of the year, most often during the summer months or winter breaks.

6. Leased workers

The person in this role is still a paid worker or employee and not an independent contractor, but they won't be on your company's payroll.

The name of the service suggests that a company can rent workers from a staffing firm (and pay the workers) to finish a project or help out when they're busy.

In the new economy, employees can be classified in a number of ways. The examples below show different types of jobs and contract work.

Remote workers vs independent contractors

By definition, people who work from home are not in the office or job. They instead do their work from afar, like from home or somewhere else in the world.

The number of people who work remotely (from home) has grown faster during the pandemic. However, it's also a result of the rapid progress in technology we've seen in recent years.

Companies today have access to a talent group of people from all over the world thanks to portable devices and services that let employees in the office and those working from home work together.

Of course, as a business owner, you need to know that remote workers aren't always temporary workers or independent agents.

You can have full-time, part-time, or temporary staff who work from home, as well as independent contractors who work from home.

They are different because the first type is a standard employee and the second type is a collaborator who works from home and manages their own time, devices, and taxes.

As an independent contractor, many remote-first companies hire people because it's the easiest way to get people to work for them without having to deal with the different business and labor rules in each country. 

Reference

Perkins, J. (2024, January 22). Employee Classification: A Practical Guide for HR. AIHR. https://www.aihr.com/blog/employee-classification/#:~:text=reliability%20and%20trust.-,What%20are%20the%20types%20of%20employees?,Leased%20employees%20(the%20extra%20type)

https://study.com/academy/lesson/types-of-employee-classification.html#:~:text=The%20three%20most%20common%20categories,paid%20directly%20by%20their%20employer.

[online] [Accessed 01 April 2024]