What is a back office?
To set up a remote back office, you must first know what a back office is, in general.
The back office is essentially also the backbone of a business. Back office staff isn’t necessarily client-facing, but their work on the functions and operations of a business that enables better client facing.
The term “back office” originated from companies who divided their office space so that front-line employees have more obligations for interacting with their customers, whilst the back portion of the office consisted of associates.
Their obligations include a variety of different tasks such as accounting, clearances, IT tasks or providing support for front-office employees.
What are the requirements?
Setting up a complete back office team would require a minimum of five employees; a project manager and four administrative workers. That means, five more desks in the office, IT equipment for five people, and, of course, payment of every single employee depending on what their specialty is; market research, customer support, admin role, or perhaps even social media expert.
If your company headquarters don’t already have the necessary space, then providing one in the UK might prove to be very expensive: The total cost for five employees with a functional office space in London is close to £280.000. While this may seem like a lot, take into consideration that combining your front and back office and assigning two tasks from different fields to all of your staff members may result in the business soon struggling because of overwhelmed employees.
Is there any other solution?
The back office of your company doesn’t have to literally and physically be in the back of your office space. In fact, most back-offices aren’t located in close proximity to the front office. This also means that your back office does not have to be located in your country, at all.
You can set up a remote back office department overseas, or even look up remote workers who have an in-home office and specialize in back office tasks. The standard annual cost for a complete back office team in Croatia is £127.000, which means you can save up close to £150.000!
The average person in Croatia works full-time for not much more than £600 per month. That means that people in Croatia who are only a two-hour flight away from you, who speak English, who look like you, study like you, and work hard like you, are earning only a third of the wage of an average Londoner for the same number of working hours.
Croatia is full of qualified experts who studied at top universities in their country, or even prestige universities around Europe, and who, because of the standards in their country, are willing to do the same amount of work as a UK employee for much cheaper.
The economic gap between the UK and Croatia means that the employees in your remote back office will have a larger salary than they normally would in their home country, all while you are paying them much less than you would if you hired a London-based worker.
The best part about it is that, while you are cutting on costs, you are not cutting on quality.