Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
Episode #168 - We Cut Payroll Costs by 50%—Here’s How Remote Hiring Cuts Major Costs
Release Date: February 11, 2025
Hosts: John Wilson and Jack Carr

Introduction

In Episode #168 of the Owned and Operated podcast, hosts John Wilson and Jack Carr delve into the transformative power of remote hiring for home service businesses, specifically within the plumbing, electrical, and HVAC sectors. This episode, titled "We Cut Payroll Costs by 50%—Here’s How Remote Hiring Cuts Major Costs," explores how leveraging remote and offshore talent can significantly reduce payroll expenses while maintaining, and even enhancing, service quality. Listeners are provided with actionable insights, real-world experiences, and practical strategies to implement remote hiring effectively in their own businesses.

Main Discussion: Remote Hiring and Cost Savings

1. The Financial Impact of Remote Hiring

John Wilson opens the discussion by highlighting the stark cost differences between American workers and their offshore counterparts. He emphasizes the financial flexibility gained by reducing payroll expenses, allowing businesses to reinvest savings into critical areas such as taxes, marketing, and operational equipment like vans.

John (00:00): “When I look at American workers, it is the most expensive amount of money. I mean, the compensation difference is crazy... you get to overpay tax, you get to invest in marketing, you can buy more vans, you can do whatever you want.”

2. Partnering with Evoca for Call Center Efficiency

Jack Carr shares his positive experience working with Evoca, an AI-driven partner that has revolutionized their call center operations over the past eight months. Evoca offers two main products:

• Coach: Utilizes AI to analyze every call, providing daily coaching to Customer Service Representatives (CSRs). This has led to consistent improvement in call handling scores.

• Conventional Booking: An AI tool that manages overflow calls and operates during nights and weekends, handling customer bookings autonomously.

The integration with Evoca has not only enhanced the quality of customer interactions but also freed up resources to bolster marketing efforts.

Jack (00:23): “Evoca has been an awesome partner for us in our call center... they've been consistently improving our scores, which has been awesome.”

Jack (01:28): “The savings inside call center has allowed us to ramp up our marketing to continue to grow even more.”

Quality of Remote Staff

3. Balancing Cost and Quality

A critical concern when shifting to remote or offshore staffing is maintaining service quality. John and Tyson discuss their experiences with remote hires, noting that while some American employees underperform compared to their offshore peers, remote teams from countries like the Philippines consistently deliver high performance at a fraction of the cost.

John (14:33): “Our call scores were better, their number of book calls were better, their booking rate was better... it's a huge unlock.”

Tyson raises a poignant question about the quality of remote candidates, addressing common misconceptions that cheaper labor equates to poorer performance.

Tyson (11:46): “How do you feel about quality? Because I know that's, that's what. Historically the idea has been cheap... what’s your view on quality of candidates and making sure they work in the business?”

John counters by sharing that while some American employees may not meet expectations, their remote teams consistently outperform, justifying the switch despite initial reservations.

John (14:44): “I'm like, what are we doing here? This is crazy... our American team... their performance was lower, but the Philippines were all top performers.”

Best Practices for Managing Remote Teams

4. Effective Communication

One of the paramount challenges in managing remote teams is ensuring consistent and effective communication. John emphasizes the necessity of daily check-ins to keep remote employees aligned and engaged.

John (25:15): “You need to build this communication check in. I think that's probably our biggest tip because when it has not worked, it's when we didn't have daily.”

Tyson echoes this sentiment, highlighting the lack of "water cooler time" and the importance of structured communication to maintain performance standards.

Tyson (26:56): “Definitely communication. Because just like any other team member, they are remote. They don't get that water cooler time.”

5. Simplifying Processes with SOPs

Simplifying Standard Operating Procedures (SOPs) is crucial for remote teams to function efficiently without the luxury of in-person guidance. Both hosts agree that streamlined, clear processes minimize errors and enhance productivity.

Tyson (27:14): “A huge, huge win for the team is SOPs. Like in depth SOPs.”

John (27:28): “We have to simplify a process... we went from like, ah, 100 steps to like 28. Because it was simpler and because of that it was better.”

Quick Staffers: A Comprehensive Solution

6. Introducing Quick Staffers

Tyson introduces Quick Staffers, a project designed to facilitate the hiring of remote, outsourced talent tailored to the specific needs of home service businesses. Quick Staffers offers:

• Customized Onboarding: Understanding business-specific SOPs to ensure remote hires are well-equipped from day one.
• Training Programs: Providing two weeks of comprehensive training focused on the nuances of home services.
• Cost-Effective Hiring: Delivering vetted and trained CSRs at approximately half the cost of local hires.

Tyson (29:34): “Quick Staffers... hired, vetted, and trained at half the cost of hiring local.”

John adds that Quick Staffers not only saves costs but also ensures high performance by integrating these remote employees seamlessly into the business operations.

John (31:18): “You’re getting somebody hired, vetted, and trained at half the cost of hiring local.”

Beyond Cost Savings: Strategic Reinvestment

7. Reallocating Savings for Business Growth

The substantial savings from reduced payroll costs allow businesses to reinvest in various growth areas. John and Tyson discuss how these savings have enabled them to:

• Enhance Leadership Roles: Investing more in high-quality managers and leaders who drive business success.

John (15:05): “You get to hire better managers.”

• Expand Marketing Efforts: Increasing marketing budgets to drive more leads and business growth.

John (24:11): “You can hire multiple recruiters... you can do it as American, you can hire better managers.”

Insights and Conclusions

8. The Transformative Power of Remote Hiring

The episode underscores that remote hiring is not merely a cost-cutting measure but a strategic approach that can unlock multiple facets of business growth. Key takeaways include:

• Enhanced Financial Flexibility: Significant reduction in payroll costs frees up resources for strategic investments.
• Improved Service Quality: Remote teams, especially those offshore, can outperform local teams when managed correctly.
• Operational Efficiency: Effective communication and simplified processes are critical to maximizing the benefits of remote staffing.
• Strategic Reinvestment: Savings can be reallocated to critical areas such as leadership, marketing, and operational expansion, driving sustained business growth.

John (24:11): “It's a huge unlock. It's a huge point of leverage... why you're not doing it.”

Tyson (25:13): “People leverage is so important. And to be able to hire three or four for the cost of one is like, that just doesn't make sense why you're not doing it.”

Notable Quotes

• John (00:00): “When I look at American workers, it is the most expensive amount of money. I mean, the compensation difference is crazy.”

• Jack (00:23): “Evoca has been an awesome partner for us in our call center.”

• Tyson (11:46): “How do you feel about quality? ... what's your view on quality of candidates and making sure they work in the business?”

• John (14:44): “Our American team... the Philippines were all top performers.”

• Tyson (27:14): “A huge, huge win for the team is SOPs. Like in depth SOPs.”

• Tyson (29:34): “Quick Staffers... hired, vetted, and trained at half the cost of hiring local.”

• John (24:49): “It's a huge unlock.”

Conclusion

Episode #168 of Owned and Operated provides a comprehensive exploration of how remote hiring can dramatically reduce payroll costs while enhancing service quality and operational efficiency. Through practical examples, expert insights, and the introduction of innovative solutions like Quick Staffers, John Wilson and Jack Carr offer invaluable guidance for home service business owners aiming to scale their operations sustainably. By embracing remote talent, businesses can unlock significant financial benefits and reinvest in growth-driving areas, positioning themselves for long-term success.

For more information and resources discussed in this episode, visit www.ownedandoperated.com.