Blog Type: Guest Post
Meta Description: Hiring remote employees in other countries is a complex and time-consuming process. Here are some things you need to know and why EOR is key to your success.
Target Word Count: 1200+
Blog Type: TOFU
Anchor Keywords: Existing Employer, Hiring International Workers Worker, Remote Onboarding, Hiring Remote Workers, Remote Workers in Other Countries hire, hire remote workers,
pages to link to: https://www.usemultiplier.com/employer-of-record, https://www.usemultiplier.com / registered employer, https://www.usemultiplier.com/hiring-international-employees
Hiring remote workers in other countries? What you should know A June 2022 Gallup poll found that 8 in 10 people work remotely or in a hybrid setup.This trend will continue for years to come as it benefits both employers and employees.
According to Global Workplace Analytics, employers can save up to $11,000 per employee annually by working from home. Savings result from reduced office costs, absenteeism and turnover. On the other hand, remote workers are more grateful, have better connections with colleagues, and have a better work-life balance. As a result, according to a Career Pulse survey by FlexJobs, 97% of employees now want remote/hybrid work at their company.
With so many benefits of remote work and its growing popularity across industries, you might be tempted to share the same values. Why not? Hiring international employees who will deliver the desired results at a reasonable price is every employer’s dream.
But before you hire your first remote worker, let’s first discuss what to consider before setting up a remote team and how best to implement it.
What to Consider When Hiring Remote Employees in Other Countries
Hiring remote employees is a decision that impacts the culture and operations of your company.To embrace a remote culture, you need to educate your employees on remote working habits and best practices. When it comes to operations, you need to bring your payroll, human resources, and legal teams together to manage your global workforce and drive better results.
Before setting up a remote team, consider the following aspects of remote work:
International Payroll Management
Payroll is one of the biggest challenges companies face when managing remote teams. Since each country has its own tax and compensation laws, it is necessary to determine the exact amount to be paid to the employee and social security agencies. Otherwise, the legal consequences can damage your image.
Another aspect of salary publication is foreign currency. The value of world currencies fluctuates daily and you may end up paying more or less than the right amount. Also, delays in initiating payments will reduce the employee’s trust in you. Therefore, a payroll system is required to release the right amount at the right time.
Calculation of Salaries and Benefits
Each country has variable compensation for each position.You need to thoroughly research wage perceptions in your country to understand how much you should offer your remote worker. A typical salary package also includes mandatory benefits such as paid vacation, social security contributions, employer-sponsored insurance, retirement benefits, etc. These benefits are mandated by local labor laws and must be provided to the employee without compromise.
Paying Taxes Right
In a traditional local facility, it’s easy to keep track of employee payroll and taxes due.However, to manage a team remotely, you need to know all the required tax regulations, duties and payment deadlines.
Luckily, there are EOR partners and tax experts who can help you pay your remote workers on time
Misclassifying an employee as a contractor will lead to serious legal problems, including hefty fines and disqualifications from the job. An important element of compliance with labor law is the transparency of data on the number of employees. Therefore, it is necessary to disclose the roles and responsibilities of a new employee when hiring in a new country.
Intellectual Property Rights
on-site employees work on company systems and help prevent internal data leakage. However, remote workers often work with personal systems, increasing the risk of losing intellectual property.A strategy should be developed in advance to prevent intellectual property loss by developing appropriate policies and ensuring secure and encrypted systems.
All these points seem too difficult to master, especially if you are a medium or small business. The solution lies in your approach to hiring remote workers – through a local entity or employer or record (EOR).
EOR vs Unity – which is better?
Establishing a local office in any country requires ownership, company registration, hiring board members, building human resources and accounting teams, and many other activities before finally hiring an employee.
On the other hand, onboarding with an EOR partner is very easy. Just create an account, provision a candidate in minutes and manage them through the EOR platform. See the following table for a clearer picture:
2 – 6 months depending on country
Infrastructure, registration with authorities, bank account, consulting
Amount of initial fixed income per employee, much less than local government hypothesis
Liability for Compliance
Multiple taxes due such as income, property tax, VAT, profits, etc.
Ideal for large teams in terms of time and cost
Small and large teams
The benefits of EOR clearly outweigh those of a local entity, especially when expanding into a new region. You don’t have to worry about labor laws, infrastructure, wage systems and payroll taxes.Hire with an EOR partner with confidence and easily manage all aspects of your team remotely