A Guide to Hiring International Employees

As more people work from home, it's easier than ever for businesses to hire talent from around the world. This is great for employers, because it means now is the perfect time to create a diverse team.

Why not go for it? Having a global team is a major advantage. Remote and international companies are super productive, welcoming, and environmentally-friendly. Having a diverse team adds so much value with fresh perspectives, creativity, and knowledge. Hiring internationally means tapping into a bigger pool of talent, and your current employees can move without quitting their jobs.

That said, hiring foreign workers can be tricky if you don't know how to pay them, taxes, perks, and all the various rules in each country from which you hire.

Let’s take a look at some of the ways you can hire international employees legally and easily — and the powerful advantages of doing so.

The Benefits of Hiring Internationally

Brand new talent pool sound good? When you hire people from other countries, you can find talented folks in places you may have never considered. It's a great way to bring fresh energy to your team and get people with unique skills.

1. Enter New Markets

If you want to grow your business worldwide, hiring people from different countries can make your brand more credible. This is true whether you're just starting out or are already a well-known company. Employees who know a local market can help you avoid problems when you open an office there. They can also help you with:

• New languages

• Local expertise in customs and etiquette

• Access to new professional networks

• Professional and social support for any new staff who may enter the region

When you hire foreign employees, it helps your company enter new markets more easily and build trust along the way.

2. Worldwide Coverage

One advantage of hiring people from different countries is being able to work at different times of the day. When your team is spread out across the world, you can get work done 24 hours a day, 7 days a week.

Having global time zone coverage helps mental health too. When employees can cover every shift without anyone needing to work overtime, everyone gets to be home for dinner every night. That’s a big deal.

When you let your team work flexible hours, you might be surprised at how much more they can get done. And that means your company can do more too.

3. Increased Diversity, Equity, and Inclusion (DEI)

It's very important for a business to have people with different skills, ideas, and backgrounds. Studies show that diversity has many benefits in the workplace. When you hire people from different countries, your whole team gets a boost from DEI. People perform better, are more creative, and experience lower turnover on diverse teams.

Don't be afraid to hire someone from another country for the first time. If you're not ready to hire a full-time employee, you can start by hiring contractors from other countries. As long as you follow the rules, it's good for your business and team. Hiring internationally can give you a big advantage over your competitors and help you build a more diverse and inclusive team.

How to (Legally) Hire Someone from Another Country

Hiring employees from other countries can be tricky. You have to think about things like getting work permits or visas, helping them move, and following the employment rules of different regions. 

When hiring workers from other countries, you need to think about your current needs and future business plans. Luckily, you don't have to do it all on your own. There are several different ways to make it work. 

1. Open a Local Entity or Foreign Subsidiary 

One possibility is to establish a legal structure or foreign branch for your company in the desired country to hire employees. This entails creating a legitimate business, known as a local entity, that adheres to the governing and commercial regulations of the foreign nation. Having a local presence shows dedication to integrating into the local business community, and having your own physical space can help establish trust.

Hiring local individuals gives your company an advantage in establishing a new office and can increase brand recognition. Additionally, offering current employees the opportunity to relocate and gain international experience can be beneficial. However, this approach also requires a significant investment of resources, including capital, time, and effort from your staff to successfully enter a new market as a local entity.

2. Co-employ with a Professional Employer Organization (PEO)

Utilizing the services of a professional employer organization (PEO) can greatly benefit you if you have an established legal entity in a specific country and wish to employ remote workers. This partnership involves sharing employer duties with the PEO, who will handle HR tasks, payroll, benefits, and compliance, while you retain control over your employees' day-to-day responsibilities. The advantages of this arrangement include simplified HR management, access to comprehensive employee benefits, and local compliance expertise. However, it may be expensive for larger companies and may result in a loss of control over HR and management decision-making.

3. Use an Employer of Record (EOR)

If you do not have a business presence in a country where you want to hire employees and have no plans to establish one, you may want to consider using an employer of record (EOR). This is a global employment service provider that can legally hire workers on your behalf in other countries.

Working with an EOR is the most efficient and cost-effective way to hire employees in countries where you do not have an existing presence. By partnering with an EOR, you can quickly and easily hire and onboard employees in other countries. This is the ideal option for beginning to hire international workers. With an EOR, you do not need to hire your own HR, legal, and compliance experts, as they will handle those responsibilities for you. Moreover, since the EOR is the employer of record, your company is protected from many of the compliance risks associated with hiring abroad.

If you decide to work with an EOR, you can hire foreign employees through them and later transfer them to your own business entity once it is established. Pros of using an EOR include streamlined onboarding of international employees, faster market entry and project execution, reduced operational costs and administrative complexities, and adherence to local employment laws. However, it is important to choose a reputable EOR, such as Remote, with a strong track record and extensive experience. 

4. Hire international contractors

An alternative approach would be to engage international freelancers for particular projects or time periods. This can be a beneficial strategy for startups seeking to expand their operations globally, particularly if they require certain skills that are not readily available locally.

The advantage here is that it is entirely feasible to hire and compensate contractors from other countries quickly, easily, and without any hidden fees. By utilizing an international contractor management platform, you can onboard, pay, and oversee contractors from anywhere in the world. This method offers benefits such as increased flexibility, access to specialized expertise, and cost-effectiveness as you only pay for the services rendered. However, there are also some drawbacks, including limited commitment and loyalty from contractors, potential legal and tax complications, and less direct control over workflow and scheduling. 

Any company can hire globally, no matter the size

The idea of transitioning to an international business model may bring excitement to your board, but it may also cause you to feel a bit anxious. Hiring internationally can seem overwhelming, especially if you have always stuck to local hires in the past.

However, with the shift toward remote work, traditional barriers to hiring internationally have disappeared. This presents an opportunity to gain a competitive edge by creating an exceptional global team. Whether you have experience in international hiring or are new to it, you don't have to handle it alone.

With the help of Remote, you can tap into a diverse pool of talent without any stress, unexpected costs, or varying fees. Imagine the possibilities of having access to unlimited talent with just an offer letter! The best part? You don't have to wait. Sign up now to easily onboard employees and contractors from around the world within minutes.