How to Hire and Pay International Remote Employees
Whether you're looking to tap into new talent pools, reduce your overhead costs, or expand your operations globally, hiring and paying international remote employees can be a game changer for your organization.
However, if you venture down this path, you agree to be a good human and be considerate of the best practices for doing so.
Build intentionally
Some of my greatest friends to this day are people I met around the world using freelance marketplaces (hi, friends!). Respect their time and energy by treating them fairly and setting them up for success.
Deciding to hire someone outside the US to join your team should be a deliberate decision. If you decide to give it a try, you need to understand that globalization is a real and sensitive issue.
Since the introduction of the Internet, it’s been easier than ever to get connected to people around the world. “Outsourcing” for services suddenly became possible and started to ramp up in the 90s, primed for years by call centers. It is now extremely standard to pick up the phone to call a customer service line, and be placed with a rep in potentially any country in the world (especially if you’re calling after normal business hours).
It’s always been a truly fucked up practice to take advantage of global inequities to exploit cheap labor. That’s not the intention of building an international remote team. This is why you need to understand the reasons why you want to do this, beyond saving on operating costs.
Yes, it is okay to pay international employees less than their US-based counterparts. Just like geographical ranges in pay within the US from state to state, countries have their own currency valuation against the dollar, and market rate for roles.
It becomes exploitation when you expect to pay less than the market rate in that country and also expect tireless, flawless execution. If you are trying to build a team of cheap labor, rather than a collaborative global team of talent, you are doing it wrong.
So why do you want to do it?
Some of the key advantages beyond financial include:
Access to a global talent pool: You can find some of the most skilled experts in corners of the world.
Lower overhead costs: Without the need for a physical office or other infrastructure, hiring remote staff can be more affordable.
Diversity: Bring in fresh and different perspectives, backgrounds, skills, and experience. This is so key if you’re trying to expand your business or understand your audience better. By truly surveying and listening to your team, you can learn so much about what your users want and innovative ways to bring it to them.
Global expansion: Ready to go international? You’re already working with the right people.
Translation: Offering content in different languages can seriously expand your audience and access to those who are not English speakers.
Coverage: One major reason to hire team members in different time zones is to expand the hours where someone is available to fix bugs or address customer needs.
Camaraderie: It’s also just WAY more fun to work with folks all over the place.
Principles of hiring internationally
Treat people fairly. Pay them fairly and on time for their work. Listen to them and treat them with respect.
Decide how integrated you need them to be. If they are a niche service or skilled contractor and expect to be treated that way. For example, you cannot prevent them from having other clients, or simply waiting for work to be delegated. Conversely, if you want them to have ownership and investment in their work, you need to treat them like a team member – that means paying for them to attend meetings like everyone else.
Meet regularly regardless. See them face to face and give them good feedback and training over zoom that you can record. The more you simply just deliver tasks over messenger, the less connected they’ll feel.
Pay for every minute of their time. Trainings = paid. Meetings = paid. Feedback = paid. Pay them.
Choosing how to pay
There are basically three ways to hire someone internationally:
Sign up for a freelance marketplace platform like Upwork, and you’ll be able to do the entire end-to-end transaction from recruiting to messaging right in the platform. This method helps a lot if you aren’t planning on spending too much; the tax portion is addressed for you, and the talent pool is large.
Use an international payment service such as PayPal or a money transfer. If you go this route, you’ll need to source your own talent and hold yourself accountable for the proper tax filings and payments.
Use an international payroll service such as Paychex. In this situation, paying for their services helps you cut the checks and deal with the tax part, but you’ll need to find your talent.
Freelance Marketplace Platforms
Going the end-to-end route? Great.
Upwork has over 12 million freelancers on its platform, making it one of the largest marketplaces for hiring remote workers. It offers a wide range of collaboration tools to help you manage your team. I’ve used Upwork exclusively for over 10 years, since it was called “elance”.
Freelancer.com is another popular platform for hiring remote workers. It’s talent pool is much smaller than Upwork’s, and sometimes their garbage agencies post Freelancer.com jobs on Upwork, which is lame. I got a pitch from them once but after a week of no candidates, we went back to Upwork.
Fiverr is a platform that specializes in short-term projects and tasks. While it may not be the best choice for hiring ongoing help like the previous two, it can be a useful resource for finding specialized skills or completing one-off projects like a short video or logo design. I have used it for voiceover work, animated videos, illustration, and video editing.
Tips for hiring and recruiting
Write a clear job description: Be as concise and clear as possible when describing the skills, experience, and responsibilities required for the position. Provide no more than 3 main responsibilities in a 1 sentence bullet. Simple, short ads (2 paragraphs max) get the most applicants.
EG: Editor: COMPANY NAME is hiring a part-time Editor. The main responsibilities for this role are to be available from 10am to 2pm EST from Monday through Friday. During this time, you will edit new articles, edit old articles, and train writers. You’ll report to the ROLE TITLE and be measured on X and Y.
Screen candidates carefully: Take the time to review each candidate's profile and verify that their work history is theirs and they are not part of an agency.
Always do a video interview: Do they show up on time? Do they have reliable internet or other tech issues? Is their English as fluent as their profile says? Getting face-to-face is the easiest way to confirm eagerness, availability, and verification.
Set clear expectations: Clearly define the scope of the project or role, as well as your expectations for communication, meeting attendance, deadlines, and deliverables.
Ways to pay
If you aren’t using a marketplace, and already have a freelancer, and you’ve created an invoice template for them, you can now agree on the way to pay.
PayPal: PayPal is a popular option for sending and receiving payments internationally. It's fast, secure, and widely accepted. Expect fees and a currency conversion rate.
Money transfers: Services like TransferWise, Xoom, and Western Union offer fast and reliable money transfer services for international payments. Expect fees and a currency conversion rate.
Bank transfers: You can also send payments directly to an employee's bank account using a wire transfer. Expect fees and a currency conversion rate.
Does Zelle or Venmo work? Unfortunately, no. Those services are for domestic transfers only.
Oftentimes, your freelancer will have a preferred method of payment, and it’s a good idea to ask for this before assuming.
Software & services for international payroll
If you're looking for a more comprehensive solution for managing your international remote employees' payroll and benefits, there are several SaaS options to consider. Some of the most popular include:
Gusto: Gusto offers a full suite of HR and payroll management tools, including benefits administration, compliance management, and time tracking. It also offers support for international payroll.
QuickBooks: QuickBooks is a popular accounting software that offers payroll and HR management features. It's widely used by small and medium-sized businesses and offers support for international payroll.
Paychex: Paychex offers a range of HR and payroll solutions, including benefits administration, time and attendance tracking, and compliance management. It also offers support for international payroll.
FAQs
Can I hire international remote employees for full-time positions?
Yes, you can hire international remote employees for full-time positions. However, it's important to understand the legal and regulatory requirements for doing so in each country. You’ll want to consider the services solution for this route.
Are there any legal or regulatory considerations when hiring international remote employees?
Yes! There are many legal and regulatory considerations when hiring international remote employees. These may include tax implications, immigration requirements, and labor laws in the employee's country of residence. Be sure you contact an expert and tax pro before embarking.
Bottom Line
Choose what works for you now, and what you expect you might need 6 months from now. Plan for the future but don’t forego the needs of the present to get there.
Hiring and paying international remote employees can be a highly effective strategy for businesses looking to tap into global talent pools and reduce overhead costs. By understanding the options available and following best practices, you can successfully navigate the challenges of managing a remote workforce.
Whether you choose a marketplace platform like Upwork or Freelancer.com, use PayPal or money transfers to pay your employees, or opt for a comprehensive SaaS solution like Gusto or QuickBooks, there are many resources available to help you succeed in the global economy. So take the time to explore your options and find the approach that's right for your business.
