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Welcome to the Playroll blog
Global HR
Discover the latest tips and strategies for hiring remote workers and global HR management.
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Welcome to the Playroll blog
Discover the latest tips and strategies for hiring remote workers and global HR management.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Read Time
January 6, 2025
Recruiting and retaining talent in countries with free healthcare means lower healthcare-related costs for business, fewer sick days, and little-to-no absence from work. That can help companies build a motivated, satisfied, and more stable workforce.
You gain multiple benefits when you hire remote workers. It goes hand-in-hand with hiring international employees and all the advantages of a global workforce.
Despite a trend of many companies enforcing a return to office, remote work has become an ingrained part of the working world post-COVID-19. According to Forbes, 12.7% of full-time employees in the U.S. work from home, while 28% follow a hybrid model. What’s more, a whopping 98% of workers want to work remotely at least some of the time – it will remain an integral part of the future of work.
When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:
Hiring from various countries enhances team diversity in culture, ethnicity, and gender, which improves talent acquisition, customer experience, and employee satisfaction. In turn, this drives business profitability, according to a McKinsey report.
Before the rise of remote work, companies were largely restricted to talent based near their offices, or had to relocate candidates that were willing to move - often at great expense. This naturally restricts the number of candidates you have access to.
Remote hiring allows access to top talent globally, vastly expanding your candidate pool. This can be immensely helpful when sourcing hard-to-find skills or if your country is too small to find a good number of candidates for your open roles.
By looking at countries with a lower cost of living, you can access quality, affordable talent across the globe. This can be especially useful for highly competitive, expensive roles as is common in certain industries, for example software development.
Employees have a strong preference for remote work, with 66% preferring fully remote work and 32% preferring hybrid. The majority of employees also report improved work-life balance when working remotely. Offering these opportunities to your team not only increases employee satisfaction as well as your employer reputation, but can also help retain employees.
Using a global workforce platform like Playroll allows your employees to work remotely, from any location, with limited overhead costs and complete compliance.
TecEx provides importer of record and compliance services for companies dealing with IT equipment. They wanted access to a global talent pool — but hiring remotely in new regions was not an option given legislative roadblocks, high costs and time-consuming efforts required to incorporate new entities.
Playroll helped them to scale their company without diminishing the employee experience for their remote teammates.
“The Playroll platform is intuitive and well designed, allowing our HR and Finance teams the ability to seamlessly hire new employees in international jurisdictions where we are not established. Playroll’s customer success team is highly responsive and knowledgeable. This level of service and support has been critical to realizing our global expansion goals.”
Learn more about TecEx’s global growth, made possible by Playroll
Hiring remote workers is more complex than local hiring due to additional legal and compliance requirements. If you want to reap the benefits of a global talent pool, there are several challenges you should be aware of before you get started:
There are always direct and indirect employment costs to consider with any new hire – but international hiring can come coupled with costs you might not be aware of. To legally hire new employees in any new market, you need a legal entity in the region which can come with substantial costs.
Many businesses opt to use Employer Of Record services for this reason, especially if they don’t have a large number of employees in a country. An EOR acts as a legal employer in a region on your behalf, so that you don’t have to take on the effort and cost of establishing entities yourself every time you want to explore a new market.
When you hire in a new market, you need to comply with the employment laws and probation periods of the country the employee is based in. This means setting up compliant contracts that adhere to local labor laws.
You also need to classify your workers correctly to avoid hefty fines – for example, hiring a contractor but treating them like a full-time employee can open you up to misclassification risk.
Permanent establishment (PE) refers to businesses with a continuous presence in a country, requiring them to pay local taxes. There are a variety of factors that can lead to PE classification which differs by country, such as activity by employees that generate revenue, or having an address or bank account in a country.
Not paying these taxes can make you liable to fines and penalties in that country, and cause reputation damage to your business.
Paying any new employee means having them on your payroll system, paying all required employer taxes and mandatory local contributions – and making sure they’re paid on time. You also need to ensure fair compensation while accounting for currency fluctuations with different currencies.
There’s no one-size-fits-all when it comes to benefits. Each country has its own required mandatory benefits or contributions.
To attract great talent, you also want to provide attractive supplementary benefits – however, this also differs widely between regions.
For example, employees in Norway might not find supplementary health insurance plans very attractive, since they enjoy free healthcare. In another country like South Africa, a great health plan can make all the difference to your employees.
With many international employees, you will be sharing your data across borders. You’ll need to have good technological infrastructure in place to keep your data safe, as well as invest in training for your team to make sure they handle all sensitive data securely.
If you hire employees through an Employer Of Record, double-check that they offer services to ensure your IP belongs to the company.
So, those are significant challenges – how do you overcome them to start enjoying the benefits of an international workforce and explore global expansion as an option? There are several solutions that you can consider depending on the needs of your business:
One way to overcome the obstacles of hiring full time employees is to make use of contractors or freelance workers, instead. Hiring contractors can come with benefits such as:
However, beware of using contractors in the long-term, and for the same amount of work you would give to full time employees. Hiring contractors but treating them like full-time employees comes with misclassification risk, which comes with fines, penalties and reputational harm to your business.
If you make use of contractors, make sure your contract with the contractor is correctly set up to comply with local labor laws, and that your IP and invention rights are protected. Using a contractor management solution through a service like Playroll can help in the set up of compliant contracts, protect your business against misclassification risk, or convert contractors to full time employees.
Use this table as a guide to decide whether you require an employee or contractor for your needs:
Having an established legal entity in a new market can help you overcome many of the challenges mentioned. You can run domestic payroll for local employees, and it will help you avoid the risks of handling a permanent establishment improperly. Since it is considered a separate legal entity to the parent company, it can safeguard you against compliance risk.
However, establishing a legal entity can take a long time and comes with substantial costs – an estimated $20k+ in set up costs and $50K+ in operating costs per location.
To comply with local laws and taxes, you’d also need to hire your own HR, legal and finance experts in each new region.
If you have definite plans to hire many employees in a new market, this approach could make sense. However, it can be a financial bottleneck if you want to explore new markets, quickly expand, or only plan to hire a handful of employees in a new region. Fortunately, there are affordable alternatives that still allow you to be legally compliant when operating in a new region.
Another way to overcome the challenges associated with international hiring is to use an Employer Of Record, an increasingly popular solution for businesses that are expanding globally.
An employer of record is a third-party service that allows companies to employ international talent, without the barriers that are normally associated with global hiring.
These services allow you to expand into new markets at a much faster pace than establishing your own entities. Traditionally, only large companies with substantial resources could afford to employ the local HR, financial and tax experts needed to set up and operate local entities.
An Employer of Record like Playroll removes these barriers and allows companies of all sizes to access global talent. An EOR provider with comprehensive services can:
The usual pricing plan involves paying a monthly or annual fee per employee, instead of the steep set up and operating costs of establishing a legal entity.
Some of the most common reasons it might be time to use an Employer Of Record include:
There are many Employer Of Record solutions on the market. When choosing between services, ask questions such as:
Are they flexible with EOR to Owned Entity transfers?
Many EOR providers are inflexible when it comes to transferring employees between their own entities and client-owned entities, requiring a ‘resign and rehire’ approach – vastly complicating your relationships with employees. Playroll supports the flexible transfer of employment arrangements to client entities.
What is included in the base pricing?
Many EOR providers charge extra for everything beyond their core service offerings, such as dedicated customer support, or to provide localized benefits packages. Often, there are also hidden fees at stake that you’ll discover only when it’s time to pay the bill. Playroll has built-in compliance, dedicated support and benefits management included as part of its fixed pricing.
What kind of support can I expect?
Attracting and retaining talent for your team is an extra challenge when you’re operating in new markets. Your chosen global HR partner should act as an extension of your team. If you have to wait days to get an answer, your promising hire might have moved on already.
Playroll’s legal, finance, HR and support experts are available to advise on everything from payroll and local benefits, to setting up compliant contracts. Employers and employees alike have dedicated support managers available at no extra cost, to give you personalized service.
Once you’ve settled on your method of how you’ll hire remote workers, there are important preparations and research you should do as a business before getting stuck into the hiring process.
Besides the business of paying your remote workers compliantly, you should decide on your approach when it comes to global compensation – for example, do you pay location-independent salaries, or pay based on location and local cost of living?
You might consider pegging salaries to the currency your business uses as a standard (for example, dollars). In this example, you would use the dollar amount as the base for an employee's salary, then pay employees in their local currency based on the current exchange rate.
Every approach comes with its own pros and cons. Read our full guide on the subject, and make sure your business is aligned on this decision before you start hiring internationally.
The country you decide to hire in will affect what a competitive salary band for a role looks like. Factors such as the cost of living, required employer contributions and customary local benefits can have a significant impact on your hiring budget.
Conducting research on this will be important, regardless of your chosen global compensation strategy.
Tools to help you determine employee cost:
To source remote workers in new markets, make use of the following strategies:
Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.
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Finally, it’s time to dive into the actual hiring process. While much of this will follow your same process for hiring local employees, there are some special considerations.
Besides doing research on cost of living and competitive salaries per region, it’s important to know what the local employment laws and regulations are that you’ll need to follow – as well as cultural norms and practices that might affect how you communicate with candidates.
Some countries also have provisions in place that can make it easier to do international business, financial incentives for remote workers, or digital nomad visas that support remote work. For example, remote workers in France receive a monthly working indemnity of €100, and the government extends various incentives to those planning to establish businesses in the country – while many countries such as Spain, Portugal and Japan have introduced digital nomad visas.
Playroll’s country guides, covering 180+ regions, can be a useful starting point to familiarize yourself with hiring in a new market.
Be clear in your job description about the nature of the role, such as:
This can help prevent any confusion about the role and your business. If you’re using an Employer Of Record, it can also be useful to explain the nature of this arrangement to candidates, so they don’t get any surprises on who will ultimately help them manage their leave, benefits and payslips.
Since the COVID-19 pandemic, conducting interviews via video calls have become a standard part of the hiring process. That said, you should double check the basics when interviewing international candidates:
Make sure your employment contract is compliant according to the requirements of the country. It should adhere to local labor laws that govern aspects such as:
If using an Employer Of Record, they will handle setting up compliant contracts and offer expertise on every aspect of the offer you’re making to candidates. Alternatively, make sure you consult local legal, tax and HR specialists when setting up your contracts.
Managing a remote, international employee can differ from working with a team member that’s locally based. Here’s our top tips on what to watch out for:
On a practical level, ensure you have great employment management software up and running that can make it easier for employers to handle the administrative tasks of a distributed workforce and for employees to access key documents or request leave. For example, Employer Of Record services offer portals for employees and employers alike and can integrate with other popular HR software.
Software tools that can make remote team management easier include, for example:
Clear communication is crucial in a fully remote environment, where frequent in-person check-ins are not possible.
Make sure your whole team knows what is expected of them and when, and be deliberate in setting up regular check-ins to flag any problems and address questions in a timely manner.
Create structure and thorough documentation
Without structure in place, miscommunication can easily occur in a remote team, ultimately wasting time and causing frustration among team members.
Your project management should be extra organized with a remote team, with a common understanding of what tools you use to check in on your work and track progress.
Similarly, house your documentation in one place so it’s easy for new joiners to orientate themselves in your business and make an impact sooner.
It can be easy to feel disconnected from team members when working fully remote, and there is an extra risk when you have team members of different nationalities working together who might also be dealing with cultural and language barriers to overcome. To counter this:
While many employees enjoy greater work-life balance with remote work, it can also blur the boundaries between work and personal life – especially if you don’t have strict working hours in place. Set and enforce work hours to prevent burnout, improving long-term retention of valuable team members.
Related to respecting strict working hours, be flexible when it comes to team mates in different time zones – a policy of flexible working hours can make a big difference here. Schedule your team check-ins during times that respect the working days of your entire team.
While frequent check-ins are good in a remote setting, avoid crossing the line into micromanagement. Make it clear that you trust your team members to manage their tasks.
A structured onboarding program is especially important in a remote setting. Work with your HR team to develop a comprehensive program that gives new hires all necessary insight into the business and confidence with the tools they need on the job.
A popular practice is to pair new hires with mentors to provide guidance and support during their initial period.
As a business, your data is only safe if every employee helps safeguard it. When working with international employees:
When working with a global team, inclusive practices are especially important to make everyone on your team feel respected – it can also help your team if they’re going to work with clients based in different countries.
Offer training on cultural sensitivity and awareness, and survey your team regularly on its effectiveness and any improvements you could make.
Your country's borders should not limit where you can source and hire talent – extraordinary people are everywhere.
As skills shortages continue, and competition for world-class talent increases, hiring remote workers will become the new frontier for more companies across the globe.
Hiring a remote team compliantly can quickly get complex and come with significant challenges – but it doesn’t have to be. Playroll is on a mission to make borderless work a reality for thousands of businesses, of all sizes. By using a EOR provider such as Playroll, you can remove many of the risks and challenges of hiring remote workers:
Did you know that more than 38 million people quit their jobs in the United States in 2021? Although the Great Resignation seems to have passed, some challenges remain. In March 2024, 3.3 million quit their jobs. Understanding the dynamics behind employees' departures is determining for HR professionals who want to foster a stable workforce in the long term.
Below, we explore the top 10 reasons for leaving a job and how HR professionals can effectively respond.
Employees often cite a lack of growth opportunities as one of the best reasons for leaving a job. Clear advancement paths and leadership training can counteract these feelings of stagnation, according to the Harvard Business Review.
Offering mentorship programs and career development discussions can also provide necessary support for employees to envision their growth within the organization.
Flexible work arrangements, such as remote work options and flexible schedules, lead to greater employee satisfaction and loyalty. According to Owl Labs, companies offering flexibility have observed significantly lower turnover rates in 2023.
After the Covid-19 pandemic, employees value their personal time and family commitments more than ever. Employers who recognize this and offer solutions like work from home options and flexible hours can retain their staff more effectively. According to the OECD, extended work hours can negatively impact personal health and elevate stress levels.
Countries like Italy, Denmark, and Norway excel in work-life balance. Notably, Denmark stands out as the second most productive country in Europe, underscoring the effectiveness of balanced work hours. Promoting a company culture that respects time off and discourages after-hours work further enhances work-life balance.
Are your company’s rewards misaligned with market standards? Competitive compensation packages are crucial in retaining high performers and reducing turnover. Offering bonuses, raises, and comprehensive benefits can make employees feel valued and reduce their desire to leave for a better-paying position.
This can be particularly important during company restructuring when changes in compensation can prompt employees to consider if it's time to leave a job. Not receiving competitive pay is often cited as the best reason for leaving a job.
According to the Cleveland Clinic, a toxic workplace environment is characterized by conditions that are harmful to an individual's mental and physical health. These include chronic stress, negative interactions, lack of support, poor communication, and discrimination. Creating a supportive and inclusive atmosphere can help mitigate this issue.
Deloitte, quoted by Forbes, has noted that companies focusing on a positive company culture see retention rates improve between 30 and 50%. A healthy work environment promotes collaboration, respect, and mutual support among employees. Encouraging open communication and establishing clear policies against harassment can further support a healthy work environment.
Lack of recognition is a significant demotivator. Ignoring efforts, not giving feedback and not celebrating milestones are some examples of this issue. Implementing comprehensive recognition programs that reward long-term achievements and day-to-day contributions helps maintain high levels of satisfaction.
The Incentive Research Foundation has found that recognition and appreciation play a pivotal role in motivating the workforce. Simple gestures like thank-you notes, employee of the month programs, and public acknowledgments make employees feel valued and appreciated.
Poor management can drive employees away. A study by Gallup highlights that leadership and management “directly influence workplace engagement.” In fact, 70% of team engagement is attributable to the manager.
Investing in training hiring managers to be better leaders can have a profound impact on employee retention. Effective leadership fosters trust and respect, which are critical components of a satisfactory work environment and a good company culture. Leaders who communicate well, provide clear direction, and support their team members can inspire loyalty and commitment.
Employees often think that it is time to leave when their skills become obsolete. Providing continuous learning enables employees to stay current and feel valued for their evolving expertise.
According to a report published by the US Chamber, companies that prioritize this area see up to 34% higher retention rates compared to those that do not. Offering workshops, online courses, and mentorship programs helps employees grow professionally and feel more connected to the company. Providing resources for skill enhancement can further motivate employees to stay. For full-time job seekers, ongoing professional development is often seen as one of the top 10 reasons for leaving a job.
Job dissatisfaction stems from misalignment with job roles or feeling undervalued. Regularly assessing employee satisfaction and making adjustments based on feedback can address underlying issues before they lead to turnover.
Employees also leave their jobs due to being poached by competitors or engaging in job hopping for better opportunities. A study by the Pew Research Center found that 63% of employees who left their jobs in 2021 did so due to a lack of advancement opportunities.
To retain top talent, organizations must not only provide opportunities for promotion but also ensure that their career advancement offerings are competitive within their industry. Regularly benchmarking against industry standards can help retain employees by making them feel that their career prospects are better within the organization than elsewhere.
Employees increasingly prioritize working for organizations whose values align with their own. Aligning your people with your organization’s values is key for an engaged and inspired workforce. Involving employees in community and social responsibility initiatives that align with the company’s mission can also strengthen this alignment.
One example can be Patagonia’s commitment to the environment. In 2022, the company began doing business under a new ownership model in which its founders transferred ownership to a trust and a nonprofit to oversee and hold all the financial value of the company. Money ceased to be reinvested back in the business and is instead invested in protecting the planet, the most important shareholder.
By addressing the professional reasons employees leave a job and implementing focused retention strategies, HR professionals can create a more stable and satisfied workforce over the long term.
At Playroll, we enable employers to meet local requirements while providing competitive benefits, ensuring talent feels valued and motivated.
Implementing flexible work policies and ensuring competitive compensation are among the most effective strategies for reducing turnover.
Regular employee feedback sessions and anonymous surveys can help HR identify signs of toxicity, such as high absenteeism and low engagement.
Remote working is increasingly becoming ingrained in the UK corporate culture. According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.
Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.
That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.
Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.
This article covers the seven types of remote administration tools for businesses in 2024 and beyond.
Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.
For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.
Reliable communication and collaboration tools to check include:
With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.
From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.
The best remote management tools in this category include:
The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.
Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.
Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:
Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.
Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.
That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.
The best remote management tools in this category include:
Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.
That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers.
Top remote desktop and access tools include:
If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.
They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.
That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.
Best remote management tools for employee monitoring include:
With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.
These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:
As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.
Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams. Request a demo to see how you can optimize your remote management with Playroll.
If you aim for global growth, hiring internationally isn't just an option — it's a game-changer. Embrace the diversity that sparks innovation and fuels creativity. The trend of hiring overseas employees, as highlighted in the World Economic Forum's analysis, reflects a strategic response to global labor market dynamics and technological advancements.
Some of the top benefits include:
Ready to explore new markets to reap the benefits of a global workforce? When looking at hiring in a new country, assessing it according to these criteria can help you make the best choice for your business:
Based on criteria such as high education levels, reliable infrastructure, probationary periods, competitive cost evaluations, political stability, language proficiency, and robust legal protections, here’s our choice of top 10 countries to hire international employees. In no specific order:
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Boasting a high level of education and robust infrastructure, Germany offers a competitive cost of living and attractive employee benefits. The country is increasingly embracing remote work, heightening its appeal to international employers.
Germany is renowned for its exceptional quality of life, which includes political stability and safety. Moreover, most professionals in Germany are proficient in English, making it an ideal environment for global business operations.
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The United States features a world-class education system and advanced infrastructure, providing competitive employee benefits and strong legal protections. It accommodates various international business needs with convenient time zones and a diverse range of lifestyle options. English proficiency is also widespread in the U.S.
The Portuguese have high levels of education, and there is an increasing emphasis on international programs and partnerships. The cost of living is generally lower compared to other European countries, while still having attractive benefits on offer to employees.
This makes it an attractive option for cost-effective international hiring. The country offers a high-quality lifestyle with pleasant climates, cultural richness, and affordable healthcare. Portugal is known for its political stability and safety.
Singapore is known for its world-renowned education system and advanced infrastructure, particularly in technology and business sectors. Positioned in GMT+8, it facilitates global business interactions.
Initiatives like digital nomad visas and Tech Pass welcome skilled professionals and entrepreneurs, promoting a strong remote work culture.
Canada has a robust education system and advanced infrastructure tailored to modern business needs. Its convenient time zones facilitate global interactions, making it a favorable environment for international employers. Canada's openness to skilled professionals is evident through its various immigration programs, which support a strong remote work culture with progressive policies.
Australia also has an excellent education system and welcoming visa programs that encourage a diverse workforce. The country promotes remote work through flexible arrangements and progressive policies, ensuring a high quality of life.
Australia is also noteworthy for its excellent healthcare, safety, and cultural amenities, supported by a stable political environment and strong legal frameworks.
Japan has advanced technology infrastructure and digital nomad visas on offer, promoting a strong work culture with flexible arrangements and innovative policies.
The country offers a high quality of life, featuring excellent healthcare, robust safety standards, and rich cultural experiences. Japan's stable political environment and robust legal protections create a secure and supportive setting for both employers and employees.
Well-known for its breathtaking natural landscapes, South Africa also has a relatively low cost of living compared to many Western countries – along with a multi-cultural workforce that is proficient using English as a primary business language. It also recently rolled out digital nomad visas to boot.
Positioned in the GMT+2 time zone, South Africa facilitates convenient business interactions across Europe and Africa, making it an attractive location for international employers.
The Netherlands is celebrated for its education system and advanced infrastructure. With fast internet and a flourishing technology sector, the Netherlands is an excellent location for businesses that need highly skilled employees.
Its strategic location within the GMT+1 time zone heightens its appeal as a hub for European and global commerce. The country is politically stable and offers a secure environment for residents and businesses alike, supported by a strong legal framework that ensures transparency and protection for both employers and employees.
South Korea is distinguished by its prestigious education system and cutting-edge infrastructure supporting technology and commerce. The country promotes a thriving culture of remote work with progressive policies and a digitally adept workforce.
South Korea boasts a high standard of living, including exceptional healthcare, stringent safety standards, and a vibrant cultural scene, making it an appealing destination for international hiring.
Several countries are actively implementing remote-friendly policies to facilitate the hiring of international employees. Notable examples include:
Estonia has introduced a digital nomad visa, which allows international remote workers to live and legally work in the country for up to a year. This initiative supports Estonia's reputation as one of the most digitally advanced countries in Europe.
Mexico offers a Temporary Resident Visa, suitable for remote workers who can prove they have the financial means to sustain themselves. The country’s affordable cost of living and vibrant culture make it an attractive destination for digital nomads.
India is improving its digital infrastructure and regulatory frameworks to attract more remote workers. The country’s vast talent pool in IT and customer service makes it a viable option for companies looking to outsource these functions.
Brazil has introduced visas that are more favorable for remote workers and improved internet connectivity across the country. These moves are part of broader efforts to boost economic activity by attracting international talent.
Vietnam is becoming increasingly popular among remote workers due to its low cost of living and high-speed internet. The government is exploring more formal policies to support remote workers, including extended visas and tax incentives.
Costa Rica offers a specific visa for remote workers and digital nomads, allowing them to stay for up to two years. The country’s rich biodiversity, stable political climate, and high-quality healthcare system add to its appeal as a remote work destination.
Explore our country hiring guides for 180+ regions, covering everything from leave and benefits to payroll.
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Navigating the complexities of global hiring isn't easy – especially if you first need to set up costly legal entities in new markets. Playroll simplifies this process by offering Employer of Record (EOR) services, handling hiring, onboarding, and management of international employees through our network of established legal entities in 180+ regions.
Speak with our experts to discover how Playroll can help you make your next international hire effortless, no matter where they are based.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Businesses can choose from various market entry strategies based on their objectives and resources:
There are many international expansion strategy examples out there, but what can you not do without? Here’s our pick of the five strategies for expanding internationally you need to take into account:
Identifying a viable addressable market is crucial for successful international expansion. Conduct thorough market research to understand:
Collaborating with local partners can facilitate market entry and growth:
Customization is key to resonating with local markets:
Overcoming cultural differences and language barriers is a significant challenge in international expansion. Utilizing services like Playroll's HR support and EOR expertise can help adapt your offerings to local markets effectively.
Digital tools can streamline international operations:
Engaging a global EOR can simplify market research and compliance, making international expansion more achievable.
A phased approach allows for controlled growth:
Common challenges when expanding internationally include:
Each country has its set of regulations for international business, and the last thing you want is to be at loggerheads with authorities on foreign soil. That can result in hefty fines, penalties, and costly lawsuits that can cripple your expansion efforts.
Overcoming cultural differences and language barriers is a big challenge that you'll face when leveraging digital technologies to enter new international markets.
That means you may need to translate content and change your marketing materials and branding to communicate effectively and appeal to customers in the target region.
Establishing efficient logistics in new markets can be costly and take a long time.
You need to hire a professional workforce that will implement your international expansion strategy. Depending on the market entry method you choose, you may need to hire local talent, send expatriates, or engage remote workers.
However, recruiting the best talent pool and managing cross-cultural employees in foreign markets isn't an easy feat. Playroll’s country hiring guides can help you understand Payroll, benefits, and hiring of top talents in different countries.
To reap the benefits of international expansion, you need to have a long-term financial plan in place. That means carrying out financial analysis and preparing detailed financial projections, then coming up with an adequate budget to fund your global expansion strategy.
You can mitigate risks by relying on current and historical data and projections from experts to create a hedging strategy or choose countries with less political and economic uncertainty.
An Employer of Record like Playroll can help you navigate the legal and regulatory landscape in the target country. They are well-versed in local regulations and labor laws, so you can shift focus to scaling your business with peace of mind. They can also assist with navigating payroll and tax requirements, and setting up compliant employee contracts to avoid intellectual property protection issues.
They also often have wide networks with established recruitment and other partners in global expansion to ease your market entry. For example, the ConnectaVerse, a trusted global services marketplace, leverages decades of expertise to connect companies with ideal partners for growth. From leading EORs like Playroll to specialists in compliance, company formation, global payroll, and more, the ConnectaVerse simplifies international expansion by matching businesses with trusted local providers tailored to their unique needs.
The choice of expansion model depends on factors like desired control, financial capacity, and business objectives. Partnering with an Employer of Record (EOR) can streamline the process, regardless of the chosen strategy.
Playroll offers comprehensive EOR services to facilitate your international expansion, including:
With Playroll, expanding your business internationally in 2025 becomes truly simple. Start by booking a demo with our team – we handle the red tape, so you can expand with ease while keeping your costs low.
Expand your business confidently with a trusted payroll solution. Simplify compliance, manage payments effortlessly, and grow your global team with ease.
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Employee retention goes beyond just reducing hiring costs. It’s about fostering the type of work environment where team members feel truly valued and are motivated to stay. High turnover can cost companies thousands in recruiting, onboarding, and lost productivity. Research suggests that the cost of hiring is only recovered after 6 months of the employee working. In tech roles or particularly senior roles, this can stretch up to a year. If an employee leaves your organization soon after joining, you are likely to never have seen any return on investment for that hire.
On the other hand, effective workforce retention boosts morale, productivity, and contributes to a strong company culture.
A study by Gallup finds a strong correlation between engaged teams and positive outcomes for organizations, including:
What are the building blocks of employees staying for longer? There are three critical components that form the basis of retention – it’s important not to neglect any one piece of the puzzle. Below, we’ll deep-dive into each of these pillars in more detail.
One of the main drivers for employee retention is competitive pay paired with meaningful benefits. This goes beyond the initial offer you make to convince someone to join your team. To retain these team members, meaningful annual salary increases that keep up with or exceed inflation and performance bonuses also play their part.
Investing in professional development drives employees to stay by showcasing that they have clear pathways for growth within your organization.
Companies with staff retention strategies that include regular upskilling and budgets for training, mentorship programs, and clear pathways for promotions often see employees more committed to their roles, knowing that their career progress is prioritized.
Providing flexible working conditions, like remote work options or adaptable hours, supports employees' work-life balance and improves retention. Studies show that 80% of employees feel more loyal to companies that offer flexibility in the workplace.
Attracting and retaining employees begins with a competitive compensation package. To set competitive salaries, follow these steps:
Offering employee benefits such as health insurance, retirement savings plans, and paid time off ensures that employees feel financially secure and valued.
Companies that go beyond statutory required benefits – offering perks like financial wellness programs, mental health resources, and flexible hours – stand out in retaining and attracting their workforce. Offering remote working options has also become an increasingly attractive perk, with a whopping 98% of workers preferring to work remotely at least some of the time. Being flexible in this area can give you the edge over organizations that mandate a full return to office.
People have to earn a living. Salary, contract payments, some benefits, a few perks are what I call “baseline rewards.” If someone’s baseline rewards aren’t adequate or equitable, her focus will be on the unfairness of her situation and the anxiety of her circumstance. The best use of money as a motivator is to pay people enough to take the issue of money off the table.
Daniel H. Pink, Author of Drive: The Surprising Truth About What Motivates Us
First impressions matter. A smooth onboarding experience sets a solid foundation of success for new hires, making them feel supported from day one. It provides new employees with all the tools, resources and documentation they need to hit the ground running and integrate into the company culture.
This is especially important if you manage a global team where good communication is extra important to succeed. Some hallmarks of a good employee onboarding program include:
See how an EOR like Playroll can help you provide competitive benefits and seamless global HR support, setting up the building blocks of retention from day one.
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Having a bad manager is a driving reason why employees leave. Conversely, a supportive manager can play a crucial role in helping employees stay and thrive at work.
That said, the skills to be a good manager doesn’t necessarily come naturally – it’s worthwhile to invest in training that helps managers to become more effective mentors to encourage employee development.
Having access to plenty of upskilling opportunities show team members that the company is willing to invest in their growth, helping to retain employees who see a future within the organization.
How do you promote professional development in practice? Offer regular skill-building workshops, certification courses, or leadership development programs. Recognize employees’ milestones in completing growth goals, whether it’s through dedicated recognition programs and channels or tangible rewards like performance bonuses.
In addition, a structured career development program helps employees visualize a future within the company, reducing the chances of losing top talent to competitors offering growth opportunities.
Outline the career paths within your organization and what employees need to achieve to progress. Specify what type of skills, experiences, and milestones are required for employees to advance.
Today’s employees prioritize companies that respect their need for personal time.
Flexible scheduling and remote work options promote better work-life balance that supports both productivity and well-being, significantly reducing turnover – 71% of remote workers say it helps to balance their work and personal lives.
Other practical ways to improve employee work-life balance include implementing mental health programmes and setting a realistic workload that is manageable to complete in work hours. Plus, encourage employees to disconnect after work hours and take their paid time off.
Frequent feedback and stay interviews are invaluable tools for gauging employee satisfaction. These touchpoints give employees a structured way to share what they value at work, and voice their needs or concerns. In turn, this allows management to course-correct if there are gaps and problems within the organization.
Set up quarterly employee engagement surveys to gather this feedback and compare results over time. Conducting regular performance reviews also helps employees reflect on their progress and provide proactive feedback on where they need support to hit their goals.
For employees, few things raise a bigger red flag than a micromanager that controls every aspect of their work, decreasing trust and confidence on the job.
Giving employees autonomy over their work boosts morale and creates a sense of ownership. Empowered employees tend to feel more invested in their work, resulting in improved job satisfaction and lower turnover rates.
Human beings have an innate inner drive to be autonomous, self-determined, and connected to one another. And when that drive is liberated, people achieve more and live richer lives.
Daniel H. Pink, Author of Drive: The Surprising Truth About What Motivates Us
When employees decide to leave, conducting exit interviews helps uncover underlying reasons for turnover. This feedback is essential in refining employee retention strategies and pinpointing areas for improvement.
When conducting an exit interview, make it clear that the conversation will remain confidential and won’t impact future reference. Conduct it in a neutral setting, and have it led by someone outside of their direct team.
A thoughtful hiring process can help set up the future success of your employees. Ensure that candidates align with the company culture and values. This approach to recruitment helps secure employees who are genuinely invested in their roles, minimizing high turnover.
To help draw employees that will build up your company culture, implement a referral program that rewards current employees for suggesting suitable applicants. Since current employees are already embedded within your company culture and know what is required for success, they are an excellent way to attract good candidates.
Additionally, add steps to your hiring process such as team-based interviews or assessments, and ask behavioral interview questions that will reveal how the candidate handles real-life scenarios.
Monitoring signs of burnout allows leaders to pick up on issues before they escalate. When employees feel proactively supported, they’re more likely to stay committed to their roles.
So, what should raise the alarm bells? Burnout symptoms include chronic exhaustion, reduced performance, and a lack of motivation. When employees experience burnout, they often feel detached, irritable, and dissatisfied with their work. Physical symptoms like headaches and sleep issues are common, as well as an increased vulnerability to illness.
As employers strive to improve employee retention rates, effective HR tools can streamline the experience for both employees and managers. Playroll offers leading EOR software that simplify global workforce management, helping organizations compliantly employ and manage teams worldwide. With hands-on support for both employers and employees, Playroll helps companies build the type of work environment where employees feel valued and supported to stay.
Book a chat with our experts to find out how we can scale and support your global team.
Employee benefits in Canada typically consist of mandatory and supplemental components, designed to support employees' health, financial stability, and work-life balance. Below is a summary of the typical benefits available in Canada:
In Canada, benefits vary depending on employment type. Full-time employees generally receive a more comprehensive package, including mandatory benefits, while part-time or temporary employees may have limited access to these benefits, depending on their status and the company's policies. Independent contractors typically do not receive employee benefits.
Mandatory benefits, also known as statutory benefits, are legally required benefits provided by Canadian employers. These include essential health, leave, and retirement contributions, ensuring a base level of support for employees.
Employees are entitled to medical care as part of Canada’s public healthcare system, known as Medicare, a universal, publicly funded program that provides essential medical services to Canadian residents. Funded through taxes and managed at the provincial level, Medicare covers a range of healthcare services, including doctor visits, hospital stays, and emergency medical care, with specific coverage varying slightly by province.
Although employers in Canada don’t directly contribute to Medicare, it remains a critical component of Canada’s social benefits infrastructure, reducing the healthcare burden on employees and enabling employers to focus supplemental health benefits on areas not covered, such as dental, vision, or prescription medications.
The CPP is a contributory retirement plan funded by both employers and employees, with mandatory contributions throughout an employee's working life. In 2024, the employee and employer contribution rate is 5.95%. These contributions are deducted from an employee’s earnings. Contributions are made on annual pensionable earnings.
The CPP also includes the survivor's pension, which provides financial support to the family or dependents of an employee who passed away, ensuring some income continuity and stability. To qualify, they need to have been legally married to, or be the common-law partner, of a deceased CPP contributor.
The QPP is a mandatory public pension program for workers in Quebec, similar to the Canada Pension Plan (CPP) in the rest of Canada. Administered by Retraite Québec, the QPP provides retirement, disability, and survivor benefits to individuals who have contributed to the plan through payroll deductions. Both employees and employers contribute to the QPP, with rates set annually based on the employee's earnings up to a maximum limit.
EI provides temporary financial support for employees who lose their jobs or need to take time off due to illness, maternity or parental leave, or compassionate leave. Employers must deduct EI premiums from employees’ insurable earnings. They also contribute 1.4 times the amount of the EI premiums that they deduct from employees' remuneration and remit the total of both amounts. Quebec operates under its own set of EI premium rates. The summary of applicable rates can be found here.
Under Employment Insurance (EI), maternity leave benefits provide up to 15 weeks’ leave for the pregnant employee or employees that have recently given birth. They receive 55% of their earnings, up to a maximum of $668 a week. Employees can't receive these benefits more than 17 weeks after their due date or the date they gave birth.
In addition, employees can apply for parental benefits, which is split between standard and extended parental leave. Under standard parental leave, 40 weeks can be shared between parents, though one parent cannot take more than 35 weeks. Under extended parental leave, 69 weeks can be shared between parents, though one parent cannot take more than 61 weeks. Earnings vary between 33-55%, depending on which option the parent chooses.
In Quebec, parental leave falls within its own system called Quebec Parental Insurance Benefits.
As part of EI sickness benefits (or sick leave), employees can take up to 26 weeks’ leave, receiving 55% of their earnings. Caregiving benefits (which include compassionate care leave) provide between 15-35 weeks’ leave, which include time off to take care of a sick family member. Under these benefits, employees can receive 55% of their earnings.
In Canada, mandated paid time off includes a minimum of two weeks of annual vacation for employees after one year of service, with an increase to three weeks in some provinces after a specified period. Vacation pay is calculated as a percentage of gross wages, varying between 4-8% of earnings.
Additionally, most provinces recognize 5-10 public holidays, during which employees are entitled to paid leave.
Workers' compensation, funded by employers, offers coverage for employees who experience work-related injuries or illnesses, covering medical costs and providing wage replacement during recovery.
The Federal Workers’ Compensation Service (FWCS) processes compensation claims. Employers in Canada need to be registered with the WCB (Workers' Compensation Insurance Board) in their province, and pay workers' compensation insurance premiums.These premiums vary by province.
In addition to mandatory benefits, Canadian employers often provide supplemental perks to improve the work environment and enhance employee satisfaction. Here are some popular options:
Many employers give their employees’ retirement savings a boost through their group Registered Retirement Savings Plans (RRSP). In these cases, an employer usually deducts the employee’s contribution from their pay, and matches this contribution amount (also called RSSP matching).
Comprehensive health coverage, including virtual care and mental health support, is a valuable perk that helps employees access essential care beyond government-provided health services. This can take the form of contributing to a health care spending account (HCSA), to cover health, vision and dental care expenses.
Disability insurance in Canada can replace between 60% and 85% of an employee’s income if they become unable to work due to an unexpected injury or if they’re critically ill. This can include short-term and long-term disability insurance. If the employer funds part of all of the disability premium, these benefits will be subject to income taxes.
Benefits packages in Canada are made up of both taxable and non-taxable benefits. For example, mandatory CPP and EI benefits are taxable, while examples of non-taxable benefits include providing employees with a cellphone, overtime meals or allowances and relocation benefits.
The Canada Revenue Agency (CRA) provides comprehensive guidelines on taxable and non-taxable benefits here, which can help employers manage the tax implications of their benefits packages.
To comply with Canadian labor laws, employers must ensure that mandatory benefits, such as CPP and EI contributions, are accurately calculated and reported. Non-compliance with these regulations can lead to penalties.
Canadian employers who fail to make required contributions to the Canada Pension Plan, Employment Insurance, or income tax face a 10% penalty from the CRA. Repeat offenses within the same year, particularly those involving gross negligence, could lead to a 20% penalty. If contributions are not withheld or remitted, the CRA may take legal actions.
For employers looking to gain a competitive edge in recruitment, additional perks can make a difference:
In Canada, employee benefits can amount to approximately 15-30% of payroll, depending on the scope of benefits offered. Larger companies with more resources can typically afford to spend more on comprehensive benefits packages.
Employers should consider these costs when budgeting for new hires.
Estimate the cost of a new hire in Canada, with our free cost calculator. Get a complete view on the taxes, fees, and benefits you can expect to pay.
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Hiring remote developers offers several benefits that are reshaping how companies build their teams. Here are key reasons why remote hiring makes sense:
Remote hiring means the world’s talent is open to you. That’s exciting – but too much choice can also be daunting. How do you decide where to place your focus? Take some time to think of your team’s unique needs, and narrow down strategic regions according to these key factors:
Get a detailed breakdown of what your new hire will cost and compare markets side-by-side with Playroll's free employee cost calculator.
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Salary ranges displayed show a summary of average salaries spanning seniority levels. Salaries are shown in dollars. We also provide an average of remote engineer salaries in the region. Keep in mind that average remote salaries can be higher than the national average in some countries, given the fact that these developers often work for global companies.
Salary sources: Glassdoor; levels.fyi, arc.dev; OfferZen ; weworkremotely.com; tecla.io; devitjobs.nl
It’s easy to see why so many companies hire remote developers from India, one of the most popular outsourcing destinations in the world for software engineering. This is thanks to its affordable rates and one of the largest pools of talent in the world at nearly 5 million software engineers.
Brazil has become a hub for tech talent, with a growing startup ecosystem and large community of developers. It has a particularly favorable time zone for North American businesses, and the largest economy in Latin America.
Why hire remote developers from South Africa? With approximately 120 000 software developers in the country, the country boasts a growing tech ecosystem. It offers access to highly skilled software developers with a strong grasp of English, an advantageous time zone for European businesses, and low employer costs.
Portugal has become a top location for hiring skilled software engineers, with a high proportion of STEM graduates – the country has approximately 230,000 IT specialists. It’s a particularly attractive location for European companies looking for high-quality remote developers – Portugal also offers incentives for foreign investment and remote work, including digital nomad visas.
The Philippines has a fast-growing tech industry, supported by substantial investment in education and improvements in technological infrastructure. The country’s developers are known for their fluency in English and cost-effectiveness.
Ukraine is known for its high-quality developers, especially in software development and IT services, offering strong technical skills at competitive rates. The local industry is showing resilience and innovation despite the ongoing war.
Argentina has a healthy tech scene, with over 1000 active startups contributing to its economy. It offers talented software developers at affordable rates, making the country a particularly attractive location for North American companies.
Mexico is an ideal location for US-based companies due to its proximity, time zone compatibility, and large, technically skilled labor force – with its technology sector seeing average yearly growth rate over 10%.
The Netherlands has a firmly established, thriving tech industry that’s rooted in entrepreneurship. Skills like data analytics and cybersecurity are seeing a boom in particular. With an educated and skilled workforce that enjoys a high quality of life, it’s a prime location for hiring experienced software engineers.
Nigeria has one of the fastest-growing IT markets in Africa, with a multitude of startups located in Lagos. It's becoming a leading player in Africa's software development scene, with a large, diverse workforce. The cost of hiring is also very competitive.
The UK’s thriving tech industry employs more than 1.7m people, and has more than 150 startups that are considered unicorns with a valuation of at least $1 billion. It offers a highly skilled workforce with a strong emphasis on innovation, and English proficiency makes communication seamless.
Poland has one of the largest IT industries in Europe, with over 410 000 IT specialists, making it particularly attractive for European companies looking to hire high-quality remote developers.
Kenya is another growing tech hub in Africa, which is seeing significant investment in its technological infrastructure and offers affordable rates for businesses hiring remotely. In addition, its time zone overlaps with both European and American business hours. The country’s emphasis on technology education and innovation is fostering a vibrant tech ecosystem.
Spain’s technology sector is one of the fastest growing industries in Spain over the past decade, reflecting the country’s commitment to digitalization. It has over 333 000 software developers. Spain is also among the European countries that offer digital nomad visas to encourage foreign investment in the country.
Canada's tech industry sees rapid growth year on year – many of the world’s largest companies are established in the country. With its highly skilled workforce and many programs to support tech talent, it’s an attractive international hiring location. Compared to some other countries on this list, you will come across higher average salaries.
Top Technologies: JavaScript, C#, Python, Java
In Spain, employee benefits are divided into mandatory and supplemental categories. Mandatory benefits are stipulated by the Spanish Workers’ Statute (Estatuto de los Trabajadores). In contrast, supplemental benefits are often offered to enhance compensation packages and remain competitive in the job market.
Not all Spanish employees are entitled to the same benefits. For example, Spanish full-time employees work an average of 40 hours per week. These types of Spanish employees are entitled to all statutory benefits including maternity/paternity leave, annual leave, and paid sick leave under Spanish law.
On the other hand, part-time employees are defined as Spanish employees who work up to 20 hours per week. These employees receive proportional benefits, based on the hours worked, in line with Spanish law.
Contractors and freelancers (autónomo) in Spain work independently of any employing entity. In Spain, these workers can sign up to a special scheme for freelancers called RETA. This regime requires that freelancers contribute a specified amount to the social security system (Tesorería General de la Seguridad Social – TGSS). In exchange, they can enjoy benefits provided by the system such as medical treatment, sick pay, and retirement.
Mandatory employee benefits in Spain are statutory requirements outlined by labor laws, ensuring employees receive basic rights such as paid time off, leave for family-related events, and social security.
Spanish labor law ensures that new mothers receive 16 weeks of paid maternity leave after the birth or adoption of their child. There is an additional guarantee of two extra weeks of paid leave per child in cases where the mother gives birth to multiple babies or babies born with disabilities.
Paternity leave (or “partner leave” as it is officially called by the Spanish government) has recently also been extended to 16 weeks of paid leave, to accommodate fathers of newborn or adopted children. Both types of leave are funded by the country’s Social Security.
Employees in Spain are entitled to 30 calendar days or 22 working days of paid annual leave each year, as outlined in the Workers’ Statute (Estatuto de los Trabajadores). However, the Collective Bargaining Agreements (CBAs) may secure additional days for workers in certain industries.
Employees unable to work due to illness are eligible for paid sick leave. This is typically covered by the Social Security system, with up to 18 months of paid sick leave depending on the severity of the illness. The first three days of sick leave are unpaid. The employee can receive 60% of pay between the fourth and 20th day and is eligible to receive 75% of pay from the 20th day onward.
In addition to paid annual leave, Spanish employees are entitled to up to 14 paid days off in observance of national holidays (that are region-specific). All Spanish employees must be allowed to celebrate the nine nationwide holidays such as New Year’s Day (Año Nuevo), Good Friday (Viernes Santo), and Labor Day (Día del Trabajo). Other holidays granted to employees are dependent on provincial and regional customs.
In Spain, the social security fund is made up of several funds that address various aspects of employees’ lives such as illness, unemployment, disability, and retirement.
Employers contribute 30.48% and employees contribute 6.47% (a total of 36.95%) towards INSS contributions.
Workers’ compensation is also referred to as Collective Agreement Accident Insurance (Seguro de Accidentes de Convenios Colectivos) because the provisions are usually dependent on the outcome of CBA negotiations for specific industries.
This insurance provides healthcare and financial support to individuals who have suffered from job-related accidents and illnesses that prevent them from working.
While this pay is usually an additional perk in other countries, employers are required to provide their workers with two annual bonuses (13th and 14-month pay). Each bonus is equal to one month of an employee’s salary and is also subject to income tax.
While mandatory benefits ensure basic rights, supplemental employee benefits can significantly enhance a compensation package and help attract top talent. Common non-mandatory benefits in Spain include:
Employers often provide additional health benefits, such as private medical insurance, to cover employees and their families, complementing the public healthcare system. Health insurance can cost Spanish employees an additional 100 to 200 euros per month so offering private health insurance will be greatly valued by employees. Private healthcare gives employees access to better quality healthcare (when compared to Spain’s public healthcare system).
An additional benefit that addresses employees’ physical health can make your compensation package more competitive. This can involve offering your employees additional medical coverage that includes expenses such as dental, vision, and disability that are not covered by mandatory health insurance.
Spanish federal labor law ensures paid leave in certain circumstances such as maternity and paternity leave. However, additional paid time off is a powerful benefit to add to your benefits package as additional days off help employees manage unforeseen circumstances or celebrations in their personal lives. This is sure to boost company morale and improve employee work-life balance.
Many employers in Spain offer private pension plans to supplement the mandatory public pension system.
Certain employee benefits, such as pagas extraordinarias (extra pay), and meal vouchers, can have tax advantages for both employers and employees in Spain. Employers may receive tax deductions for offering specific benefits like private health insurance or childcare and meal vouchers, reducing the overall cost of providing supplemental benefits.
Compliance with Spanish labor laws is crucial when offering employee benefits. Employers must adhere to regulations outlined in the Estatuto de los Trabajadores (The Worker’s Statutes) and ensure they meet legal obligations. Spanish labor law requires that employers provide base-level benefits to their employees. If employers fail to do so, this can lead to penalties, including fines and legal disputes.
Mandatory benefits are merely the bare minimum as outlined by Spanish Federal law. Employers can and should consider offering additional perks to their employees.
Daunted by the complexity and red tape of complying with local labor laws? Playroll does the heavy lifting to ensure you always tick the box on compliance, so you can focus on building your business.
To remain competitive in the Spanish market, companies often provide additional perks, including:
Employee benefits significantly contribute to the total cost of hiring in Spain. On average, statutory and supplemental benefits can account for around 30-40% of an employee's total compensation.
For a detailed breakdown of how benefits affect your employer costs, use Playroll’s Free Global Employee Cost Calculator for country comparisons.
Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.
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Managing employee benefits can be overwhelming, but Playroll simplifies the process. With a presence in over 180 countries, our platform ensures seamless onboarding, payroll, and benefits administration. Playroll ensures compliance with local labor laws while providing a competitive edge through attractive, localized benefits.
Book a chat with our team to learn how we can scale your global team with ease.
Remote working is increasingly becoming ingrained in the UK corporate culture. According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.
Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.
That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.
Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.
This article covers the seven types of remote administration tools for businesses in 2024 and beyond.
Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.
For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.
Reliable communication and collaboration tools to check include:
With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.
From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.
The best remote management tools in this category include:
The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.
Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.
Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:
Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.
Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.
That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.
The best remote management tools in this category include:
Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.
That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers.
Top remote desktop and access tools include:
If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.
They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.
That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.
Best remote management tools for employee monitoring include:
With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.
These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:
As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.
Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams. Request a demo to see how you can optimize your remote management with Playroll.
In South Africa, a benefits package will include mandatory employee benefits such as paid time off, Unemployment Insurance Fund (UIF), and overtime pay and may include additional perks such as retirement plans and health benefits.
Not all workers are entitled to the same benefits. Workers can be separated into full-time, part-time, and fixed-term contract employees or independent contractors.
Full-time employees refer to employees who typically work 40 to 45 hours per week. These employees generally receive a more comprehensive benefits package than part-time workers (employees who work less than 40-45 hours per week but more than 24 hours a week). An employee on probation is not guaranteed supplementary benefits but will still have access to statutory benefits. Employees on fixed-term contracts (individuals whose employment runs through a specified date) may be eligible for certain benefits depending on the agreement with their employer.
However, independent contractors (individuals hired to complete a specific task or project) do not qualify to receive benefits.
In South Africa, employee benefits include statutory benefits (benefits guaranteed by law) and supplementary benefits (additional privileges provided at the employer’s discretion).
According to the Basic Conditions of Employment Act, employees are guaranteed annual leave of at least 21 consecutive days (not including public holidays), one day for every 17 days worked, or 1 hour for every 17 hours worked.
The employee and employer must reach a mutual agreement regarding the timing of the leave. The employer makes the final call if a mutual agreement cannot be reached. Employers may only grant leave up to six months after the end of the annual leave cycle and may not offer payment in place of granting annual leave (except on the termination of employment).
Pregnant employees are entitled to at least four consecutive months of maternity leave. The clock on these four months begins four weeks before the expected birth date, but employees may begin their leave earlier than this. Employers are not obligated to pay their employees during this time; however, the UIF covers 60% of their salary for up to 121 days.
Employees may request to extend their maternity leave. However, this request must be accompanied by a medical certificate specifying the extension's expected length.
Companies are only required to offer a less generous ten-day paternity leave following the birth or adoption of a child. In an adoption case, the child must be younger than two years old.
Paternity leave is unpaid; however, employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold.
Based on the Basic Conditions of Employment Act, workers are entitled to the number of days they would regularly work in 6 weeks every 3 years. For example, someone who works five days per week will have 30 days in their bank of sick leave days every three years.
However, during an employee’s first six months, they are only entitled to one day of paid sick leave for every 26 days they worked.
Employers have the right to request a medical certificate before paying employees who take more than two consecutive sick days or are absent more than twice in 8 weeks.
Certain South African employees are eligible to receive paid leave under certain circumstances, namely, the birth of a child, to care for their child that has fallen ill, or upon the death of an immediate family member.
The term “immediate family member” only includes the following individuals in this case:
The employee’s:
To qualify for Family Responsibility Leave, an employee must work for longer than four months for the same employer and work more than four days a week.
South African employers are required to pay their workers overtime pay. Overtime is capped at 3 hours per day and 10 hours per week. Employees can agree to work up to 15 hours of overtime, but only for up to two months a year.
If employees agree to work overtime, their employer must pay them 1.5 times their standard hourly pay rate. Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.
An employee may agree to accept PTO in exchange for working overtime.
Both employers and employees contribute to the Fund, which is set up to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the UIF.
The employee must contribute 1% of their remuneration to the Fund, and the employer must match this 1% contribution.
COIDA is a program that compensates workers injured or infected with diseases during their employment. This program covers dependents of workers who die on the job as a result of work-related accidents or contraction of occupational diseases.
The Skills Development Levy (SDL) is a tax imposed on businesses to develop and improve workforce skills. Unlike UIF, employees are exempt from paying SDL, but employers must contribute 1% of the total amount paid in salaries to employees each month.
Supplemental benefits (also called fringe benefits in South Africa) are not required by law, but can help you stand out as an employer and attract top talent. They include:
South African employers are not legally obligated to contribute to employees’ retirement funds. However, future planning is essential to any enticing benefits package.
In many cases, employees are given the option to contribute towards a retirement contribution system; employers in some industries make this a requirement. The idea is that employers invest a percentage of the employee’s remuneration in a retirement fund to provide employees with a source of income once they retire.
While South Africa’s public healthcare system is free, its quality is not comparable to private care. Medical aid is invaluable to employees’ lives as it covers medical services and healthcare expenses from private institutions.
Employers may offer their employees various health insurance systems, including medical aid schemes, hospital plans, and comprehensive medical coverage, to attract world-class talent.
In South Africa, there is no statutory requirement to give employees bonuses at the end of the year. However, it is commonplace to give employees performance-based bonuses in December. These bonuses are usually equivalent to one month’s remuneration.
In addition to drawing in the best talent, employee benefits offer various advantages, including tax breaks or incentives. For example, as of 1 March 2016, contributions made to a pension or provident by an employer on behalf of an employee are tax deductible. This deduction comprises the sum of both the employee and employer contributions.
Interfering with employee benefits in South Africa should be taken seriously. Depriving employees of the benefits they’re entitled to can lead to the employee lodging a case against the employer at the Commission for Conciliation Mediation and Arbitration (CCMA). Failure to comply with South African labor law is treated as unfair labor practice and can result in significant penalties.
Employers also have an obligation to report all work-related incidents. For example, work-related injury and contraction of diseases must be reported to COIDA and other relevant parties.
There are various perks you should consider offering to current and potential employees in addition to the benefits discussed above:
The COVID-19 pandemic made employers and employees aware of the advantages of working from home. These benefits include increased productivity, flexibility and improved work-life balance for workers.
Since the pandemic, there has been an upward trend in adopting remote work, so much so that some workers look exclusively for fully remote positions. If you want access to a broader talent pool, consider offering various work arrangement options such as partial remote work, hybrid work models, or fully remote positions.
Employees not restricted by rigid schedules enjoy a better work-life balance. Flexible work hours allow employees to manage their time in a way that reflects their personal needs and expectations. Increased flexibility gives employees more autonomy regarding how they spend their time. This will invariably increase productivity and employee satisfaction and will help manage stress.
Any competitive benefits package must include an element of physical and mental wellness. Employee wellness programs give workers access to resources that support their physical and psychological care. These include partnerships with local wellness institutions such as gyms, in-house counseling, and health and wellness workshops.
Employee expenses significantly contribute to overall business spending in South Africa. Stats SA found that employers spent about 14% of total expenditure on employees. These costs include salaries and wages, training expenses, and the mandatory and supplementary employee benefits discussed above. That said, South Africa has a relatively low employment cost compared to other countries – studies have shown that European companies can save up to 50% on staff by hiring South Africans.
Use Playroll’s free global employee cost calculator to get a detailed breakdown of mandatory employer taxes and contributions in South Africa and to easily compare different market costs side-by-side.
Managing employee benefits in South Africa can be complex, but Playroll simplifies this process. With a footprint in over 180 countries, our centralized platform streamlines onboarding, payroll, and benefits administration, and ensures compliance with ever-changing employment regulations. Partner with Playroll to attract and retain top talent with benefits tailored to meet the needs of South African employees.
Book a demo with our team to learn how we can help you offer competitive employee benefits packages to scale your team.
Expanding your business by hiring international employees holds multiple benefits, such as access to broader pools of talent and cost-effectiveness. South Africa is proving to be a key location for businesses that are eager to explore global markets - with its convenient GMT+2 time zone, professional use of English, low employer costs and multicultural talent pool.
If you're an HR manager, business owner, or part of an international hiring team, expanding your workforce in South Africa can open up exciting new opportunities. This guide will take you through the three main approaches to hiring and paying international employees in South Africa, with tips on how to stay compliant with local laws and key employment practices in the country.
For businesses that have short term projects or require temporary skills, hiring an independent contractor is the best way to go. Independent contractors are an appropriate short-term choice for cost effective and flexible work. Additionally, organizations can avail of people with high skills for business development that may not be available for in-hours.
However, there is a possibility of these contractors charging a higher rate than the monthly salary of a full time employee. It is also important to ensure the distinction between independent contractor and full time employees, since they are treated differently by the South African government. Treating contractors the same as full-time employees can lead to a misclassification risk, leading to fines and penalties.
Independent contractors can be paid through international payment platforms or wire transfers as long as they are timely and comply with any local regulations.
For companies hiring foreign workers in South Africa that have substantial resources at hand to employ them, the roadmap is different. Businesses will need to set up a legal entity compliant with South African labor laws by registering with the official authorities and being aware of the various laws for businesses.
With a relevant business permit visa, business owners can register their company with the Companies and Intellectual Property Commission (CIPC). Bizportal was introduced by the CIPC to simplify the registering process, and entrepreneurs can use it to register their business and set up the corresponding domains and funds. Businesses should have secured funding to sustain the company and hire a team of experts for global HR and operations management.
While this process supports companies wanting to hire skilled workers, the process can be time-consuming and costly, and these entities can be difficult to close once established. Despite these drawbacks, having a legal entity allows companies to have complete control over their operations and payroll processes. Paying employees through a local entity involves setting up a local payroll system, which includes managing taxes, social security contributions, and other employee benefits.
While setting up a legal entity in South Africa is a good option for growing businesses, it entails setting up a local office, a subsidiary address and an account with the local bank – as well as compliance to regional benefits, global HR and payroll taxes. All of this in a foreign country can be a complicated and time-consuming process.
A viable option in this scenario is to partner with EOR services, that essentially hires and pays employees on the business’s behalf. Acting as the employer on paper, an EOR ensures a smooth onboarding process for companies wanting to test global markets, make initial hires, and avoid navigating local compliance themselves. The benefits of using an EOR include the provider taking over all employment-related tasks. They manage benefits administration, payroll, and compliance with South African labor laws.
Payroll management through an EOR typically involves the provider managing the entire payroll process on your behalf, from calculating salaries and deducting taxes to ensuring timely payments to employees.
For those considering hiring in South Africa, tools like Playroll’s employee cost calculator can be invaluable in benchmarking salaries, providing a detailed breakdown of the cost to hire a foreign employee in new markets. It will show you the exact cost of statutory benefits, employer taxes and contributions, and allow you to compare the costs in different countries.
Businesses can only operate smoothly if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and social security obligations. Partnering with an EOR can help navigate the complex employment and tax regulations in new markets, reducing compliance and financial risk.
Listed below are the most important legal considerations businesses need to abide by in South Africa to avoid any compliance issues during the hiring process:
When hiring in South Africa, being familiar with compensation benchmarks and employee benefits is key to staying a top runner in the competition. Based on a country’s standards, offering competitive compensation packages can give you the edge you need to attract and retain top talent. Here’s the key facts of employment in South Africa, to help you ensure fair working conditions for employees:
For more detailed information on hiring in South Africa and other countries, businesses can refer to Playroll’s country guides which provide comprehensive insights into hiring practices and legal requirements in over 180 countries.
South Africa is on the path to attracting new workers with the introduction of their 'remote working visa' that allows foreigners to work remotely for foreign employers within South Africa for up to three years.
Notably, visas shorter than six months do not require tax registration and an income tax exemption is also proposed for those working less than six months. However, the latter is pending legislative changes. South Africa is shaping up to be a strong player for businesses looking to hire internationally, with a growing appeal to digital nomads.
Choosing the right approach to hiring and paying international employees in South Africa depends on your business needs and resources. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. It’s easy to get overwhelmed when navigating the finer details of local employment law – but it doesn’t have to be complicated.
Playroll is an Employer Of Record service that can support your business to seamlessly hire, pay and manage international employees in 180+ countries, including South Africa – with a team of experts on-hand to handle compliance with all local employment laws. Playroll also offers visa support services in the country.
Get our comprehensive guide to compliantly hire global talent, no matter where they are.
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Expanding your business by hiring international employees can bring significant benefits, such as diverse skills and new market insights. With the largest economy in Europe, Germany’s workforce is highly appealing given the country’s vast pool of highly educated workers.
If you're considering employing someone in Germany from another country, you need a good understanding of local employment practices to stay compliant.
This guide details the three main methods you can use to hire and pay international employees, how to navigate legal compliance, and key employment facts in the country.
Hiring independent contractors is best suited for businesses with short-term projects or specific tasks that need specialized skills.
Hiring German employees as contractors might seem like a way to bypass administrative hurdles, but if a contractor is performing as an employee, this approach carries significant risks. Misclassification can lead to severe fines and even criminal liability.
The distinction primarily revolves around autonomy. Contractors have the freedom to control how they perform their work, while employees follow the employer's instructions.
German labor laws emphasize the actual working relationship over the title given. If a contractor operates like an employee, they are legally considered an employee and entitled to protections such as unfair dismissal, paid leave, and other benefits.
Pros:
Cons:
Payment Process: Contractors typically invoice for their services, and payments are processed directly to them. It's crucial to ensure that contracts clearly define the scope of work and payment terms to avoid legal issues.
Setting up a legal entity in Germany is suitable for businesses planning to hire multiple employees and establish a long-term local presence in the country. This approach provides full control over hiring and managing employees internally.
However, this traditional method is often expensive and time-consuming, making it less practical for companies seeking quick and flexible solutions for hiring in Germany.
Creating a presence in the German market requires establishing a legal structure. Foreign companies typically choose between forming a local subsidiary or registering a branch office.
A subsidiary is an independent company, usually in the form of a private limited liability company (Gesellschaft mit beschränkter Haftung – GmbH). The GmbH structure is popular due to its separate limited liability.
Branch offices are part of the foreign head office's organization and can be either autonomous or dependent, based on their level of independence from the main company.
Pros:
Cons:
Payment Process: Managing payroll for employees involves registering for payroll taxes and social security contributions, adhering to local tax laws, and setting up a comprehensive payroll system.
A quicker and more adaptable alternative to setting up an entity is partnering with an Employer of Record (EOR). Partnering with an EOR provider is ideal for businesses looking to experiment in new markets, make initial hires, and navigate local compliance with ease.
An EOR acts as the employer on behalf of a business, without the need to set up a local entity. As your legal entity, EOR handles the hiring and payment of your German workforce while ensuring compliance with local employment laws. They manage onboarding, payroll, benefits, and risk mitigation, allowing you to focus on day-to-day employee management.
Partnering with an EOR allows you to swiftly establish a remote workforce in Germany and test the market before committing to long-term expansion. This approach is cost-effective and avoids the complexities of entity establishment.
Pros:
Cons:
Payment Process: EORs manage the entire payroll process, ensuring that employees are paid accurately and on time, while also handling all statutory benefits and tax contributions.
Even if you plan to eventually establish your own entity in Germany, starting with an EOR can be advantageous. You can hire employees through the EOR immediately and transfer them to your own entity once it’s established. This approach helps navigate the complexities of German registration laws and accelerates your hiring process on a budget.
Unlike many other EOR providers, Playroll supports the flexible transfer of employment arrangements to client entities.
When hiring in Germany, it's essential to understand and comply with several key legal requirements:
German law requires that employment contracts specify job roles, working hours, and compensation. Fixed-term contracts are limited to two years, while indefinite-term contracts are also common.
Employers must register for payroll taxes and social security contributions, which include 9.3% for pension insurance, 1.3% for unemployment insurance, 7.3% for health insurance, and contributions to long-term care insurance. These are mandatory for all employees.
Compliance with local labor laws is crucial to avoid legal penalties. This includes understanding visa regulations, termination laws, and employee rights. For instance, standard working hours are eight hours per day with a 30-minute break, and employees are entitled to at least 20 days of paid leave per year. Partnering with an EOR can help navigate these complexities efficiently.
Hiring foreign workers in Germany might require familiarization with different types of German work visa and residence permits. Check out our essential breakdown to what's required of employers.
To remain competitive when hiring in Germany, it's important to research compensation benchmarks and benefits. Some key elements of local employment law include:
Use Playroll’s Employee Cost Calculator to accurately benchmark salaries and understand the full costs of hiring international employees in Germany, with a detailed breakdown of statutory benefits and employer taxes.
In the changing post-pandemic work environment, employees are making their preferences unmistakably clear: offer work-from-home options or risk losing top talent.
A recent survey reveals that a significant 47% of German employees would contemplate resigning if their remote work privileges were revoked. This highlights the role of flexible work arrangements in the modern job market, where the advantages like reduced commuting and improved work-life balance are greatly appreciated.
Choosing the right approach to hiring and paying international employees in Germany depends on your business needs and resources. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. It’s easy to get overwhelmed when navigating the finer details of local employment law – but it doesn’t have to be complicated.
Playroll is an Employer Of Record service that can support your business to seamlessly hire, pay and manage international employees in 180+ countries, including Germany – with a team of experts on-hand to handle compliance with all local employment laws. Playroll also offers visa support services in the country.
Check out Playroll’s global hiring guide for more details on employment in Germany.
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