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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.
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 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:
Read Time
July 26, 2024
Ready to hire remote workers and access global talent? Learn how to hire international employees, with tips on staying compliant and managing remote teams.
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, 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.
Before you begin your global workforce expansion, it’s important to know what you’re looking for. Misclassifying employees as contractors is one of the quickest ways to derail an organization’s compliance record and incur hefty penalties. So what’s the difference, and how to recruit people outside the UK effectively?
Typically, employees:
In contrast, independent contractors provide services to multiple organizations. They complete projects on their own schedules and receive payment per project. They are technically self-employed, so they’re responsible for their own taxes. If you're wondering how to recruit people from outside the UK for independent contractor roles, read on for some helpful tips.
More and more countries are tightening the screws on unscrupulous employers who misclassify their workers. A Californian company learned this the hard way just the other day.
So it’s vital to understand where the lines are drawn in the countries where you want to hire remote employees.
Once you’ve decided what type of worker you want to bring on board, make sure that you can do so smoothly and hassle-free. This is especially important for employees. They need to understand how your systems work, and where they can go for support. If you're wondering how to recruit people from outside the UK effectively, consider providing thorough onboarding and training processes.
Cumbersome or inadequate onboarding undermines enthusiasm and puts the relationship on the wrong footing.
Without direct human contact, it’s even more important to find ways of fostering cohesion. Gamification, partnering with other employees and video calls are just some of the ways to create an onboarding process that gets people motivated to be productive from the get-go.
Check out our handy guide to classification by region to learn more about how to recruit people outside the UK effectively.
Without a thorough grasp of a country’s labour laws, hiring there is just not feasible. By employing overseas workers, a company assumes all the legal responsibilities that entail, as if they were in that country.
That includes compliance with labour law, tax filings and contributions. Generally speaking, you’re not liable for tax contributions if you’re working with independent contractors.
However, if you're considering how to recruit people who are UK citizens living and working abroad as independent contractors, be aware that they still have an obligation to pay taxes in the UK. If the country they’re in has a double-taxation agreement with the United Kingdom, they can avoid paying twice on one income.
Don’t make any moves until you’ve done your homework.
Some important topics for due diligence:
Playroll’s Country Playbooks provide an overview of the ins and outs of labour law in over 50 countries of interest for UK companies. It’s the closest thing (that we’re aware of) to a multinational legalese phrasebook , essential for understanding how to recruit people outside the UK.
When it comes to paying remote employees outside the UK, there are essentially five options on the table.
Keep everyone on your UK payroll: this can work for independent contractors, but it’s not advisable for employees. Non-UK citizens on your payroll won’t have a National Insurance Number; this is bound to raise some flags. If you're considering how to recruit people from outside the UK, it's important to be aware of these nuances. Many countries don’t allow this anyway and require all foreign companies to establish legal entities in order to hire remotely.
Set up a local entity: if you plan to go all in on one specific country, then putting down roots makes sense. Registering your own legal entity in that country enables you to hire as many people as you need. It also gives you complete control over your HR processes.
But if you’re hiring a handful of people, or you’re going for a diverse spread across multiple countries, the time and expense that it takes to do this is not worth it.
Join with a local company: a foreign company that has close ties with your own can act as an employer on your behalf. This requires a high degree of mutual trust, as well as an airtight service level agreement. And it only opens doors in the country or countries where this partner has a presence.
As with option #2, this one has hard limits in terms of scalability.
Partner with a Professional Employment Organization: PEOs take over the entire HR function of a business, freeing time and resources for their clients to focus on growth. To work with a PEO and effectively learn how to recruit people for international roles, companies must first establish their own legal entities in the country concerned.
Enlist the help of an Employer of Record: this solution allows you to skip right past incorporation and get straight to hiring. Like a PEO, an EOR manages payroll and handles tax and legal compliance. It also provides appropriate contracts and onboard remote employees, making it a valuable option when considering how to recruit people from outside the UK to deliver appropriate contracts and onboard remote employees.
But unlike a PEO, an EOR does not require its partners to establish their own legal entities in target countries. For the duration of the relationship between a UK company and an EOR, the EOR acts as the legal employer of foreign nationals.
An EOR is suitable for smaller headcounts, generally no more than 15 employees. Once revenue increases, some firms transition to incorporating their own entities. But there’s a crucial interim period between a company’s first foray into global hiring and the incorporation of an entity. That’s where an EOR makes all the difference.
There is significant potential for UK companies to expand internationally through overseas hires. Understanding employee classifications and implementing effective onboarding processes are crucial for compliance and productivity. When recruiting from outside the UK, compliance with local regulations, including termination procedures and health insurance, is essential.
For streamlined HR functions without the need to set up a legal entity, consider partnering with an Employer of Record. Playroll offers valuable resources for navigating global hiring, making it easy for UK companies to recruit talent worldwide while staying fully compliant.
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.
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
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.
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 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:
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, 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:
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.
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.
While partnerships with a Professional Employer Organization can be advantageous for a variety of businesses across industries, they may not be suitable for every business or sector.
Businesses competing in the global job market face the challenge of managing HR-related functions. Professional Employer Organizations have emerged to help solve this, assisting companies by providing access to HR support and resources.
While PEOs offer comprehensive HR services, however, these partnerships are not without their drawbacks. It is important for businesses to weigh the benefits and potential downsides before deciding to work with a PEO.
By working with a PEO, client companies can achieve peace of mind. PEOs employ in-house human resources professionals who stay up-to-date with evolving employment laws and regulations, ensuring businesses remain compliant. They take on all HR-related responsibilities, including solving workplace conflicts, and provide resources to navigate complex HR challenges, such as employee handbooks.
Let’s explore the pros, which encompass payroll benefits, workers compensation, tax administration and regulatory compliance.
PEOs achieve economies of scale, enabling them to offer employees competitive benefits, including better rates for health insurance and retirement plans, often surpassing those offered by large enterprises. This partnership allows small and mid-sized businesses to provide attractive benefits packages that boost employee satisfaction and loyalty.
Managing payroll and ensuring tax compliance can be daunting with limited resources. Partnering with a PEO streamlines payroll management and ensures accurate calculation of tax withholdings and deductions, reducing administrative burden and risk of error.
PEOs act as dedicated HR partners, managing employment-related risks and ensuring compliance. They handle tasks such as worker's compensation, claims administration, and unemployment insurance management.
Partnering with a PEO typically allows businesses to focus more on strategic and operational aspects by handing over administrative and time-intensive HR tasks.
PEOs leverage the collective power of employees from various PEO clients to achieve economies of scale. This results in reduced rates for employee benefits, including unemployment insurance and health insurance.
Businesses relinquish some level of control over HR functions and businesses are required to align their HR policies with the organization framework for a successful partnership.
In some instances, the standard HR practices offered by a PEO may not align with certain business types.
While they help to reduce employment risks, by entering into a co-employment relationship, PEOs and businesses will share liability should any HR related disputes arise.
It is important to weigh up the cost of using a Professional Employer Organization vs hiring an in-house HR team. They offer cost savings through their ability to achieve economies of scale, but there are still costs tied to their services.
PEOs take on payroll, benefits administration, and more, allowing client companies to focus on strategic business operations. This partnership can provide access to HR outsourcing expertise.
However, it is essential to consider the potential downsides. Businesses may relinquish some control over their HR department and need to align with the PEO's policies. Additionally, the cost of services and shared liability in HR-related disputes are significant factors to weigh.
Ultimately, as the National Association of Professional Employer Organizations suggests, the decision should be carefully evaluated, considering both the benefits and the limitations.
Assess if a PEO is right for you with our Checklist.
Request a demo from Playroll to discover the most innovative solution for hiring global teams and relocating valuable talent, with comprehensive payroll and HR management services.
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 work is here to stay - and as the trend continues to gain momentum, the strength of a company's remote workforce can directly impact upward growth and business success. Businesses looking to expand their talent pool to global markets need to carefully navigate team building with a deep understanding of the cultural nuances, time zone differences, and flexibility practices that come with remote team management.
To support businesses looking to build a strong remote workforce, Playroll, a renowned global Employer of Record hosted an insightful webinar in collaboration with industry experts, Luke Fisher from Mo, Maimoona Sadi from Opteamize, and Louis Demeroulakos, Partnership Manager at Playroll. Panelists discussed the importance of building strong remote teams to drive organisational success, sharing expert insights and proven strategies that businesses can implement within their teams.
Remote work is reshaping conventional business practices prompting businesses to reconsider their hiring practices. Businesses are venturing beyond in-country hiring to explore the diverse pool of skilled talent the global marketplace has to offer and with this comes a wide range of benefits - let's explore them in more detail.
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While the shift to remote can unlock multiple benefits, remote team management is not without its challenges. Businesses looking to expand their workforce globally should be aware of these 4 keys challenges:
Despite the complexity of managing and scaling a remote workforce, business leaders and HR teams can successfully alleviate these challenges by implementing 4 key approaches - let's dive into them:
Discussing the challenge of team collaboration, Louis Demetroulakos, Partnership Manager at Playroll, provided valuable insights on improving team cohesion in remote settings. "Managing a remote team requires more structure. A clear team charter, outlining communication methods, conflict resolution, and meeting schedules, gives the team clarity and prevents meeting fatigue."
State tax residency refers to the legal resident status of an individual or business entity in a certain state. Each state has its own law-defined criteria for determining residency status. Understanding them is critical to staying legal and accessing many benefits while avoiding problems like double taxation.
There are also several factors that influence tax residency status. These factors vary between individuals or businesses, but the core concepts are similar.
● Domicile is the place an individual sees as their permanent home. These are places people intend to return to often, even if they are living somewhere else right now. Domicile can be established by maintaining a house, registering to vote, getting a driver’s license, and filing tax returns, among other options.
● The place where you work or the people with whom you maintain professional bonds may influence your tax residency status. The place where your immediate family resides may also be a factor.
● Spending time in some states can earn a state of residence. This is often earned by spending a minimum amount of time like 183 days of the tax year within the state’s borders.
● A business entity is a resident of the state where it's incorporated. This functions as a state of domicile and grants the company a resident status. Be aware that this may require some proof of residence, like business licenses, tax filings, or other official records.
● A company’s resident state might be where its main place of business is, such as its headquarters or where most of its operations occur.
● Companies that operate outside their state of incorporation may have to register in those states or obtain a foreign qualification. Once registered, the company must follow those states’ regulations.
Although domicile and residency are often the same, both are different concepts. While domicile is a person or company's permanent address, residency can be wherever the taxpayer spends time and performs activities. When it comes to taxation, their registered status impacts how much they’ll have to pay.
On that note, state law residency is important for taxation. Even part year residents are usually subject to state income tax on all income, regardless of its source. On the other hand, non-residents tend only to pay tax on income earned in that particular state.
Now that you understand tax residency better, it’s time to take the next step. Here are the most common challenges you can face when changing state residency for tax purposes.
Understand the tax rates and laws of both the current and new states. Next, follow the criteria, register, and present proof that you are a legal resident. Only then will you be able to pay your fees and file taxes to keep everything in order.
Filing your state taxes becomes more complex after a tax residency change. That’s because you're now dealing with another set of regulations and documents. You may even have to deal with tax returns in the previous and new states for the transition year.
Since you’re dealing with different state taxes, the risk of failing to comply is bigger. Lack of compliance can bring undesired consequences for individuals and businesses alike.
You’ll want to ensure your taxes are in order. You don’t want to lose money or face punishment after changing tax residency. So, you’ll need to plan your taxes beforehand, which can be time-consuming.
Timing the change in state tax residency and being up-to-date with your documentation is crucial. You must always be able to support your claim via lease agreements, vehicle registration, utility bills, etc. Be on the lookout to not miss a single deadline.
States may conduct audits to check your claimed residency status. Individuals and companies with discrepancies between residency and reported income are targeted more often. Be ready to present documents and avoid penalties and fines.
Failing to establish a new primary residence can lead to double taxation. In these cases, the person or business must pay taxes on their full income in both states: the previous and the new.
To ensure smooth sailing when navigating through tax residency change, you should establish a comprehensive tax residency transition plan. Using this article as a guide, you can prepare in advance and trace every step needed to optimize your transition.
We also recommend that you use the best available technologies for tax compliance and reporting. There are a number of user-friendly online tools that can help you or your business make your transition as easy as possible.
If you feel overwhelmed with all the information, consider collaborating with tax advisors and legal experts. They can analyze your case and help you with expertise and efficiency.
And never forget to adopt proactive measures to address any upcoming challenges. Leave no room for surprises.
Incorporation, principal place of business and foreigner qualification.
Establishing a tax residency transition plan, leveraging technology for tax compliance and reporting, using taxing advisors and legal experts, and adopting proactive measures to deal with upcoming challenges.
Playroll is your all-in-one global workforce management partner. Our expert team of HR professionals is ready to help you streamline your tax-related needs with our powerful SaaS solution. Don’t worry about all the legal hurdles: count on us. Request a demo today.
Argentina is ranked the top-most attractive country in Latin America, and the third in the world, from which to hire remote talents. The country has a vast pool of tech-savvy professionals, and the devaluation of the Argentine peso has left more workers looking for remote jobs outside the country.
Argentina has remote employment laws (Telework Employment Law No. 27,555) in place. Plus, the country has a highly skilled workforce with a strong work ethic, adaptability, and professionalism, and ranks top for English proficiency in Latin America. That makes for easy communication and collaboration with UK and US businesses.
Employers considering to hire and pay remote employees in Argentina can do so in three ways, including:
Best for: Blue Chips planning to establish a long-term presence and hire large remote teams in Argentina.
This involves establishing your own company in Argentina. You get direct access to the Argentina labor market, and the ability to hire and pay remote employees in Argentine peso (ARS).
However, setting shop in Argentina comes with many cons, including:
Best for: Businesses looking to hire and pay remote employees in Argentina for short-term projects or services.
Contractors work as independent entities. They pay their own employment taxes and aren’t entitled to benefits. Thus, paying remote employees as contractors offers flexibility and cost-saving avenues for employers.
However, engaging employees as contractors may expose your businesses to misclassification risks, which can bring damaging penalties. A contractor management service can help you hire, onboard, and pay contractors in Argentina without misclassification risks.
Best for: Businesses looking to quickly engage local talent in Argentina, lower hiring costs, and reduce legal and misclassification risks.
When considering how to hire and pay remote employees in Argentina, partnering with an EOR may be your best option. EORs work as legal entities in Argentina with in-depth knowledge of Argentina's labor laws and tax regulations.
A reputable EOR handles the employment aspects and payroll responsibilities on your behalf. They manage payroll, benefits administration, remote hiring and onboarding, and more. That helps build a compliant remote team in Argentina at minimal cost and without compliance hassles.
Preparing to hire remote employees in Argentina can be achieved through:
Understanding how to hire and pay remote employees in Argentina means sourcing top talent and conducting robust interviews to find the best fit for the role.
As you think about how to hire and pay remote employees in Argentina, legal and compliance considerations should be top of mind. The top things to consider include:
Understanding salary expectations and benefits is important to help employers structure and develop fair and competitive remote compensation packages. Below are the top salary and benefits considerations to keep in mind when determining how to hire and pay remote employees in Argentina.
Other employee rights and protections to consider include holidays, severance pay, sick leave, termination notice periods, and more.
Remote work in Argentina is expected to continue as the country struggles with high inflation rates and the devaluation of the Argentine Peso (ARS). Employers should leverage the vast remote talent pool in Argentina as more workers seek currency stability by earning in USD and EUR.
Playroll is a Global Employer of Record (EOR) with local entities in Argentina. We help you hire, onboard, and pay remote employees in Argentina, ensuring compliance with employment laws and payroll regulations in the country. Book a demo today.
Establishing clear communication channels and collaboration tools is the best way to ensure effective connections with remote employees. That entails using instant messaging apps, video conferencing, email, shared documents, and collaborative project management platforms.
Ensure that remote employee benefits and perks comply with Telework Employment Law and Argentina labor laws relating to minimum wage, working hours, paid time off, overtime pay, holidays, and more. Working with a reputable EOR can help streamline benefits administration.
Various ways to address cultural barriers include cultural awareness training, cultural sensitivity and respect, and cultural integration initiatives, like the celebration of Argentina's cultural events, holidays, and traditions.
To solve language barriers, Employers should assess the language skills and proficiency of potential remote employees, or support bilingual communication in English and Spanish.
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