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Global HR

Discover the latest tips and strategies for hiring remote workers and global HR management.

The Benefits And Challenges Of Hiring International Employees

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.

The Benefits Of Hiring Global Talent

When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:

Better diversity in teams

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.

Access to wider talent pools

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. 

More affordable talent 

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. 

Increased employee satisfaction

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.

How TecEx Used Playroll To Double Their Global Team And Boost Employee Satisfaction

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.”

  • Kyle Tristan Telfer, CEO, TecEx

Learn more about TecEx’s global growth, made possible by Playroll

The Challenges And Risks Of Hiring Global Talent

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:

The hiring cost in new markets

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.

Aspect Playroll Own Legal Entities
An Employer Of Record vs. Own Legal Entities
Cost From $399/month for employees and $35/month for contractors. An estimated $20k+ in set up costs and $50K+ in operating costs per location.
Compliance As the employer of record, Playroll assumes all compliance risks. The company takes on full responsibility to comply with local labor laws.
Time Launch in a new market within minutes, and onboard team members within 24 hours. 4-6 months to set up and build a team.
Support A team of HR, legal and finance experts are available to support you at any time, in 180+ regions. Find and manage your own HR, legal, finance experts in every new market you enter.

Staying compliant with local labor laws

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.

Avoiding permanent establishment 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. 

Setting up payroll administration 

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.

Fair employee benefits administration

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.

Cybersecurity risk management

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.

3 Ways To Hire Remote Workers

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:

  1. Hire independent contractors
  2. Establish a Legal Entity
  3. Use an Employer of Record

Hire Independent Contractors

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:

  • Completing short-term projects
  • Tapping into the expertise of specialists based around the globe
  • Paying less mandatory employment taxes and benefits

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:

Aspect Employees Contractors
Relationship With Employer The employer sets the work hours, responsibilities and work location. The contractor has more flexibility over their work hours and work location, and can work for multiple clients.
Nature Of Work Long-term in duration, with no specified end date to the working relationship. The work is often more integral to core business needs. Short-term project work for a specified duration, for example 6 months. The work is less integral to core business needs.
Payment A regular salary with benefits. Per project, per hour or on a flat-fee basis, and is usually not entitled to benefits.
Integration With Team Culture Employees are fully integrated in your team culture. Since they operate independently of your organization, contractors are not as integrated in your team culture.

Establish a legal entity

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.

Use an Employer Of Record

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.

What is an Employer of Record Platform?

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:

  • Set up employee contracts that are compliant with local employment laws
  • Conduct automated payroll in multiple currencies
  • Manage the administration of competitive, local benefits
  • They can also help you navigate permanent establishment risk and make sure you are compliant with all required employee and employer taxes in new regions.

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. 

When Should Companies Use An Employer of Record Platform? 

Some of the most common reasons it might be time to use an Employer Of Record include:

  • You want to test new markets and have the ability to easily withdraw from the market if it doesn’t fulfill your expectations. With an EOR, you can do this without the prohibitive costs associated with setting up, then closing down, an entity. 
  • You want to make your first international hires in a new region, and can’t justify setting up an entity for a handful of employees. If you do reach the point of having enough employees to set up an entity, a flexible EOR such as Playroll can also assist with transferring  employees from their own entities to client-owned entities.
  • Easily converting contractors to full time employees, without requiring the contractor to relocate to the country where your business is located.
  • You want to offer your employees the freedom to work remotely, from any location.

How To Choose The Right Employer of Record Solution For Your Remote Workforce

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.

How To Set Up Your Business For a Remote Workforce

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.

Decide on a global compensation strategy

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. 

Do thorough compensation benchmarking 

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:

  • Use Playroll’s free employee cost calculator to compare total employer costs in different markets, and get a detailed breakdown of required contributions in 180+ regions.
  • Get an accurate idea of the cost of living in different regions using tools such as Numbeo.

Source global talent

To source remote workers in new markets, make use of the following strategies:

  • Leverage local recruitment platforms that specialize in sourcing global talent. An Employer Of Record like Playroll can also introduce you to their global talent network to ease the process.
  • Implement referral programs that make use of your existing employee’s networks, and reward employees for introducing you to quality talent that adds to your culture. This can be especially useful when expanding to new markets.

Calculate Your Employment Costs With Playroll

Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.

Calculate Costs

Steps For A Hiring Process That Attracts Global Talent

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.

Tailor your hiring approach to the region

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.

Have a thorough job description and be clear in communication

Be clear in your job description about the nature of the role, such as:

  • Whether it’s fully remote or hybrid, if you have an office in the country.
  • Where your various teams are based and who the successful candidate will be reporting to.

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.

Interviewing remote candidates

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: 

  • Ensure both parties have a strong internet connection, and include the interview link in all meeting invitations. 
  • Double check time zones and that you and the candidate have the same understanding on when your interview will take place.

Sending an offer to remote 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:

  • The work schedule: minimum working hours and overtime
  • Annual leave and public holidays
  • Salary and wages, as well as benefits and contributions
  • Employer taxes
  • Notice periods 
  • Intellectual property

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.

How to Cultivate a Strong Remote Team Culture

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:

Set up efficient  employment management software

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:

  • HR and financial management software such as BambooHR and Workday
  • Communication tools such as Slack or Microsoft Teams
  • Project management tools such as Trello, Asana or Monday.com

Set priorities and check-in regularly

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.

Make extra effort with connection

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:

  • Be extra conscious of making deliberate time to connect with your team members – for example, sending a message if you notice a team member being more quiet or stressed than usual can go a long way to foster genuine human connections. Give your team the space to connect with one another, whether that’s through your regular team cadences or dedicated remote team events.
  • Acknowledge important days like birthdays or work anniversaries, and be deliberate in giving recognition when team milestones are reached or you notice a job well done. 

Take care of work-life balance

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.

Encourage flexibility and trust

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.

Facilitate onboarding for new hires

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.

Arrange security training  

As a business, your data is only safe if every employee helps safeguard it. When working with international employees:

  • Arrange training on the use of VPNs to ensure secure remote connections.
  • Educate employees on cybersecurity best practices and common threats such as malware and phishing attempts.
  • Train employees on best practices when it comes to sensitive company and client information, for example being compliant with GDPR regulations if you’re operating in Europe.

Pay attention to cultural sensitivity and inclusion

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.

Building A Remote Team With Playroll

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:

  • As your partner in international hiring, Playroll will handle onboarding, payment and benefits management in new regions, freeing up your time to focus on your business and connecting with your team.
  • No need to establish foreign subsidiaries – we have a network of legal entities in 180+ regions to leverage on your behalf, and can advise you on the intricacies of hiring in every one of those countries.
  • Avoid misclassification risk and use Playroll to compliantly hire and manage your contractors, no matter where they’re based.
  • Built-in compliance and IP protection for your employment contracts.
  • A team of legal, financial and HR experts to advise you every step of the way

Read Time

July 26, 2024

The Ultimate Guide to Hire Remote Workers In 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.

Global HR

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. 

1. Stagnation in Career Path

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. 

2. Quest For Better Work-life Balance

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. 

3. Inadequate compensation

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.

4. Running Away from a Toxic Work Environment

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.

5. Feeling Undervalued Leads to Employee Departures

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. 

6. Ineffective Leadership

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.

7. Absence of Ongoing Professional Development

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.

8. Misalignment With Job Roles or Feeling Undervalued

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. 

9. Competitive Pressures and Industry Standards 

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.

10. Misalignment with Personal Values and Company Mission

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.

Why Employee Retention Matters

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.

Request a demo today

FAQs

What is the most effective strategy for reducing employee turnover?

Implementing flexible work policies and ensuring competitive compensation are among the most effective strategies for reducing turnover.

How can HR departments identify signs of a toxic work environment?

Regular employee feedback sessions and anonymous surveys can help HR identify signs of toxicity, such as high absenteeism and low engagement.

The Remote Working Shift

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.

Top 7 Must-Have Remote Management Tools

This article covers the seven types of remote administration tools for businesses in 2024 and beyond.

Communication and Collaboration Tools

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:

  • Zoom
  • Microsoft Teams
  • Google Meet
  • Slack
  • Google Chat

Project Management and Task Tracking Tools

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:

  • Trello
  • Jira
  • Asana
  • Monday.com

Time Tracking and Productivity Tools

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:

  • Timeular
  • Toggl Track
  • Monday.com
  • Buddy Punch

Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.

File Sharing and Cloud Storage Tools

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:

  • Google Workspace
  • Dropbox
  • Microsoft 365
  • Livedrive
  • Box
  • iCloud Drive

Remote Desktop and Access Tools

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:

  • TeamViewer
  • AnyDesk
  • RemotePC
  • Dameware

Employee Monitoring and Productivity Tools

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:

  • ActivTrak
  • DeskTime
  • StaffCop Enterprise
  • Traqq
  • Controlio

Security and Data Protection Tools

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:

  • HashiCorp Vault
  • FortiGate Next-Generation Firewall
  • Egnyte
  • Check Point Software Technologies
  • Google Apigee Sense

Integrating Remote Management Tools With Playroll

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.

Why Should You Hire Overseas Employees?

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:

  • Larger talent pools: Hiring globally expands your candidate pool, bringing in diverse skills and experiences from around the world to find the best talent regardless of location.
  • Increased diversity: Embracing global hiring increases cultural, ethnic and gender diversity in your team, in turn boosting creativity, problem-solving and business profitability, according to a McKinsey report.
  • Higher employee satisfaction with remote work: Remote work boosts satisfaction and productivity, with a growing preference for better work-life balance and reduced commuting stress.
  • Cost savings: Hiring in regions with a lower cost of living can help you stay within budget for your roles while still accessing high-quality talent.
  • Growing your global presence and better market insights: A diverse team across regions provides local market insights and cultural understanding, which is crucial for global expansion.
  • Flexible workforce management: Operating globally allows round-the-clock operations and better customer service, leveraging different time zones for continuous support.

How To Choose Countries When Hiring Remotely

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:

  • High levels of education: Hiring from regions known for their strong educational backgrounds ensures you have access to highly skilled professionals.
  • Good infrastructure: Reliable infrastructure, including top-notch internet connectivity and modern communication networks, helps your remote team to collaborate seamlessly.
  • Cost of living and employee benefits: Evaluate the cost of living and factors such as statutory employee benefits and employer taxes in each region, to get an idea of the cost of an employee in that region. For example, hiring in countries with lower cost of living and a lower cost to the employer can help you save on hiring costs. Use tools like Playroll's cost calculator to compare and optimize your employer costs effectively.
  • Shared time zones: Time zone alignment fosters real-time collaboration and can help your global team operate more efficiently.
  • Availability of digital nomad visas: Regions offering digital nomad visas or attractive tax incentives not only attract skilled remote workers but also creates a more supportive environment for your team.
  • Appetite for remote work: Embrace regions with a strong appetite for remote work, meaning your team members are motivated and committed to achieving shared goals no matter where they are.
  • Quality of lifestyle: Consider regions that offer a good lifestyle for employees, with access to many natural landscapes, vibrant urban centers, and diverse cultural experiences.
  • Political stability and safety: Choose regions known for their stability and safety, providing a secure environment for your team.
  • English proficiency: Ensure effective communication by selecting regions where employees have strong English proficiency or the necessary language skills to collaborate across borders and cultures.
  • Strong legal frameworks: Prioritize regions that protect remote workers' rights and have robust employment regulations. This creates a supportive and compliant work environment for your team to thrive.

Top 10 Countries to Hire International Employees

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:

1. Germany

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.

2. The United States

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.

3. Portugal

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.

4. Singapore

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.

5. Canada

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.

6. Australia

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.

7. Japan

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.

8. South Africa

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.

9. The Netherlands

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.

10. South Korea

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.

Up And Coming Countries for Remote Work

Several countries are actively implementing remote-friendly policies to facilitate the hiring of international employees. Notable examples include: 

Estonia

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

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

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

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

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

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.

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How Playroll Can Help You Hire International Employees

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.

#1: Classify: Remote Employees or Independent Contractors?

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:

  • Have set working hours
  • Work exclusively for the employer
  • Perform services in the way the employer specifies
  • Earn regular salaries or wages
  • Need benefits 
  • Have part of their earnings deducted by the employer for tax purposes

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.

How to recruit people from outside the uk red sign idea

#2: Preparing for Takeoff: Remote-First Onboarding

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.

#3: Get Compliant: Local Tax and Labour Regulations

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:

  • Termination procedures: notice periods, grounds for dismissal
  • Health insurance and pension contributions
  • Maternity (sometimes paternity, too) leave

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.

#4: Prepare for Remote Payroll

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.

Latest

Global HR

Read Time

September 20, 2024

The Remote Working Shift

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.

Top 7 Must-Have Remote Management Tools

This article covers the seven types of remote administration tools for businesses in 2024 and beyond.

Communication and Collaboration Tools

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:

  • Zoom
  • Microsoft Teams
  • Google Meet
  • Slack
  • Google Chat

Project Management and Task Tracking Tools

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:

  • Trello
  • Jira
  • Asana
  • Monday.com

Time Tracking and Productivity Tools

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:

  • Timeular
  • Toggl Track
  • Monday.com
  • Buddy Punch

Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.

File Sharing and Cloud Storage Tools

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:

  • Google Workspace
  • Dropbox
  • Microsoft 365
  • Livedrive
  • Box
  • iCloud Drive

Remote Desktop and Access Tools

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:

  • TeamViewer
  • AnyDesk
  • RemotePC
  • Dameware

Employee Monitoring and Productivity Tools

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:

  • ActivTrak
  • DeskTime
  • StaffCop Enterprise
  • Traqq
  • Controlio

Security and Data Protection Tools

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:

  • HashiCorp Vault
  • FortiGate Next-Generation Firewall
  • Egnyte
  • Check Point Software Technologies
  • Google Apigee Sense

Integrating Remote Management Tools With Playroll

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.

Global HR

Read Time

July 26, 2024

The Benefits And Challenges Of Hiring International Employees

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.

The Benefits Of Hiring Global Talent

When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:

Better diversity in teams

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.

Access to wider talent pools

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. 

More affordable talent 

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. 

Increased employee satisfaction

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.

How TecEx Used Playroll To Double Their Global Team And Boost Employee Satisfaction

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.”

  • Kyle Tristan Telfer, CEO, TecEx

Learn more about TecEx’s global growth, made possible by Playroll

The Challenges And Risks Of Hiring Global Talent

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:

The hiring cost in new markets

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.

Aspect Playroll Own Legal Entities
An Employer Of Record vs. Own Legal Entities
Cost From $399/month for employees and $35/month for contractors. An estimated $20k+ in set up costs and $50K+ in operating costs per location.
Compliance As the employer of record, Playroll assumes all compliance risks. The company takes on full responsibility to comply with local labor laws.
Time Launch in a new market within minutes, and onboard team members within 24 hours. 4-6 months to set up and build a team.
Support A team of HR, legal and finance experts are available to support you at any time, in 180+ regions. Find and manage your own HR, legal, finance experts in every new market you enter.

Staying compliant with local labor laws

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.

Avoiding permanent establishment 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. 

Setting up payroll administration 

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.

Fair employee benefits administration

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.

Cybersecurity risk management

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.

3 Ways To Hire Remote Workers

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:

  1. Hire independent contractors
  2. Establish a Legal Entity
  3. Use an Employer of Record

Hire Independent Contractors

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:

  • Completing short-term projects
  • Tapping into the expertise of specialists based around the globe
  • Paying less mandatory employment taxes and benefits

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:

Aspect Employees Contractors
Relationship With Employer The employer sets the work hours, responsibilities and work location. The contractor has more flexibility over their work hours and work location, and can work for multiple clients.
Nature Of Work Long-term in duration, with no specified end date to the working relationship. The work is often more integral to core business needs. Short-term project work for a specified duration, for example 6 months. The work is less integral to core business needs.
Payment A regular salary with benefits. Per project, per hour or on a flat-fee basis, and is usually not entitled to benefits.
Integration With Team Culture Employees are fully integrated in your team culture. Since they operate independently of your organization, contractors are not as integrated in your team culture.

Establish a legal entity

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.

Use an Employer Of Record

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.

What is an Employer of Record Platform?

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:

  • Set up employee contracts that are compliant with local employment laws
  • Conduct automated payroll in multiple currencies
  • Manage the administration of competitive, local benefits
  • They can also help you navigate permanent establishment risk and make sure you are compliant with all required employee and employer taxes in new regions.

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. 

When Should Companies Use An Employer of Record Platform? 

Some of the most common reasons it might be time to use an Employer Of Record include:

  • You want to test new markets and have the ability to easily withdraw from the market if it doesn’t fulfill your expectations. With an EOR, you can do this without the prohibitive costs associated with setting up, then closing down, an entity. 
  • You want to make your first international hires in a new region, and can’t justify setting up an entity for a handful of employees. If you do reach the point of having enough employees to set up an entity, a flexible EOR such as Playroll can also assist with transferring  employees from their own entities to client-owned entities.
  • Easily converting contractors to full time employees, without requiring the contractor to relocate to the country where your business is located.
  • You want to offer your employees the freedom to work remotely, from any location.

How To Choose The Right Employer of Record Solution For Your Remote Workforce

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.

How To Set Up Your Business For a Remote Workforce

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.

Decide on a global compensation strategy

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. 

Do thorough compensation benchmarking 

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:

  • Use Playroll’s free employee cost calculator to compare total employer costs in different markets, and get a detailed breakdown of required contributions in 180+ regions.
  • Get an accurate idea of the cost of living in different regions using tools such as Numbeo.

Source global talent

To source remote workers in new markets, make use of the following strategies:

  • Leverage local recruitment platforms that specialize in sourcing global talent. An Employer Of Record like Playroll can also introduce you to their global talent network to ease the process.
  • Implement referral programs that make use of your existing employee’s networks, and reward employees for introducing you to quality talent that adds to your culture. This can be especially useful when expanding to new markets.

Calculate Your Employment Costs With Playroll

Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.

Calculate Costs

Steps For A Hiring Process That Attracts Global Talent

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.

Tailor your hiring approach to the region

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.

Have a thorough job description and be clear in communication

Be clear in your job description about the nature of the role, such as:

  • Whether it’s fully remote or hybrid, if you have an office in the country.
  • Where your various teams are based and who the successful candidate will be reporting to.

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.

Interviewing remote candidates

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: 

  • Ensure both parties have a strong internet connection, and include the interview link in all meeting invitations. 
  • Double check time zones and that you and the candidate have the same understanding on when your interview will take place.

Sending an offer to remote 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:

  • The work schedule: minimum working hours and overtime
  • Annual leave and public holidays
  • Salary and wages, as well as benefits and contributions
  • Employer taxes
  • Notice periods 
  • Intellectual property

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.

How to Cultivate a Strong Remote Team Culture

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:

Set up efficient  employment management software

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:

  • HR and financial management software such as BambooHR and Workday
  • Communication tools such as Slack or Microsoft Teams
  • Project management tools such as Trello, Asana or Monday.com

Set priorities and check-in regularly

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.

Make extra effort with connection

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:

  • Be extra conscious of making deliberate time to connect with your team members – for example, sending a message if you notice a team member being more quiet or stressed than usual can go a long way to foster genuine human connections. Give your team the space to connect with one another, whether that’s through your regular team cadences or dedicated remote team events.
  • Acknowledge important days like birthdays or work anniversaries, and be deliberate in giving recognition when team milestones are reached or you notice a job well done. 

Take care of work-life balance

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.

Encourage flexibility and trust

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.

Facilitate onboarding for new hires

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.

Arrange security training  

As a business, your data is only safe if every employee helps safeguard it. When working with international employees:

  • Arrange training on the use of VPNs to ensure secure remote connections.
  • Educate employees on cybersecurity best practices and common threats such as malware and phishing attempts.
  • Train employees on best practices when it comes to sensitive company and client information, for example being compliant with GDPR regulations if you’re operating in Europe.

Pay attention to cultural sensitivity and inclusion

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.

Building A Remote Team With Playroll

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:

  • As your partner in international hiring, Playroll will handle onboarding, payment and benefits management in new regions, freeing up your time to focus on your business and connecting with your team.
  • No need to establish foreign subsidiaries – we have a network of legal entities in 180+ regions to leverage on your behalf, and can advise you on the intricacies of hiring in every one of those countries.
  • Avoid misclassification risk and use Playroll to compliantly hire and manage your contractors, no matter where they’re based.
  • Built-in compliance and IP protection for your employment contracts.
  • A team of legal, financial and HR experts to advise you every step of the way
Global HR

Read Time

July 11, 2024

Why Should You Hire Overseas Employees?

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:

  • Larger talent pools: Hiring globally expands your candidate pool, bringing in diverse skills and experiences from around the world to find the best talent regardless of location.
  • Increased diversity: Embracing global hiring increases cultural, ethnic and gender diversity in your team, in turn boosting creativity, problem-solving and business profitability, according to a McKinsey report.
  • Higher employee satisfaction with remote work: Remote work boosts satisfaction and productivity, with a growing preference for better work-life balance and reduced commuting stress.
  • Cost savings: Hiring in regions with a lower cost of living can help you stay within budget for your roles while still accessing high-quality talent.
  • Growing your global presence and better market insights: A diverse team across regions provides local market insights and cultural understanding, which is crucial for global expansion.
  • Flexible workforce management: Operating globally allows round-the-clock operations and better customer service, leveraging different time zones for continuous support.

How To Choose Countries When Hiring Remotely

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:

  • High levels of education: Hiring from regions known for their strong educational backgrounds ensures you have access to highly skilled professionals.
  • Good infrastructure: Reliable infrastructure, including top-notch internet connectivity and modern communication networks, helps your remote team to collaborate seamlessly.
  • Cost of living and employee benefits: Evaluate the cost of living and factors such as statutory employee benefits and employer taxes in each region, to get an idea of the cost of an employee in that region. For example, hiring in countries with lower cost of living and a lower cost to the employer can help you save on hiring costs. Use tools like Playroll's cost calculator to compare and optimize your employer costs effectively.
  • Shared time zones: Time zone alignment fosters real-time collaboration and can help your global team operate more efficiently.
  • Availability of digital nomad visas: Regions offering digital nomad visas or attractive tax incentives not only attract skilled remote workers but also creates a more supportive environment for your team.
  • Appetite for remote work: Embrace regions with a strong appetite for remote work, meaning your team members are motivated and committed to achieving shared goals no matter where they are.
  • Quality of lifestyle: Consider regions that offer a good lifestyle for employees, with access to many natural landscapes, vibrant urban centers, and diverse cultural experiences.
  • Political stability and safety: Choose regions known for their stability and safety, providing a secure environment for your team.
  • English proficiency: Ensure effective communication by selecting regions where employees have strong English proficiency or the necessary language skills to collaborate across borders and cultures.
  • Strong legal frameworks: Prioritize regions that protect remote workers' rights and have robust employment regulations. This creates a supportive and compliant work environment for your team to thrive.

Top 10 Countries to Hire International Employees

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:

1. Germany

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.

2. The United States

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.

3. Portugal

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.

4. Singapore

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.

5. Canada

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.

6. Australia

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.

7. Japan

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.

8. South Africa

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.

9. The Netherlands

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.

10. South Korea

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.

Up And Coming Countries for Remote Work

Several countries are actively implementing remote-friendly policies to facilitate the hiring of international employees. Notable examples include: 

Estonia

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

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

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

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

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

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.

Get Free Hiring Guides

Explore our country hiring guides for 180+ regions, covering everything from leave and benefits to payroll.

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How Playroll Can Help You Hire International Employees

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.

Global HR

Read Time

June 6, 2024

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.

Pros Description Cons Description
HR Expertise and Support Access to top-tier HR knowledge and compliance with evolving laws. Handles all HR responsibilities and workplace conflicts. Loss of Full Control Businesses give up some control over HR functions and must align with PEO policies.
Attracting and Retaining Top Talent Provides competitive benefits, surpassing those of large enterprises, boosting employee satisfaction and loyalty. Flexibility Concerns Standard HR practices of PEOs may not fit all business types.
Payroll Processing and Tax Compliance Streamlines payroll management and ensures accurate tax calculations, reducing administrative burden and errors. Shared Liability PEOs and businesses share liability in HR-related disputes.
Risk Management and Compliance Assistance Manages employment-related risks, workers' compensation, claims administration, and ensures legal compliance. Cost Considerations While cost savings are achieved, businesses need to consider the costs of PEO services vs. hiring in-house HR.
Time Efficiency Allows businesses to focus on strategic aspects by handling time-intensive HR tasks.
Cost Savings Achieves economies of scale, resulting in reduced rates for employee benefits.

Pros of Partnering with a Professional Employer Organization 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. 

1. Attracting and Retaining Top Talent

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.

2. Payroll Processing and Tax Compliance

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.

3. Risk Management and Compliance Assistance

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. 

4. Time Efficiency

Partnering with a PEO typically allows businesses to focus more on strategic and operational aspects by handing over administrative and time-intensive HR tasks.

5. Cost Savings

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.

Cons of Partnering with a PEO Professional Employer Organization

1. Loss of Full Control

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.

2. Flexibility Concerns

In some instances, the standard HR practices offered by a PEO may not align with certain business types. 

3. Shared Liability

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. 

4. Cost Considerations

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.

Decoding the Co-Employment Relationship

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.

Global HR

Read Time

May 22, 2024

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. 

1. Stagnation in Career Path

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. 

2. Quest For Better Work-life Balance

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. 

3. Inadequate compensation

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.

4. Running Away from a Toxic Work Environment

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.

5. Feeling Undervalued Leads to Employee Departures

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. 

6. Ineffective Leadership

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.

7. Absence of Ongoing Professional Development

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.

8. Misalignment With Job Roles or Feeling Undervalued

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. 

9. Competitive Pressures and Industry Standards 

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.

10. Misalignment with Personal Values and Company Mission

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.

Why Employee Retention Matters

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.

Request a demo today

FAQs

What is the most effective strategy for reducing employee turnover?

Implementing flexible work policies and ensuring competitive compensation are among the most effective strategies for reducing turnover.

How can HR departments identify signs of a toxic work environment?

Regular employee feedback sessions and anonymous surveys can help HR identify signs of toxicity, such as high absenteeism and low engagement.

Global HR

Read Time

April 30, 2024

Key Takeaways

  • Remote work is transforming the business landscape. Expanding abroad allows businesses to access a wider pool of skilled talent, offering increased flexibility and the ability to scale business operations rapidly.
  • To build strong remote teams, businesses need to implement strategies and tools that foster remote team collaboration.
  • While the world of remote work is full of opportunity, building a strong remote workforce can be challenging. To navigate global talent expansion effectively, businesses must be aware of the impact that time zone differences, lack of face-to-face interaction and inefficient talent onboarding can have on remote team success.
  • Remote work settings can lead to loneliness and disengaged team members, and  leaders need to make a conscious effort to implement strategies and tools to promote improved employee engagement, build trust and support cross-team collaboration.

Expert Panel Explores Strategies for Building Strong Remote Teams

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 MoMaimoona 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.

How Remote Work is Transforming the Business Landscape

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.

  • A richer pool of talent: One of the primary benefits of remote work is its ability to open up a broader pool of talent for organizations. Businesses can now expand their talent search beyond their borders, accessing skilled professionals that might not be available locally and allowing them to hire fit-for-purpose talent anywhere in the world.
  • Versatility and scalability: Businesses that need to adapt quickly to market and project demands can easily upsize and downsize their teams with a remote workforce.
  • Diversity and inclusion: Hiring international employees with unique cultural backgrounds and experiences, can drive business innovation, boost creativity, and unlock fresh perspectives on complex business problems.
  • Cost-effective talent: Companies that are headquartered in higher-cost geographical locations, can optimise their talent acquisition costs by hiring highly skilled talent in lower-costs regions.

The Challenge of Remote team Management

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:

  1. Navigating time zone differences. Managing team members in different geographical locations leads to time zone differences, which may impact cross-team collaboration and effective team synchronisation. Scheduling meetings to align cross-functionally can become overwhelming and ineffective if not managed effectively.
  2. Lack of physical presence. With improper management, the lack of face-to-face interaction readily available within in-office settings can strip team members of the close connections needed to build strong working relationships, potentially leading to feelings of isolation and detachment. Businesses looking to build a remote workforce should be aware of this potential hurdle before embarking on expansive global hiring projects.
  3. Effective onboarding and training. Onboarding international employees can be a challenging task without effective and well-structured onboarding processes. Helping new remote employees easily understand their roles and responsibilities and assimilate into a global team requires robust onboarding and training programmes.
  4. Team building and cross-functional collaboration. Before considering the global talent marketplace, businesses should prepare to implement proactive team building programmes. Maintaining team cohesion and camaraderie within remote settings requires a more intentional approach to team building that often involves elevating the frequency of team-building initiatives.

4 Expert Tips to Master the Art of Remote Teamwork

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:

  1. Foster a culture of trust. As a business expands, building trust becomes the cornerstone for success and the foundation of effective remote team management. With a more dispersed workforce, the interaction patterns that would normally play out in an on-office setting are missing and virtual meetings are easily deprived of the meaningful connection that supports psychological safety. Business leaders and HR professionals need to lean on methods that create space for their employees to table problems and actively engage. Implementing small changes to interaction habits like ensuring remote employees turn their cameras on and actively engage in conversation during virtual meetings can go a long way in building trusting relationships.
  2. Create a compelling remote team culture. While remote work can be a compelling method for global expansion, the cultural hub that manifests between meetings in an in-office setting, like the informalities of an impromptu coffee chat, are missing. Businesses can intentionally introduce more "Informal moments" in remote teams like virtual social events, remote team-building exercises, and engaging online activities.
  3. Establish clear expectations. It is commonplace for messages to get lost in translation when working in remote settings. With team members dispersed across different locations and the introduction of varying time zones, misinterpretations are bound to occur. This can lead to missed deadlines and potentially decreased team productivity, which is why it is important for HR professionals and business leaders to establish clear expectations regarding productivity, deadlines, and communication, to ensure that all team members are accountable and can deliver their best. By implementing effective communication channels, regular engagement and discussions, and encouraging feedback and input, businesses can set their remote teams up to thrive.
  4. Facilitate remote team collaboration. To build cohesion and foster better team collaboration, business leaders and HR professionals need to make communication resources available such as video conferencing tools, instant messaging platforms and email to simplify communication that helps support cross-team collaboration.

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."

How Playroll Can Help Transform Your Remote Workforce

  • Launch new Markets fast. Playroll helps your business bypass the challenging parts of global hiring, like navigating local tax regulations and labour laws in over 180 countries so you can effortlessly expand your workforce to new markets in days, not weeks.
  • Efficiently onboard remote employees, with streamlined onboarding processes, and transparent team tracking capabilities that let you know where your employees are in their onboarding journey.
  • Spend less time on payroll. With Playroll's easy-to-use platform, you can effortlessly pay your global workforce in their local currencies, on time, every time.
  • Offer competitive and local benefits. Playroll simplifies the process of managing a global team. Employers can compliantly meet local requirements and offer competitive benefits that help talent feel valued and motivated to grow your business.
Global HR

Read Time

March 21, 2024

Understanding State Tax Residency

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.

For Individuals

●  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.

For Businesses

●  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.

Differences between domicile and tax residency

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.

7 Common Challenges in State Tax Residency Changes

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.

1. Residency Requirements

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.

2. Tax Filing Complexities

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.

3. Compliance Risks

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.

4. Tax Planning and Optimization

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.

5. Timing and Documentation

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.

6. Residency Audits

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.

7. Double Taxation

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. 

Solutions and Best Practices

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.

Tax Residency FAQs

What primary factors should businesses consider when determining their state tax residency?

Incorporation, principal place of business and foreigner qualification.

What strategies or best practices can businesses employ to minimize the tax implications and risks of changing their state tax residency?

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.

About Playroll

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.

Global HR

Read Time

March 12, 2024

Hire and Pay Remote Employees in Argentina

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.

How to Pay Someone in Argentina

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. 

3 Ways to Hire and Pay Remote Employees in Argentina

Employers considering to hire and pay remote employees in Argentina can do so in three ways, including:

  • Setting up a foreign entity
  • Engaging contractors
  • Working with an Employer of Record(EOR)

Setting up a foreign entity

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:

  • A time time-consuming and expensive process that may take months
  • Complex regulatory framework and extensive red tape
  • Language and cultural barriers
  • Strenuous banking procedures
  • Burdensome and unpredictable taxes
  • Stringent labor laws
  • Economic and political instability
  • High inflation rate of 200%+
  • Dual-Rate currency exchange
  • Strong labor market unions, like the  General Confederation of Labor

Pay workers as contractors

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.

Partner with an Employer of Record (EOR)

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

Preparing to hire remote employees in Argentina can be achieved through:

  • Defining clear job roles and requirements – outlining the specific skills and expertise required. 
  • Crafting compelling job descriptions – highlighting remote work responsibilities, company culture,  employee growth opportunities, etc
  • Establishing recruitment strategies – leveraging popular remote work platforms like Zonajobs, local job boards, and professional networks like LinkedIn.

Recruiting Remote Talent in Argentina

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. 

  • Identifying talent sources and platforms: Bumeran, LinkedIn, Zonajobs, Laborum, and Snaphunt are some of the top platforms for searching for talent in Argentina.
  • Conducting effective interviews: Assess the candidate's professional skills, experience, self-motivation, and ability to manage time and work independently in a home office setup.
  • Assess cultural fit and language proficiency

Navigating Legal and Compliance Considerations

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:

  • Taxation and social security obligations: Argentina tax regulations require employers to withhold and submit Social Security contributions and employee income tax on behalf of their employees.
  • Compliance with Argentine labor laws: Working with a reliable Employer of Record (EOR) is the best way to navigate the complex employment and tax regulations in Argentina and ensure compliance.

Structuring Remote Employee Compensation

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.

  • Argentina minimum wage: The National Minimum Wage in Argentina is about ARS 65,427, roughly US$281 per month. There's also a 13th-month pay in Argentina, which equals 50% of the employee's salary.
  • Overtime: Employees receive 50% of their normal salary as overtime and 100% on work done during holidays or a rest period.
  • Paid time off: Employees are entitled to receive up to 35 days of paid time off.
  • Maternity and parental leave: 90 days of maternity leave.

Other employee rights and protections to consider include holidays, severance pay, sick leave, termination notice periods, and more.

Looking Ahead: Future Trends and Opportunities

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.

How to hire and pay remote employees in Argentina FAQs

How can we ensure effective communication and collaboration with remote employees in Argentina?

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.

What are the best practices for handling remote employee benefits and perks in Argentina?

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.

How do we address cultural differences and language barriers when hiring remote employees in Argentina?

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.

Global HR

Read Time

March 11, 2024

In-house Payroll vs Outsourcing

According to Cybercrew, 61% of British businesses use outsourced payroll services. 

Running payroll in-house and outsourcing each have their benefits, and the one you choose depends on your specific business needs and preferences. Understanding the pros and cons of in-house payroll vs outsourcing can help business owners choose the right payroll solution.

Understanding In-House Payroll

In-house payroll entails managing payroll functions internally. A business hires a payroll expert or team to run payroll using company resources. These are usually bookkeepers, accountants, or HR personnel working in finance or HR departments.

Pros of In-House Payroll Cons of In-House Payroll
Full control over payroll processing with the ability to customize procedures as needed. Costs include wages, software installation and maintenance, and training. Median annual salary for an accountant is $78,000 (excluding benefits).
Direct storage and access to sensitive employee data like social security numbers and bank details. Payroll processing is time-consuming, with estimates of around 5 hours spent every pay period.
May be cost-effective for businesses with employees knowledgeable in payroll calculations. Prone to errors and compliance risks, with businesses receiving nearly 3x as many fines for errors and non-compliance.

Exploring Outsourcing Payroll

With outsourced payroll services, you partner with a payroll service provider to manage administrative and compliance payroll tasks on your behalf. You can choose to delegate the entire payroll process or specific tasks.

Pros of Outsourcing Payroll Cons of Outsourcing Payroll
Outsourcing payroll frees up time and resources for other revenue-generating activities. Loss of direct control over the payroll process and operations.
Access to experts in tax laws and labor regulations, ensuring a compliant payroll process and reducing non-compliance fines. Dependency on the service provider for storing and managing employee payroll data, making it hard to change providers.
Easy scaling to new features as your business grows, fitting changing payroll requirements. Potential communication delays and security risks due to lack of direct control over data security and issues with provider communication.

Factors Influencing Choice of In-house Payroll vs Outsourcing

There are several factors that businesses should consider when deciding between in-house payroll and outsourcing. The top ones include:

  • Company size
  • Complexity of payroll requirements
  • Budgetary constraints
  • Industry regulations and compliance requirements
  • Long-term growth and scalability plans

To make an informed decision:

  • Establish clear objectives and criteria: List the things you aim to achieve with your payroll system, like regulatory compliance, task integrations, time & cost savings, control over the task process, etc.
  • Conduct a cost-benefit analysis: Weigh the long-term financial benefits of in-house payroll and outsourcing against the direct and indirect costs, time, and effort that go with each option.
  • Assess internal resources and expertise: Evaluate whether you have employees in your team with the expertise to manage payroll in-house.
  • Evaluate service providers: When outsourcing, compare payroll providers based on their reliability, payroll features, customer service, security measures, and more.

In-house Payroll vs Outsourcing Implementation Strategies

Whether you choose to run payroll in-house or outsource to a payroll service, you should have an implementation strategy to avoid unwanted surprises.

Transitioning to In-House Payroll

  • Choose an industry-specific payroll software that fits your needs
  • Train your payroll team to take advantage of all features
  • Put measures in place to minimize payroll errors and ensure regulatory compliance

Onboarding Outsourced Payroll Services

  • Select a payroll vendor that offers the services and features you need
  • Ensure smooth data migration/integration of existing processes and the new system
  • Establish a clear communication and collaboration framework with your provider to ensure transparency and efficiency

Taking Advantage of Playroll’s Solutions

Playroll is an employment platform that offers global payroll management to help streamline payroll operations for your business.

Our payroll experts can help you decide which payroll option is best for your business. Request a demo now.

Global HR

Read Time

March 9, 2024

Revolutionizing HR with AI: An Overview

Initially, AI's role in HR was limited to automating mundane tasks such as sorting through resumes. However, as technology evolved, so did its applications within HR management, marking a shift from merely automating tasks to enhancing decision-making and personalizing the employee experience.

This transition reflects a broader movement from traditional HR practices, which often relied on manual processes and intuition, to a more strategic approach powered by data-driven insights and predictive analytics.

Integrating AI into HR functions has streamlined operational efficiencies and opened up new possibilities for talent acquisition, learning and development, and employee engagement.

Unleashing Efficiency: The Core Benefits of AI in HR

The adoption of AI in HR has ushered in a new era of efficiency, precision, and personalized employee experiences. AI's role in transforming HR practices is undeniable, with its impact felt across recruitment, onboarding, performance management, compliance, and employee well-being. Let's explore how AI is redefining these critical HR functions.

Recruitment and Talent Acquisition

AI for HR has revolutionized the recruitment process, making it faster, more efficient, and less biased. By leveraging machine learning algorithms, HR teams can sift through thousands of resumes in minutes, identifying candidates whose skills and experiences align closely with job descriptions.

This capability accelerates the talent acquisition process and enhances the quality of hires. Moreover, AI-driven analytics can predict the success of candidates in specific roles, further refining recruitment strategies and outcomes.

However, some critics argue that these algorithms can sometimes perpetuate bias if not carefully monitored and regularly updated to ensure fairness. There are also concerns about the impersonal nature of automated screenings potentially overlooking unique talents that don't conform to traditional metrics. 

This highlights the need for a balanced approach that combines AI's efficiency with human oversight, ensuring that recruitment processes remain fair and inclusive.

Employee Onboarding and Training

Onboarding and training ensure new hires integrate smoothly into their roles and the organizational culture. AI-powered platforms personalize the onboarding experience, offering tailored learning paths based on the individual's role, learning pace, and preferences.

This personalization ensures that employees engage more deeply with their training, leading to better retention of information and faster time-to-productivity.

AI can also facilitate the continuous upskilling of employees, recommending courses and materials that align with their career development goals and the company's evolving needs.

Performance Management and Feedback

Performance management has traditionally been a subjective and often cumbersome process. AI has the potential to introduce a more dynamic and data-driven approach, analyzing a wide range of performance indicators in real time.

AI tools can offer ongoing, objective feedback to employees, identifying strengths and areas for improvement. This ongoing feedback mechanism fosters a culture of continuous learning and development.

Additionally, predictive analytics can forecast future performance trends, helping managers and HR professionals intervene proactively to support their teams.

However, it's important to consider the implications of relying heavily on algorithmic management. Evidence suggests that without proper safeguards and human insight, AI-driven feedback can sometimes lead to increased workplace stress and constant surveillance among employees. It may inadvertently emphasize performance metrics over personal development and creativity, potentially stifling innovation. 

Additionally, algorithmic bias can skew AI decisions, inadvertently perpetuating discrimination in hiring or promotions. Reskilling becomes essential as HR professionals must adapt to new technologies, understand how to interpret AI insights and integrate them into strategic decision-making.

Balancing AI feedback with empathetic, human-centered management practices ensures that AI's benefits are realized while minimizing the risks associated with over-reliance on algorithmic assessment.

Compliance and Risk Management

Navigating the complex landscape of HR compliance and risk management is a significant challenge for organizations. When set up properly, AI is able to monitor and ensure compliance with labor laws, regulations, and company policies. It can automatically update systems in response to legal changes, reducing the risk of non-compliance penalties.

Furthermore, AI's ability to analyze patterns and predict potential risks, such as unethical behavior or data breaches, enables organizations to implement preventive measures.

Yet, integrating AI into compliance and risk management comes with its own set of considerations, particularly around data privacy. HR departments handle vast amounts of personal employee information, underscoring the critical need for responsible and secure data use. 

Balancing AI's efficiency and predictive power with stringent data protection measures is essential, ensuring that while organizations benefit from AI's capabilities in compliance and risk management, they also uphold the highest standards of privacy and security for their employees. This approach mitigates risk and fosters trust within the workplace, making it a key component in the responsible deployment of AI in HR.

Employee Engagement and Well-Being

AI could enhance employee engagement and well-being by providing insights into employee sentiments and behaviors, enabling HR teams to design more effective engagement strategies.

AI-powered surveys and feedback tools analyze employee responses for underlying trends, identifying areas of concern or opportunity. Wellness apps and platforms also use AI to offer personalized health recommendations, support mental health, and encourage work-life balance, contributing to a happier and more productive workforce.

As AI technology continues to evolve, its role in HR is set to become even more integral, driving efficiency, fostering a culture of continuous improvement, and ultimately contributing to organizational success.

Overcoming AI Adoption Hurdles in HR

Organizations can navigate the challenges of AI adoption in HR by:

  • Investing in Transparent and Ethical AI Practices: Committing to transparency in how AI algorithms make decisions and ensuring these processes are understandable and fair.
  • Conducting Regular Audits for Bias: Implementing periodic reviews of AI tools to identify and correct any biases in their algorithms.
  • Implementing Comprehensive Data Protection Measures: Establishing robust data security protocols to safeguard personal employee information against breaches and misuse.
  • Providing Ongoing Education for HR Teams: Offering continuous learning opportunities for HR professionals on the ethical use of AI technology, focusing on its benefits and limitations.
  • Ensuring AI Complements Human Decision-Making: Emphasizing the importance of human oversight in AI-driven processes to preserve the human element in HR functions.

AI in HR: Paving the Way Forward

As we look to the future, AI's role in HR is set to expand further, driven by advancements in generative AI and machine learning. These technologies will enable even more personalized and dynamic HR practices, from customized learning and development programs tailored to each employee's career trajectory to sophisticated workforce planning tools that can accurately predict staffing needs.

Generative AI will revolutionize content creation within HR, automating routine communications and freeing HR professionals to focus on strategic initiatives that require a human touch.

The future of work, powered by AI, promises a more efficient, equitable, and engaging HR landscape where technology and human insight collaborate to foster a thriving organizational culture.

Introducing Playroll: Your Partner in Global HR Innovation

In this rapidly evolving landscape, Playroll emerges as a pivotal ally for organizations aiming to harness the full potential of their global workforce. Playroll's innovative services are designed to streamline and enhance HR processes, making it an essential tool for companies navigating the complexities of hiring and managing international teams.

Experience firsthand the efficiency, compliance, and strategic advantage Playroll offers. Request a demo today and take the first step towards a more streamlined and effective global HR strategy with Playroll at your side.

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