Remote global hiring can open up new talent pools and help your operations grow around the world. But before you make an offer, you need to know how you’ll employ the person, manage payroll and satisfy any local requirements. The correct approach depends on a number of factors, including which country you’re recruiting in and the type of role.
This is where Leap29 comes in. Our team of global expansion experts has over 25 years of experience in providing reliable Employer of Record (EOR) and Professional Employer Organisation (PEO) services that span 180+ countries. In other words, we make world market hiring simple.
Remote global hiring: A step-by-step process for employers
- Define Your Hiring Needs & the Role: Before you start, you’ll need to make a note of the exact capabilities, proficiencies and qualifications (if applicable) needed to fill the skills gap you have identified within your company. It goes without saying that you should always factor in local salary ranges and statutory benefits required in the country you’re employing in, as well as any equipment allowances.
- Map Out the Role’s Working Hours: When hiring globally, it’s important to decide if you require overlap with your business’ core hours, or if you would prefer the new employee to work within their own time zone. For example, the latter may be beneficial if you’d like to extend your company’s current hours via one or more new hires.
- Choose Your Employment Model: There are three primary ways to take on global talent, including via independent contractors, an EOR/PEO or a local entity (subsidiary). The best model for you depends on the employment term (part-time, full-time or temporary), the level of direct control required and whether your in-house team has the expertise to handle local requirements, or whether you’ll need to outsource to a third party to ensure compliance.
- Source & Screen Candidates: Next, you can move onto actually sourcing the local talent in your chosen country, screening for remote skills (e.g. asynchronous communication, self-motivation, comfort with digital tools, etc.) and conducting structured interviews. You can involve multiple team members to assess a variety of skills and use practical tests or ask for a portfolio (if necessary) to validate these skills. Always check their background and character using references.
- Make a Job Offer & Issue a Compliant Employment Contract: You’ll need to ensure the employment contract meets the labour requirements of the worker’s country (e.g. minimum wage, paid leave entitlements, termination rules, etc.). This will also be the stage where you will agree on the currency and payment schedule.
- Onboard & Integrate: Once your new employee starts, ship off any equipment they may need and grant access to your security, communication and project management tools before their first day. You can assign one of your current employees to supervise them and help the new hire navigate company culture/daily workflows. Scheduled 1-1s at regular intervals can also help you assess their ongoing performance.
Why are companies choosing the global remote hiring route?
- Wider Talent Pool: Hiring globally opens your business up to a much wider talent pool, meaning you can find the candidate that is genuinely the best choice for your role – no matter where they’re located.
- More Cost-Effective: Not only can remote recruitment reduce overheads, but it also helps you save money on office space, utilities, equipment and other related costs (e.g. fuel reimbursement for commuting into the office).
- 24-Hour Business Operations: Spreading your workforce across multiple time zones allows your business operations to continue around the clock, speeding up project turnaround times and extending customer support windows (which, in turn, can enhance customer service/satisfaction and the reputation of your company).
- Faster Scaling for Startup Businesses: If you need to grow your team quickly, but local hiring won’t be fast enough, hiring globally and remotely can often solve the problem. This gives startup businesses in particular the flexibility to launch projects sooner, manage workloads easier and build up specialised teams without the delay to market.
Where will your employee be working?
Start with the employee’s country of residence and the location they’ll be performing their work in. Check that they have the right to work there and learn the local rules for employment contracts, pay, benefits, working hours, leave and termination.
A remote employee who makes key business decisions may make your business subject to different tax considerations compared to a more junior hire.
What are the best countries for remote world market hiring?
- Australia: Remote work has become mainstream in Australia, with 46% of employees (6.7 million Australians) working from home for part of the week.
- Brazil: Brazil boasts a wide range of highly qualified professionals across many remote-focused sectors, including Technology, Marketing, Design & Customer Service.
- India: As Indian living expenses are lower compared to other countries, hiring remote talent from India can help businesses save 60-80%.
- Ireland: Ireland promises access to a highly-educated, English-speaking talent pool with one of the highest proportions of university graduates in the European Union (over 54%).
- Malaysia: Hiring remotely in Malaysia is ideal for businesses looking to expand their core opening hours, as Malaysia Standard Time (GMT+8) provides a practical overlap with Asian markets, Australia and the morning hours or late afternoons across Europe and the US.
- The Netherlands: Provides a strategic gateway to the broader European Union single market, which reaches millions of consumers within a 24-hour radius of major Dutch hubs like Amsterdam and Rotterdam.
- Portugal: Offering favourable tax frameworks, Portugal has lower standard corporate income tax rates in Madeira and special programs like the IFICI regime offer a 20% flat tax range for qualified high-value activities.
- Singapore: Singapore has a robust infrastructure, featuring world-class digital connectivity, reliable high-speed internet and modern tech adoption – minimising any potential friction to remote collaboration.
- Spain: Supportive government frameworks, such as the Digital Nomad Visa encourage global remote work, making international integration smoother.
- UK: Studies show that productivity at UK firms who transitioned to fully remote work during the Covid-19 pandemic (and who have maintained the model since), increased by 10.5%.
What is the best way to tackle remote global hiring?
There are several options available to you when hiring remotely, including via your own local entity or using an EOR. Before deciding which is best for you, you’ll need to compare the likely costs, hiring timeline and plans for the market.
- EOR (Employer of Record):
- Speed: Fast, typically a matter of days or weeks)
- Cost: Low setup costs. Monthly service fee that typically scales per employee.
- Use Case: Hiring employees internationally when you don’t have a local entity in that country.
- Risks: Ongoing fees and dependency on your EOR provider.
- International Contractors:
- Speed: Fast (typically within a few days)
- Cost: Low setup costs. Typically hourly or daily rates paid directly to contractors.
- Use Case: Short-term projects or specialist work.
- Risks: Risk of worker misclassification, tax liabilities and potential penalties.
- Local Entity:
- Speed: Slow. Can take weeks or months to set up your own legal entity in a foreign country.
- Cost: High setup, ongoing and administrative costs.
- Use Case: Long-term expansion and growth in a particular country. Suitable for permanent teams.
- Risks: High business risk. Direct responsibility for employment law, tax, payroll and regulatory compliance.
EOR vs a local entity for remote global hiring
When hiring employees internationally, one of the main decisions is whether to establish your own legal entity or use an EOR service. Both approaches will allow you to expand into a foreign country, however as shown above, they each involve different costs and risks.
With a local entity, your business establishes a legal presence in the country and hires the employee directly. This can suit those planning sustained operations, a larger local team or a wider commercial presence.
But it also means managing that entity’s ongoing administration and local employer responsibilities. This typically involves higher setup costs, longer timescales and ongoing responsibilities for payroll, tax, employment law and administration.
With an EOR, a provider employs the person locally on your behalf and manages things like employment contracts, payroll, benefits and filings. But your business should still direct the day-to-day work of the employee – so check the country-specific rules on how an EOR arrangement works.
For businesses looking to enter new markets quickly and hiring a small number of employees, an EOR service can provide a faster and more flexible solution. For businesses building a large workforce and sustained operations in a country, establishing a local entity may be the better long-term solution.
What are the risks of proceeding without an EOR?
If you don’t use an EOR, you can still employ someone through your own entity, or any foreign-employer arrangement that applies in that country. But the risk is proceeding without the certainty of a structure that satisfies local requirements.
If payroll, tax or social security obligations are missed, your business may face unexpected liabilities or penalties. An unsuitable contract or incorrect worker classification can also lead to disputes over pay, benefits, leave or termination rights.
Key legal and compliance challenges when hiring remote employees internationally:
- Local employment laws: Each country has its own regulations covering minimum wage, working hours, annual leave and termination rights. Employers must ensure their business complies with all the local legislation.
- Global payroll and taxes: Paying international employees involves managing local income tax, social security contributions, statutory benefits and payroll reporting. Incorrect calculations or missed deadlines can lead to penalties.
- Worker misclassification: Hiring someone as an independent contractor when they legally qualify as an employee can result in unpaid taxes, employment benefit claims and financial penalties. Classification rules vary by country.
- Permanent establishment risk: Employing someone overseas could create a taxable business presence in that country. This may trigger additional corporate tax and reporting obligations.
Ready to tackle remote global hiring?
International hiring doesn’t have to mean setting up an entity in every market, but it does require careful planning.
Once you’ve chosen your approach, you’ll need to ensure employment contracts, payroll and local compliance requirements are in place. You will also need to consider onboarding, equipment, data security and your ongoing HR obligations.
Get in touch to find out how Leap29 can support you with your international hiring plans.
