Remote work is the new norm for many businesses, especially startups, which has opened up a whole new world of talent for companies. But with so many potential remote candidates available, it can be overwhelming trying to determine the best way to interview and hire remote workers.
Mastering the process of hiring and managing a global remote team, especially one working in different time zones, is challenging. However, companies that set clear expectations, maintain effective communication channels, and utilize global HR management tools like an Employer of Record (EOR) can hire effectively and create a cohesive remote work environment.
Benefits of Global Distributed Teams
Companies that embrace remote work are seeing substantial benefits, including:
- Cost Savings: According to a Global Workplace Analytics report, if Americans with jobs that can be performed via telecommuting worked from home just half of the time, U.S. companies could save between $525 to $665 billion in real estate costs, reduced absenteeism, lower turnover rates, and higher productivity.
- Employee satisfaction: Remote work gives employees the flexibility to choose their own work environment, such as a quiet home office, a co-working space, or a local café. Flexible remote work policies that let employees choose where they work is a perk that boosts employee work/life balance and helps companies to attract the best possible candidates.
- Diversity: Remote companies are able to tap into a broader and more varied talent pool. This includes not only employees in different countries, but also those with disabilities, caregiving responsibilities, or other special circumstances who may be not be comfortable working in an office setting.
- Recruitment Efforts: The option to hire remotely removes international barriers and broadens the number of potential job seekers, making it easier for employers to attract and hire qualified candidates.
4 Factors to Consider When Hiring Remote Teams
Hiring employees located around the world does pose some unique challenges, since every country in which you hire has its own rules and regulations regarding pay, taxes, benefits, vacation time, and more.
1. Payroll
Adhering to the specific legal requirements for multiple countries while managing payroll for remote teams can be tricky. For example, you’ll have to comply with different labor laws and regulations, including minimum wage, overtime, benefits, Social Security contributions, and more.
2. Taxes
In addition to following the tax regulations in the country where you business is based, every country where you hire talent has its own local tax system that you’ll need to follow to avoid potential financial penalties.
3. Risk
When hiring international employees, you can encounter legal, operational, or cultural risks if you’re not familiar with local rules and cultural norms. Working with legal experts will help establish clear contracts and policies that comply with local employment laws.
4. Worker Misclassification
When building a remote team, you have the option of hiring employees, contractors, or both. Contractors are a flexible option that can fulfill a business’s short-term needs. But relying on contractors also carries risks. For example, misclassifying a new hire as a contractor would be in violation of local labor laws. This could result in serious financial consequences for your business, as well as damage to your reputation.
Remote Employee Hiring Tips
Here are strategies to find, attract, and retain the best remote talent while also following ethical hiring processes to position your company as a values-driven employer.
Job Posting
When hiring remote employees, it’s important to create a clear and compelling job description that reflects your expectations for the role. Specify the responsibilities for the role and preferred work experience. You should also clarify if you have other specific preferences, such as what time zone the employee is based in, and if it’s OK if they work on an asynchronous schedule from other team members.
Post your open positions on remote employment boards frequented by job seekers. For example, in the U.S. this could be LinkedIn and Indeed, while in India local job boards include Naukri, Shine, or Foundit.
During the recruitment process it’s key to utilize data-driven hiring practices to identify the best candidates for the position, and reduce the potential for hiring bias.
Interview Tips
Thanks to the ease of scheduling a video call on Zoom, Microsoft Teams, or Google Meet, it’s easy to connect with great candidates anywhere in the world. The interview process gives you and your team the opportunity to ask interview questions that assess a candidate’s skills, personality, and whether they seem like a good cultural fit for your team.
After interviewing a promising candidate, your hiring manager should verify the work experience information provided by the job candidate. That’s because nearly 20% of all employment, academic, and professional license verifications end up with flagged discrepancies.
Employee Onboarding
Once you’ve extended an offer and the candidate has accepted, it’s crucial to create a smooth onboarding process to welcome them into their new remote work environment. New hires need to understand expectations and how your company measures success. Set clear performance goals, tasks, responsibilities, deadlines, milestones, key performance indicators, and feedback channels.
Since everyone has different work styles and expectations, effective communication skills are critical for remote team members. The onboarding experience should outline best practices for communicating with team members. For example, recommending an employee send a Slack message for a quick question, versus sending an email if they need to share a lengthier update with a larger team. You should also set expectations regarding the turnaround time for replies, especially if your employees operate in multiple time zones.
How to Effectively Manage Your Remote Talent
Managing remote talent requires a modified approach compared to managing in-office teams.
- Regular check-ins: Schedule individual and group check-ins to monitor progress, offer feedback, and address any issues. Virtual team-building activities can also help make sure your team feels connected to one another.
- Promote collaboration: Encourage an open and inclusive culture where team members can share ideas and participate in decision making. Use tools like Slack, Zoom, or Google Meet to communicate and bring team members together, and project management tools like Notion, AirTable, or Loom for project collaboration.
The Value of Occasional In-Person Retreats
It’s possible to create a remote-friendly company culture where employees feel connected to one another. However, while frequent online collaboration can keep team members connected, it’s also beneficial to hold occasional all-hands meetings in person.
A Recent Harvard Review study found that 93% of respondents said they believe in-person meetings are critical to bridging cultural differences. Without frequent in-person interactions, team members may take longer to establish trust and collaborate effectively. Regular company retreats can strengthen relationships and boost team performance, especially as your team grows.
Danny King, CEO of Accredible, says his company was able to instill a sense of community with the company’s global teams by holding team building retreats for employees.
Why You Need an EOR
Hiring and managing remote talent can be complex, especially when dealing with multiple countries, currencies, and regulations. Compliance with local laws regarding payroll, tax, and legal requirements can be time-consuming and costly. That's where an EOR like RemoFirst can help.
RemoFirst is an all-in-one solution for hiring and managing remote talent. We handle payroll, tax, compliance, and HR details, allowing you to focus on running your business. With RemoFirst, you can hire remote talent globally without worrying about local laws, currencies, or payment methods. RemoFirst makes onboarding new employees quick and easy with same-day setup, ensuring you can get your new hires up and running fast, often within 24 hours.
Request a demo to see how RemoFirst can help you successfully hire a remote team:
FAQs
Is it cheaper for companies to hire remotely?
Hiring remotely can be a cost-effective solution when you consider the savings on office space and related expenses.
What is the best way to find remote talent?
The best way to find remote employees is to use dedicated remote job boards, professional networking sites like LinkedIn, and referrals from existing hires and networks.
Does each country have its own set of compliance rules regarding remote hiring?
Yes, each country has its own set of compliance rules and regulations that companies must follow when hiring remote staff or operating in that country.
