Expanding globally brings great opportunities, but also complex hiring challenges. Most companies would agree that onboarding international remote employees requires navigating cross-border regulations and cultural differences.
The good news is that with the right guidance, US employers can successfully hire and manage an international remote workforce. This article explains step-by-step how to do it.
You'll learn the basics of international hiring, how to partner with an Employer of Record to handle legal and HR tasks, best practices for onboarding and supporting global team members, strategies for compensation and payroll, and advice for cultivating an inclusive culture across borders. By the end, you'll have the key knowledge needed to access top talent worldwide and build a thriving, productive global team.
Introduction to International Hiring for US Employers
Expanding into global markets can provide significant benefits for US companies, including accessing specialized talent, reducing labor costs, and enhancing diversity and innovation. However, hiring international remote employees also comes with challenges around compliance, payroll, and cultural integration that require careful planning and management.
This guide covers key considerations for US employers looking to build global remote teams, with a focus on solutions to streamline the international hiring process.
Expanding into Global Markets: The New Frontier for US Companies
- Reduced Labor Costs: International contractors, especially from developing regions like South America, often have significantly lower salary expectations that translate to major payroll savings.
- Specialized Skills and Expertise: Gain access to qualified accounting and finance professionals with expertise in US GAAP and English fluency.
- Enhanced Diversity & Innovation: Research shows diverse teams drive innovation and boost profits. Hiring abroad expands diversity.
- 24/7 Productivity: Asynchronous work across time zones allows for round-the-clock collaboration.
Challenges and Solutions in the International Hiring Process
While global hiring provides advantages, it also comes with hurdles around legal compliance, payments, and onboarding. Some key challenges and mitigations include:
- Misclassification Risks: Classifying international contractors as employees vs independent contractors carries compliance risks - using an Employer of Record (EOR) service simplifies classification.
- Payroll Complexities: Solutions like global payroll partners handle compensation, taxes, benefits, and compliance based on the contractor's location.
- Administrative Burdens: EORs and remote HR platforms centralize visa/work permits, contracts, onboarding and manage international contractors.
- Cultural Integration: Strong communication, empathy and emotional intelligence facilitate collaboration across borders and cultures.
The following sections provide an in-depth look at best practices and step-by-step guidance for US companies to effectively leverage global human capital.
Can US companies hire foreign workers remote?
Yes, US companies can hire foreign workers remotely, but there are important legal and tax considerations to keep in mind.
When hiring international contractors, most US companies work with an Employer of Record (EOR) or Professional Employer Organization (PEO) to remain compliant. An EOR handles all tax, legal, and HR administration so the contractors can be onboarded as full-time employees without the company setting up a foreign legal entity.
Some key things US companies should know:
- Misclassifying contractors as employees can lead to fines and penalties. Working with an EOR helps avoid this.
- Compensation to foreign contractors may be subject to tax withholding if certain thresholds are met. An EOR will handle this.
- There may be visa or work permit requirements depending on the worker's country. An EOR can advise on necessary permits/visas.
- Time differences, language barriers, and cultural nuances should be considered when managing remote teams. Strong communication and project management are essential.
By partnering with an EOR, US companies can tap into global talent pools quickly and compliantly. The EOR handles the legal, tax and HR complexities, allowing the focus to remain on building great teams.
How do I hire someone from another country remotely?
Hiring someone from another country remotely can seem daunting, but breaking down the process step-by-step makes it more manageable. Here are the key steps:
Set up a legal entity
The first step is making sure your business has a legal entity set up in the country where you want to hire remote employees. This establishes your right to legally employ workers in that country. Popular entity options include:
- Limited Liability Company (LLC)
- Sole Proprietorship
Consult an attorney to determine the best entity type for your business based on liability protection, tax implications, business goals, number of owners, and other factors.
Work with a Professional Employer Organization
If your business already owns an entity in the desired country, consider contracting with a Professional Employer Organization (PEO). A PEO acts as a co-employer by putting remote workers on their in-country payroll, handling local tax and employment compliance, and providing HR services while you maintain day-to-day management responsibilities. This simplifies the hiring process significantly.
Use an Employer of Record
Alternatively, if your business does not already own an entity overseas, work with an Employer of Record (EOR). An EOR serves as the legal employer abroad on your behalf, allowing you to hire employees in that country without needing to set up your own entity. Like PEOs, they handle payroll, taxes, benefits, compliance and more.
EORs give you flexibility to hire globally, even in countries where you don't already have an established legal presence. They make international hiring, onboarding and managing remote staff quick and hassle-free.
Choose Your Talent Partner
With the legalities addressed through an EOR or PEO, you can focus on the fun part - finding amazing talent! Determine whether you want to work with an staffing agency or recruitment firm to source specialized accounting and finance professionals aligned with your needs and culture. Or leverage online freelancing platforms and job boards to discover candidates yourself.
With the right global talent partner or hiring strategy, you'll assemble an international all-star team to drive business growth!
How do I hire a foreign worker in the US?
Hiring foreign workers in the US can seem daunting, but breaking down the process helps simplify it. Here are the key steps:
Seek Labor Certification
The first step is to get certification from the U.S. Department of Labor confirming there are no qualified US workers available for the role and that hiring a foreign worker will not adversely impact wages or working conditions of US workers.
Common application types:
- H-1B for specialty occupations like accounting or IT
- H-2B for temporary non-agricultural jobs
- PERM for permanent employment
Learn more about labor certification on the Department of Labor website.
Petition for Visa
Once labor certification is obtained, the employer must petition United States Citizenship and Immigration Services (USCIS) for the relevant work visa, such as H-1B. If approved, USCIS issues the visa that allows the foreign worker to legally work for that employer in the US.
With legal paperwork complete, the foreign employee can be onboarded using similar best practices for any remote hire:
- Send welcome package with company swag
- Schedule video call introductions
- Set up communication channels like Slack or Microsoft Teams
- Provide necessary hardware/software
- Share documentation about processes, guidelines, expectations
- Train on role responsibilities
Following structured onboarding helps new international hires align with company culture and workflows.
Hiring foreign talent takes coordination but enables accessing specialized skills globally. Using an employer of record like Vintti simplifies the process through their expertise managing international payroll, compliance, and more on the employer's behalf.
What is international onboarding?
International onboarding refers to the process of welcoming and integrating new hires from different countries into a company. It involves additional considerations compared to onboarding domestic employees, such as:
- Be aware of cultural norms regarding communication styles, etiquette, workplace behaviors, etc. Provide cultural training if needed.
- Accommodate various cultural or religious needs. Be flexible with dress codes, holidays, dietary restrictions, etc.
- Provide language lessons or translators if needed.
- Use simple English in documents and communications. Provide translations where possible.
- Allow more time for instructions and feedback to account for potential language barriers.
- Clarify and facilitate visa/work permits, relocation, payroll, tax implications, etc.
- Consider time zone differences. Accommodate varied working hours if possible.
Tools & Technology
- Ensure new hires have the necessary hardware, software, and access to collaborate effectively remotely.
The goal is to make international new hires feel welcomed, valued, and set up for success, despite geographic or cultural barriers. Proper onboarding facilitates productivity and integration.
Partnering with an Employer of Record (EOR)
An Employer of Record (EOR) can simplify the process of legally hiring international employees for U.S. companies. An EOR serves as the legal employer of record for tax, payroll, and compliance purposes, enabling you to hire global talent without having to set up foreign entities.
What Does an EOR Do? Understanding the Employer of Record Agreement
An EOR agreement allows you to hire international contractors or employees without having to establish your own legal entities abroad. The key benefits include:
- Legal Compliance: The EOR handles compliance with local labor laws and tax regulations so you can hire anywhere without legal risk.
- Global Payroll: The EOR processes international payroll, withholding taxes, and making statutory payments in over 150 countries.
- Recruiting Support: Many EORs have access to specialized recruiting partners to help source qualified global talent.
- HR Management: EORs can provide HR services like background checks, onboarding, training, and performance management.
By serving as the legal employer abroad, the EOR allows you to hire, pay, and manage an international team while minimizing operational overhead.
Learn the Difference Between an EOR and a PEO
While an EOR and PEO (Professional Employer Organization) both enable hiring international employees without foreign entities, there are some key differences:
- Contract Structure: EORs hire contractors or employees under the client's brand. PEOs hire staff under their own brand which is leased back to the client.
- Management: With an EOR, the client manages the employees/contractors day-to-day. With a PEO, the PEO handles more of the management.
- Services: EORs focus specifically on legal compliance, payroll, and hiring support overseas. PEOs provide more full-service HR, benefits, and workplace policy administration.
So in summary, an EOR facilitates international hiring and payroll while the client retains control. A PEO provides more complete HR outsourcing under the PEO's own employment brand.
Choosing between an EOR and PEO depends on your needs and preferences for managing an international team. An EOR provides the legal framework and payroll support to hire abroad with minimal operational changes.
How to Onboard International Remote Employees
Onboarding international remote employees requires careful planning and consideration to ensure a smooth transition for the employee and employer. Here are some best practices:
Setting Up a Global Infrastructure for Remote Work
- Invest in collaboration tools like Slack, Zoom, and Asana to enable seamless communication across time zones
- Create standardized onboarding documentation covering company policies, procedures, and guidelines
- Set up the legal and tax infrastructure through an employer of record (EOR) service
- Establish asynchronous work norms to support team members in different time zones
Guide to Onboarding Your New Work From Home Employees
- Send a welcome package with company swag to make them feel valued
- Schedule video calls to personally meet the team
- Provide necessary hardware and software ahead of start date
- Share onboarding documentation and have them complete required paperwork
- Assign a peer buddy to help orient and answer questions
- Set 30/60/90 day goals and career development plan
Global Payroll and Compensation Strategies
- Work with an EOR to handle payroll, taxes, benefits, and compliance
- Develop a compensation philosophy based on skills, experience, and cost of living
- Use localized salary benchmarks to provide fair, competitive pay
- Allow contractors to choose payment frequency and method
Tax and Compliance: Navigating International Regulations
- Understand tax treaties between countries to avoid double taxation
- Classify workers properly as contractors or employees based on level of control
- Consult an employment lawyer when drafting contractor agreements
- Stay up-to-date on labor laws in countries where team members are based
Following best practices for onboarding international team members will lead to more satisfied, productive, and engaged remote employees. An EOR like Remote can provide invaluable expertise to handle legal, HR, payroll and compliance.
Cultivating a Remote Company Culture with International Employees
How to Build a Strong Culture with a Remote Team
Building a strong culture with a remote international team requires focusing on communication, engagement, and inclusion.
- Set up regular video calls for the team to connect face-to-face. This helps build relationships and trust. Encourage open discussions to learn about each team member's culture and background.
- Create digital spaces like Slack channels for employees to interact casually. Share team wins and employee spotlights to increase visibility.
- Send welcome packages with company swag to make new hires feel valued. Care packages around holidays also help create bonds.
- Schedule inclusive activities like virtual coffee breaks. Small talk helps employees find common ground.
- Recognize individual contributions publicly. This motivates employees and makes them feel appreciated.
By prioritizing constant human connection, international teams develop stronger loyalty to the company purpose. Frequent interactions, knowledge sharing, and celebrating diversity enables deeper relationships despite physical distance.
Support Mental Health in the Workplace: A Priority for Remote Teams
Mental health directly impacts productivity and engagement for remote employees. Companies should take proactive steps to support well-being.
- Train managers to spot signs of burnout and offer flexible arrangements when needed. Being overworked can quickly lead to fatigue.
- Set reasonable expectations for working hours and availability based on time zones. Prevent off-hour communications to avoid burnout.
- Encourage taking regular breaks, disconnecting after work, and using vacation time. This helps employees recharge.
- Provide access to mental health resources like counseling or support groups to reduce stigma.
- Foster social connections between co-workers through online group activities. Feeling isolated can negatively impact mental health.
Making mental health a priority improves retention and performance. By giving remote employees outlets to share struggles and offering compassion, companies can build resilience despite physical barriers. Proactive support systems demonstrate genuine care for each team member's wellbeing.
Effective Management of Global Remote Employees
Working Across Different Time Zones: Best Practices and Tools
Coordinating work across time zones can be challenging, but is crucial for productivity when managing a global remote team. Here are some best practices:
- Communicate expectations clearly - Set core hours where there is overlap for meetings. Outside of that, async communication works well.
- Use collaboration tools wisely - Tools like Slack, Notion, and Google Docs enable seamless remote collaboration. Organize channels by topic and keep conversations focused.
- Schedule strategically - When scheduling calls, respect each team member's time zone. Use a world clock to find the best windows.
- Record meetings - If someone can't attend live, recording via Zoom or Loom allows them to watch later asynchronously.
- Embrace async - Async communication via tools like email and Slack is essential. It allows workers to contribute on their own time.
With some planning and the right tools, businesses can build productive global teams across time zones. The key is open communication, organization, and empathy.
How to Handle International Employee Relocation
When an international remote employee needs to relocate, businesses should be prepared to handle visa and immigration processes to retain talent smoothly:
- Understand visa requirements - Research what visas the employee qualifies for in their desired location. Often the company can sponsor the visa if criteria are met.
- Hire an immigration lawyer - Navigating immigration laws is complex, so legal expertise streamlines the process. Lawyers can advise on options and manage paperwork.
- Cover relocation support - Offer a relocation stipend for expenses like flights and shipment of belongings. This investment retains the employee.
- Facilitate payroll changes - Work with HR/Finance to transition the employee's payroll, taxes, and healthcare benefits per local regulations.
With planning and support, international relocation transitions can go smoothly for both employer and employee. Legal expertise plus relocation stipends are investments that pay dividends in talent retention.
Offer Stock Options to Your International Employees
Expanding stock option plans globally helps motivate and retain international team members:
- Understand regulations - Tax and securities laws for equity compensation vary hugely globally. Research each country's specific compliance needs.
- Engage local payroll providers - Specialized global payroll processors like Remote can handle the complex reporting and withholding when international employees exercise options.
- Communicate plan specifics - Clearly explain details like vesting schedules, strike price, and expiration terms so employees understand the offering.
- Translate documents - Provide key paperwork for understanding and accepting stock option grants in the native languages of international team members.
While complex, the benefits of equitable global stock option coverage are immense. With the right partners and communication, the intricacies of cross-border equity compensation get far simpler.
Conclusion: Embracing the Future of International Remote Work
The Future of Managing Remote Workers: Trends and Predictions
As more companies expand their talent pools globally, several key trends are emerging for effectively managing international remote employees:
- Increased adoption of asynchronous communication: With teams across multiple time zones, relying on real-time communication becomes difficult. Companies are embracing asynchronous platforms like Slack, Notion, and email to enable collaboration without schedule alignment.
- Advancements in HR tech: Tools like Gusto, Deel, Papaya Global, and Remote are making it easier to onboard, pay, and manage international contractors by automating compliance and eliminating geographic barriers.
- Greater focus on company culture: Leading remote companies emphasize culture through daily standups, virtual social events, mentorship programs and more. This helps unite global teams.
Looking ahead, managing international teams remotely will only become more turnkey. Companies that embrace global talent now will have a head start in accessing skills, reducing costs, and building diverse teams.
Reaping the Benefits of a Global Remote Team
The benefits of building teams globally are immense for forward-thinking companies:
- Reduced hiring costs: International contractors are often more affordable than local hires. Multi-country hiring enables dramatic payroll savings.
- Global market reach: International employees inherently understand foreign cultures and can help companies expand into new geographical markets.
- Increased innovation: Research shows diversity increases profits for businesses by stimulating innovation and new ideas. International teams bring unique global perspectives.
By leveraging tools that simplify compliance and communication across borders, any company can integrate top-notch international talent into their remote teams. The future of global remote work is bright for those ready to embrace it.