Remote hiring and global payroll services saw a rise during the pandemic. But there’s no sign of slowing down.
In fact, more people are working remotely than ever. A recent survey found that nearly 30% of employees work at exclusively remote companies. Another study states that 84% of employees are happy with remote work, with many willing to take a pay cut so they can work from home.
And it is beneficial not only for employees but also companies. Prodoscore research found that working from home increased business productivity by 47%. Plus, you can find the best talent for your company from across the globe.
However, hiring employees overseas comes with its own set of challenges, compliance being the biggest. So if you’re looking to hire global talent, this guide is for you.
What is Remote Hiring?
Remote recruiting is the process of finding qualified candidates for open positions within an organization. However, it differs from local recruiting because it doesn’t have geographical boundaries.
For example, if a company in New York is looking for a graphic designer, a typical recruiter will look for candidates located exclusively in New York. However, in the remote hiring setup, you can find the best candidates from across the globe.
Since businesses have access to a larger talent pool, they can fill open positions faster and boost efficiency. There are even more benefits of remote recruiting, including:
- Happy and satisfied employees Better productivity
- Higher employee retention
- Reduced costs
- Better disaster preparedness
- Decreased ecological footprint
What are Some Remote Hiring Challenges?
Although remote recruitment comes with great benefits, it can also be challenging. Here are the most significant challenges you might face when hiring remote employees.
- Ensuring compliance: You must comply with the regulations of the country you have employees to avoid fines and legal issues.
- Global payroll: Paying employees on time and in their local currency is vital to increase satisfaction and engagement in the workplace. It also involves paying taxes to local authorities. However, currency fluctuations, time zone differences, and cultural differences can make things difficult for your HR team.
But the good news is that you can solve these challenges with the help of a global payroll service provider. They help you comply with local laws, pay salaries on time and in local currencies, and deposit taxes to local authorities.
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How Does Global Payroll Service Help With Remote Hiring?
A global payroll provider helps you manage international employees and contractors. Apart from paying salaries, your global payroll partner can manage tax withholdings and filings, calculate stub distributions, and ensure labor law compliance.
Here are some significant reasons to hire a global payroll service provider.
Ensure Accurate, On-Time Payment
No matter where your employees live, international payroll services ensure they receive accurate salaries on time. This will keep your team happy, boost their morale, and enable them to focus on the work.
Meet Compliance Requirements
Compliance is undoubtedly one of the most critical aspects of payroll. However, keeping up with changing requirements can be overwhelming when operating in multiple countries. Add to that further requirements around personal data protection under GDPR rules.
Fortunately, a third-party payroll provider can help you monitor local and international compliance obligations. They also enforce standard procedures to ensure compliance with all the applicable laws and regulations.
One, Unified Platform for Multi-Country Payroll
You don’t have to switch between applications or emails to track your employees’ information. Instead, a global payroll provider gives you access to a unified system where you can manage your international employees seamlessly. This saves time and eliminates the chances of duplication, thereby reducing costs in the long run.
You can even dig deeper into each employee’s detail to know when they were paid, their preferred currency, leaves, paid vacation balances, and more. This level of transparency helps you standardize and manage your distributed workforce accurately and promptly.
Top Tips For Your Business Expansion With Global EOR Services In 2023
Faster International Expansion
When your company expands to new locations rapidly, it could get challenging for the payroll team to set up payroll processes for newly hired local employees. You must first understand the local laws and cultural differences or hire reliable local payroll providers. This could be expensive and time-consuming.
A faster and more cost-effective way is to work with an international payroll company that can support your company’s rapid growth. Another advantage is that they can align the new requirements with your existing global payroll processing model. This will give you a central dashboard for all your employees.
Eliminate Payroll Leakage
Irregularities and misdemeanors are quite common in the payroll industry. Whether it’s the individual employee forging false expense reports or someone in the payroll team defrauding the company, payroll leakage poses a serious threat.
According to a Deloitte report, payroll leakage accounts for almost 2.5% of total labor costs. A global payroll solution can help you eliminate this problem. It provides complete control and visibility of your payroll system, enabling you to minimize the chances of fraud and leakage.
Remote hiring and global payroll go hand-in-hand. Global payroll service providers ensure your employees receive accurate and timely payments, pay taxes to local governments, and ensure compliance. They also make it easier to scale your operations by applying a global outlook and local knowledge to support your growth.
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