Hiring Remote Employees in Other Countries? Pitfalls To Avoid.

Hiring remote workers is a great way to reduce costs and increase productivity. But it's not without its challenges. We will talk about the pitfalls of hiring abroad and how to avoid them so that your company can hire remotely successfully.
by Billy Stone » Remote Work Nerd » 
last updated on November 13th
The world is getting smaller. With the rise of technology, it's never been easier for people to work remotely from different parts of the world. This can be a great thing if you're looking for talented employees but have trouble finding them in your local area.

However, there are many pitfalls that come along with hiring remote workers and this guide will help you avoid these common mistakes and complications!

Hiring employees from a different country can be challenging, but it can also yield great results. There are many factors to consider when hiring in a different country.

First, let's discuss why you should hire in a different country.

  • Hiring in multiple countries can help you find the best talent for your business, no matter where they are located. The pool of talent is much larger when you expand your search globally.
  • You may also benefit from the economy in a different country by paying employees lower wages, or no wages at all. This is great for businesses with low budgets and high demands of work to be done. In other cases, employers can take advantage of tax breaks offered by foreign governments. For example, many countries offer tax breaks for hiring remote employees, including Canada and the UK.
  • In addition to finding talented workers from around the world, hiring internationally also helps you diversify your team so that there is more diversity of thought and opinion within it.
  • Finally, when an employee works from another country, you get a few other benefits. For example, hiring internationally can help your business save money on payroll and taxes.

How do I hire employees in a different country?

Once you have decided to build a remote team with workers from different countries, you will want to consider which countries might be the best place to hire, depending on relevant skills, logistical challenges, and budget.

employees in other countries

Primarily, hiring in multiple locations means having to comply with each country’s unique employment and labor laws.

Finding the best talent is never easy, but hiring in a different country can be a great option if you want to expand the reach of your business and gain access to skilled workers from around the world.

Some of the best job boards for hiring talent outside your country:

CodeTrails.com –

CodeTrails is a job board for remote developers and software engineers. You can find top talent from around the world on this website. They have built their community of workers by focusing exclusively on top-quality software engineers who are looking for jobs that will challenge them. Job seekers can browse through listings or submit their profiles so employers can hire them directly without going through a middleman agency.

Remote Employees

VisaHQ –

An easy-to-use website for hiring foreign employees and obtaining visas. They offer comprehensive guides to work visa applications, as well as step-by-step instructions on the application process.

Unmatched Visas –

Focused exclusively on immigration, this site is designed to provide job seekers with all the information they need to get hired abroad. What’s more, it offers tips on how to use immigration rules and regulations in your favor when applying for jobs with international employers.

Culturesourcenetwork –

This is a job board that specializes in placing professionals into global roles across all disciplines and levels of seniority. They offer resume listings, as well as country-specific job boards for finding employment in foreign countries.

International Employment –

This is an online community of professionals from around the world who are seeking to work with international employers and find jobs outside their home countries that can be a great fit for them based on location, position title, and salary.

Overseasjobs –

Offers job seekers the opportunity to discover international employment opportunities in North America, Europe, Asia, and Australia through an easy-to-use website interface. Their site offers extensive advice on how to get hired outside your home country.

How do I pay remote employees in a foreign country?

If you're hiring remote employees in other countries, it is important to make sure that they are paid properly for their work.

Visa Card and Laptop

If your employee lives outside the U.S., then this means complying with both federal and state laws regarding payroll taxes. If your remote employees live in another country but still need to file US tax forms, you will need to take extra steps by filing Form TD F 90-22.

When it comes to paying your employees, remember that different tax rules are depending on whether or not they live in the US. Your nonresident alien employee must have a social security number if you plan to withhold federal income tax. On the other hand, foreign employees living outside the US do not need a social security number.

In addition to any deductions you take from employees’ paychecks for federal income tax, FICA, and Medicare taxes, remember that each state has its unique laws regarding payroll withholding as well. For example, if your employee is located in Hawaii but working remotely on projects related to a Hawaii-based company, they will need to file state taxes every year.

What are the challenges of hiring an employee in a different country?

Hiring remote employees in other countries can be an exciting opportunity to expand your company’s reach and find new talent. However, there are some challenges that you should consider ahead of time before deciding to hire foreign workers, such as:

  1. Language barriers – If your worker is not natively speaking English or doesn’t have a strong grasp of the language, getting tasks done on time and making sure company information is shared correctly can be challenging.
  2. Different cultural rules – Asking for too much or requiring your employees to work long hours might not only be illegal in their country but also considered rude because it goes against local customs. You must know your employees’ cultures and expectations before making any assumptions about what is appropriate to ask of them.
  3. Work ethics – Some countries have different work ethics than the U.S., so it may take some time for your non-U.S.-based workers to adjust to how you expect tasks to be completed promptly, whether it be via email, over the phone, or in person.
  4. Finally, different time zones can also cause communication and workflow challenges, so be sure to consider this before setting up job listings for foreign workers.

Which countries should you hire in?

If you are wondering which countries to hire in, there is no one-size-fits-all solution. However, a good place to start when looking for talent abroad is with your employees’ native countries if they have extensive experience that can be helpful for your business.

It also might help to look into the cost of living and wage rates of potential employees from different countries to determine if hiring in a specific country will save you money on salary expenses.

In addition to considering where your employees are located, it is also important that they have the right skills and experience for the job as well as being able to communicate effectively with you and your team. If your remote workers do not have the right skills for what you need to be done, it will be difficult to get tasks completed on time and could lead to unhappy employees.

Let's have a look at the different countries:

#1 China

China is the first stop for many business owners looking to hire workers abroad, as its experience with outsourcing has created a large pool of English-speaking professionals. With competitive salaries and high demand for engineering talent in some regions, China can be an attractive option if you are willing to do your research on which areas will yield the best results for your business.

You can also work with a company like Zaozhuang Tianyu Information Technology Co., Ltd, which will help you hire employees in China according to your needs and budget.

#2 India

India is another popular destination for hiring remote workers, with a large English-speaking population and an emerging startup scene in some regions.

You can work directly with companies like Hiring Hub to hire employees in India or you could also try sites like Upwork or Fiverr, which are marketplaces for freelancers around the world who might be available for your company’s projects.

#3 Europe

In addition to being a popular destination for ex-pats, Europe is also known as an affordable place to hire employees. For example, Germany has a strong engineering sector and flexible labor laws that make it easy to find high-quality workers who will be able to complete tasks quickly without too many communication or time zone issues.

To successfully hire in European countries, you should know that some countries like France require companies to hire employees on temporary contracts for at least three months.

#4 Russia

Russia is another popular choice for those looking to hire remote workers from abroad, especially if your company needs highly skilled tech talent.

In addition, Russia offers some of the best software developers in the world with a large pool of individuals with coding skills who are proficient in English as well as local languages. With low living expenses and competitive pay rates, Russia can be a cheap place to hire employees.

Conclusion

Hiring remote workers in different countries can offer several benefits, but it is important to be aware that there are also pitfalls. You should know which countries have the best talent for your business by considering relevant skills, logistical challenges, and budget.

Primarily, hiring in multiple locations means having to comply with each country’s unique employment and labor laws. This guide showed you the key areas to pay attention to as you begin your recruitment and hiring efforts.

Are you thinking of hiring employees in a different country? If you need help, leave a comment below or send us an email.

We are CodeTrails, a company that can help you find the best remote software developers for your business based on your specific needs and budget.