Employing overseas workers: 3 things to know before you take the plunge

So your eCommerce store is showing global promise, but a marketer in the US could really help it take off? Or your workload is overflowing and you want to ease the burden with help from someone in Singapore?

In a globalised workforce where remote work is now the norm, it’s become increasingly common for Australian businesses to hire overseas workers.

The ability to tap into talent anywhere and everywhere is a large part of the appeal. At the same time, there are huge gaps to be filled with skills shortages across Australia (36 per cent of occupations, according to 2023 statistics). Tech jobs in particular are in short supply, with nearly 70 per cent of Aussie IT jobs in shortage.

Whether you’re employing an international contractor for a one-off project or a full-time worker to help grow your business, here’s what you need to know:

1. Payroll and employment laws are different everywhere

Before you hire, you’ll need to familiarise yourself with the laws, payroll taxes and benefits of the countries you want to hire in.

Unless you have more than 24 hours in the day, a whole lot of resources at your disposal and endless patience with different countries’ employment laws, you might want to take a shortcut.

As we do more business online, new services have emerged to make outsourcing to international workers easier. One of them is called employer of record (EOR).

An EOR is a third-party organisation that businesses can partner with in order to employ legal, full-time workers in other countries. The EOR takes on the burden of legal requirements and manages hiring, payroll, benefits, taxes and compliance with local labour laws.

Global HR platform Remote provides EOR services. They own legal entities in different countries, so you don’t have to.

“Launching your own international entity is expensive, time-consuming, and a complex process,” says Jane Lee, Remote’s Vice President and Head of APAC, Go To Market.

“Using an EOR is a cost-effective shortcut for startups going global. Companies around the world now employ tens of thousands of full-time employees and contractors through our EOR platform.”

Businesses can use an EOR as a long-term solution when dipping their toes into different regions; or as a short-term solution until it becomes more financially viable to become an entity.

“When using an EOR, you can expand with significantly more speed, ease, and flexibility,” adds Jane.

Jane Lee from global HR platform Remote. Image: Supplied.

2. EOR is for businesses small and large

“While some sectors are more commonly known for using EOR services than others, such as technical, IT, and business services sectors, the common denominator is that these companies are hiring and managing employees in several different countries,” explains Jane. “They tend to range anywhere from budding startups to large corporations.”

Australian-founded video tech platform Shootsta started small in Sydney in 2015. As demand grew for their products and services – a suite of apps and services for global companies to create high-quality video content cost-effectively – so did their need for international employees.

Shootsta enlisted Remote to hire in Hong Kong, Mexico, Turkey and the US. “We’d already spent over four months on the entity setup process in Mexico, and we were no closer to success. We needed to expand our team so we started looking for a faster and more efficient solution,” says Shootsta CEO Daniel Chiha.

Remote’s EOR helped them get up and running with their first hire within weeks. They were also able to provide evidence to international suppliers that they complied with local employment laws, data requirements and people processes.

An EOR is like an active, centralised HR department in another country. Instead of needing lawyers, accountants and payroll providers to help manage employees outside of your area, an EOR can do all the work for you. With payroll processes, an EOR can pay people in different countries on time in their local currencies, with correct taxes and benefits, and in compliance with local laws.

3. You can hire overseas contractors with less hassle

If you’re not looking to hire someone full time, Remote has a contractor management solution that’s suitable for microbusinesses or anyone hiring on an ad-hoc basis.

It’s also useful for hiring in complex labour markets like the US where there are different income reporting regulations.

“It’s a simple way to pay global contractors in their local currency, with minimal costs and fees. It is also recommended to go this route if the company does not have a dedicated HR team in place,” adds Jane.

Remote has an International Contractor Management Guide that’s a great starting point if you’ve never hired an international contractor before.

It’s a case of ‘you don’t know what you don’t know’ – you don’t want to expose your business to potential penalties and fines in other countries you had no idea were in place.

While there’s no universal contract for a global workforce, Remote’s contractor management platform creates localised contracts reviewed by legal experts and ensures they’re fully compliant with local tax and labour laws.

That’s a whole lot less stressful than trying to work it out yourself.

Want 15% off Employer of Record or Contractor Management services for 1 year? Head to the Remote for Startups page and use this promo code: RFS15OFF.

See Remote in action and book a demo to see if it’s right for you.

This article is brought to you by Flying Solo in partnership with Remote.

Feature image: AdobeStock