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A global employment organization specializes in helping other companies hire international talent, with a number of options usually offered to suit different needs.  

Sometimes referred to as a global employment agency, such a provider offers guaranteed compliance in unfamiliar jurisdictions, as well as in-depth knowledge of the employment markets in which it operates.

That means, in the event you are not committed to hiring in one particular country, a global employment organization will be able to provide insights on where best to seek out the professionals you need, based on availability and your budget.

With the increasing uptake of remote work seen in recent years, international hiring has become more appealing to many companies, especially as the type of solutions offered by a global employment agency have become more widely used and understood.

Whether you already have team members overseas or are just getting started on your international hiring journey, working with a global employment agency offers a range of options for rapid, compliant recruitment of outstanding talent at often highly competitive rates.

Contact us for more information about how we can assist you with global hiring.

Key advantages offered by a global employment organization 

Recruiting international talent offers many advantages, with one of the most obvious being the signifcant cost-savings that can be made when hiring overseas team members, especially when sourcing them from emerging markets — where growing pools of skilled professionals are available at competitive rates.

Beyond the financial benefits on offer, global hiring also boosts diversity within an organization, with professionals from different countries and backgrounds offering different perspectives and insights that can not only benefit the company culture, but also its operational and business decisionmaking.

Creating a distributed workforce also means that you can establish a presence across continents and timezones, allowing your business to be operational and responsive to the likes of client requests on a buch broader scale.

Hiring internationally via a global employment organization also offers rapid recruitment — with the provider generally having established networks everywhere they work and a strong understanding of how to best source professionals suited to different profiles.

The speed with which a global employment agency can help you hire in combinatiuon with the fact that the solutions on offer will generally not require you to set up an entity in the country where professionals are being recruited, also provides considerable market agility. Because, in effect, you can have people in place in little more time than it takes for the provider to source the talent you need — which will generally be a matter of weeks, if not days.

Another key advantage of hiring through a global employment organization is the guarantee of compliance with all relevant regulations, while the fact that in many cases that provider assumes the vast majority of liability associated with being an employer means you don’t have to worry about unexpected legal complications or financial penalties when navigating an unfamiliar regulatory regime.

Global employment agency services: 3 popular options 

A global employment agency, by its nature, will generally offer a range of international hiring options, rather than just focus on one, with some of the most popular being:

1) Employer of record (EOR) services 

One of the most popular international hiring options offered by a global employment organization is employer of record services. Global EOR services involve the provider hiring international professionals on your behalf, so you can have people reporting to you like in-house team members, without needing to set up a foreign entity.

The EOR effectively assumes legal responsibility as the official employer, meaning that it is liable for almost all compliance issues, while as part of the service the provider will also manage the payroll and other administrative matters related to all professionals employed for you.

Employer of record services are also very agile because, as well as allowing you to quickly establish a presence in a given market, you can also quickly withdraw when needed, with the only delay being the completion OF any statutory notice period or provision of severance to those the EOR has hired for you.

2) Independent contractor hiring  

Another viable option that a global employment organization can facilitiate is hiring foreign independent contractors. These usually seasoned professionals are generally hired on a project-by-project basis, meaning there is usually a clearly defined timeline during which they will provide their services.

While independent contractors will generally charge a premium for their services, those costs are offset by the fact contractors should provide their own tools and equipment and assume responsibility for many benefits that an in-house team member is entitled to. The fact that they are paid per project also means contractors are incentivized to work efficiently.

If you are considering hiring contractors, it is critical you understand contractor misclassification risk and do not classify professionals as contractors when their working conditions and arrangements should mean they are classified as employees. This can lead to significant financial penalties and reputational damage, but is something a global employment agency will make sure is avoided. 

3) Recruitment process outsourcing (RPO)

Another option commonly offered by a global employment organization is recruitment process outsourcing (RPO), which involces a company outsourcing all or part of its recruitment process to the RPÓ provider. 

That may involve the RPO provider assuming responsibility for finding strong candidates for particular roles and presenting them to you, or leading an entire recruitment process, including running interviews and selecting the candidates to employ.

It is worth noting that this solution can be combined with EOR services, so that the provider not only leads the recruitment and hiring process, but then also acts as the official employer of the professionals who are hired, who will then report directly to you.

Regulations a global employment organization can oversee

Which hiring arrangement you choose will affect which regulations your global employment orgniazation oversees, with some of those mentioned below being the responsibility of contractors rather than the the provider.  

Employment contracts: Standard contract types will vary between jurisdictions and your global employment agency will guarantee that the most suitable and accepted type is issued.

Working hours: Your global employment organization will guarantee compliance with maximum daily and weekly working hours wherever it is assisting you.

Vacations and public holidays: Vacation allowances and the point at which professionals are able to use them will vary between countries, which your global employment agency will understand well.

Maternity and paternity leave: Maternity and paternity leave allowances can vary greatly between countires, and your global employment organization will guarantee proper allowances are provided.

Taxes and contributions: If your global employment agency is handling payroll for the professionals hired on your behalf, they will calculate and deduct both employee and employer contributions, including the likes of VAT, pension, health, and any other statutory contributions.

Serviap Global offers global hiring solutions 

At Serviap Global, we operate as a global employment organization, with our portfolio of services including EOR services, contractor hiring and recrtuiment process outsourcing (RPO).

During more than a decade in the global hiring industry, we have grown to able to assist companies with rapid, compliant hiring in over 100 countries worldwide, and we are known for our extensive coverage in Latin America and particular expertise on hiring in emerging markets. 

Contact us to find out more.

Recruitment process outsourcing (RPO) involves a company outsourcing all or part of its recruitment process to a third-party provider. 

That can mean the RPO provider takes on responsibility for sourcing candidates for particular roles or overseeing the entire procedure, including selecting professionals for needed roles. How extensive a service you get will depend on your needs and in-house capacity. 

There are many benefits of outsourcing your recruitment and selection process, including gaining access to an established recruitment network with a track record of success and guaranteed compliance with all applicable regulations, among others. 

In some cases, an RPO provider will also act as an employer of record (EOR), meaning they can hire overseas professionals on your behalf, offering you global recruiting without the need to set up foreign entities. 

Contact us if you are interested in hiring internationally or want to know more about recruitment process outsourcing. 

How RPO differs from traditional recruiting 

Recruitment process outsourcing differs from traditional recruiting in several ways. Firstly, RPO is a more comprehensive solution that covers the entire recruitment process, whereas traditional recruiting is usually limited to specific activities such as sourcing or interviewing.  

Secondly, RPO providers are specialized in recruitment and have a deep understanding of the recruitment market, which allows them to find and attract top talent more effectively. So, you are likely to achieve faster and more accurate hiring. 

Also, one of the common benefits of outsourcing your recruitment and selection process is the use of advanced technology and tools to streamline the recruitment stages and provide better candidate experience, which may save you additional time and costs by simplifying many steps of recruitment. 

Another key difference between recruitment process outsourcing and traditional recruiting is that RPO is a scalable solution that can be customized to meet the needs of different organizations. RPO providers can work with organizations of all sizes and industries and can adapt their services to match the specific requirements of each client. 

5 key benefits of recruitment process outsourcing (RPO) 

Outsourcing your recruitment and selection process offers a number of key advantages, some of which are highlighted below. 

1) Cost efficiency 

Outsourcing your recruitment and selection process can reduce operational costs associated with hiring, onboarding, and training. A reliable RPO provider leverages economies of scale and expertise to streamline recruitment, minimizing unnecessary expenses.  

Your company will also cut costs by saving time and manpower through the whole process. This cost-efficiency allows businesses to allocate resources more properly, promoting better budget optimization.  

2) Access to global talent 

Finding the right talent often extends beyond local boundaries. Recruitment process outsourcing services assist organizations by providing access to a vast and diverse pool of candidates on a global scale, overcoming border, different time zones, or possible language barriers.  

A specialized RPO partner utilizes advanced sourcing strategies to identify and attract top-tier talent, enabling businesses to build dynamic and culturally diverse teams. 

3) In-house focus 

Recruitment process outsourcing benefits companies by allowing them to redirect valuable time and resources toward their core competencies. You can focus on refining your business strategies, enhancing product or service offerings, and optimizing overall performance.  

This strategic shift ensures sustained growth while a specialized RPO provider handles the intricacies of talent acquisition. Consequently, this approach can foster long-term success and health for your operations. 

4) Agility and scalability 

Adapting to changing business destinations requires agility and scalability in workforce planning. RPO solutions offer the flexibility needed to scale recruitment efforts based on business demands.  

Whether you’re experiencing rapid growth or seasonal fluctuations, a dedicated recruitment process outsourcing provider can adjust strategies and resources accordingly, ensuring optimal performance during every phase of your business cycle. 

5) Branding enhancement 

A positive candidate experience is crucial for attracting and retaining top talent. Recruitment process outsourcing benefits organizations by enhancing the overall candidate journey, from application to onboarding, possibly increasing retention rates along the way. 

A specialized RPO provider employs personalized strategies to create an engaging recruitment process, positively impacting employee experience, which is the cornerstone to improving customer experience and productivity, according to PwC. 

RPO services from an employer of record

An employer of record is a third-party entity that assumes responsibility for certain employer-related tasks, such as payroll, benefits administration, and compliance. When you get recruitment process outsourcing through an EOR, they can also take on the role of the legal employer for the recruited professionals, handling all administrative tasks. 

EORs specialize in helping companies navigating unfamiliar international labor laws and regulations. So, one of the benefits of outsourcing your recruitment and selection process to an EOR is the guarantee that you will remain compliant throughout the entire lifecycle of recruitment and employment. 

For organizations looking to expand their operations internationally, global EOR services offer a seamless solution, especially if you plan on hiring in countries where you have little or no previous experience in recruiting. They make it easier for companies to hire talent in different countries without establishing a legal entity. 

Additionally, you may achieve better administrative efficiency. Because EORs handle payroll, benefits, and other administrative tasks, allowing companies to focus on core functions. This can lead to increased operational optimization and reduced administrative burdens. 

To ensure a successful partnership, it’s crucial to follow a systematic approach when seeking out an EOR that can also provide recruiting process outsourcing. Start by clearly articulating your hiring goals and expectations, and the outcomes you aim to achieve with the RPO services. 

Look for an EOR with expertise in the country you wish to hire in, which will have a firm grasp of the nuances of that market and characteristics of local talent pools relevant to the roles you need. Evaluate their track record in successfully delivering both EOR and RPO services.

Verify the EOR’s capabilities in managing cross-border recruitment and compliance. Inquire about their network of legal entities and partners in different regions to facilitate a smooth global hiring process. 

Understand the EOR’s fee structures. Align the budget with your organization’s financial constraints, to ensure that the costs of RPO services are justifiable based on the expected benefits. 

Then, with time, keep a continuous evaluation process to address any challenges, and make necessary adjustments for improvement. By leveraging these considerations, you can seize the benefits of outsourcing your recruitment and selection process in a consistent way. 

Serviap Global offers recruitment process outsourcing  

At Serviap Global, we provide a range of international hiring solutions, including recruitment process outsourcing (RPO), EOR services, contractor hiring, and global talent acquisition to assist companies with sourcing direct hires.

During more than a decade in the global hiring industry, we have grown to able to assist companies with rapid, compliant hiring in over 100 countries worldwide, and we are known for our extensive coverage in Latin America and particular expertise on hiring in emerging markets. 

Contact us to find out more about how we can assist you. 

An employer of record in Japan will hire professionals on your behalf, taking care of their payroll and administration as part of the service, allowing you to quickly onboard outstanding talent without needing to set up a local entity. 

That means you can have international team members reporting to you in little more than the time it takes to find the right people for the roles you need — which your employer of record in Japan will be able to help you with.

SEE ALSO:  Call center outsourcing: 5 great destinations to consider 

You employer of record in Japan will also guarantee full compliance with all local regulations, while assuming most liability related to being an employer. So you don’t need to worry about dealing with unfamiliar regulations or any unexpected legal complications arising.

Contact us if you want to know more about hiring via an employer of record in Japan. 

Japan: country overview 

Known as the “Land of the Rising Sun”, Japan has been among the top five largest economies in the world by GDP for over 50 years, having experienced a period of rapid growth and industrialization that started in the 1940s and helped the country emerge as a leader in tech innovation, as well as automotive and electronics manufacturing. 

With a population exceeding 125 million people, the yen (JPY) is the official currency, while Japanese is the nation’s official language, which is known for using three distinct alphabets and is notoriously difficult to master for native speakers of most European languages.

While capital city Tokyo is the country’s most significant commercial hub, Japan is home to numerous other large economically and culturally important areas and cities. A prime example is the southern Kansai region, where the cities of Osaka, Kobe and Nara are located in close proximity to ancient capital Kyoto.

Nagoya is another crucial industrial and manufacturing hub also located on the largest island of Honshu, along with Toyko and Osaka. On the country’s southernmost island of Kyushu, the city of Fukuoka is home to the Japan’s second-largest port after Tokyo. Meanwhile, on the northern island of Hokkaido, regional capital Sapporo is a cultural and economic center that is particularly popular with winter sports tourists.

Like all highly developed nations, Japan’s economy is dominated by services — generating around 70% of GDP and employing the same proportion of the workforce — however it has a significant agriculture sector and prominent industrial sector.

Exports are dominated by manufactured goods, including automobiles, computers and other consumer electronics, and semiconductors. Petrochemicals, pharmaceuticals, textiles, processed foods, copper, iron and steel are also important exports.

Being a highly developed country with a massive services sector and outstanding education system, Japan produces a large number of highly-skilled professionals. The country’s professional culture is famed for its emphasis on dedication, high standards and respect for seniority.

While the Japanese Labour Standards Act establishes a regular work schedule of 40 hours weekly, an additional flex-time system is common in many companies. According to OECD data, the employment rate of people aged 15 to 64 in Japan is roughly 10% higher than the global average.  

The country’s enormous tech and innovation economy is supported by large numbers of graduates in subjectes related to science, technology, engineering and mathematics (STEM). That is set to increase further, with the government announcing in 2022 the designation of $300 billion yen (approximately US $2 billion) in funding to promote more study of STEM subjects. So the supply of tech talent is set to grow further in the future.

Hiring via an employer of record in Japan 

Hiring team members through an employer of record in Japan offers a range of advantages, with one of the most notable being that you won’t need to establish a legal entity in the country, making it a more agile process. Effectively, you can have people in place in the time it takes to find the right candidates for the roles you need — usually a matter of weeks and sometimes only taking days.

To that end, your employer of record in Japan will have an established recruitment network and a track record of identifying and hiring outstanding talent for their clients. That means you can expect the search to be completed in the shortest time possible.

Another major advantage that an employer of record in Japan offers is compliance with local regulations, while in the event of a non-compliance issue arising, it will be the provider that assumed most or all legal responsibility. That means you can operate safe in the knowledge that no unexepected financial penalties or legal issues will arise.

As part of a standard EOR services package, your employer of record will oversee the payroll of all people employed on your behalf, while also guaranteeing that all statutory responsibilities related to the like of paid time off and other types of leave are met.

An employer of record in Japan can also support with supplementary services, such as assistance with securing a visa for anyone who will be relocating to the country on behalf of the hiring company. Meanwhile, should you later decide to establish your own entity and begin employing people directly, your EOR will often be able to assist with ongoing recruitment services.

Keep in mind that, should you be seeking to hire professionals in Japan as part of an international expansion strategy that will later include other countries, you may wish to seek out a provider with a presence in multiple countries, so they can assist you elsewhere in the future, too.

Regulations an EOR in Japan will handle 

Your employer of record in Japan will ensure compliance with a wide range of local regulations, including: 

Employment contracts: official contracts can be either fixed term or for an indefinite period. They can be signed by both employer and employee in any language, but most employers use the Japanese language. 

Working hours: a full-time work schedule in Japan is set out at 40 hours per week and 8 hours per day.  

Minimum salary: As of 2023, the minimum wage in Japan was set at 1002 JPY per hour (approximately US $6.94), for a full-time monthly salary of 160,320 JPY (approximately US $1,108). 

Vacations and public holidays: Employees receive a mandatory 10-20 days annual leave per year, based on length of service, while there are 16 official public holidays. 

Health insurance: Mandatory. The employer payroll tax includes a 4.935% contribution for health insurance, while employee taxes make up for an additional 4.905%.  

Medical leave: sick leave is non-mandatory in Japan.

Taxes: The standard VAT rate in Japan is 10%. A few goods and services are levied a VAT of 8%. 

Alternatives to hiring via an employer of record in Japan 

The most most common alternative to hiring through an employer of record in Japan is to establish a legal entity and directly employ professionals. That can be the best choice for anyone who is intending to establish a long-term presence in the country, but requires a signicantly great initial outlay, as the entity is established and an staff needed to support the roles being hired are also onboarded.

It also means assuming liability for compliance with local regulations and will still likely require you to partner with a recruitment provider to find strong candidates for the roles you wish to fill.

Another option beyond hiring via an employer of record in Japan is recruiting international independent contractors. These freelancers work independently and, although they may charge a premium for their services, they work on a project-basis, giving them incentive to be efficient, they provide their own tools and equipment, and they are only entitled to limited benefits. 

Be aware that many countries have intensified efforts to avoid the misclassification of full-time employees as contractors, with misclassification sometimes coming with hefty penalties. So if you are considering hiring contractors, it is worth revising your level of misclassification risk based on the conditions under which they will work. 

Serviap Global offers global hiring solutions 

At Serviap Global, we assist companies with global hiring solutions in over 100 countries worldwide, so if you are looking to work with an employer of record in Japan, we can help you. 

Our portfolio of services includes international PEO / EOR services, contractor hiring, and global talent acquisition to help identify candidates to hire directly. 

Contact us to learn more about how we can assist you.  

In today’s globalized world, hiring internationally offers a wide range of benefits and is easier than ever. Employer of record solutions represent one strong option, with the provider hiring overseas professionals on your behalf, so that you can onboard global talent without setting up a foreign entity.

That provider, also known as an employer of record (EOR), handles the payroll for all professionals hired for you, as well as other administrative and compliance matters, while assuming most legal liability related to being an employer. An EOR will also be able to assist with sourcing and recruiting outstanding candidates for the roles you need, if you don’t already have people lined up.

SEE ALSO:  Call center outsourcing: 5 great destinations to consider 

Employer of record solutions have become increasingly popular in recent years, in part thanks to the major uptake of remote and hybrid working arrangements seen since the COVID-19 pandemic affected much of the globe in 2020, with EOR services particularly well-suited to hiring remote international professionals.

While there has been some pushback against remote work sincepandemic-related restrictions on travel and assembly began to be lifted, the reality is that remote work is here to stay, and only likely to grow faster as technologies develop to better facilitate it.

Indicative of this is the fact that the market for employer of record solutions is also expected to continue seeing significant growth — from an estimated global value of US $4.45 billion in 2022 to a projected value of US $6.6 billion in 2028. That represents a compound annual growth rate of 6.8%.

Contact us if you are interested in rapid and compliant global hiring.

5 key benefits of EOR 

Employer of record solutions offer a wide range of benefits, with some of the most significant being:

1) Cost-savings

While employer of record services come at a cost, that fee will usually be dwarfed by the savings made on payroll when hiring professionals in many parts of the world. Growing talent pools have made the case for emerging markets as recruitment destinations increasingly compelling over recent years, with many companies doing so through an EOR.

2) Rapid recruitment

An employer of record will have an established recruitment network and a track record of finding outstanding talent for a wide range of industries. That means you can expect them to be able to quickly identify top candidates for the roles you need to fill, who can then quickly be onboarded because you don’t need to set up a local entity.

3) Market agility

Employer of record solutions are ideal for a company that only needs people in place for a limited-period project, or would otherwise like to get to know a new market better before investing in it deeper.

When you work with an EOR, you are able to withdraw from a market without having to consider the likes of company liquidation.

4) Guaranteed compliance

As part of the services agreement you sign, an EOR will guarantee compliance will all local laws and regulations, as well as assuming most liability in the case of a compliance issue arising. That means you can operate safe in the knowledge that you are not going to be surprised by any unexpected legal issues or financial penalties.

5) Improved diversity

An often overlooked benefit of global hiring is the positive effect is has on diversity within the organization, which naturally occurs when hiring people of different nationalities. Added to that is the fact that remote work has been shown to be especially popular among minorities, who in many cases report a more positive professional experience working from home.

Regulations an EOR will guarantee compliance with 

A provider of employer of record solutions will guarantee compliance with all local employment regulations and corporate laws, including the likes of: 

Employment contracts: Contract types will vary from one country to another, and an EOR will be best placed to advice you on which type is most suitable for the roles you are recruiting.

Working hours: Many countries implement strict laws on maximum working hours and overtime, which an EOR will be able to advise you on.

Minimum salary: In the event you use employer of record solutions to staff up an operation with minimum wage positions, the EOR will guarantee that minimum wage is offered.

Vacations and public holidays: An EOR will guarantee that all professionals are given the vacation time they are entitled to, and keep up to date records of what has been used.

Maternity and paternity leave: An employer of record will make sure that statutory maternity and paternity leave are granted, in the event the company doesn’t already have a superseding policy that is compliant with local laws.

Taxes and contributions: An employer of record will handle the payroll of all professionals hired on your behalf, meaning they will calculate and deduct both employee and employer contributions, including the likes of VAT, pension, health, and any other statutory contributions.

Employer of record solutions: choosing a provider 

Choosing the right provider of employer of record solutions will come down to a number of factors, among which your future plans are particularly important. Because you should ideally work with an EOR that is not just capable of supporting your current needs, but also your future plans.

If, for example, you are looking to work with an EOR to hire in a new market, but intending to expanding into further markets in the short- to medium-term future, you should ideally choose a provider that has an international presence and will be able to assist you elsewhere.

That will also be useful in the event you are undecided or open to different options in terms of where you seek out new talent. Because, if the profile and costs are bigger priorities than the location of the person being hired, an EOR with an international presence will also be able to guide you on where best to recruit.

Beyond the practicalities of working with a provider that can help you in the future, its also important to work with an EOR that has consistently satisfied their clients, which can usually be found out by reading reviews on line. Note that ideally you should find reviews across a number of platforms, to guarantee that you are not misguided by inaccurate reviews posts on one particular website.

Serviap Global provides employer of record solutions

At Serviap Global, we offer employer of record solutions, with our coverage extending to over 100 countries worldwide.

As well as EOR services, we also offer contractor hiring and provide international recruitment services to companies seeking outstanding direct hires.

Contact us to discuss how we can assist you.

Proactive employees bring ideas and energy to teams, so they can be crucial to helping a business push on to the next level. However, to get the most out of them, proactive employees must be managed effectively. 

Characterized by a willingness to take initiative and assume responsibility for their work, proactive employees tend to be self-motivated, invested in their own development, and prone to anticipating and seeking solutions to problems before looking for support.

That will usually be highly positive, but can cause problems when such people are handed tasks or responsibilities that are far beyond their level of experience or expertise, or which are not accompanied with sufficient guidance.

SEE ALSO:  Call center outsourcing: 5 great destinations to consider 

Proactive employees will generally respond positively when ambitious goals are set, however problems can arise when those goals are not ambitious enough, because the proactive employee does not have adequate opportunity to push themselves to reach them. Alternatively, if those goals are so over-ambitious as to be unrealistic, it can negatively impact a proactive employee and diminish their motivation.

So for any business keen to nurture a culture in which proactiveness is encouraged and its benefits are maximized, it is essential to understand how to properly manage and challenge proactive employees.

Contact us to find out how we can help you with recruiting top talent. 

4 benefits proactive employees offer

Proactive employees offer a range of benefits to the teams they work in, with some of the most important highlighted below.

1) Driving innovation 

Proactive employees tend not to be limited by acceptance of the status quo and seek out ways to improve processes and procedures. That helps to drive innovation within the organization, helping to promote operational improvement and eliminating potential risks before they become problems.

2) Taking calculated risks 

Another characteristic of proactive employees is their willingness to take calculated risks. That means that they are not afraid to try new things and take on fresh challenges, without taking unreasonable risks, which can help the company make breakthroughs and stay ahead of the competition.

3) Increasing productivity 

Proactive employees tend to be highly productive, thanks to their high levels of motivation and innovative mindset. Proactiveness can also improve productivity because it also helps to foster collaboration between teams or departments.

4) Boosting morale 

The positive influence of proactive employees often rubs off onto the teams in which they work, as realistic goals are met and a collaborative culture is nurtured. That in turn will often help improve team morale, which in turn can make people more loyal and less fatigued.

Challenges of working with proactive employees 

While proactive employees offer many benefits to companies, they can present some challenges when not properly managed.

Successfully directing a proactive employee is one such challenge, because failure to fully engage their problem-solving nature can leave them unsatisfied in their work. Meanwhile, setting unrealistic targets and overburdening them can result in a lack of recognition for their contribution,

Understanding a proactive employees limits is also fundamental to properly managing and getting the most out of them. That means challenging them without handing them responsibilities that are far beyond the seniority of their role or their level of expertise.

It also means encouraging them to impose limits on themselves, such as the additional hours they do, in order to avoid burnout — which these highly motivated team members may be prone to. In part that means not expecting them to maintain a high-energy approach to work all of the time, even if they can usually be expected to.

It is also important to help proactive employees maintain focus on their key responsibilities and not allow their interest in personal and operational improvements to become a distraction. That means clear goal setting based on those realistic targets.

10 tips for cultivating a proactive company culture 

Creating a proactive company culture means promoting a mindset of initiative, collaboration, and continuous improvement. Some tips towards supporting proactive employees include:

1) Set clear expectations

Clearly communicate the company’s goals, values, and expectations. When employees understand the big picture, they are more likely to take initiative.

2) Encourage open communication

Create an environment where employees feel comfortable sharing ideas and concerns. Open communication fosters collaboration and a sense of ownership.

3) Provide autonomy

Allow employees the freedom to make decisions and take ownership of their work. Autonomy fosters a sense of responsibility and encourages proactive behavior.

4) Recognize and reward initiative

Acknowledge and reward employees who demonstrate proactive behavior. This could be through formal recognition programs, promotions, or simple expressions of appreciation.

5) Invest in employee development

Provide opportunities for learning and growth. When employees feel that the company is invested in their development, they are more likely to proactively seek ways to improve and contribute.

6) Lead by example

Leadership plays a crucial role in shaping company culture. Leaders should model proactive behavior, demonstrate a strong work ethic, and encourage a positive mindset.

7) Foster a learning culture

Emphasize the importance of continuous learning and improvement. Encourage employees to seek out new skills and knowledge, and provide resources for ongoing education.

8) Promote collaboration

Foster a collaborative environment where employees feel comfortable working together to solve problems and achieve goals. Cross-functional collaboration can lead to innovative solutions.

9) Embrace flexibility

Be open to new ideas and approaches. A flexible and adaptable culture allows for experimentation and creativity, leading to proactive problem-solving.

10) Celebrate successes and learn from failures

Celebrate achievements and milestones, no matter how small. At the same time, view failures as learning opportunities rather than setbacks. This encourages a proactive approach to problem-solving.

Serviap Global offers international hiring solutions 

At Serviap Global, we offer support with international hiring solutions in over 100 countries worldwide. Our portfolio includes employer of record (EOR) services, contractor hiring, and global talent acquisition to help companies source direct hires.

So no matter where you are interested in finding top talent, or how you intend to onboard them, we can assist you. Contact us to find out more. 

If you were interested in this article on proactive employees, read more of our coverage.

Working with a provider of payroll services in Mexico can be a great way to streamline your in-house operations, while handing a crucial financial and administrative responsibility to experts who guarantee compliance with all local regulations.

Every financial jurisdiction is characterized by its own particularities, and failure to navigate them properly can result in legal complications or financial penalties. In Mexico, payroll services must be provided in full compliance with the Federal Labor Law, the Mexican Social Security Institute Law, and the Federal Tax Code, among others.

Working with a provider of payroll services in Mexico also guarantees that payments to all professionals based in the country are reliably administered, with everyone paid on time and the likes of paid time off and statutory bonuses processed properly. That, in turn, helps maintain job satisfaction among everyone working for the company in Mexico and can boost the reputation of the company in local professional circles.

SEE ALSO:  Call center outsourcing: 5 great destinations to consider 

For anyone seeking a provider of payroll services in Mexico, it may be worth examining the possibility of working with an employer of record (EOR).

Such a provider hires international professionals on behalf of other companies, allowing them to quickly and compliantly onboard international team members without setting up a foreign entity. So depending on the nature of the business and number of people being employed, this can be an attractive option that offers significant savings.

Contact us to find out more about EOR and payroll services in Mexico. 

Responsibilities a payroll provider will take on 

A provider of payroll services in Mexico will be able to take on a significant range of responsibilities, among which some of the most significant include: 

Compliant contracts: A provider of payroll services in Mexico will often be able to provide contract frameworks that are compliant with local laws and can be adapted for any professionals being hired locally. Generally contracts in the country will be indefinite term, with other types only suited to specific types of jobs. This is something a payroll services provider can offer advice on.

Incorporation documents: New employees must present a range of documents upon joining a company, including among others: tax and ID numbers (RFC and CURP), social security number (IMSS), voter’s registration number (INE), proof of address, bank certificate, housing fund withholding statement. A provider of payroll services in Mexico will often be given responsibility for receiving, checking, and storing these.

Minimum wage: All salaries must meet minimum wage laws, which vary within the country. In the northern part of the country, bordering the United States, the daily minimum wage is 312 Mexican pesos (approximately US $18), while in the rest of the country it is set at 207 Mexican pesos (approximately US $12).

Maximum hours: In Mexico, by law nobody should work more than 8 hours per day or 48 hours per week as part of their normal working hours.  

Statutory bonuses: Like in many Latin American countries, Mexico has a statutory annual bonus that as a minimum must equal 15 days of professional’s standard monthly salary. Note that this bonus could double, which would place it in line with many other countries in the region.  

Paid vacation: Following the passing of a new law in 2022, formally employed people in Mexico are entitled to at least 12 working days of PTO after completing one year of service, increasing by two working days for each year of seniority up to a maximum of 24 days.  

Public holidays: While public holidays vary each year, there are generally seven paid public holidays granted for New Year’s Day (January 1), Constitution Day (February 5), the Birth of Benito Juarez (March 20), Labor Day (May 1), Independence Day (September 16), Revolution Day (November 20), and Christmas Day (December 25). 

Social Security: Paying towards social security is mandatory and covers medical, surgical, pharmaceutical, and hospital services, occupational risks, sickness and maternity, disability and death, retirement, daycare, and social services. The relevant calculations and deductions will be made by a provider of payroll services in Mexico.

Taxes: Similarly a provider of payroll services in Mexico will deduct income tax (ISR), which ranges between 0% and 35% depending on earnings. 

EOR vs payroll services in Mexico

Anyone considering working with a provider of payroll services in Mexico may find that EOR services offer a more comprehensive solution to better suits their needs. Because as part of its standard service, an employer of record in Mexico will provide payroll and other administrative services for all professionals hired on your behalf.

So not only is payroll and related compliance taken care of, but those professionals are officially employed by the EOR in the eyes of local authorities, meaning that the vast majority of liability related to being an employer sits with them.

An EOR will also be able to help with recruiting the professionals you need, and will have an established network and expert understanding of the local job market to help them find outstanding candidates in the shortest time feasible.

As part of its recruitment services, an EOR will also be able to carry out interviews — be that undertaking initial interviews to vet candidates before passing them on to be interviewed by the company they will report to, or taking responsibility for putting the right people in place to meet specified needs.

The EOR will also take care of onboarding all those professionals, including coordinating with the company they will report in the acquisition and distribution of any equipment that must be issued, as well as eventually offboarding any departees.

All of this will come at a fee, which will often work out to be significantly less than the costs associated with setting up an entity and employing both the professionals and local support staff needed to administer them.

It is also a more nimble solution, with a company able to have professionals reporting to them from international locations in only the time it takes to find and onboard them. While an EOR may also offer support with other hiring solutions, or be well-placed to assist with expansion into other countries in the future.

For anyone seeking payroll services in Mexico who already has an entity, but will be looking for support with recruiting the professionals they need, an EOR may still be able to help. Because, in some cases they will also offer standalone recruitment services.

Serviap Global offers EOR and payroll services in Mexico 

Serviap Global offers payroll services in Mexico, among a range of services that include international PEO / EOR services, contractor hiring, and global talent acquisition to help source direct hires.  

Having started out in Mexico, we know the country like no other provider, so we can guarantee you the support you need when hiring or doing business there.

Contact us to find out more.

Hiring remote international employees has become more attractive in recent years, thanks to the rise of teleworking and the emergence of solutions that allow companies to easily and compliantly recruit overseas talent.  

Global hiring is an appealing option for companies looking to strengthen their teams, expand their international footprint, or improve cost-efficiency. With the growth of the likes of employer of record services (EOR), it is particularly easy to execute.

But while there are many clear benefits of hiring remote international employees, a number of concerns must be dealt with to get the most out of it, including effective communication, payment of overseas team members, and managing people working in different time zones.

Contact us if you are interested in hiring remote international employees.

8 important considerations when hiring remote international employees 

Whether you are a startup exploring your first step into international recruitment or a major company seeking to optimize your hiring strategy, it will be important to take the following eight considerations into account: 

1) Digital networking 

Digital networking excels in traditional techniques of recruitment in terms of speed and efficiency. Online platforms provide personalized opportunities for showcasing your brand. The rise of technology and the advent of digital networking have revolutionized and facilitated the way we build these relationships. 

This allows companies to hire professionals in new ways, discovering talents that maybe wouldn’t be found through traditional methods. However, this comes with its own challenges when you need to navigate through online platforms, so collaborating with a 3rd party who offers recruiting as a service can be of great assistance. 

2) Employee classification 

In today’s job market, many businesses rely on different agreements to complete their teams and fulfill the company’s tasks. So, when hiring remote international employees, you can consider the options between full-time workers, fractional hires, part-time employees, and independent freelance contractors. 

Moreover, employee classification may differ from country to country. Understanding how to properly contract and manage professionals is essential to avoid penalties and independent contractor misclassification, which is when you classify someone as a freelance contractor when they should be specified as direct employees. 

3) Regulatory compliance 

Hiring remote international employees can also present challenges when it comes to regulatory compliance. If you plan on managing and recruiting staff directly, you must set up a legal entity in every country of recruitment to serve as your legal representation and adapt your company to regional labor regulations. 

This involves a set of laws, tax norms, and requirements. Companies need to navigate these complexities such as minimum wage, insurance, and registration, among other benefits. A good strategy to streamline this process is collaborating with global EOR services, which can offer regional insight and maintain international companies compliance. 

4) Paying international employees 

Managing international payroll can become a major issue for a company, especially when dealing with multiple currencies and taxes. Each country can have its own determinations for how to pay employees, including average working hours, paid vacations, parental leave and so on. 

Payroll management when hiring remote international employees is another process that can be facilitated with an employer of record. An EOR handles payroll, calculations, deductions, and timely payments. They make sure that the employee benefits packages follow local laws. 

5) Cost-effectiveness 

One alluring aspect of hiring internationally is the cost advantage. Even though companies have to deal with different local work regulations, they are able to save money in aspects such as office space.  

Additionally, companies can access qualified professionals at a fraction of the labor cost due to different currencies and work scenarios, especially by working in emerging markets. Labor costs are typically lower compared to richer countries, allowing businesses to access top talent without straining their budgets. 

6) Workforce management 

Distributed workforce management can create challenges from the effects of isolation and loneliness when employees work remotely. So, with international teams, it’s important to focus on proposing team-building activities and creating valuable links between areas. 

Managers can adopt work software that will make daily life and delivery easier, ensuring that all collaborators have the proper equipment to work remotely without complications. Additionally, establishing clear communication by providing regular feedback can encourage international teams and improve engagement. 

7) Asynchronous work models 

Hiring remote international employees means you will likely work with collaborators from different time zones, which requires adapting your processes to asynchronous working. To adopt it successfully, leaders can promote a self-management culture with clear objectives. 

This working model is perfect for companies that want to expand internationally and need to hire the best professionals regardless of their location or schedule. It also allows you to expand your company’s coverage of service hours, which can help you attend to different international clients.  

8) Increased diversity 

Finally, hiring remote international employees allows businesses to tap into new talent pools, increasing diversity and equity. You can collaborate with professionals who bring in additional knowledge in other languages, as well as different perspectives and international networking opportunities. 

Furthermore, increased diversity rates in a company usually correlate to higher employee satisfaction and retention. Many studies demonstrate that inclusion and diversity are crucial for employee retention, considering that the majority of workers say their willingness to remain in a workplace depends on inclusion. 

Common options for hiring remote international employees 

Any company that wants to build an international team by hiring remote employees in other countries has three main options to choose from. The first is directly hiring full-time employees. The business will need a legal entity in each territory and will be responsible for recruitment processes and team management, including on and offboarding. 

Alternatively, companies can find solutions for hiring remote international employees via an employer of record. These third parties offer staff outsourcing and are specialists in global recruitment with established entities.  In exchange for their services, an EOR usually requires a monthly or a standalone fee. 

By working with an EOR, companies do not have to worry about opening an entity or subsidiary. Meanwhile, the provider has experience in the local market, is familiar with labor and tax regulations, and can assist clients with talent acquisition, hiring full-time employees, and processing work permits and visas.  Note that EOR services are sometimes referred to as international PEO.

In opposition to full-time professionals, you can work with international independent contractors, especially when you need specialized skills for short-term projects with quick deadlines. They will provide services directly to you but won’t be entitled to the same full-time work benefits. Contractors can be hired directly or through the assistance of employers of record as well. 

Serviap Global offers global hiring solutions

At Serviap Global, we have over a decade of experience helping companies with hiring remote international employees. Our portfolio of services includes international PEO / EOR services, contractor hiring, and global talent acquisition for sourcing direct hires. 

Having emerged out of Latin America, we are able to assist companies with rapid, compliant hiring in over 100 countries worldwide, and we are known for our particular expertise with hiring in emerging markets.

Contact us to find out more about how we can assist you.

For growing companies that need to boost their headcount quickly, recruitment can be a challenge. To be able to effectively meet such needs, a increasingly popular choice is to work with a recruiting as a service provider. 

While recruiting as a service (RaaS) — more commonly referred to as recruitment as a service — can take different forms, this talent acquisition model involves companies outsourcing their recruitment processes to specialized third parties. That includes sourcing, vetting, and interviewing candidates, as well as onboarding those who are selected for roles.  

SEE ALSO: Call center outsourcing: 5 great destinations to consider  

By leveraging the expertise of dedicated recruitment professionals, companies are able to overcome a major obstacle associated with rapid growth, while also having the chance to focus on their core operations, knowing that finding the talent they need is taken care of. 

Contact us to find out how we can help you with recruitment services. 

What is recruiting as a service?

Recruiting as a service is an increasingly popular subscription-based service that provides businesses with access to a team of experienced recruiters to help them find and hire the best talent. RaaS providers offer a wide range of services, including job posting and advertising, candidate sourcing and screening, interview scheduling and coordination, offer negotiation and placement, and onboarding and support.

Recruiting as a service can be a particularly valuable solution for small businesses and startups that may not have the in-house resources or expertise to handle recruitment effectively. RaaS providers can help businesses to save time and money by outsourcing the recruitment process, gain access to a wider pool of qualified candidates, improve the quality of their hires by leveraging the expertise of professional recruiters, and reduce the risk of hiring mistakes.

RaaS providers typically charge a monthly subscription fee, which is typically based on the number of open positions or the size of the company. Some RaaS providers also charge additional fees for certain services, such as background checks or reference checks.

When a company contracts a provider for recruiting as a service, the RaaS provider will first work with them to develop a job description and post the job opening on relevant job boards. The recruiting as a service provider will also source and screen candidates, and schedule interviews with the hiring company. Once the hiring company has identified a candidate that they are interested in hiring, the RaaS provider can help with offer negotiation and placement.

Recruiting as a service can be a valuable solution for businesses of all sizes that are looking to improve their hiring process.

3 options for efficient recruitment 

There are different ways to approach recruitment methods and identify the right candidates efficiently, including recruiting as a service. This choice depends on aspects such as the size of your company, the roles to be filled, and the types of contract you want. Here are common alternatives to this process. 

Working with a recruitment agency 

A common choice among companies seeking assistance with hiring is to work with a specialized agency. Such companies may provide a subscription-based service in the RaaS model, or can provide more traditional recruitment services, whereby they work on a position-by-position basis.

This can be a good choice for hiring domestically if your company does have the capacity to meet its recruitment needs during peak periods.

Once new hires are integrated into your team, it is up to you to manage aspects such as payroll and employee management, as well as onboarding and offboarding. This can be a safe solution for fast hiring, especially when filling temporary or short-term positions. 

Working with an employer of record

An employer of record (EOR) offers another option for companies looking to outsource recruitment, especially those seeking to hire internationally.

An EOR helps companies to hire top professionals around the world without needing to set up a foreign entity in each country or worry about compliance with unfamiliar regulations. 

Because an EOR hires those professionals via its own local entities, taking care of their payroll and administration in the process. Thos professionals, meanwhile, report directly to the hiring company, meaning that they operate just like direct hires based overseas.

An EOR may also offer a subscription based service akin to recruiting as a service, which will likely be most attractive to companies with a significant and ongoing need to find and hire international professionals.

Keeping it in-house 

Both international and national recruitment can be done in-house, although that does require an experienced HR team in order to be an effective approach. For companies planning to take this route to hire international team members, opening legal entities in other countries is also a neccessity. 

This option will generally be most suited to large companies that are committed to establishing a medium- to long-term presence in a particular market. Because entity formation can be time-consuming and that it also requires local support staff to administer the entity and the professionals contracted to it.

In many cases, companies planning to go down the route of opening foreign entites and hiring directly can still benefit from working with an EOR, which could initially provide support by onboarding local professionals while the entity formation process is ongoing, and subsequently providing standalone recruitment services.

Serviap Global offers global hiring solutions 

Serviap Global assists companies with global hiring solutions in over 100 countries worldwide. Our portfolio includes international PEO / EOR services, contractor hiring, and global talent acquisition to assist companies with finding direct hires. 

Contact us for more information on recruiting as a service and more benefits of an EOR collaboration.

If you were interested in this article on recruiting as a service, check out more of our coverage.

https://www.youtube.com/watch?v=pxLlwjtJuMY

As remote work becomes more popular, companies are increasingly collaborating with a provider, such as an international recruitment agency, to help them identify and hire the best talent worldwide.

International recruitment agencies use their expert understanding of foreign job markets to help companies find and onboard skilled overseas professionals to fill vacancies. In the event the hiring company is unsure of the best destinations to look for the people they need, an international recruitment agency will also be able to offer advice on where best to consider looking.

While a big part of that decision will be based on the availability of talent, other factors that an international recruitment agency will take into account are the salary expectations of relevant professionals in different markets, as well as the cost-to-employer burden that the hiring company must assume.

SEE ALSO: Call center outsourcing: 5 great destinations to consider  

As well as helping companies find the talent they need, an international recruitment agency provides a platform for highly-skilled professionals to find and apply for prestigious roles with international firms. In some cases, an international recruitment provider will also be able to employ international professionals on behalf of other companies and oversee their payroll.

Such an arrangement is known as employer of record (EOR) services, but may also be referred to as international professional employer organization (international PEO) services. As well as managing the payroll of the professonals on behalf of other countries, an EOR assumes most liabilities associated with being an employer, eliminating a source of compliance risk for the hiring company.

In addition, the hiring company does not need to establish a legal entity in the country where the professionals are based, because they will officially be employed through the EOR’s own entity. Meaning the hiring process can be verey quick — sometimes taking just a matter of days. 

Contact us to learn more about our international recruitment services. 

4 benefits an international recruitment agency offers

Before choosing an international recruitment agency for hiring global talent, companies interested in working with foreign remote employees should consider the following points: 

1) Local market knowledge 

An international recruitment agency must understand the needs of its clients in order to provide valuable solutions. That’s why they have extensive knowledge of the local market or markets where expansion companies are considering recruiting. 

In addition to offering local networks of specialized professionals, an international recruitment agency will understand labor and tax regulations. It should also be up to date on aspects such as local business culture and which fields of work have the most recent graduates and other skilled professionals. 

2) Regulatory compliance 

Because of their extensive knowledge of the local market, an international recruitment agency can assure each client that it will comply with immigration procedures and any regulations related to personnel acquisition in the target country. 

Any company with a global mobility project, whether moving employees around the world or recruiting in other markets, will want to adhere to the laws of each region. To avoid potential fines, it will look to work with an international recruitment agency to help minimize any risks associated with creating a distributed workforce. 

3) Experience with mobilizing people 

An international recruitment agency should also have experience in mobilizing staff in case its clients need to relocate part of their team or require people hired through this provider to move to their headquarters or any territory for a seasonal period. 

As part of the employee mobility expertise, the international recruitment agency must arrange accommodation, transportation, and other services if the worker needs to change residence. Above all, it must organize any necessary work permits and/or visas for employees to offer their services. 

4) Global reach 

For the collaboration between business owners and an international recruitment agency to be most successful, the provider must have a global reach and be able to offer diverse recruitment solutions in more than one territory or region. 

For example, an international recruitment agency must provide nearshoring services if its client wants to hire close to home, and offshoring if it wants to explore more distant but potential countries, such as hiring internationally in emerging markets. 

Using EOR services for international recruitment 

An international recruitment agency can help expanding companies find professionals away from home, but an EOR’s services are even more complete: not only does it search for professionals on behalf of its clients, but it assumes all legal responsibility as an employer, manages human resources and prevents its clients from having to open a local entity 

Advantages of working with an EOR 

There are many advantages of working with an EOR to hire internationally, with some of the most important being:

Cost-benefits 

A key advantage of working with an EOR for international recruitment is that these providers have established entities in each territory where they offer services. Thus, their clients do not have to invest significant time and resources to open subsidiaries or representative offices.  

In the event of a long-term expansion plan and the need for an in-house entity to start operations, the EOR can help companies find the local professionals best suited to their needs while firms establish themselves in the target market. 

Specialized knowledge

An EOR has in-depth knowledge of the local market where it offers services. This ranges from recruitment and tax issues to larger social matters such as traditions, the way of doing business, and anything that can help its clients succeed with their expansion to a new territory.  

The more an EOR knows about the local market and the characteristics of its workforce, the more accurate its candidate search will be in helping clients quickly onboard new international team members. 

Regulatory compliance 

As an official employer, the EOR assumes all legal responsibility for overseas recruitment, which helps minimize non-compliance risks, like independent contractor misclassification. Unlike an international recruitment agency, it will provide ongoing compliancy support. 

The EOR will also be up to date on the types of contracts it can sign with employees, working hours, minimum wages, whether an annual bonus must be offered in the territory and the percentage to be granted, vacations, and any local labor law specifications. 

Global coverage 

More companies worldwide have embraced remote work for its various benefits on staff morale and cost savings. They relied on outsourcing professionals via specialized companies to facilitate collaboration with employees. This often started locally, but many businesses then realized there was no need to limit themselves to the domestic recruitment market. 

While a growing number of international recruitment providers exist, only a few companies have a truly global reach. Serviap Global, for example, has extensive coverage, offering services in more than 100 countries, from global powers to developing economies. 

Serviap Global offers global hiring solutions 

At Serviap Global, we assist companies with global hiring solutions in over 100 countries qorldwide, including international PEO / EOR services, contractor hiring, and global talent acquisition to identify candidates for direct hiring. 

We started in Latin America in 2010 before expanding internationally, and today we are recognized for our expertise in sourcing highly skilled professionals from emerging markets. 

Contact us to learn how we can help you.

If you were interested in this article on hiring via an international recruitment agency, check out the rest of our coverage.

The growth of teleworking seen in recent years has allowed more and more companies to consider hiring remote employees in other countries — a process that is now easier than ever, thanks to the emergence global hiring solutions that allow yo to recruit internationally without setting up a foreign entity. 

As well as offering access to a broader talent pool, hiring professionals internationally can help build diverse teams with enriching perspectives and create a presence for companies in new markets without the need for a local office. 

SEE ALSO: Call center outsourcing: 5 great destinations to consider  

Hiring remote employees in other countries can also offer significant cost-savings when the professionals being hired are based in countries where salary expectations are lower. For that reason, companies interested in onboarding overseas talent will often focus on hiring internationally in emerging markets.

Of course, global hiring is not without its challenges, and working with unfamiliar regulations is a major one. However, these can be mitigated by partnering with a seasoned provider, capable of helping you navigate the pitfalls associated with one market or another.

Contact us to find out how we can help you with hiring remote employees in other countries. 

Hiring remote employees in other countries: benefits and risks  

Hiring remote employees in other countries brings benefits for companies but also some risks. Both are worth considering so you know how managing a global workforce might work for your enterprise. 

Benefits 

Access to top talent: Remote work allows companies to hire skilled and experienced professionals who can contribute innovative ideas to their organizations. If the CV is good enough, the location may not be so important. 

Top talent is not always on your doorstep. That makes it worth casting your net far and wide to search for quality workers, regardless of where they may be based, rather than settling for the local hire with fewer qualifications. 

Resource savings: besides recruiting highly-trained professionals for your team, hiring remote employees in other countries makes it easier for you to work with that top talent at competitive prices. 

For example, for young companies such as start-ups, companies in the United States and Europe can have IT experts working on their global teams from Africa, Latin America, and Southeast Asia. They can do the same tasks as any other employee at a more affordable price.  

Team diversity: an increasing number of companies seek to promote the fair treatment and active participation of all their employees through diversity, equity, and inclusion (DEI) action. By hiring remote employees in other countries, teams naturally become more diverse. 

By working with people of diverse nationalities, cultures, and beliefs, employers enrich their company’s culture and better understand the markets and regions where their global employees live for possible future business expansion. 

Internationalization: any company that hires remote employees in other countries has representatives of their organization without having to move part of the operations to those territories. In other words, they internationalize their business. 

These employees help organizations to have more geographic coverage. In addition, by being in different time zones, they can serve the needs of international customers more promptly, for example taking advantage of asynchronous working. 

Risks  

Employee misclassification: one of the main risks of hiring remote employees in other countries is misclassifying personnel. While you may employ people on a full-time, scheduled basis who will be on the regular payroll, you may also work with international contractors. 

An international contractor is an individual or group that works for their own company which provides services to one or more clients. They have flexible schedules and usually work for a specific project or period. Therefore, it is best to check local regulations to make sure you are legally compliant. You can also use Serviap Global’s free employee misclassification risk calculator. 

Communication failures: Hiring remote employees in other countries can put effective communication at risk, especially when time differences are significant and there is not a common language. These differences can result in misunderstandings that affect productivity. 

To ensure that communication with your international teams is effective, use technological tools such as software that allows you to read and write instant messages, organize video calls, and send emails. If necessary, use translators to ensure you don’t lose details of what your colleagues say. 

Work organization: Planning and organizing the activities of an international team, as well as providing timely feedback, can be complicated, especially when communication is not immediate and remote employees may take longer to respond to a request than those in an office.  

The best way to meet this challenge is to use calendars and online work platforms that allow you to share documents and files. If you need to discuss something with all team members, set up meetings when everyone is available.

Maintaining commitment: A key challenge associated with hiring remote employees in other countries — as well as at home — is building commitment to the organization among dispersed team members.

To make remote professionals feel part of the team, finding ways to recognize their achievements is important, as is offering them emotional salary benefits, such as opportunities for personal and professional development, flexible working hours, and access to leisure spaces. 

3 options for hiring remote international team members 

Any company that wants to build an international team by hiring remote employees in other countries has three main options to choose from, which are described below: 

1) Via an EOR 

One of the most practical solutions for hiring remote employees in other countries is an employer of record (EOR). These third parties offer staff outsourcing and are specialists in global recruitment through their established entities and hiring networks.  

By working with an EOR, companies do not have to worry about opening an entity or subsidiary. In addition, the employer has experience in the local market, is familiar with labor and tax regulations, and can assist clients with talent acquisition, hiring full-time employees and contractors, and processing work permits and visas.  

When working with an EOR in hiring remote employees in other countries, any risk of non-compliance and misclassification of employees is minimized. As legal employers, these providers assume all legal liability involved in overseas recruitment.  

In exchange for their services, which may also include payroll and human resources administration for their clients, an EOR usually establishes a monthly fee. It’s best to go with experienced providers who can adjust to the needs of your company. 

2) As contractors 

An alternative to hiring remote employees in other countries is to work with them as international independent contractors. These professionals are individuals or collectives that operate independently for their own company, which provides services to multinational firms.

Although they may work for a single company as if they were a regular employee, contractors often have flexible schedules that allow them to operate for more than one employer at a time and to participate in different projects.

Contractors’ experience and flexibility are key advantages of working with them. However, before opting for this form of recruitment, companies should be aware that misclassifying them can have legal repercussions and the payment of possible fines.

Also, since they are not part of the company payroll, they do not enjoy the same rights as a full-time employee. However, they are still protected by specific labor and tax rules. To avoid legal problems, companies also collaborate with employers of record who work with international contractors among their offerings. 

3) Hiring directly 

Directly hiring remote employees in other countries can be complex, especially when recruiting directly. First, having a legal entity in each territory is necessary, which entails complying with registrations with the authorities and obtaining permits to operate.  

Having legal entities abroad is also an investment of resources. It can be a good idea for companies that plan to remain in specific markets long-term and form teams with many employees.  

In addition, direct hiring involves being responsible for the entire recruitment process, from promoting job openings and screening potential candidates to negotiating salary and benefits.  

This hiring option requires extensive knowledge of how the market where you want to operate works. It is high-cost, both financially and in time. However, for businesses thinking in the long-term it is a possibility. 

Serviap Global can help companies thinking of hiring remote employees in other countries 

At Serviap Global, we assist companies with hiring remote employees in other countries, with our reach extendeing to more than 100 nations worldwide.  

Our portfolio includes international PEO / EOR services, contractor hiring, and global talent acquisition to assist with identifying top candidates to hire directly. 

Contact us to find out more about how we can help you.