How To Make Borderless Hiring Less Taxing?

Imagine having access to the best talent from around the world, no matter where they live. Now imagine having to jump through countless hoops to be able to hire that talent. That’s the sorry reality of borderless hiring today. Should it be that way?

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Borderless hiring offers an incredible opportunity, but it comes with a lot of luggage which makes many employers reluctant to even try. Legal frameworks are stuck in the pre-pandemic era while remote work has become a coveted benefit. And no matter what they tell you - it’s not going anywhere and is expected to grow.

Let's look at the challenges we are facing today and what you can do to overcome them and build a diverse and skilled team, fully remotely.

I will not dwell much on the legal side as it’s pretty complex, but the main issues are the following…

1. Hiring on an employee contract often requires a local business address in the country of their residence, which can be expensive and complicated - especially if you hire people from multiple countries. Payroll is also pretty difficult to navigate.

2. Without a local presence, you will have to hire on freelance (also called B2B) contracts, which can be less appealing for employees who have to handle their own taxes and social security.

3. Hiring a borderless recruitment agency that can deal with these issues is a solution, but it’s very expensive and most companies resort to this option only in cases of high-value positions.

4. Let’s also not forget the issues of remote management - working across different time zones is a challenge, but of all challenges stated here, it’s the easiest to handle. Stay tuned for a dedicated video!

So, what are your options?

As someone who’s hired global talent on numerous occasions, I think the best approach is to be as clear and specific in your contracts as possible.

You need to learn to provide contracts that outline responsibilities and expectations. In case the person you’re hiring hasn’t worked in that modality before, it’s crucial to take the time to evaluate their understanding of the situation and provide education if needed - especially when it comes to taxes. To do that, you will need a trusted legal counsel yourself.

Benefits like global healthcare coverage and equipment budgets are also a step in the right direction. You may not be able to provide your team with all the benefits of an employee contract but in many cases, you can provide an equally lucrative benefit package.

And finally, your strongest leverage is providing a true work-life balance. Flexible schedules are not only a fad - younger generations currently entering the workforce already demand them.

Borderless hiring may not be moving with the speed we wish it to - legal frameworks are as stale as they can be, but we can fight for a future in which those who can work remotely are free to do so without jumping through hoops. And that fight begins with you and how willing you are to get out of your comfort zone to search for the best possible talent!

Stay tuned for more posts in which I tear down common remote work misconceptions. Oh, and don’t forget to grab your free marketing audit at the link below!