It’s now an established fact that remote work is here to stay. Both employers and employees are unwilling to let go of the benefits of hiring and working remotely in the wake of the pandemic.
Considering this new reality, one of the most frequently asked questions we get is, can US companies hire remote foreign employees? The short answer is yes. The opportunity to leverage out-of-state or overseas talent is no longer a thing for only big multinational organizations. It can also be accessed by small and medium businesses. Employers can source for employees through marketplaces such as Upwork, WorkMarket, among others, or directly through LinkedIn, Indeed, and Nexxt.
Five Ways a PEO Can Help You Manage Remote Employees Effectively
To enjoy the benefits of working with a distributed team, a small business must overcome the hurdle of keeping up with multi-state or foreign labor laws. Working with a Professional Employer Organization (PEO) could help employers overcome these challenges. A PEO becomes the employer on record and lends a hand when it comes to managing your remote employees.
Here are five ways a PEO can help you manage employees from a remote location:
- Finding, Attracting, and Maintaining the Right Talent
Working with a PEO means that small or medium businesses can attract and maintain high-quality talent that aspires to work for established big businesses and brands which typically offer better benefits. PEOs become co-employers alongside your business and serve as the employer on record. Also, a PEO can carry out tasks associated with employment. Because PEOs enjoy economies of scale, they can support your business and offer competitive benefits at lower rates.
Employing foreign workers abroad or just finding the right talent can be a challenge for any company, especially one that is just entering a market. Corporates have a hard time figuring out how to position themselves to be discovered and discover the right talent. Research also shows that 80% of new hires are discovered through networking and not job boards. This means that without the right networks within a state or country, it may be impossible for you to find the talent you require. Working with a PEO means you leverage the linkages and networks it has to fill out positions within your company.
A business entering foreign markets may also not be able to anticipate the cultural or political risks of entering the new market and hiring international employees. However, a global Professional Employer Organization connects you with the appropriate local talent that helps your business navigate these dynamics.
Your PEO should be able to align itself with your payroll, benefits, budget, and position requirements in order to source the most suitable talent for a position. The understanding of local labor markets and commitment to your interests means PEOs are well equipped to handle salary negotiation and other expectations with new hires.
Onboarding prepares your employees for the experience they’ll have while working in your business. It positions the employee to understand their roles, your corporate culture, and often determines the extent to which your employee will be productive.
If not handled properly, onboarding can contribute to employee dissatisfaction, which may undermine your ability to maintain quality talent. Working with an appropriate PEO means you leverage their expertise and are assured of a smooth onboarding process for your new hires.
Your PEO will work with a new hire to help and acquaint them with their roles and your corporate culture, filling out the necessary paperwork. A smooth onboarding process results in a positive employee experience, which is valuable to your brand among employees and results in positive outcomes in terms of employee job satisfaction and retention.
- Guarantee Legal Compliance
Paying wages to overseas employees may be a challenging task. Keeping up with multi-state or foreign payroll requirements may be a challenge and may steal attention from the core of your business.
Businesses expanding internationally struggle with how to pay international employees. Working with a PEO guarantees you comply with the legal requirements of the state or countries where your employees work. For US-based employees, this means payroll requirements, workers compensation, federal withholding tax and so much more. For US companies paying foreign employees, many corporations opt to have another local company or a global PEO employ their workforce as their own. A PEO understands the compliance requirements in your area, including diversity obligations, salary structures, and benefits offering regulations.
- You’ll Save Money
Hiring remote employees can save you up to $11,000 per working with part-time or remote employees. A PEO, on the other hand, means you get quality talent at competitive rates and you do not have to worry about the administrative requirements of managing a distributed team in multiple states or countries.
PEOs are able to provide insights on local consumer behavior and political economy realities that you need to navigate as an added value of engaging with them to support your business. A PEO can reduce the time you take to settle in a new market or fill a position, saving you the money you’d have lost because of lack of productivity.
- Access to Productivity Tools
Your strategy to employ remote employees should include working with a PEO. PEOs have the experience and human resource information systems you’ll need to effectively manage remote employees. Working with a PEO means you have full-time access to HR (human resource) consultants who can provide the best practices for managing your distributed team.
With a PEO, you’ll have access to tools that enable you to efficiently keep track of employees’ leave, overtime and performance metrics in line with your business goals.
Summing It Up
A PEO is the best way to source and manage employees working remotely from another country or state. If you’re considering working with a PEO, contact MartinoWest and we will match your business with a suitable Professional Employer Organization within our network.