You are small, medium enterprise (SME) and are thinking to hire overseas remote talents to tap on a wider pool of talents, reduce costs or perhaps scale your operations overseas. What are your options to hire overseas remote talents? 

Set up a legal entity and hire directly 

If you plan to build up a team in that country on a longer-term basis, you have the option of setting up a legal entity in the talent’s country and hire them directly. This will be useful if you want to build up a team in that country, and you would like to have control over the employment relationship. However, this will take time. It could also be costly to maintain a foreign entity. You will also need to be proficient about the local employment laws and tax requirements.

If you do set up a legal entity, you may wish to partner a Professional Employer Organization (PEO). The PEO co-employs the talent and helps you handle the administrative HR functions. This will be especially useful if you are planning to grow a team in the country. 

Use an Employer of Record (EOR)

Another option is to engage a third-party service known as an Employer of Record (EOR). The EOR employs your talents on your behalf in the talent’s own country. If you are looking to quickly set up a team in that country, this is a useful option. However, there will be ongoing per employee service fees involved. You may also have less control over HR-related processes. 

Hire as Independent Contractors

You engage overseas remote talents as independent contractors. This is a quick and easy way to get started fast, especially if you need someone with specialised skills and expertise from that country. This could be if you need team members who can speak the local language and understand the local culture. While there may be concerns that an independent contractor may be less committed or less loyal in the long-term, this really depends on the relationship that you build with the independent contractor. We have seen how this could be a viable arrangement if the work is engaging and provides professional development for the individual.

These are three common ways to work with overseas remote talents. If you would like to discuss remote hiring, contact us at Remote Jobs Asia for a discussion. We specialist in helping our clients find remote workers from Asia.