Every day the world is getting smaller. Globalisation and the internet have brought people closer together more than ever before. Ten years ago companies mostly hired locally based freelancers but today hiring overseas talent is commonplace.
Improved connectivity, new technologies, and growing demand for talent bring new opportunities for companies that aren’t afraid to search beyond their country’s borders.
Nowadays, more and more freelancers work for companies without ever stepping foot on the same soil. Digital industries are at the forefront of using freelancers to fill the knowledge and skill gaps in their workforce.
Opportunities bring challenges too. Whilst companies know how to work with remote freelancers, payroll taxation, employment laws, and currency rate fluctuations remain the most challenging and resource-intensive areas for any business that wants to work with global talent.
Opportunities
Not all companies in the digital sector need or can employ specialists on full-time contracts, making freelancers ideal candidates in situations where they are only required for a few hours or until a project ends.
Contractors and freelancers are also increasingly more active when searching for jobs. Sometimes it means higher pay, while more often it’s all about utilising the unique skills they have.
This mutually beneficial situation has evolved into an ecosystem where recruiters, managers, and consultants work together to ensure that companies can access the talent they need. At the same time, the ecosystem makes it easier for freelancers to find such companies and opportunities they may offer.
Challenges
Employing foreign nationals based in their own country requires a sound understanding of the legal landscape in both jurisdictions. Some companies prefer to have locally registered entities that often simplify the recruitment and hiring processes; however, this can be a slow and expensive process and is usually only available to larger companies with sufficient resources.
It’s not uncommon for companies to have teams of freelancers distributed in multiple countries with very different legislation. In such a situation, companies must understand the relevant laws of each of those countries.
However, one particular process can quickly turn into a monthly nightmare if not managed well. All freelancers want to be paid on time and in full. Any delays, shortfalls or mistakes cause anxiety and friction. Payroll for overseas employees is even more complicated, as it involves foreign currency exchange.
Available solutions
Companies involved with international payroll can benefit from a well-established currency strategy.
A global payment provider, such as CurrencyWave, can help to evaluate your current situation and minimise potential pitfalls.
For companies with larger payrolls or widely distributed workforce, CurrencyWave offers a bulk payment upload solution that allows companies to easily upload the information, make multiple currency conversions simultaneously and automate mass payments. This avoids the pain of trying to pay freelancers individually while also applying uniform exchange rates to each transaction.
Bulk payments not only save time for the finance and payroll teams but also allow standardisation of payroll processes which, once established, become low maintenance activities that don’t suck up valuable resources at the end of each month.
Summary
The arrival of modern digital tools and technologies enables thousands of companies to hire freelancers far beyond their own borders. The inflow of ideas, skills, and knowledge strengthens these companies and helps them to evolve and continue offering products and services their customers need.
New payment solutions also help to run international payroll with only a fraction of resources compared to what it used to take just half a decade ago. Such payments allow companies to focus more on the delivery of their products or services thus freeing up resources for higher-value activities.
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