With COVID-19 everything change – especially the way we work. The possibility to work remotely is becoming the number one priority for many industries and job seekers. But the challenges companies are facing with this trend are many. Having employees all over the world means that you have to consider that every country will have different legislation you have to abide by.
Read on to find out how to hire remote developers and what arrangements you could undertake.
What contract to use for hiring remote developers
Job contracts for remote developers can be of different types – freelance or permanent, full-time or part-time, with a set or flexible schedules.
Full-time remote developers
When signing a full-time contract, your employee is expected to work 40 hours per week, to be paid a salary, and to receive benefits. Employees are protected under law (both in Europe and the US), and you should be aware of the legal requirements of different countries. This type of contract is your best choice if you have ongoing work and consider working with the remote developer in the long-term.
Independent contractors are different from freelancers – these are temporary employees who work on larger projects, unlike freelancers who work on projects that do not need further maintenance. This is the best choice for you if you need some extra help on a project, or if you need specific help.
How to hire remote developers
There are several things you need to consider before hiring your remote developer or tech team.
If your remote developer will be working alongside your in-house team, you need to consider the time zone. Choose accordingly so you do not have more than a couple of hours difference.
Most important factors
Before hiring a remote developer, consider these important factors: what is the pay rate you are looking at, what level of experience you are requiring, what is the work schedule that is most convenient for your company and project, and what is the level of language proficiency you will be comfortable with.
You can either establish a local entity in the home country of the remote worker, hire through a business partner, or hiring an independent contractor.
Local entity: This is the safest way to avoid compliance issues and it is the best choice if you are looking to hire many long-term developers in the same country. This way you will have full control over the employment process and you will avoid the risk of misclassification. But in case you are a small business, this option will be too complicated and costly.
Hiring through a business partner: This is a good choice if you already have business partners, vendors, or contacts in the remote worker’s home country. The only thing to consider is that you should have a significant amount of trust in the business partner you choose.
Hiring independent contractors: When hiring independent contractors, they will be responsible for their own benefits and taxes, so you can avoid all legal difficulties and only pay the remote worker for the job and schedule you have agreed upon. This is the easiest and best way for small businesses and for short term projects.