Global employer of record

Introduction

Global hiring is perhaps the next best trend in business, especially for small and medium-sized companies. About 16% of companies globally are already engaging in remote hiring. Although labor is available worldwide, carrying out the hiring process abroad remains challenging for business owners.

Many companies of various sizes partner with a global employer of record (EOR) to help simplify the hiring process in virtually any part of the world. From translating legal documents to complying with local laws abroad, an EOR makes hiring and managing employees overseas accessible.

Skuad is one of the leading EORs you can choose to achieve this goal. With operations in 160 countries and counting, Skuad’s global employer of record services can facilitate your international hiring in no time.

This guide explains how to hire remote workers globally with an EOR. Read further to find a comprehensive list of the best countries for remote employment and the employment cost in these regions.

Global employment with an EOR

A global employer of record helps other businesses with crucial HR and payroll responsibilities in foreign countries. Although an EOR can help you hire globally without stress, it’s best to do your homework.

Your research can help you determine the ideal destinations to achieve your business goals. Consider these factors before you embark on global employment:

• Tax and employment laws
• Digital security
• Response to COVID-19
• Employee benefits
• Employment contracts

Best countries for remote employment

Following the recent global pandemic outbreak, the demand for remote work has never been higher. More companies are beginning to employ a hybrid work setting as many employees prefer remote working conditions.

Besides the hybrid work setting (a combination of virtual and physical presence at the office), more companies are hiring entirely remotely. Further, many countries are amending their employment and immigration laws to suit remote workers and businesses.

Today, over 40 countries in Europe, Asia, and South America have special visa categories for remote workers- the digital nomad visa. Some of these countries also have incredibly remote-friendly tax structures and extended visa validity for remote workers who wish to travel while they work.

For employers and those looking for remote work, here are 10 of the best destinations for remote employment:

1. Canada. Thanks to the low crime rate and affordable healthcare, many temporary workers consider making their stay in Canada permanent. While there’s no particular visa category for remote workers, expatriates can partake in employment schemes such as the Startup Visa Scheme, which is ideal for remote workers.
2. Portugal. The average remote worker wants a hospitable location with diverse cultures and excellent conditions for remote work. Portugal ticks these boxes. This European country is home to beaches and islands where you can live or work in utmost serenity. Due to the developed nature of this country, getting access to high-speed internet does not pose a problem. Perhaps the best part is the digital nomad visa available for those willing to move temporarily for work while experiencing the beauty of Portugal.
3. Indonesia. Indonesia boasts one of the fastest-rising economies and is looking to improve in this area further. To boost tourism, the government plans to offer a five-year visa to remote workers. In addition to the lengthy stay at this hospitable location, anyone willing to relocate to Indonesia under these conditions will enjoy a tax-free stay.
4. Germany. For many, Germany remains the best location for remote work due to the high quality of life and available tools to ease remote work. Germany is also one of the top countries for online security, especially when collaborating with an international team. There’s no better time than now to work remotely in Germany, thanks to the digital nomad visa for remote workers.
5. Mauritius. This island country in Africa is more than just a vacation destination. To encourage tourism, Mauritius offers a premium visa for remote workers looking to work during their stay in the country. In addition to the food, entertainment, and serenity this island provides, you also have access to electricity, affordable housing, and reliable internet.
6. Costa Rica. The government is adjusting its legal framework to empower and protect remote workers to boost tourism. While remote workers enjoy affordable housing, they also benefit from the improved internet infrastructure with Costa Rica’s recently upgraded fiber-optic coverage.
7. Japan. Anyone looking for the best digital nomad life on a budget should look no further than Japan. This culturally rich Asian powerhouse may not offer special remote work visas but has every other essential feature of the ideal remote work destination. Many extend their tourist visa duration in Japan with basic amenities to support an online work structure.
8. U.A.E. The United Arab Emirates is home to one of the top commercial cities in the world and is becoming a favorite destination for remote workers. From skyscrapers to desert sand surfing, there is no shortage of fun activities after the day’s work. Dubai also offers a one-year special visa to individuals looking to work remotely.
9. Malta. Malta is one of the tax-friendly nations in Europe, with labor laws that cater to employees’ needs. In addition, it is also one of the best places in Europe to work remotely. Living in Malta is as enjoyable as working there with its beautiful landscapes, geological features, and relatively favorable climate. Malta also offers a one-year nomad visa, and its official language is English.
10. Denmark. Cybersecurity is perhaps a significant factor when setting up a business with remote workers. The Nordic country ranks highly for infrastructure and its performance in cybersecurity. If easy access to quality resources for remote work and security of private data online are your priorities, Denmark should top your list.

Employment costs around the world

In addition to salaries, employment costs consist of benefits, wages, commissions, and bonuses. Employers also count the cost of tax and social service contributions for each employee. These contributions include health insurance, scholarships, paid days off, and pension.

Labor costs vary across different regions and are crucial to running your business. According to Statista, the average labor cost per hour in the European Union is about 28.5 euros. Meanwhile, the hourly weeks labor cost in the U.S. is $38.61 which is relatively high.

It’s also important to note that labor costs determine your ability to spend and compete with local and international contemporaries. Knowing where these costs are high or low can help you choose your preferred destination for hiring employees.

In 2018, the International Labor Organization STAT provided data on the hourly costs of hiring employees worldwide. Here is the list according to their data.

• Argentina: $1.00
• Australia: $20.12
• Austria: $39.17
• Belgium: $45.62
• Bulgaria: $13.06
• Canada: $26.27
• Croatia: $19.37
• Cyprus: $21.96
• Czech Republic: $21.59
• Denmark: $39.85
• Estonia: $19.20
• Finland: $35.06
• France: $41.34
• Germany: $42.00
• Greece: $23.30
• Hungary: $17.79
• Iceland: $33.09
• Ireland: $31.72
• Italy: $35.62
• Israel: $20.58
• Latvia: $14.57
• Lithuania: $16.22
• Luxembourg: $40.98
• Malta: $23.11
• Mauritius: $5.39
• Netherlands: $40.37
• New Zealand: $19.15
• Poland: $21.60
• Portugal: $21.05
• Romania: $15.11
• Slovakia: $19
• Slovenia: $27.16
• Spain: $29.64
• Sweden: $39.21
• Switzerland: $43.08
• Turkey: $14.13
• United Kingdom: $29.78

Why you should hire a global EOR

Emerging economies in developing countries present business expansion and global hiring opportunities. Establishing companies abroad is still challenging as the laws, cultures, and economies are unique worldwide. An employer of record simplifies this process for companies and businesspersons.

If you need more reasons to hire a global EOR, these might help you make up your mind:

• Reduced operational costs. In addition to lowering hiring costs, an EOR can help you reduce the cost of running the company. When hiring costs reduce, you have more money to fund other crucial business areas. An EOR can help you hire remote workers globally. Thus, you also save money on renting or leasing an office space.
• Dedicated employee management. Employee management is a challenging task. Fortunately, employers of record specialize in this area. They perform key HR responsibilities such as managing employees and providing resources to ease their daily activities. They identify areas employees need to develop, help facilitate the necessary training, and source essential work tools.
• Business establishment without registering a business entity. Usually, you need to register a legal entity in the country where you want to hire employees. With expert global EOR services, you don’t need to have a registered entity in a foreign country to start hiring. An EOR represents your interests and, with your approval, can assume specific roles on your behalf in a foreign country. They can hire employees for you to start running your company as soon as possible.

Start hiring worldwide with a global EOR

Hiring workers globally can be tricky. Your chances of making an informed decision on the ideal place to hire workers increase if you consider key factors such as tax rates and labor laws.

Fortunately, a global EOR like Skuad can help you manage your payroll, employee benefits, and taxes to comply with local regulations.

With Skuad’s unified platform, you can hire employees just by clicking a button - paying employees and making tax deductions only takes a few minutes. Talk to our experts today to know more.