Can U.S. Companies Legally Hire Remote Foreign Workers?

92% of G2000 companies are leveraging IT outsourcing today. In particular, U.S. companies are looking beyond borders to hire skilled global developers at significantly reduced rates.

Yet, businesses often hold back from seizing these opportunities out of compliance fears. Nobody wants to be slapped with a hefty fine because they didn't understand local tax or labor regulations.

While building an international tech team may be a no-brainer, it’s important to plan for compliance needs. Learn how to legally hire remote foreign workers in our international hiring guide, including advantages, challenges, compliance tips and more.

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Can U.S. Companies Hire Remote Foreign Workers?

Absolutely, it’s legal to hire remote foreign workers. U.S. companies can take advantage of the rich global tech talent pool with minimal extra burdens. Just consider that IT services account for 75% of global outsourcing contract value.

That said, it’s essential to understand your global remote team compliance challenges upfront:

• Taxes: Every country has unique taxation rates for foreign hiring and the tech industry.
• Labor laws: Know regulations for minimum wage, holiday pay, anti-discrimination, workplace safety, etc.  
• Data regulations: Data collection and processing often have special rules to maintain customer privacy.
• Export rules: The type of work you can export and tax may vary by country of business.
• Remote work laws: While many governments promote remote work, you may be subject to specific quotas or rules. You’ll want to make sure you’re following U.S. remote workforce laws, too.
• Hiring contracts: The clauses in your contracts must follow national law to avoid workplace conflict.
• Tech company regulations: It’s typical for the tech industry to enjoy tax rebates and/or eased red tape. You’ll want to take advantage of any tech-friendly laws in place.
• IP and information security laws: Understand how your IP and company security is protected (or not) by local law.

Options for Hiring Global Talent

Hiring foreign workers remotely isn’t one-size-fits-all. You’ve got options to match your business goals.  

• Direct hiring: Hire a global developer like you would any other in-house team member, with a salary, benefits, etc. This is usually the most expensive way, as you’ll need to cover the full job package and long-term expenses, such as training and career development.  
• Contracting: With a contracted developer, you hire their services for a set hourly rate. Contracting is a more flexible choice, as you won’t be responsible for benefits and can modify the number of hours as needed. In this model, you’ll bear the burden of staying compliant with local law and handling payroll, etc.
• EOR (Employer of Record): EOR streamlines the process of hiring global talent. In this case, you work with a local EOR partner, who gives you access to talent while also handling full logistics including recruitment, onboarding, payroll and compliance.

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Benefits of Hiring Remote Foreign Workers

Hiring remote foreign workers unlocks a wealth of benefits for U.S. companies. Despite concerns with global remote team compliance, you can enjoy these key advantages.

Access to a Global Talent Pool

The world is brimming with top-tier tech talent, especially in regions such as Latin America and Eastern Europe. Hiring abroad means you can access specialized talent that’s few and far between in the U.S.

Cost Savings and Flexibility

Hiring foreign workers remotely is good for your budget. Save up to 50% on developer rates by choosing Latin American talent compared to the U.S. In turn, this enables you to stay flexible when scaling your project.

Increased Diversity and Innovation

Capturing global talent also diversifies your team, enriching your strategy with new perspectives. As a recent survey reported, diversity on teams not only boosts innovation, but also your bottom line.

Ease of Talent Sourcing

Choosing developers from regions outside the U.S. makes recruitment easier. You’ll connect with more talent without battling the competition. Plus, you’ll actually be able to find experts in your required tech stack.

Reduced Risks Across the Board

Get peace of mind that you’re minimizing hiring risks. By using a first-rate global talent partner, you’ll lower the odds of facing regulatory fines, legal action and loss of reputation.

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Common Global Hiring Challenges and Solutions

Hiring foreign workers remotely is an outstanding option. Yet, it comes with its own challenges. Keep in mind these common pitfalls as you kick off your search process.

Navigating International Employment Laws

Compliance can be tricky, especially if you don’t have in-country experience or speak the local language. Avoid major mistakes (and fines) by leveraging a partner with know-how in local regulations. The last thing you want is to expose your business to labor-related lawsuits.

Ensuring Cultural and Time-Zone Alignment

Hiring global talent requires you to thoughtfully build your teams. Make sure that your new hires are ready to integrate friction-free with your existing groups. At the same time, don’t discount teaming logistics, such as time zones. Sharing real-time workday hours is ideal for getting results.

Undergoing Seamless Virtual Office Management

Remote hiring involves creating a welcoming online workplace. Uplift outcomes by designing effective onboarding, team building and communication policies. As part of this process, you’ll also want to manage tools and leverage inclusivity measures.

Mitigating Risks With a Compliance Partner (Like TECLA!)

Handing off compliance to a local talent specialist is often best for preventing major incidents. Trust a partner knowledgeable in your talent region to take care of logistics, so you can focus on doing your best work.

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TECLA’s Role in Simplifying Remote Global Hiring

As part of our international hiring guide, let’s look at key case studies from TECLA. Overall, TECLA is a high-value partner on a mission to connect U.S. companies with vetted global developers. Here’s how TECLA is making its mark on the tech talent industry.

• ‍Experts in remote hiring in Latin America. TECLA is proud to streamline access to top-tier talent in LatAm countries. We have a deep understanding of local markets, regional salaries and more. ‍
• Hands-off hiring and onboarding. We act as frictionless full-end partners who can handle everything from recruitment, onboarding, compliance and retention. ‍
• Long-term recruitment strategies. Our roots run deep. We’re keen to build long-term relationships that reduce turnover and evolve with your needs.

At TECLA, we strive to integrate these values into every talent solution — such as these success studies.

“High-Level” Recruitment Support for 3DIQ

The sales software provider 3DIQ successfully hired several developers via TECLA to meet their next-gen technology requirements.

TECLA handled the full recruitment cycle, including identifying and interviewing candidates. Specifically, they needed developers specialized in Unity Technologies, Oculus, HTC Vive and ARCore.

In the end, 3DIQ was “very pleased” with the talent and the project results, showcasing TECLA’s ability to customize talent searches to fit unique technologies and company cultures.

“Integral” Developers for an Auto Parts Company

An anonymous auto parts company required more manpower to build a new customer-centric website and login portal. They started with one full-stack developer and were so satisfied that they added two more.

All three developers have become fully integrated with the auto parts company and are “integral” to the teams. In particular, this company was impressed by TECLA’s responsiveness and problem-solving. As a result of these new hires, this company increased the pace of development and was able to try new things more efficiently.

Explore even more success stories on our Clutch page here!

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Practical Tips for Compliance and Effective Remote Team Management

Building global remote teams is good for your wallet and your project outcomes. Even so, 40% of leaders were “unprepared” to manage remote workers. It’s essential to effectively oversee your foreign developers to stay compliant and maximize results. Here’s how to get your teams well-integrated early on.

1. Draft Clear Contracts Upfront

Be transparent in your contracts and workplace expectations. Doing so will enable your developers to do their best work and meet your standards with minimal friction.

2. Make a Robust Onboarding Program

Onboarding is often a missed opportunity to get your teams on the same page. Design onboarding training sessions, documentation and meet-and-greets to elevate team alignment from day 1.

3. Use the Best of Agile

The agile methodology is excellent for boosting team comradery and project results. Key aspects include holding regular check-ins, promoting a learning mindset and receiving feedback to continually improve the product.

4. Leverage Compliance Platforms

Compliance doesn’t have to be a pain. In addition to using a local partner or EOR for your full global remote team compliance needs, you can try a platform, too. Compliant platforms streamline areas such as payroll and benefits, so you don’t have to do it manually.

5. Ensure Secure Infrastructure From Anywhere

Security for remote teams is paramount to protect your data and IP. Be sure that your global developers have access to security tools and are aware of your protocols. This will save you the headache of a potential leak due to human error.

6. Build Collaboration Processes for Global Teams

Digital culture isn’t fostered overnight. It’s important to create a collaborative environment where developers from anywhere in the world feel welcome and essential to the team. Create transparent processes and avoid micromanaging. Often trusting your developers lets their abilities shine.

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Hire Fully Compliant Global Talent With TECLA

Can U.S. companies hire remote foreign workers? Absolutely! The process of hiring and managing global developers isn’t too complex, if you know what to keep in mind. Leverage our tips, solutions and case studies above to guarantee 100% compliant and cost-effective hiring beyond U.S. borders.

Ready to expand your hiring strategy to new locations? At TECLA, we have decade-long expertise in matching U.S. companies with the best and brightest of Latin America. Reach out to our talent specialists to hire developers without worrying about compliance!

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