Hiring an overseas remote workforce is not a new concept. Major brands hire overseas foreign workers, including Amazon, United Health Group and hundreds of others.
But if you own a company that is starting to think about hiring overseas employees then here are implications that should be considered. These include:
How Much is Overseas Pay?
Hiring an overseas remote workforce is often done for one of two reasons:
- To reduce overhead
- To hire top-tier talent
Determining the overseas pay is impossible without knowing specifics such as country’s standard wage rates and employment legal laws. Roughly 300,000 jobs in the US are outsourced per year, and the vast majority of businesses outsource to save money. A study in 2018 found that 62% of companies reported 10% to 25% savings when they outsourced and the remaining 38% of companies reported savings as high as 40% (source).
Financial savings can be substantial, depending on the industry and country the work is outsourced to by the business. However, labor costs are often reduced by 70% to 90% by outsourcing to countries where there’s a very low cost of living, such as the Philippines.
Managing Overseas Foreign Workers Can Be Complicated
An understanding of labor laws and a foreign countries culture is important to ensure success when hiring overseas workers. The biggest issue with hiring an overseas remote workforce is often trying to manage the team.
Instead of hiring single employees, businesses often work with a management team to make the transition easier.
For example, many of the customer service agents overseas will work under one company that the business corresponds with. Some of the large customer service outsourcing companies include Pure Moderation, SalesRoads, and Micro Sourcing. The one form of contact makes it much easier for the business to manage teams, and it allows for:
- Easy operation scaling
- Better service
- Boost in net revenue
Hiring an overseas workforce can present additional opportunities including:
- Fill key roles. Major corporations are headhunting the best talent in the US, and it’s very difficult for many of these businesses to fill their workforce with highly skilled workers. Foreign workers can fill these roles and for lower costs.
- Market expansion. Foreign workforces allow businesses to “speak the language” of a new market. It’s easier to expand into markets when the overseas workforce has international knowledge and can help streamline expansion.
- Scalability. As the business expands or contracts, it’s easier to hire more remote workers without needing to absorb many of the expenses when hiring in-office employees.
From a business perspective, it often makes more sense to have a mix of overseas and non-overseas workers. The goal is to save money while hiring better talent, and an overseas workforce can offer both of these perks.
Countries with low cost of living often have workers who have exceptional skills and talent, and if relationships are able to develop, these workers will become an integral part of your business.
The implications of hiring employees from overseas are far less concerning when the workers are remote. You will benefit from a greater talent pool while not having to deal with work visas when hiring.