If you’re thinking about expanding into the realm of remote employees, rest assured that you’re not alone. When companies were forced to go remote during the pandemic, remote working became even more commonplace and manageable.
Companies have seen that a remote workforce is possible, bringing economic and health benefits to companies and their team members. If you’re considering building a remote workforce, here’s what you need to know.
Why consider remote workers?
First, before considering remote workers, consider the benefits you can have by bringing them on board. With remote workers, your company enjoys these perks:
- Less overhead – You won’t need an office space and the furniture and utilities it brings with remote workers.
- Expanded talent pool – When you hire remote workers, you aren’t limited to people who live near you or are willing to move. Expanding your talent pool means bringing more qualified or diverse talent on board.
- Satisfied employees – Flexible work is considered an important benefit employees look for. As many as 80% of employees in a 2017 survey indicated work from home was one of the most important benefits a job could offer, and that number has likely increased.
Hiring remote workers brings several perks to your organization, but you do need to consider the process carefully, especially from a payroll and HR perspective.
Managing payroll and HR concerns for remote employees
If your company will bring on remote workers, you must consider the payroll implications of doing so. Here are some considerations to watch for:
Classify remote workers properly
First, make sure you classify employees properly. Some companies will classify their remote workers as contractors, not employees. The IRS carefully designates the difference.
Generally, the worker’s control over their behavior, finances, and employer/employee relationships indicates whether they are contractors or employees. Here’s what you should consider:
- Behavior – If your company has the right to control how the worker does their job, you have an employee.
- Financial – If the business aspects of the job are in the company’s control, such as how and when the worker is paid or who provides the supplies, then they’re an employee.
- Relationship – If you provide any benefits, like vacation pay or insurance, or if the working relationship continues after a particular job is complete, without a new contract, then they’re an employee.
Understand where remote employees pay taxes
Income taxes are challenging, especially if your remote workers live in a different state or country. However, it’s not hard once you know the rules. The key here is to have a payroll tax expert help you determine how tax laws apply to your specific employees, then set up your payroll accordingly.
Tips when hiring remote employees
Some specific questions that apply to remote workers should be part of your interview. Here are some worth asking:
- How do you manage your work-life balance when working from home?
- What techniques do you use to handle distractions when working from home?
- Do you have a dedicated office space?
- How do you stay motivated without in-person supervision and connection?
- How can you contribute to and become part of our company culture while working remotely?
How to find the best remote employees
Despite the many benefits of working remotely, not all employees are suited to this type of work. If you’re committed to building a remote workforce, you need to find the best potential employees.
Ace the job posting
When hiring remote employees, carefully structure your job posting to showcase the benefits of working remotely. This will draw in talent that are looking for remote positions. In addition to listing the benefits, company culture information, and job requirements, consider adding the remote working tools you’ll use to make the process work.
Consider a talent management team
Another way to efficiently manage onboarding new talent is with a talent management team. We can help you build and post jobs, manage applicants, and screen potential talent. You’ll save time by only interviewing the top people from the hundreds of interested applicants.
Practice good communication
Use good communication from the beginning. Talk to your applicants about the process and where they are in it. Your candidates will appreciate clear communication, setting the stage for your future working relationship when you hire.
Plan for onboarding
Develop an onboarding strategy that considers the challenges posed by differences in time zones. Ensuring the successful integration of new employees requires a well-crafted plan.
Get professional help
We offer a comprehensive Talent Management solution that integrates software and personalized services to enhance your recruitment strategies and establish a robust remote workforce. Contact us today to learn more!