How to Hire Remote International Employees: 5 Key Steps

Globalization is a reality, and remote jobs prove it. Accessing international talent strengthens a company’s experience and knowledge, but managing hiring, time zones, legal compliance, and global employment can be a challenge.

However, hiring remote talent doesn’t have to be difficult. By following the right steps, you can streamline your international workforce and attract top talent.

Can a U.S. Company Hire a Foreign Employee to Work Remotely?

Yes, a U.S. company can hire employees abroad to work remotely. Nevertheless, hiring remote employees in other countries has different challenges. In addition to all the benefits, legal taxes are not the same in each country and must be adapted to local labor laws.

5 Steps to Hire Remote Employees in Foreign Countries?

Here you have these options for hiring remote employees in other countries:

1. Source candidates by your own

First, establish what you need. It's very important to define the skills and qualifications you're looking for in a candidate. What will be their functions and responsibilities?

Being clear with the job description, selecting the ideal candidates, and implementing a strong virtual onboarding process are fundamentals of sourcing candidates by your own.

Evaluating language skills and capacity to adapt to new markets is also relevant. Your new global team members will communicate in different languages, whether by talking or writing. That's why it is important to determine the channels that require the position and the level of language skills for each of them.

2. Set up a legal entity 

Setting up a business subsidiary in the new country where you want to work is an option for hiring remotely. To do this, your legal entity must be aligned with local labor laws. 

Governmental and labor laws vary between foreign countries. Therefore, conducting previous research, hiring a consultant, and developing a plan for managing your local company is crucial.

That's why this option requires a substantial investment of time and effort, which will be rewarded with the brand awareness and trust that a local business can provide.

3. Partner with a global employer of record (EOR) 

Establishing a new office in a foreign country involves expenses such as business registration, accountant fees, and consultant fees, which can be voided with a global EOR.

A global employer of record (EOR) is an entity that offers global employment services. With an EOR, you can hire remotely overseas. It is essential to check if the EOR operates in foreign countries where you want to employ a new workforce. 

The EOR handles taxes, benefits, and social security. Your international team will receive contracts according to local labor rights, making this option cost-effective and helping you save time and money on the HR process.

4. Engage contractors 

Engaging contractors does not require establishing a long-term labor relationship. You can hire a remote team for specific projects or responsibilities. It could be independent contractors or freelancers who can work as self-employed or with third-party agencies.

Hiring international talent for a short-term period, for specific tasks, and for specialized projects will provide different benefits, such as workforce flexibility and cost savings in healthcare, employee benefits, and payroll taxes.

5. Rely on professional recruiters 

Selecting a recruitment agency allows you to streamline the hiring process and get top global talent. It enables you to have a team of professional recruiters who will source and interview candidates and not to set up an HR office or in-house recruitment on your own.

It is crucial for your business to choose the right recruitment agency based on its specialized field and the steps and processes it uses to evaluate candidates. For example, you can find some that specialize in IT, marketing, or customer service.

In the IT field, Lupa is a knowledgeable authority on the remote hiring process in LatAm. With turnaround times similar to those of the U.S. market and their expertise, this agency will be a great partner for your business needs.

Key Benefits of Hiring Remote Foreign Workers 

Hiring international employees to build up a remote work team will have different benefits. Here is a list of some of them:

Access to a global talent pool 

You can look beyond your home country to find new hires or candidates. After the pandemic, not only local employees for many companies started to work from home, but international teams were also born. 

Access to international workers will help increase the opportunities to find the right people for your business needs. With a solid background and specialization, you can expand your search and find new team members. 

A global team will have cultural differences and diverse perspectives, contributing to solving issues and giving new ideas. 

Helps to develop your employer brand 

This international workforce will ensure your values, diversity, inclusion, and a global company culture. This helps you create a brand impact and use multicultural points of view and different sources to generate new ideas and innovations. Also, you can track top talent and positions globally as a world-class employer. 

You can offer a lower salary 

The cost of living in South America and other foreign regions is lower. Also, the conversion to a local currency will increase the salary expectations for the candidates.

This helps you save on costs, which is a good cost-saving strategy while maintaining quality. It is a budget-friendly approach that shows the growing outsourcing.

Expand into global markets 

With international global talent, you can expand your business into new markets. New markets also mean new cultures, customers, and behaviors. That's why it is crucial to build a strong foreign team that helps you understand and operate best in a new context.

You can create new connections and networking opportunities. Not only for your current services or products but also for new ones that can be adapted for the new local market.

Cover different time zones 

Hiring remote employees in other countries has the benefit of covering different time zones. This also helps increase productivity and create a work environment accommodating different cultures and user experiences.

In the digital market, giving 24/7 support to your customers is a great benefit. This means being open and connected to their needs and following up on your e-commerce traffic with full coverage.

Challenges that Come with Hiring International Workers

Different issues could come up when hiring international remote workers from different time zones. Here we have some of them:

Keeping up with local employment laws

Employment laws contain working hours per week, mandatory benefits such as healthcare insurance, paid leaves, notice periods, paid time off, etc.

Each government has different laws protecting workers' rights. It is very important to be aligned with these rules to avoid legal risks.

Determine global compensation policy

Understanding industry standards, the average local salary and tax structures is crucial. Salary expectations are also aligned with each country's cost of living.

To establish global compensation, it is important to determine clear and transparent guidelines for all employees or contractors. This process must be careful and adjusted as needed.

Manage the payroll problems

Managing the payroll process and regulations for an international workforce can be complex. Legal requirements are different, and ensuring that all mandatory benefits, such as health insurance and paid time off, are handled accordingly will increase administrative tasks and cost management.

Ensuring your intellectual property

Ensure intellectual property is essential for all companies. Designing strategies to secure conditional data and protect sensitive information for workers in different countries can be challenging. Failure to handle this relevant point could result in operational risks and potential data loss or security infringements.

Intellectual property clauses for contractors need to follow local legal laws. Translations must also be careful to prevent misinterpretations.

Misclassification risk

It is vital that companies classify their employees with the appropriate work status. If a company gives an employee the status of an independent contractor, but their duties and laborers carry the status of an employee, this could result in legal consequences and financial liabilities.

Every country has its classification for employees or self-employed contractors. That's why it's crucial to handle their categorization according to labor laws and avoid legal risks.

Best Roles for Hiring International Remote Workers?

The international workforce is a win-win. Remote workers can balance work and life, and businesses can save on infrastructure costs and be open to global talent. Here is a list of the best suitable roles for hiring international remote workers:

Administrative support 

Administrative support mainly involves digital tasks, such as managing office supplies, organizing documents, and preparing reports. This field is highly recommended for remote workers supporting your business in all administrative areas, such as processing data, organizing documents, or preparing reports.

Virtual assistance 

Virtual assistance helps to save time handling specific tasks. Answering corporate emails, managing calendar events, or supporting projects are good complements to improving quality and delegating operational labor. 

Customer service 

Tracking all your channels, such as chat, email, and phone, will allow you to convert leads into new customers and ensure excellent customer service.

Developing countries have invested more in language skills. Moreover, finding talent with high-level skills is not hard nowadays.

Finance and accounting

Bookkeepers, accountants, accounting managers, and financial analysts are some roles that help grow your financial staff or accounting department.

Marketing

Your remote team can effectively handle content creation, social media posts, and email marketing campaigns. Videos, ads, and marketing campaigns are becoming more important, so building a team that can offer new ideas and provide new insights will be helpful.

Sales software development

There is a big international talent pool in the software field. So, it can be easy to find talent that provides technology solutions that help you increase your sales.

Check out this list of top technology search firms to find the best talent for your company. 

IT services

Another specialized skill that you can easily hire overseas is in IT service. There is a huge talent pool ready with problem-solving skills and troubleshooting knowledge to enforce and streamline your business in the digital world.

Looking to hire top IT talent? Discover the best IT interview questions to find the right candidates. Read the full article here: Best IT Interview Questions

Examples of U.S Companies Hiring Foreign Workers Remote

These are some examples of U.S.-based companies hiring international remote teams:

• Amazon

The American company, founded by Jeff Bezos in 1994, is now not only a recognized worldwide e-commerce company but also a global top company that offers full-time remote positions in different fields, such as customer and technical support, software development, and marketing. 

• Adobe

Adobe is an excellent reference in the world of digital marketing and creativity. Since 1982, it has provided digital media solutions with its Adobe Creative Cloud and it has become one of the best places to work remotely. Their employees have flexible schedules and remote positions in U.S. and foreign countries.

• Project44

Project44 was founded in 2014 and has established itself as a logistics and transportation management solutions leader. With global offices handling the supply chain industry worldwide, Project44 has remote positions in the U.S. and overseas.

Thus, more than 50% of their team is located outside of the U.S. They attack global top talent for data science, marketing, customer success, logistics, sales, and other fields.

• Aha!

From the software industry and founded in 2013, Aha! is one of the worldwide roadmap software providers. With the premise “We have always been remote,” the company has been working remotely since its foundation, making it highly recognized as a fully remote company. 

So, Aha! has completely filled remote work positions in areas such as customer success, engineering, marketing, UX, and product management.

• Trilogy

Trilogy was launched in Silicon Valley in 1989. This business platform offers software solutions. With a 100% remote staffing model, it is established as a fully remote company and hires from anywhere in the world.

• Equivity

Since 2014, Equivity has also been a fully remote company. It provides virtual assistance, legal assistance, marketing services, and support services to businesses and professionals.

It is recognized for its flexible work culture by offering part-time roles and an autonomous work environment.

• Veeva

Since 2007, Veeva Systems is an American cloud-computing company that provides software solutions to life sciences companies.

It offers remote jobs in areas like product management and design, IT and operations, analytics and data, and regulatory and compliance consulting.

• Boston Consulting Group

Boston Consulting Group (BCG) is a global leader in business strategy. It has many worldwide locations and offers job opportunities in more than 90 cities in over 50 countries and regions.

Besides, BCG is one of the best places to work in 2025, with opportunities in consulting, risk management, design strategy, and business operations, among others.

• Inspectorio

Founded in 2016, Inspectorio is a software-as-a-service product that supplies chain management solutions. Its hybrid work model combines hub offices in locations and remote positions from anywhere with flexible schedules.

It offers opportunities in customer success, engineering, marketing, sales, and global supply chain work. 

• Xerox

Xerox is another company that hires remote workers. Launched in 1906, it offers printing solutions and digital services. It is a well-recognized American company.

For hiring remote employees, Xerox has a Virtual Office Program that allows employees to work from home in the field such as customer service and technical support, administrative staff, IT and software development, sales, and financial department.

Offshore Staffing vs. Nearshore Staffing: Pros and Cons

Employing remote workers offshore or nearshore can grow your team. The decision between the two can influence your operations, so it's essential to be aware of the advantages and drawbacks related to each.

Nearshore staffing 

Pros: Easier to communicate with the teamwork, access to exceptionally talented remote workers specialized in IT and engineering.

To develop projects that require real-time collaboration or in-person meetings.

Cons: Higher salaries than offshore workers.

Offshore staffing

Pros: You'll have access to a larger talent pool in areas like IT, customer support, or manufacturing. You can also save money by paying low salaries.

Cons: Cultural barriers, different time zones, and communication issues.

Project management strategies must be careful to track objectives and responsibilities.

It is essential to evaluate your needs and the requirements for the position. Lupa provides clear guidance throughout the recruitment process of IT professionals. This will give you the confidence to rely on the hiring process of professional recruiters.

FAQs about Hiring Remote International Employees

Can a non-U.S. citizen work remotely for a U.S. company? 

Yes, a non-U.S. citizen can work remotely for a U.S. company. But you need to consider the local labor laws in the foreign country and ensure the right classification, employee or contractor, to address a legal hiring process.

Is it illegal to hire non-U.S. citizens as remote workers?

No, it is not illegal to hire non-U.S. citizens as remote workers. It is legal, but it must be aligned with the legal requirements of the home country. Tax structures and mandatory benefits need to be established with local labor standards.

How do I pay a foreign employee?

There are different options for the payment process: setting up a local entity, through an EOR, a professional employer organization (PEO), or a partnership with an agency are some of them. 

The last three options will give you more flexibility because you can trust and delegate payroll tasks to those companies. They will manage all employment arrangements and local taxes.

Besides, they have different pricing plans, and employees or contractors will receive their payment through digital platforms like PayPal or direct deposit to their national bank accounts.

Does a remote worker have to pay U.S. taxes?

In most cases, remote employees are required to pay taxes only in the country where they live. Nevertheless, certain countries may mandate that you deduct taxes from a foreign worker's salary or file tax paperwork for them. U.S. local labor laws do not apply since these employees are non-U.S. residents.

Different documents must be sent depending on whether the worker is an employee or a contractor. International contractors, for example, must complete Form W-8BEN to demonstrate their foreign status to the Internal Revenue Service (IRS).

What are the visa regulations around hiring internationally?

Remote jobs do not need a work visa. Since they are based in their home country, it is not required. But if the worker needs to travel for training purposes or business meetings, the company can provide a visa that can cover this short-term stay.

Why Should I Choose a Remote Staffing Agency?

The digital world has opened the doors for many talents behind one click. Job boards are growing and full of brilliant candidates. Hiring remote workers allows you to have short-term and full-time employees or freelancers with specialized skills that will contribute to your growth.

There are so many digital tools to elevate a business nowadays, such as e-commerce platforms with advanced features and platforms to help you with the payroll process and payroll taxes, but getting the people is essential.

Choosing a staffing agency grants access to a large remote talent pool and streamlines the process of finding top candidates for remote roles.

Lupa is your strategic partner in securing top-level talent from the LatAm tech market – think big-league skills without big-league costs.

Finding the ideal international remote employees for your company can be difficult if you do not have the correct assessment. From sourcing candidates to managing their placement, our recruiting and staffing services are designed to fit your business. Find out how we can help.