Hiring global contractors: Everything you need to know

Before the advent of technology, hiring top talent and acquiring services from other countries posed a significant challenge for businesses, particularly those seeking growth and plans to cater to a broader client base.

However, in today’s rapidly advancing digital world, geographical boundaries no longer seem to be a major challenge to recruiting highly skilled talents who can work effectively with your team.

The introduction of various software tools and video-teleconference platforms makes it easier for global contractors to offer their services from the comfort of their own places.

Like virtual assistants working for international clients, global contractors can perform work simply by having their software utilities and computer devices equipped with specialized and technical skills.

This article will walk you through the things that your business should know when hiring a global contractor.

Why consider a global contractor for your business?

The need to hire a global contractor may vary depending on your business’s specific needs and its current operational requirements. 

A global contractor can make it easier for a business to represent itself to clients and ensure a high-quality service if the organization operates across borders from its local offices. 

There are instances where a firm needs the services of highly technical and skilled talent to perform a specific task, such as software development, and hiring a global contractor can be more effective.

Aside from reducing cost and resources compared to hiring an in-house employee, global contractors are well-trained and experienced, making them more flexible.

Global contractor vs full-time employee

Global contractors are often called independent foreign contractors or international contractors. These self-employed professionals or businesses serve clients located in different countries.

It means they work and deliver tasks while residing in a country different from where the client is based, compared to remote or virtual talents that sometimes work in a company with the same geographical location.

Global contractors operate independently, unlike full-time employees. They typically take on specific projects, utilizing their own equipment and maintaining full control over their work methods and deliverables.

They also have a more flexible schedule in performing their duties. Clients are open to this context as long as the global contractor meets the agreed-upon targets and deadlines.

4 Pros of hiring a global contractor

Because of the demand for talents that require highly technical and specialized skills, hiring global contractors now enter the ever-changing trends in the competitive market. 

Here are some of the business advantages of hiring a global contractor:

Flexibility and cost effectiveness

Hiring a global contractor is one type of outsourcing. Although they differ in some contexts, both options are more cost-effective than a full-time employee, who requires benefits, taxes, and even office space.

With flexible arrangements in place for global contractors, businesses can scale their team composition immediately. They can hire project-based contractors and reduce staff when the workload decreases.

Global access to top and high-performing talents 

With the services of global contractors, companies are given easy access to a pool of highly skilled and professional candidates in their respective areas of expertise worldwide.

The organization can eliminate the risk of compromising the business operation due to the absence of an expert or skilled talent who can perform the job.

Quick market entry and fresh perspective

Global contractors possess local training and expertise, which are essential for providing valuable insights and fostering connections. 

It facilitates faster collaboration with international markets without the need to set up foreign entities. 

Global contractors also promote and share new perspectives, cultural insights, and problem-solving techniques to an organization.

Cons of hiring global contractor

Although global contractors provide access to talent around the globe with a faster and less complicated hiring process, there are also some considerations to consider.

Here are some of the cons that your business should know when hiring a global contractor:

Compliance and legal complexities

Adhering to the labor code, tax compliances, and regulations of other countries is quite challenging. Miscategorizing a global contractor as an employee can result in significant penalties and sanctions. 

It is why most companies hire tax specialists to continuously monitor their obligations, covering global contractors and other external talent that a business may employ.

Gaps in communication and timezone

Communication is one of the key elements to ensure a quality and successful project. It connects employees and their managers to review all stages of project accomplishment. 

Hiring global contractors poses a challenge for some business leaders, who must consider cultural and language barriers, as well as the varying time zones of their talent. 

It impacts the effectiveness of communication and the quality of relationships that the talent and team can achieve if they perform onsite or more often.

Less control and protection to intellectual property

As highlighted, firms generally have no complete control over a global contractor’s work style and schedule compared to an in-house or full-time employee. 

It also takes into account specific considerations related to protecting intellectual property, as global contractors work across borders and often require more complex arrangements.

Leveraging business growth and flexibility with global contractors

Leveraging and maximizing the advantages of hiring global contractors as a strategic move for businesses to seek organizational growth and flexibility is a great way to stay ahead in the industry.

These talents from across the globe offer skills that go beyond the basics and can directly contribute to the success of your business, as well as optimize operational expenses.

Hiring global contractors will also help your business gain the ability to adapt to market trends more quickly, scale efficiently, and innovate its teams.

Despite some consideration, it is undeniable that this pool of best-fit talents drives sustainable growth and helps architect a more resilient and transformative organization.