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How to pay your remote employees
Best insights for remote work payments
Working remotely is becoming the main trend in the modern world. The advancement of technologies, globalization, changing social and economic realities make it attractive for an employer to look for a remote team.
A significant number of companies all over the world starting from huge ones like Amazon and Google to small and local enterprises are trying to maximize their potential by finding the most experienced and qualified candidates from all over the world disregarding any geographical boundaries and limitations.
That is why it becomes highly relevant for employers to understand how to organize the remote work process and make it maximally effective and productive. The question of payment to remote employees is something that should be carefully explored by those who want to hire globally.
There are some strategies for making the required payments and keeping both the employers and employees satisfied and motivated to continue cooperating.
That is why it becomes highly relevant for employers to understand how to organize the remote work process and make it maximally effective and productive. The question of payment to remote employees is something that should be carefully explored by those who want to hire globally.
There are some strategies for making the required payments and keeping both the employers and employees satisfied and motivated to continue cooperating.
Liaison with a local partner
One of the most frequent ways that are used by a number of employers hiring staff abroad and remotely is to liaison with a local partner or affiliate. If you manage to establish a cooperation with a company within the state from where you are hiring an employee, the payment will be made through that local company as your employee will be put on the local company's payroll and the payment process will mainly be handled by that partner.
However, some disadvantages should be taken into consideration. If you hire employees from different countries, then you will have to establish cooperation with separate companies in all the countries you are hiring from. New country - new partner. This can be too time-consuming and effort-demanding. But still is an option.
However, some disadvantages should be taken into consideration. If you hire employees from different countries, then you will have to establish cooperation with separate companies in all the countries you are hiring from. New country - new partner. This can be too time-consuming and effort-demanding. But still is an option.
Retalent's team suggests using the following payment platforms:
If you hire your most prominent candidate as an independent contractor you can use various electronic payment platforms such as:
- PayPal
- Payoneer
- Google pay
Remittance services are also an option to pay your remote employees. You can use such well-known and recognized services like
- Western Union
- WorldRemit
- UniStream
Making a remote payment is also possible via ACH (Automated Clearing House) transfers which are a way to move money between the bank accounts at different banks electronically. An ACH direct deposit is one of the forms of the ACH transfers and is made electronically from a business to a consumer. The benefit of the ACH transfers is that they are mostly free of charge.
- Payoneer: The transaction fees charged by Payoneer are $2.99 for a local bank transfer and $15 for a USD SWIFT transfer. Payoneer charges fees of $4 or 1% of the overall amount for transfers in USD and EUR, but the fees can't exceed $10.
- PayPal: PayPal offers two different payment methods for international money transfers and each has its own fee structure. When sending money directly to another PayPal account, PayPal charges 5% of the transaction with a minimum fee of $0.99 and a maximum fee of $4.99. This assumes the transfer is funded by a PayPal balance. If the transfer is funded by a credit card, debit card, or PayPal credit, a funding fee of 2.9% plus a fixed fee (based on the currency used) is also applied. Additionally, if the sender needs to convert to a different currency before sending, the currency conversion fee is 3-3.75%
Fees insights
Retalent's Team
Retalent's Teams insights
- Google Pay: Google pay is one of the cheapest services on the list — there are no fees to use debit cards or make bank transfers, though you will pay a 2.9% fee for credit cards. It can transfer as much money as PayPal, with the maximum amount per transaction set at $10,000.
- Western Union: Western Union makes money from both exchange rates and transfer fees. The provider may change the fees and rates without notice. Western Union charges variable transfer fees depending on the country your sending to, the size of the transfer, the transfer payment and payout options and whether you are sending money online or through an agent. Cash pickups are more expensive than direct-to-bank transfers. When paying for your transfer, debit card and credit card payments are costlier but faster compared to bank transfers. You can pay as low as USD $0 when doing bank to bank transfers through the platform. Western Union charges a margin above the midmarket rate for any given currency pair
- WorldRemit: WorldRemit makes money in two ways: by charging you a transfer fee and through a margin on the exchange rate. There is also potentially hidden fees that banks at either ends can charge. WorldRemit charges you a transfer fee on each transaction. This fee depends on the currency you are sending, the amount and the delivery option. Usually, the fee for bank transfer is lower and it is higher for cash pickup and mobile wallet transfers. The transfer fee can range from $3.99 to $24.99 depending on various factors such as the currency, country, amount, and delivery option. WorldRemit offers exchange rates that are much better than what banks offer. Still, these rates are higher than the interbank rate, i.e. the rates at which banks buy from each other.
- UniStream: The transferred amount can be received 5 minutes after its sending. The commission fee for the transfer is 1-1.5% of the transferred amount, depending on the size of the amount and the direction of the transfer
As remote work becomes a more common and widespread phenomenon of our life, more remote employees are needed. We know that sometimes the hiring process might be long and tedious for business owners. That is why Retalent's team of professionals is always ready to assist you in hiring perfect and trustworthy employees.