Today, let’s start this with a movie title cliché (not Russia, not Paris, but anywhere you want really). In my case, it is from Lima, Peru, quite far away from home, in Lisbon, Portugal. I’ve put almost everything I own in a 60L bag and went south, but you can just take a few of your most precious items, put them in your favorite luggage and go north, east, west… the choices are endless (or almost).
These days, a flexible workplace is gaining traction and there are many companies giving their employees the chance to live where they’ve always dreamt. Some are even born with this mindset already. But this brings many challenges to address, like having a team distributed through different time zones. Will everyone be able to master working asynchronously? Will a company be capable of setting the salary in the fairest way for everyone despite the differences in the cost of living?
How to pay your distributed team?
Having access to a global talent pool is the easiest part. You just have to find the right partner to do it. But when it comes to paying your distributed team there’s no one-size-fits-all, only a certainty that a strategy needs to be put in place for not risking legal issues and non-compliance with several matters in every country your team is located.
This strategy will allow your HR and Financial departments to sleep well at night. There are some different theories when it comes to it, but all must make sure they have one very important thing – transparency. This is what will make your business trustable and fair. Some companies have chosen to pay their distributed teams according to the headquarters’ location, sometimes offering some compensation packages as an add-on; others pay their employees according to the respective country’s payroll guidelines to meet the local market expectations. With both, they avoid any penalties and make sure that every team member is legally their employee.
A couple of weeks ago we talked with Outsystems and Fidel API and got to learn from their example how they’re managing their team of permanent employees or contractors, and how they’re dealing with paying their workers compliantly. CCA, Landing.Jobs’ legal partner, put the cherry on top of the cake and clarified some concepts like Employer of Record and Staffing, while also discussing some country regulations that may be of interest to you. You can watch the webinar’s replay here. Now, we want to know what you think, what is your opinion on the matter, and what’s your company’s approach on how to pay a distributed team. Share your thoughts with us, from anywhere in the world.