We’ve all seen the huge benefits that remote work offers. For some of us, we were already enjoying these benefits before the pandemic. Others only got a taste of remote work during covid19. And for many, it’s after the pandemic that their companies allowed some form of freedom to choose where and when they work.
With remote work, there’s flexibility and freedom. And there’s a huge opportunity for firms to tap into a global talent pool.
If we add this to the fact that companies like British Telecom and Best Buy have reported teleworkers being more productive (30%-45%). And the fact that firms lose around $600 million yearly to workplace distractions only shows one thing: that remote work, if implemented well, offers a net benefit for both employers and employees:
But remote work is not without its own set of challenges.
One of the main challenges businesses need to pay attention to is global payroll. So two main questions arise:
- Can you survive as a small team without relying on a global payroll systems?
- How can small remote teams effectively handle payroll on a global scale?
In the following sections, we will explore the complexities, benefits, and potential solutions surrounding this question.
The Challenges: What happens when you avoid global payroll?
Once you’re hiring from different locations around the world, global payroll becomes highly important. To experience what you will miss when running a global team without payroll, you need to understand the challenges that come with not having one.
Here are the challenges of operating a remote team without global payroll:
Complexity of Taxes and Withholding
Hiring and working with remote employees across different countries means dealing with complex tax regulations and withholding requirements. Each country has its own tax laws, rates, and compliance regulations.
If you’re not using a global payroll provider, it will be difficult to navigate these differences. Ultimately, this could lead to potential errors or non-compliance.
Frustrated employees and a low morale
One thing is, you have to run payroll once you’re hiring a global team. Without a global payroll system, there could be frustration and dissatisfaction among your remote team members. Having to handle multiple payment methods, currencies, and tax calculations can be confusing and inconvenient for remote workers. It can also lead to disagreements or delays in payments, which will impact employee morale and trust.
Difficulty Attracting Top Talent
Remote work opens up a lot of opportunities for you as a small team. However, without the support of a global payroll system, you would face issues when trying to offer competitive salaries. The absence of seamless payroll management may deter highly skilled professionals from joining your team.
To sum up…
One of the things about being a small team, small business, digital agency, etc. is that resources are limited. So with these limited resources, having to add global payroll issues to your list of problems will be too much. This is why it’s important to take global payroll seriously.
So what should you do as a small business, digital agency, software development agency, or a game development team looking to hire remotely?
Thankfully,… there are solutions.
A lot of solutions and strategies exist that can help you handle these complications and pave the way for successful payroll management.
Here’s what we suggest you should do.
Solutions for Small Teams on global payroll: small businesses, digital agencies, software engineering teams, etc.
Global payroll is necessary as a small team
But we didn’t say you have to use the traditional global payroll tools
Those ones could be expensive, cumbersome, and sometimes so difficult to get started with
Here are our recommendations:
Explore alternatives to traditional payroll providers
As a small team, we’re not already looking for something complicated. Who wants to add lots of cumbersome processes to their already existing problems of law budgets, talent acquisition, etc.?
It’s important that while you look for a payroll provider, consider exploring alternative solutions to traditional global payroll platforms.
There are simple platforms that cater to the needs of small remote teams. They come with the same powerful tools, same features, compliance, and support system like the big names.
One great thing about them though is that they are usually not too expensive. They also provide a simple way of setting you up.
Focus on building strong employer-employee relationships
Want to succeed with global payroll as a small team? Then build a strong employer-employee relationship.
How do you do that? Through open and transparent communication regarding payroll processes, policies, and timelines. This is the best way to regularly address any payroll-related issues your team is facing.
This is where Arbonum comes in
We highly recommend Arbonum if you’re a small business, software engineering team, game dev studio, or digital marketing agency looking to do global payroll.
The good thing about Arbonum is that it goes beyond just payroll. It has a comprehensive platform that offers payroll, multi-currency payments, know-your-customer (KYC) verification, HR management, and other essential services.
Essentially, it’s a complete package to manage your entire remote team’s activities. Arbonum is specifically designed to cater to the needs of small remote teams, providing an all-in-one solution for payroll management across different countries. With its user-friendly interface and robust features, Arbonum simplifies the complexities of global payroll and ensures compliance with tax regulations and labor laws.
Benefits of Using Global Payroll
Simple, streamline processes and a reduction in risk
One of the primary benefits of using global payroll systems is the ability to streamline payroll processes across multiple countries. With a good payroll system, your small team can automate various tasks such as time tracking, tax calculations, and payment processing. This will help you eliminates manual errors and reduces the risk of non-compliance with tax regulations and labor laws.
Increased Employee Satisfaction
Global payroll systems contribute to increased employee satisfaction and engagement. With a streamlined payroll process, team members can expect timely and accurate payments, regardless of their location.
Scalability and Growth Potential
You are assured of scalability and growth opportunities when you use a good global payroll system. As the team expands and new members from different countries join, the payroll system can seamlessly accommodate these changes.
Final morsels
The question of whether small remote teams can survive without global payroll systems is a complex one.
If you’re a small team, is important to evaluate your payroll strategies and consider the benefits of global payroll systems. By implementing the recommended solutions and leveraging platforms like Arbonum, you can streamline processes, enhance employee satisfaction, and position your business for scalability and growth.
