Innovative Ways for SMBs to Break Down Remote Recruiting

Now that hybrid work is the new normal for many, businesses of all sizes are looking for hybrid and remote employees. And it’s no wonder, since the benefits of hiring remote are manifold. In addition to reducing office and overhead costs, it gives you access to a wider pool of qualified candidates, irrespective of location. In this candidate-driven market, remote hiring is undoubtedly an advantage. However, for many SMBs, remote hiring is uncharted territory. To help you save time and money, we’ve put together a list of elements to keep in mind and innovative ideas to consider when hiring remotely.  

The following questions should help guide your search for the perfect remote candidate:

• So, you need a new employee... or do you?
• What is the best way to handle remote work compensation?
• When should you hire an accountant? 
• Where should you post your job? 
• How can you simplify onboarding and payroll? 

1. So, you need a new employee... or do you?  

Before starting your search, try breaking down the job into tasks. Which tasks require a human, and which ones can perhaps be automated? The internet is brimming with time-saving tools and services that perform business tasks for you, such as sorting emails, scheduling appointments, paying bills, and responding to customers. Making good use of these tools could mean you don’t actually need a new employee. If, despite making good use of these tools, you still need help, here are some more questions you can answer to further refine your search: Do you need someone full-time, or would a part-time employee be a better option? Do you need a salaried employee, or do you want to perhaps outsource the job and look for a freelancer or a contractor? Do you need someone local, or could a remote employee do the job? Keep the following elements in mind when searching for a remote candidate.  

2. What is the best way to handle remote work compensation? 

When hiring remotely, you might be wondering if salaries should be location-based or location-neutral. That is, if the amount on an employee’s paycheck should be contingent on where they currently reside or not. With the rise of teleworking, this has become an increasingly common dilemma.  

Depending on their location, two employees with the same job (for example, a developer in downtown San Francisco and one in rural Utah) could have vastly different salaries. According to a 2021 survey conducted by ChartHop, employees in the same roles experience location-based pay differences anywhere from 3% for entry-level associates to as high as 90% for software engineering roles. Now that a fair share of the population is working remotely, are location-based salaries still relevant? Which pay model is the most cost-effective for SMBs hiring remote employees?   

The choice is ultimately yours. Location-based pay differences can either work in your favor or not. For now, we are witnessing a slight preference for location-neutral pay. According to The Financial Post, 40% of Canadian employers are planning to anchor a new employee’s pay to their location, as opposed to 60% who will connect it to the firm’s head office. 

Another hot topic in the salary category is transparency. Many small and medium businesses wonder when to discuss wages with candidates. In this tight labor market, it is increasingly common for employers to disclose compensation directly in job listings. In fact, a new law which requires employers to include salary in job postings will soon be in effect in New York City. Our analysis has shown that job postings which disclose the salary have a higher application rate. Plus, salary transparency can advance DE&I initiatives and help close the wage gap.  

3. When should you hire an accountant? 

Handling taxes can be challenging, especially when hiring overseas. Thankfully, you may not even need to hire a full-time in-house accountant. You can find countless online tools designed to help you plan and file your corporate taxes. For example, many virtual accounting firms offer remote and/or international options which can be useful for small and medium businesses recruiting abroad.  

You also don’t necessarily have time to become acquainted with local tax laws in the regions where you are hiring. Fortunately, you can use an online tax calculator to simplify the process. All you have to do is enter a salary and a location. The calculator will instantly break down basic tax withholdings and deductions to give you a clear picture. Since local tax laws could influence where you choose to hire in the future, it’s best to equip yourself with the right tools early on. 

4. Where should you post your job?  

Once your job offer is ready, it’s time to post it. But where? There are so many ways for candidates to find your job, and you want your job ad to be in as many appropriate places as possible. If you are looking for a short-term arrangement (such as graphic design or a voiceover for a project), you can try an online marketplace for freelance services. If you are looking for a permanent employee, posting your ad on a popular online job platform with high traffic will ensure maximum visibility.  

The pandemic ignited many changes in the field of talent acquisition, notably a heightened interest in flexibility on the part of candidates and recruiters alike. While candidates now tend to prefer work arrangements with remote options and/or flexible schedules, recruiters increasingly enjoy using no-contract platforms and having the option to pause hiring activity without incurring fees, in the case of temporary layoffs or other unforeseen circumstances. In 2022, the most useful job platforms are the ones that offer high levels of flexibility regarding budget, duration of campaigns, and number of jobs.  

When it comes to your job description, keep it short and sweet. It should contain 700 to 2000 characters, have the right keywords and ideally be listed in bullet points. As a tip, remember that the perfect job description contains the 3 Rs: responsibilities, requirements, and rewards.  

5. How can you simplify onboarding and payroll?  

Welcoming a new employee is great! Dealing with legal documentation, not so much! Thankfully, technology has come a long way in this regard, and you can now automate even some of the most tedious onboarding tasks.  

For example, you can create an onboarding website that can be easily shared, always up to date, and tailored to different regions instead of using Word or PDF documents that get lost or end up having multiple versions. You can also get all your paperwork done more easily with free electronic signature generators that help simplify signing contracts remotely. 

Simplify even further with smart contracts. Stored on the blockchain, these programs automatically execute an agreement when predetermined conditions are met. They remove the need for a broker or other intermediary, can automate workflows, be multilingual, and help ensure you are locally compliant to wherever in the world you are hiring.   

Once you have your new hire, you may be familiar with local payroll software, but more and more services offer automated multi-country payroll capabilities, which will help with your new remote employees. An automated, international payroll process automatically transfers funds on time, takes care of exchange rates and local taxes, and brings you peace of mind.