Do you know how to hire international employees? If you want to expand your company’s reach into global markets, hiring qualified candidates in other countries can help.
However, if you don’t have a local office, you may be wondering whether it’s possible to recruit candidates in places like the UK.
Luckily, you can do this even if you don’t have a registered business structure there. Read on to learn how to recruit UK talent without a local office.
Determine your hiring strategy
It is possible to hire in the UK without a formal business presence there, but you need a recruitment model to make this possible. You have several options. Which one is right may depend on your size, financial situation and general preferences.
For example, you can appoint individuals in the UK as sole traders. In this scenario, individuals invoice you for their work on behalf of your company.
While independent contracting is a simple approach, it also comes with some potential drawbacks. These individuals are essentially employees of the company, meaning the UK may be able to reclassify them. As a result, you could face hefty fines.
With the Employer of Record (EOR) option, a third-party company in the UK does the hiring for you. You don’t have to start your own business or worry about payroll. This option is simple and gives you peace of mind that you are compliant.
Setting up an office in the UK gives you more control over the recruitment process rather than having to outsource it. However, be prepared to wait months to launch the business and be aware that you will have to deal with payroll and compliance issues.
Benefits and pension account
Please note that when hiring in the UK you will need to take certain requirements into account. Employees in the UK are guaranteed a minimum of 28 days of holiday pay each year. They can take parental leave and receive sick pay if they are entitled to do so.
Also take into account the mandatory company pension. Any employee over 22 years of age is automatically enrolled in the pension program and the minimum contributions are 8% per year. 3% comes from the employer, 5% from the employee.
The pension scheme is mandatory in the UK. But employees can opt out. However, note that they are re-enrolled every three years.
Calculate employment costs
Remember that providing an employee with a salary is only part of the hiring process. You need to budget for more than just a salary.
Plan to make room for pension contributions, vacation and employer social security contributions. Insurance may be approximately 15% of an employee’s income and you will be responsible for paying it. There may also be fees associated with your EOR.
Don’t be surprised by unexpected costs. Instead, do the calculations in advance using the resources of a reputable UK recording services employer. You’ll gain access to a more accurate total compensation number that can help you predict future expenses.
Verify legal status and complete payroll
Do you employ people who are legally allowed to work in the UK? Before issuing contracts or paychecks, it is important to verify.
Be sure to check passports or visas and follow UK guidelines when conducting checks. Failure to verify legal status may result in fines.
In addition, you must be aware of the British Pay-As-You-Earn (PAYE) system. Be careful when deducting income tax and insurance contributions. All payments must also adhere to strict government-mandated deadlines.
It is advisable to contact an EOR to oversee processes related to status and payroll. If an EOR takes care of the details, your risk of being cited for noncompliance should decrease. They also handle all personal information carefully, help with employee onboarding, and act as a trusted resource throughout the hiring process.
Recruit the best British talent
Finding great UK employees without a local office requires careful planning and research. While you can simplify some aspects of the process by opting for a contractor model, you may be better off with a registered employer. With EORs, you don’t have to worry about payroll, benefits, or onboarding.
With the right approach, you can start attracting top talent to help grow your business.
