Tech companies that hire remote talent from around the world are faced with a few options when it comes to the how. Many companies will choose to partner with an employer of record service. Others will work to establish their own legal entity in the country where they decide to hire. And even more will hire independent contractors to help them achieve their goals.
Hiring independent contractors is a viable option for tech startups and established tech companies that need short-term help or have a need for a very specific skillset. Independent contractors provide a level of speed and flexibility that is valuable to many tech companies — but what do you do when you want to make remote contractors full-time employees? Truss may be able to help, and this guide to transitioning remote contractors to full-time EOR employees will help you grow your business and achieve your goals.
Contact Truss today to learn more about our global hiring platform and employer of record services!
READ MORE: Differences Between Direct EOR and Partner EOR
How To Convert Independent Contractors to Full-Time EOR Employees
Hiring independent contractors to help a project get across the finish line is a viable solution, and tech companies may find that independent contractors have the talent and skills that they need in the long term. When you hire an independent contractor that has the skills and experience you need for future projects, it may be time to find a more permanent solution and hire that individual as a full-time employee — but how do you accomplish that goal?
When you partner with an employer of record — like Truss — it provides you with an avenue to hire remote employees in emerging markets around the world without having to worry about the legal ramifications of misclassification. Armed with a better understanding of the step-by-step process to transition independent contractors to full-time employees with an EOR, you can quickly grow your team and build for long-term success.
Step-By-Step Process to Transition Independent Contractors to Employees
- Evaluate the Legal Risks: The first step you need to take to transition contractors to full-time employees is to evaluate the risk involved. If you already have a high degree of control and a contractor already operates with the schedule and tools of a full-time employee, it makes more sense to convert them to a full-time employee to avoid compliance complications.
- Examine Salary and Pay Leveling: Independent contractors will often earn 50% – 70% more per hour than salaried workers to compensate for handling their own taxes and benefits. When you transition independent contractors to full-time employees, it is important to calculate base salaries with health insurance, vacation time, and retirement factored in.
- Find the Right EOR Partner: When you make the transition from remote independent contractors to remote full-time employees, it is important to find a global EOR provider like Truss that has their own legal entity in the hiring country and has experience in that country. This will help simplify the transition process.
- Write Formal Employment Contracts: Legal employment contracts are an important piece of the equation, and the right employer of record provider will help you draft and establish contracts that include job requirements, working hours, local employee benefits, and vacation PTO policies for new employees.
- Coordinate the Onboarding Process: With Truss as your employer of record, you gain an end-to-end partner that will help you onboard remote employees that are transitioning from independent contractors to make them a permanent part of your team. It is important to work with your EOR and coordinate the onboarding process, so there is a seamless transition and new employees can hit the ground running.
- Create Transparent Lines of Communication: Transparent communication is critical when you move to transition contractors to full-time employees. Keep the lines of communication open to keep new employees informed on any changes throughout the process that may apply to long-term job security, benefits, and stability.
READ MORE: How an EOR Reduces Hiring Costs for Tech Startups
Transition From Independent Contractors to Full-Time Employees with Truss as Your EOR
When you make the decision to transition your remote workforce from independent contractors to full-time employees with an employer of record, you will face a process that involves evaluating employment contracts, reevaluating salaries, and establishing transparent communication. We hope that this quick guide to transitioning remote contractors to EOR employees will help you make a smooth transition and continue to grow your business.
Contact Truss today to find out how we can help you find and hire tech talent in emerging markets in Central Asia!
