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Managing contractors remotely: A guide for global companies

Managing Contractors Remotely: A Guide for Global Companies
Kat Shepherd
Kat Shepherd
February 5, 2024
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Post-pandemic, millions of workers have continued to apply the benefits of remote work at scale, with companies of all shapes and sizes increasingly turning to contractors to access specialised skills and talent from around the world.

Despite the numerous advantages, sourcing, hiring and managing global talent is not without its challenges.

This guide aims to provide insights and strategies for global companies to effectively manage their contractors remotely, ensuring seamless collaboration and greater project success.

Embracing time zone differences

It can be difficult to adapt to collaborating with employees on a different clock, however, there are many benefits that come with embracing different working hours, like having workers ‘always on’ around the clock.

Acknowledging the diversity of time zones and creating a comprehensive guidance and best practice for all team members is essential. Using tools like scheduling software and encouraging workers to make their working hours visible in calendars and profiles can help your team coordinate effectively across different time zones.

If you feel the need to meet regularly face-to-face, it’s a good idea to identify overlapping hours where all team members can be available for real-time communication. Identifying countries within this overlap will also help target countries to hire contractors from.

Adopting asynchronous working strategies

Asynchronous work refers to a style of working where team members do not need to be online or engaged in real-time communication to collaborate or complete tasks.

Instead of working simultaneously, team members can contribute at their own pace, responding to messages, completing assignments, or providing updates on their own schedule. This approach to work is extremely effective when you have workers spread across the globe.

In order for asynchronous work to be effective, you need to:

  • Encourage clear and concise communication through project management platforms, emails, and documentation
  • Emphasise the importance of over-communicating, leaving detailed comments and updates to ensure continuity when team members are not online simultaneously.
  • Leverage asynchronous collaboration tools such as shared documents, project management software, and messaging platforms to keep everyone on the same page.

Even across different time zones, with the right approach to asynchronous work you can ensure that work progresses smoothly, regardless of individual working hours.

Understand contractor rules in various countries

It’s not absolutely crucial that you research and understand the legal and compliance requirements for contractors in different countries, but it is crucial that you partner with someone who does. Your business must be protected from tax implications, labour laws, and any specific regulations that may affect remote work arrangements.

A trusted partner will help you to tailor contracts to align with local laws and regulations, including payment terms, working hours, and any other relevant clauses. This helps in mitigating legal risks and ensures a fair and compliant working relationship.

If you need guidance on hiring contractors compliantly around the world YunoJuno can be the perfect partner for you. Find out more about global contractor compliance.

AspectEmployeeIndependent Contractor
Control and supervisionDirect control over how, when, and where to workFreedom to set their own schedules and methods
PaymentRegular wages; taxes withheld by employerPaid per project; responsible for their own taxes
BenefitsHealth insurance, retirment plans, paid leaveMust arrange their own benefits
TerminationOften requires notice and may include severanceCan usually be terminated at any time without benefits
Tools and equipmentProvided by the employerTypically use their own tools
“Single country legislation changes and interpretations can already lead to misclassification errors, so imagine the complexity that companies face to run global contingent workforce programmes where each country will have their own set of local laws and hiring regulations. By classifying contractors through YunoJuno’s platform, businesses can hire faster, compliantly and with peace of mind - on a global scale.”
YunoJuno COO Joao Martires

Building a global culture

You should do your best to foster a sense of unity among your remote team members despite the physical distance between them. Celebrate cultural diversity and implement practices that respect and incorporate various cultural norms and holidays.

Hosting regular virtual meetings during overlapping hours and organising regular online team-building activities and social events will strengthen the bond among remote team members. This helps create a cohesive global team that works well together.

Install the right technology infrastructure

Your global team is only as strong as the technology that connects them. Invest in a reliable and secure IT infrastructure to support remote work and hire the necessary IT talent to make it work seamlessly. Provide necessary tools, software, and training to ensure contractors have access to the resources they need to perform their tasks effectively.

Implement stringent cybersecurity measures to protect sensitive data. Train contractors on security best practices and regularly update protocols to stay ahead of potential threats.

Enabling multi-currency payments

Managing payments across various currencies introduces complexities, including fluctuating exchange rates and potential financial errors. A specialised contractor management system, Like YunoJuno, streamlines this process by automating currency conversion, ensuring accurate and timely payments to contractors worldwide.

This not only enhances financial transparency but also minimises the administrative burden, allowing you to focus on strategic initiatives. With a centralised platform for tracking and managing payments you can build stronger relationships with global contractors by ensuring fair, transparent and timely compensation in their local currencies.

Finding the right balance for managing contractors globally

Effectively managing global contractors remotely requires a combination of organisational strategies, technological infrastructure, and cultural awareness. By embracing diversity, implementing smart communication practices, and staying informed about legal considerations, global companies can create a thriving remote work environment that leads to successful collaborations and project outcomes.

Find out more about how YunoJuno helps you to source, manage and pay contractors in over 150 countries.

Working with contractors has never been easier

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Working with contractors has never been easier

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