Global talent acquisition: How a Contractor of Record (COR) can help you scale your team

To tap into new markets and scale globally, companies need effective hiring strategies that are agile, compliant, and cost-efficient.

Today, businesses are no longer restricted to hiring talent within their own country. Organizations of all sizes are embracing remote work and engaging independent contractors to expand their teams globally. However, this expansion comes with challenges — ensuring compliance, managing payments, and properly classifying workers are among the top concerns.

In this article, we’ll explore how a Contractor of Record (COR) can help you engage with international contractors to scale your global team efficiently.

The evolution of global talent acquisition

The traditional hiring model is evolving. Businesses now recognize the benefits of engaging remote professionals and contractors worldwide. This shift is driven by:

• The rise of digital transformation and remote work technologies

• Increased competition for specialized talent

• The need for cost-effective workforce expansion

However, scaling teams across multiple jurisdictions presents significant challenges, including legal compliance, tax regulations, and payroll complexities. Companies must address these hurdles strategically through workforce compliance solutions.

Key trends shaping the future:

• Increased demand for remote talent: Businesses will continue hiring specialized professionals from diverse global markets.

• Stronger compliance frameworks: Governments will enforce stricter regulations on contractor classification and tax compliance.

• Advanced technology in contractor management: AI-driven tools will enhance international workforce management, automating compliance and payroll processes.

If you want to quickly test a new market, get immediate expertise, and work with people for a certain period of time, contractors can be much more impactful than building a team from scratch.

- Pedro Barros, SVP, General Manager, Contractors at Remote

Organizations aiming for sustainable growth must embrace flexible workforce models if they want to make it easier to expand internationally. A key advantage of a flexible workforce model in global expansion is agility. It enables companies to quickly access specialized talent worldwide without the constraints of traditional hiring. 

By using independent contractors and remote workers, businesses can enter new markets faster and reduce operational costs. However, there are compliance challenges to think about.

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What compliance challenges will employers need to consider before engaging remote workers abroad?

Nearly 40% of companies now hire contractors internationally, facing increasing complexities with administrative overhead, payment timelines, and compliance with different countries' laws

Employers hiring remote contractors or remote workers abroad face several compliance challenges, including legal, tax, and operational hurdles. Below are the key compliance challenges:

1. Employment classification and misclassification risk

Many countries have strict labor laws distinguishing between employees and independent contractors. Some jurisdictions impose specific criteria (such as level of control, work exclusivity, and integration into the company) to determine employment status.

Assigning the incorrect worker status or misclassifying a contractor can lead to fines, back payments for benefits, and legal disputes — which opens up the employer to a world of legal and financial complications. To minimize misclassification risks companies should instead use local legal counsel or rely on a solid contractor management solution.

2. Data protection and security compliance

Remote workers handling sensitive company data may be subject to data privacy laws such as GDPR (Europe), CCPA (California), or LGPD (Brazil). Different jurisdictions have strict requirements on how personal and company data should be stored and transferred.

Implementing cybersecurity policies, VPNs, and ensuring compliance with data protection laws can help prevent breaches.

3. Intellectual Property (IP) and confidentiality

Remote contractors might work with multiple clients, increasing the risk of IP theft or leakage of confidential information. Employers should include strong IP assignment and non-disclosure agreements (NDAs) in contracts to mitigate risks.

4. Payment and currency exchange challenges

Paying remote workers in different countries involves dealing with exchange rates, local banking regulations, and international payment transfer fees. Some countries have currency control restrictions, making payments more complex. Using international payment platforms like Remote, Payoneer, or Wise can help ensure smooth transactions.

5.  Compliance with local labor laws

Some jurisdictions have worker protections that extend even to contractors, such as mandatory sick leave or severance pay.

In Italy, companies like Just Eat have placed gig workers, such as food delivery riders, under national contracts. This grants them benefits including a minimum wage, paid leave, sick leave, social security, and insurance.

Therefore, companies should carefully assess local labor laws and ensure proper classification and compliance when engaging contractors.

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Why use a Contractor of Record to scale your global team?

As your company grows internationally, managing a global workforce independently can become a legal and administrative nightmare. A Contractor of Record COR helps businesses scale efficiently by helping you engage contractors quickly and easily.

As a a third-party entity that legally engages and manages independent contractors on behalf of a company, a contractor of record can handle the legal and administrative burden of hiring abroad, such as: ✅ Worker classification: Ensuring contractors are classified correctly to avoid misclassification risks.

✅ Compliance: Managing legal, tax, and regulatory requirements across different jurisdictions.

✅ Payments: Handling contractor invoicing, payments, and tax withholdings in multiple currencies.

✅ Contract management: Drafting legally compliant contracts, ensuring proper IP protection, and managing renewals or terminations.

How to scale your global team with a Contractor of Record?

Now that you understand the benefits of a COR, here’s a step-by-step guide on how to leverage it to scale your international team.

Step 1: Identify the markets for expansion

Determine where you need talent based on business needs, market opportunities, and cost considerations. 

Step 2: Choose the right COR partner

Not all COR providers are the same. Choose a provider that:

✔️ Operates in your target countries

✔️ Has a strong compliance and legal framework

✔️ Offers automated payment solutions

✔️ Provides support for contract negotiations and IP protection

Step 3: Engage and onboard contractors seamlessly

Once you’ve selected your COR, they will handle contractor agreements, compliance, and onboarding. This ensures that your new hires can start working quickly while maintaining legal protection.

Step 4: Streamline payments and tax compliance

Your COR will manage contractor payments in local currencies, handle tax reporting, and ensure compliance with invoicing requirements. This removes the burden from your finance and HR teams.

Step 5: Monitor compliance and performance

Regularly review contractor relationships, compliance status, and project outcomes. A good COR provides detailed reporting on contractor payments, legal updates, and performance metrics.

Step 6: Scale without barriers

With a COR in place, your business can focus on growth, innovation, and new market expansion without getting bogged down in legal complexities.

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Choosing the right COR provider for your business

When selecting a COR, consider the following factors:

🌍 Global reach – Can they operate in your target countries?

⚖️ Legal and compliance expertise – Do they handle classification, contracts, and tax compliance?

💳 Payment solutions – Can they manage payments in multiple currencies with ease?

📜 IP and contract protection – Do they ensure proper IP ownership and legal agreements?

📈 Scalability – Can they support your long-term growth needs?

We have the ideal solution that can handle all of the above and more.

Remote Contractor of Record (COR) helps handle compliance burdens for employers in several key ways:

• Takes on legal and administrative responsibilities by becoming the legal entity that contracts with and pays contractors, handling everything from onboarding to invoicing.

•  Provides protection against misclassification risks through misclassification assessments, uncapped indemnity coverage, and legal protection from contractor misclassification.

• Handles contractor classification and compliance-related tasks, eliminating the need for businesses to navigate local tax and legal complexities

• Ensures contracts comply with international regulations and provides one-click invoice approval and payments

• Offers the ability to make payments in over 70 currencies, including stablecoin payments, offering flexibility in how companies compensate their contractors

Scale your workforce easily with Remote

 As the future of global talent acquisition evolves, companies need a reliable partner to successfully scale a global workforce.

Scaling a global team can be complex, but with a contractor of record, businesses can expand quickly while ensuring compliance, efficiency, and risk mitigation. Remote COR  takes care of legal, financial, and administrative burdens, allowing you to focus on growth without worrying about international hiring complexities.

If your company is looking to hire international contractors, streamline operations, and reduce risk, using a COR is the best way to scale seamlessly and legally.

Ready to expand your global team? Start exploring Remote Contractor of Record today! Contact our team and book a demo to see how Remote can take your business to the next level. 🚀

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