Hiring remote software engineers

More specifically, Remote’s 2022 Tech Talent Report surveyed 1,485 global executives and HR managers from the US, UK, Germany, France, the Netherlands and Sweden who are hiring tech talent to better understand their views on emerging tech hubs. The report highlights misconceptions about remote hiring that may be preventing businesses from finding top tech talent in less competitive markets.

Our research shows companies that embrace international remote hiring still miss opportunities by concentrating too heavily on traditional tech hubs. These locations often show signs of a talent market under strain.

Sell your role: a job ad is more than a job description

One easy way to stand out in a tight market is to sell the role more effectively than your competitors.

Many employers treat a job description as a dry list of requirements. That approach rarely catches the attention of high-quality candidates who browse hundreds of listings for genuinely compelling opportunities.

A little extra care up front will make your job ad stand out. Highlight growth opportunities, unique benefits, and your company’s culture and values. Explain how you’ll support and develop each new hire to show you invest in people.

"Job boards attract two main groups: people actively seeking work, and those already employed who might be tempted by something better. A standard JD probably appeals to the first group; the second group needs convincing. Your ad should show what that person will gain by joining your company. Focus less on ‘Our requirements are’ and ‘our mission is’ and more on ‘you will impact these areas of the business’ and ‘you will be passionate about’. Grab the reader’s attention and make them excited to interview."

Yasmine Gray, Senior Talent Sourcer at Remote

Setting clear expectations also appeals to top international talent. It signals professionalism and shows you respect candidates’ time. Small steps like this can significantly boost your offer’s appeal.

Keep your hiring process as short as possible. Very long processes with many rounds, in-depth questionnaires or unpaid technical tasks consume candidates’ time. Experienced professionals are busy — they won’t want to work for free and may avoid cumbersome processes. A résumé tells part of the story, interviews reveal culture fit, and reference checks validate performance.

Busy engineers can’t commit to lengthy interview campaigns. Streamline where you can and explain clearly why each stage exists so candidates understand the time commitment.

Example process overview to add into job advertisements

A short overview like the example below can be included in your job ad to set clear expectations and show candidates the time commitment will be reasonable:

1

Interview 1 with HR

To assess cultural fit and values alignment

2

Salary discussion with HR

To ensure matching compensation expectations

3

Interview 2 with line manager

To assess technical ability and experience

4

Interview 3 with team member

Opportunity for the candidate to ask questions

5

Interview 4 with team member

To validate mentality and strategic aptitude

Use proactive strategic sourcing to cherry-pick top global software engineers

Top recruitment teams adapt their approach for hiring remote software engineers. Attracting world-class developers is hard — the global shortage means you must work smarter and harder to outperform the competition.

Amina Moreau, CEO and co‑founder of Radius highlights the value of transparency in recruitment. By being candid, hiring managers can have more honest conversations with top remote engineers and better judge mutual fit during interviews.

"Because it’s as important that the team fits the candidate as the other way round, we start by being open about who we are, how we operate, our strengths and weaknesses. As a startup we’re transparent about our financial position and stage, and the pros and cons of joining. Starting with transparency helps candidates relax and share their work styles and preferences, which speeds up the relationship and allows for a truer assessment of fit."

Amina Moreau, CEO and co‑founder of Radius

The most overlooked aspect of hiring remote software engineers

The answer is straightforward.

Decide clearly how you will validate that candidates demonstrate your company values.

Hiring great engineers is not exact science. The best person for one business may be a poor fit for another. Shift your focus from “finding the best engineers” to “finding the engineers best suited to your team”.

Lisbon-based Sergio Pereira is CTO at Bulk MRO Industrial Supply. As a strong proponent of remote work, Sergio looks for ways to improve processes for his distributed team. He explains how Bulk MRO assesses culture fit against company values to find the best remote software engineers.

"To ensure a candidate fits the team, we involve several team members in hiring so they can judge how well a prospective engineer would mesh with team dynamics and contribute to our remote work culture. This cultural assessment is just as important as checking technical skills."

Sergio Pereira, Chief Technology Officer at Bulk MRO Industrial Supply

Sergio’s insight is useful for leaders aiming to boost retention and improve recruitment practices.

It’s not enough to know your own company culture and values.

Your team must be able to ask the right questions to uncover whether a candidate operates by your company values.

Remote’s recruiters look for engineers who are team players. The best fit is a clear communicator who is collaborative, ambitious, self-driven and curious.

"At Remote we focus on operationalising our values. There’s a technical baseline, but we seek developers who can collaborate and write great code. We don’t need lone technical superstars; we need team players. In interviews I ask situational questions to see how they’d respond, looking for answers that show care and humility — indicators of teamwork and collaboration."

Gabriela Suarez, Expert Recruiter at Remote

When is the right time to assess value-match?

The first screening call with a recruiter.

While all interviewers should compare candidates to your values and mission, the recruiter’s screening call is ideal for a deep dive into this area.

Use this stage to assess whether the candidate shows the behaviours you want in a software engineer. Recruiters can filter out candidates on cultural grounds, while later interviewers handle technical evaluation.

Once you’ve built a balanced, aligned and diverse interview process, execute it consistently. A clear process reduces bias and lowers the chance of hiring someone who doesn’t fit your culture.

"International hiring opens access to the world’s best talent. Value-based recruitment lays the foundation for long-term success. Leaders who hire for shared values can create an inclusive, equitable and trusting environment that lets a global team thrive."

Anastasia Pshegodskaya, Director of Talent Acquisition at Remote

How hiring managers can prioritise diversity, equity and inclusion in practice

Many growth-focused leaders back the need to prioritise diversity, equity and inclusion (DEI). Far fewer know how to turn that goal into concrete hiring tactics.

The Remote team is committed to changing the world of work so people everywhere can access world-class employment opportunities, regardless of their address.

Our recruitment is designed to find and create opportunities for underrepresented groups. Below is a shortlist of practices you can implement now to diversify your team and bring fresh perspectives into your organisation.

CHAPTER 3

The right benefits to attract top remote engineering talent

Strong benefits can be as important — sometimes more important — than a high salary. Remote software developers are in demand and gravitate towards companies offering the best balance of pay and benefits.

Even if wages stagnate, meaningful company benefits can create a positive workplace and a sense of value. Firms that provide competitive and cost-effective benefits like flexible hours and async working often retain top talent even if they can’t match enterprise salaries.

Remote software engineers often expect more than statutory entitlements. Competition leads employers to offer perks like autonomy, flexible and async work, inclusive culture, stock options, retirement savings vehicles and more.

Remote’s 2022 Global Benefits Report found flexibility is a key incentive for top tech talent, with employees consistently ranking remote and flexible work highly when evaluating job offers.

Hiring international engineers offers great advantages, but HR leaders must design an intentional and fair remote compensation plan to both attract and retain top talent.

The simple way to offer competitive global compensation packages

Remote’s global employment platform helps you attract and retain top talent with locally relevant and compliant benefits packages in each country where you hire. Our global benefits team create country-specific benefits packages with the advantage of negotiated pricing.

You can offer equitable, market-leading benefits not just to remote developers but to your entire global team for a fraction of the cost of doing it alone or setting up a local entity. You can even offer stock options to your international workforce.

Ensure you meet local statutory obligations

There are several core benefits employers must provide when hiring internationally. These statutory benefits (like leave, social security and insurance) differ by country, but they are non-negotiable for employers.

This variation matters because benefits above statutory entitlements may be valued differently across countries. Private health insurance is a major draw in places like the United States, while Australian employees place less weight on it because Medicare is robust and only 10% of Australian employers offer supplementary health insurance.

When recruiting globally, become familiar with secondary and non-traditional benefits in the markets where you hire.

Software engineers value autonomy and flexibility as much as — or more than — most workers. Non-traditional perks like flexible hours are attractive, especially to those already working remotely.

Core benefits such as sick leave, paid holidays, health insurance and retirement plans are often viewed as non-negotiable. Cutting benefits during downturns could seriously harm satisfaction and retention.

Essential core benefits — like sick leave, paid holidays, health insurance and retirement plans— are viewed by many software engineers as non-negotiables. Cutting benefits during times of economic downturn could significantly jeopardise employee satisfaction and retention.

Remote’s 2022 Global Benefits Report found that leaders hiring internationally use the strong desire for flexible work as an advantage to attract top remote talent.

When leaders consider remote or flexible work, most say the decision is driven by a need to improve retention, access new markets and respond to employee requests.

How much should you pay remote software developers?

Working out pay across a global mix of employees and contractors is challenging. Start with an employee cost calculator to compare typical costs in different countries. Then consult Remote’s Where to Hire Report for insights on the best hiring opportunities. Hiring developers wherever they are makes sense in the remote age: it broadens your talent pool and can boost productivity and competitiveness. Having team members on the ground in markets where you’re growing is also useful for expansion.

The cost of hiring internationally goes beyond salary. Mandated employer taxes can increase total costs to around 1.25–1.4 times salary, depending on the country.

For example, say you want to hire a great software engineer based in Argentina with a salary of USD 60,000 yearly. In this case, you would incur an additional $15,731.76 in Argentina’s mandated employer costs, including your employee’s pension and payments into the country’s social welfare and public healthcare systems. You must consider the full package, not just payroll and taxes.

Be competitive when recruiting and retaining talent. Don’t make insulting offers or risk damaging your reputation, but also avoid overpaying to the point of unsustainability. Be thoughtful and use resources like Remote to guide you.

CHAPTER 4

How to stay compliant when recruiting developers across borders

There are several ways to hire remote developers overseas. You can open a local entity, hire via contractors, or use an employer of record service.

Remember each country has its own requirements for opening an entity — everything from a physical presence to tax and payroll obligations.

Launch your own local legal entity

If you set up an entity, don’t underestimate the cost and effort required both at setup and in ongoing maintenance. It’s a major investment in finance and time, and understanding the local market and legislation can make the option impractical unless you plan long-term expansion into that country.

If you expect to hire fewer than about 25 employees in a country, setting up an entity may not be cost-effective. Entity setup costs include bank accounts, taxes, registrations and possibly a physical office and local staff. You’ll also need local legal counsel to remain compliant.

Hire developers as contractors

Another option is hiring software engineers as contractors. This can be less complex than forming an entity, but it carries risks.

You might pay people as contractors rather than employees, but you must correctly classify your workers. Misclassification can lead to fines, penalties and even bans on hiring in that country.

Before engaging independent contractors, ensure your agreement meets local contractor classification laws.

Use an employer of record to stay compliant

Working with an employer of record (EOR) can be an attractive way to hire remote developers overseas. With an EOR you can employ developers full-time without opening a local entity. If you choose an EOR, you should know how to evaluate EOR partners.

Partnering with an EOR is often the most time- and cost-effective route for global employment in many cases, especially if you need to hire quickly or accept applicants from several countries. An EOR avoids the need to set up local entities and shields your business from many compliance risks. The EOR employs the worker on your behalf and signs an agreement with your company to protect the transfer of your intellectual property.

What is an employer of record (EOR)?

An EOR is a service that helps companies hire people in other countries. EORs handle day-to-day HR tasks such as payroll, taxes and social contributions, benefits administration and ensuring compliance with local law. When you work with an EOR, the EOR assumes the legal employment risk locally, helping you hire faster with less exposure.

EORs are not co‑employment arrangements like PEOs are. On paper, the EOR is the employer, but in practice they don’t manage day‑to‑day work.

Think of an EOR as your local HR team in another country. Check that your EOR has the proper presence in the countries you’re hiring in so you remain compliant. Research the vernacular of the EOR world.

How to hire remote developers with an EOR

In a survey of over 1,400 hiring managers, Remote’s 2022 Tech Talent Report found that managers who plan to hire in new regions worry about staying compliant when employing international talent.

• 34% are hesitant to learn local legal hiring requirements.

• 31% worry about understanding local payroll rules.

• 26% say learning about local benefits is a challenge they’d rather not tackle.

• 23% are concerned about managing payroll.

It’s a real concern, but staying compliant when hiring abroad can be straightforward for companies that prioritise getting it right.

Hiring remote software engineers via an EOR is simple if you pick the right partner. All you typically need to do is sign up for an EOR platform and start onboarding employees.

Good EOR platforms will guide you through signing employment agreements, localising contracts and setting up payroll.

After onboarding, your EOR should manage payroll, benefits and tax obligations. Remote can also provide relocation support and administer equity and stock options for international employees.

Relying on an EOR partner can save thousands in legal fees and third-party costs — and consolidates international employee management in one place.

Using an EOR can be very helpful when hiring remote developers. EORs have local expertise and can open doors in countries where you have no legal presence, offering insight into talent pools and how to attract the right engineers.

EORs can also support your hiring process. To attract top talent and stay competitive, companies must adapt to the new reality where work and home overlap and inclusivity is central to successful global recruitment.

Through the hiring journey, EORs can advise which benefits will attract remote engineers. Benefits and perks can tip the balance in final offer comparisons. A strong benefits package may give you an edge when top candidates compare offers.

Companies sometimes focus only on salary and neglect benefits. You can’t offer the bare minimum if you want to attract and retain global talent. With the right EOR, you can offer competitive benefits packages worldwide and gain an advantage in recruiting the best remote engineers.

How to stay updated with changing local labour laws

Local labour laws consist of statutes, case law and customary practices. Depending on the country where payroll is processed, rules may be highly protective of employee rights or more flexible in payroll management.

To make a competitive offer you must understand norms in the candidate’s country — basics of compliance, payroll practices, tax withholding and benefits administration duties.

Labour laws cover a range of topics, including:

• Minimum wage

• Parental leave

• Sector-specific benefits

• Paid leave

• Mandatory benefits

• Worker classification

Accounting for all these factors in one country is complex. Add multiple countries and you’d need a whole new arm of the business to handle administration. That’s why most companies work with a global payroll services provider who already knows the local rules.

Not all global payroll providers are the same. Some outsource local duties to third parties, which can frustrate employees and create risks. If you hire abroad, work with an owned-entity global payroll provider.

Every country treats payroll tax and compliance differently. Onboarding international talent is worthwhile, but don’t jump in without understanding the implications. A global payroll partner is an effective way to manage tax and payroll obligations.

CHAPTER 5

Managing payroll for global teams of remote software developers

Paying remote software developers involves several considerations. The process can be straightforward, even if you’re hiring international employees, but you should work through key points before onboarding and paying new team members.

Employee or contractor?

First, decide how to classify the worker. Should remote developers be engaged as a contractor or an employee? This is not always straightforward — local employment laws matter and misclassification carries risk.

What is misclassification?

Misclassification happens when a worker is given the wrong status, whether intentionally or accidentally. While deliberate misclassification attracts heavier penalties, even honest mistakes can lead to fines. If you treat a worker like an employee, regulators may eventually deem them an employee regardless of intent.

There are other practical questions about paying international employees. Consider:

• In what currencies will you pay salaries and invoices?

• Do you have currency accounts for every country where your workers live?

• How will you transfer money — by bank or fintech provider?

• How will you pay employees if they are relocating and don’t yet have a local bank account?

• What currency does your new employee prefer? Local currency or yours — and is it legal?

• How will you manage foreign exchange fluctuations?

What are the relevant local labour laws?

Each country has rules about how to pay remote workers, including pay frequency, statutory benefits and withholding tax. Understand these before hiring to avoid fines, fees or penalties.

The fastest, easiest, safest way to pay remote software developers

Whatever you decide, check local rules and work with a trusted global employment partner who can spot issues and minimise the risks of hiring in a new country.

Remote owns local legal entities in every country where our EOR services operate. Our global payroll software hub lets you manage payroll and taxes, administer benefits and ensure compliance for employees wherever they are.

Remote is the leading employer of record and our global payroll platform is designed to accelerate your international hiring.

• Simplify payments for both full-time employees and contractors, all in our easy-to-use platform

• Ensure compliance with local labour laws with help from our international legal experts

• Reduce payroll costs and streamline payment processes

If you’re ready, you can sign up now to start onboarding employees and contractors worldwide in minutes. Have questions? Contact us today and one of our global employment experts can advise you to speed up your hiring.

How to handle taxes for remote software developers

Companies hiring engineers overseas must understand employer tax obligations, which differ by country.

Large international companies have HR teams to manage global payroll tax and compliance. Small and medium businesses face the tougher task of paying international employees compliantly without building payroll and legal teams in each country.paying international employees without onboarding new payroll and legal staff in every country you hire.

An employer of record streamlines this. Remote’s platform is built to keep you compliant and navigate differing tax codes worldwide. Partnering with Remote reduces pressure on your finance team and mitigates non‑compliance risks. An EOR manages global payroll compliance on your behalf so you can grow headcount without breaching international laws.

Running global payroll involves much more than issuing pay on payday. Depending on the country and the type of worker, payroll may require withholding taxes, calculating entitlements and complying with local labour laws — all time-consuming for HR, payroll, finance and legal teams.

How to offer stock options to remote developers

Stock options are a powerful tool to attract and retain talent. For private companies it can be complex to extend options abroad. You may wonder how to offer stock to remote developers or legally expand an existing plan overseas.

An employee stock ownership plan (ESOP) is a strong way to motivate and retain people. Ownership encourages engagement and alignment with company success, but offering options to international employees can be legally complex.

Remote lets you manage international stock option services and the setup and management of other equity incentives. We can help you include international employees in your ESOP legally and easily. Remote handles tax withholding in multiple countries so you can run a global equity plan without the administrative burden.

To benefit from offering stock to international team members, you must plan and execute your ESOP strategy effectively by considering where employees live, tax handling and what your complete global benefits packages should include. Whether you want to offer stock to one remote developer or a fully distributed team, Remote can help.

Should you hire remote software developers as employees or contractors?

Knowing the difference between a contractor and an employee is vital. Each has pros and cons, and misclassification can be costly.

Deciding whether to engage an international contractor or hire an employee requires cost-benefit analysis and an understanding of contract management risks, local laws and compliance. Staying compliant when hiring internationally is essential to avoid legal consequences.

An international contractor lives in another country while working for your company but is not a full-time employee. You are a client, not their employer. Contractors are self-employed and typically:

International contractors are responsible for the work they contract to do and may have multiple clients. They’re typically self-employed and run their own businesses.

Employees are engaged for an extended period, often exclusively for one employer. They may oversee teams or handle ongoing projects. Employee contracts usually don’t have set expiry dates; classification risk hinges on employment duration and duties.

Employees are engaged for an extended period, often exclusively for one employer. They may oversee teams or handle ongoing projects. Employee contracts usually don’t have set expiry dates; classification risk hinges on employment duration and duties.

When hiring remote software developers, consider project scope and IP ownership. Remote work introduces new vulnerabilities.

If contracts aren’t compliant and workers are misclassified, you could end up with a contractor owning IP you assumed belonged to your company.

That doesn’t mean you should avoid hiring employees abroad. A global workforce is a strength, especially for smaller firms. But be careful to manage risks. Each country has unique IP laws and you must understand those nuances to protect your business.

Contractors may split their attention across clients. Understand the legal protections of non-disclosure agreements and local IP law, and assess how the information you share with a developer interacts with those protections.

To protect IP when hiring internationally, Remote created Remote IP Guard to ensure you get the maximum transfer of IP rights when hiring abroad.

Chapter 6

How to work with remote developers

Working with remote developers can be challenging. Many prefer flexibility and don’t flourish in restrictive settings. They like to work when they’re most creative and have autonomy to develop, test, fail and solve problems. When considering how to manage remote employees, software engineers are often a priority.

Many developers work best at their own pace, which can clash with a strict 9–5 approach. Hiring internationally means adapting to different schedules and time zones. The solution is often asynchronous work.

Asynchronous (async) work lets remote developers perform at times that suit them, without expecting immediate replies. It encourages good documentation, preserves deep work time and lets employees work autonomously with trust.

In short, async work isn’t about procrastination or isolation. It helps employees reach a flow state so they produce the best work efficiently. Async lets remote developers focus on outcomes rather than micromanagement.

Synchronous work planning

Traditional synchronous planning often starts work in large batches. That approach can slow the whole process because delays propagate through each dependent stage.

The workflow diagram shows a three-stage development pipeline using synchronous planning. To deploy a feature, tasks A, B and C must be completed sequentially, which can slow delivery, especially across time zones.

Asynchronous work planning

Async planning breaks tasks into smaller pieces and releases minimum viable changes (MVCs) frequently. This lets you deliver sooner and respond to feedback quickly.

By separating tasks A, B and C you can increase deployment frequency. Multiplexing tasks with async work shortens iteration time and gives more opportunities to validate impact and adjust.

Overall, async methods let distributed developer teams multiplex work and release more often without waiting on other teams, which is ideal for remote collaboration across time zones.

How to protect your intellectual property with remote software developers

Protecting IP is crucial. How can you keep information safe with remote employees around the world, some of whom are contractors working for multiple clients?

To protect IP, recognise that creation is cross-border. Some countries favour companies, others favour creators. That doesn’t mean contractors will own your IP, but contracts and local laws must be handled carefully.

IP rights are straightforward when everyone works together in an office using company resources. With remote work, IP and invention rights can be complex as some countries lack specific regulations for tech inventions. Companies with foreign engineers and product teams must be vigilant.

Using an EOR like Remote gives you the expertise and security to protect IP. Remote offers robust IP protections via Remote IP Guard, our proprietary system for international IP rights. As a global employment provider, Remote helps businesses protect IP for workers in many countries.

Start hiring remote software engineers to grow your business

Hiring remote software developers can seem daunting. Step one is committing to improving your team — step two is partnering with the right experts for legal, social, compliance and payroll support, whether via an EOR or your own entity and local advisers.

There will be challenges along the way. Stay focused and gather resources, and hiring the right developers to diversify your team will enhance your ability to innovate.

Opening your business to a global talent pool of skilled remote developers helps futureproof your hiring and builds a platform for sustained success.

Remote offers the resources and flexibility to fill gaps and provide protection where you need it most. Contact our global team if you would like more information on how to get started hiring and paying remote software developers.