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 actively hiring tech talent to better understand their perceptions of emerging tech hubs. The report highlights misconceptions about remote hiring that may prevent firms from tapping quality talent in less saturated markets.

Our findings show businesses open to international remote hiring still miss opportunities by concentrating too heavily on traditional tech centres. That focus can mean overlooking strong talent pools under pressure in those locations.

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

One of the simplest ways to stand out in a tight talent market is to present your role more compellingly than your rivals.

Too many employers treat a job description as a mere list of requirements. That approach reduces the chance of catching high-quality candidates who may be scanning many adverts for genuinely attractive roles.

A small extra effort up front will set your advert apart. Highlight growth opportunities, unique benefits, and the culture and values of your organisation. Explain how you will support and develop each new hire to show your organisation genuinely cares.

"Job boards are used by two main groups: people who need a job and those already employed who might be tempted by a new opportunity. Posting a JD probably attracts the first group; the second needs convincing. Your ad should focus on what that person will gain from working for your company. Show why it is better to do their role at your company. Use less ‘Our requirements are’ and ‘Our mission is’ and more ‘You will impact these parts 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 candidates. It shows your organisation’s professionalism and your care for each applicant. Small extras like this can significantly increase the chances your offer stands out.

Keep your hiring process as short as possible and set a maximum timeline. Long processes with many interview rounds, detailed psychological questionnaires, and unpaid technical homework take too much time from candidates. Highly skilled professionals are busy; they won’t want unpaid work and may avoid lengthy processes. A CV speaks for itself, culture fit can be evaluated in interviews, and references validate performance.

Busy engineers can’t commit to prolonged and demanding hiring procedures. Streamline where possible and be ready to explain why each stage matters to the candidate.

Sample process overview to include in job adverts

A concise overview like the example below can be added to your job advert to set clear expectations and show the candidate the time commitment is reasonable:

1

Interview 1 with HR

To assess cultural fit and alignment of values

2

Salary discussion with HR

To ensure compensation expectations align

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 mindset and strategic thinking

Use proactive strategic sourcing to select top global software engineers

The most successful recruitment teams adapt their strategy to hire remote software engineers. Finding world-class developers is hard. The global undersupply means you must work smarter and harder to beat the competition.

Amina Moreau, CEO and co‑founder of Radius highlights the value of transparency in recruitment. By being candid, hiring managers can foster honest conversations with elite remote engineers to assess fit for both parties during interviews.

"Because it’s equally important that the team is right for the candidate, we open by being transparent about who we are, how we operate, and where our strengths and weaknesses lie. As a startup we operate differently to established firms, so we’re clear about our financial position, what joining at our stage might mean, and both the upsides and downsides of life on a startup team. Starting conversations with transparency helps candidates feel comfortable sharing their work style and preferences, which speeds up the relationship and enables a truer assessment of alignment."

Amina Moreau, CEO and co‑founder of Radius

The most overlooked aspect of hiring remote software engineers

The answer is straightforward.

Be clear about how you will confirm candidates share your company values.

Hiring the best engineers is not an exact science. The top talent for one firm might be a poor fit for another. Your recruitment must shift 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 an advocate for remote work, Sergio continually looks to improve processes for his distributed team. He explains how Bulk MRO assesses culture match against internal values to find the best remote developers.

"To ensure a candidate will fit the team, we involve several team members in hiring so they can judge how a prospective engineer would integrate with team dynamics and help maintain our remote work culture. This cultural assessment is as important as evaluating technical skills."

Sergio Pereira, Chief Technology Officer at Bulk MRO Industrial Supply

Sergio’s insights are useful for any leader aiming to raise retention and strengthen recruitment practices.

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

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

Remote’s recruitment team looks for engineers who are team players. The best fit for Remote are clear communicators who are collaborative, ambitious, self‑driven, and curious.

"At Remote we focus on putting our values into practice. We recruit accordingly. There is a technical baseline to meet and we seek developers who can write excellent code. But we don’t want ‘technical superstars’ who prefer to work alone. We need collaborators. In interviews I ask situational questions to understand how they would act in specific workplace scenarios; I’m looking for responses that show care and humility. That’s how we test for teamwork and collaboration."

Gabriela Suarez, Expert Recruiter at Remote

When is the ideal moment to assess value‑match?

The first screening call with a recruiter.

Although everyone involved in hiring should assess candidates against your values and mission, this stage is well suited for deep value evaluation.

Use this time to judge whether the candidate shows the behaviours you expect from a software engineer. Recruiters should focus on value‑matching and can rule out candidates on cultural grounds, while later interviewers assess technical competence.

Once you establish a balanced, aligned, and diverse interview process, focus on executing it consistently. A clear process reduces bias and lowers the risk of hiring someone who doesn’t fit your culture.

"International hiring’s benefit is clear: you gain access to the world’s best talent. Value‑based recruitment lays the groundwork for long‑term success. Leaders who hire for shared values can build an inclusive, equitable, and trusting environment that allows a global team to flourish."

Anastasia Pshegodskaya, Director of Talent Acquisition at Remote

How hiring managers can put diversity, equity, and inclusion into practice

Most growth‑minded leaders recognise the importance of prioritising diversity, equity, and inclusion (DEI). Fewer know how to convert that aim into concrete recruitment actions.

The Remote team wants to change the world of work so that world‑class opportunities are available to anyone, regardless of home address.

Our recruitment is designed to find and provide chances to under‑represented groups. Below is a short list of practices you can introduce 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, or more important, than a high salary. Remote software developers are in demand and often prefer employers offering the best mix of pay and perks.

For many employees, even without rising wages, substantive company benefits create a positive workplace and a sense of value. Companies that offer competitive and cost‑effective benefits like flexible hours and asynchronous working can attract and retain top talent even when they cannot match enterprise pay levels.

Remote software engineers often expect more than statutory benefits. Competition for talent pushes employers to offer extra perks. Candidates seek autonomy via flexible and async working and a culture that supports diversity, stock options, retirement savings, and more.

Remote’s 2022 Global Benefits Report found that emphasising flexibility is a key incentive for top tech talent, with employees repeatedly citing remote and flexible working as a top priority when weighing offers.

Hiring international software engineers has great advantages, but HR leaders must design a deliberate and fair remote compensation plan to attract and retain leading talent.

A straightforward way to offer competitive global compensation packages

Remote’s global employment platform helps you attract and retain top talent with locally relevant, compliant benefits in every country where you hire. Our global benefits specialists create country‑specific benefits packages using the advantages of negotiated pricing.

You can offer fair, best‑in‑class benefits to your remote developers — and to your entire global team — for a fraction of the cost of doing it yourself or opening a legal entity. You can even offer stock options to your international workforce.

Make sure you meet local statutory obligations

There are several core benefits employers must provide when hiring internationally. These (such as leave, social security, or insurance) vary by country but are non‑negotiable for any prospective employer.

This nuance affects international employers because benefits above statutory minimums in one country may be less valued in another. Private health insurance is highly valued in the United States where public provision is limited, whereas Australians often value it less because Medicare is comprehensive and only 10% of Australian employers offer supplemental health cover.

When hiring globally, familiarise yourself with secondary and non‑traditional benefits valued in the markets where you wish to recruit.

Software engineers prize autonomy and flexibility as much as, if not more than, many other workers. Non‑traditional perks like flexible hours are attractive, particularly for those already in remote roles.

Core benefits such as sick leave, paid holidays, health insurance and retirement plans are often non‑negotiable for software engineers. Cutting benefits during downturns can seriously damage employee satisfaction and retention.

Core benefits such as sick leave, paid holidays, health insurance and retirement plans are often non‑negotiable for software engineers. Cutting benefits during downturns can seriously damage employee satisfaction and retention.

Remote’s 2022 Global Benefits Report found that leaders who hire internationally leverage the strong preference for more flexible work to attract top remote talent.

When deciding to offer remote or flexible work, most leaders say the move is motivated by retention goals, access to new markets, and employee requests.

How much should you pay remote software developers?

Deciding pay becomes harder when hiring across a global mix of employees and contractors. Start with an employee cost calculator to see typical costs in different countries. Then consult Remote’s Where to Hire Report for insight on where the best hiring opportunities lie. Hiring developers wherever they can be found makes sense in the era of remote work. It gives you access to diverse talent and can boost productivity and competitiveness. Having team members in countries where you do business is also important when expanding into new markets.

The cost of an international hire goes beyond the salary. Mandated employer contributions can raise total employee costs to around 1.25–1.4 times salary, depending on location.

For example, say you want to hire a great software engineer based in Argentina with a salary of USD 60,000 per year. In that case you would face an additional $15,731.76 in mandated employer costs, including pension and contributions to social welfare and public health systems. Look at the entire package, including benefits, when making your assessment.

Be competitive when recruiting and retaining talent. Avoid making insulting offers to candidates or risking negative publicity. At the same time, don’t get priced out of markets or face layoffs when conditions shift. Think carefully and use tools like Remote’s to guide you.

Chapter 4

How to stay compliant when recruiting developers across borders

There are several routes to hiring remote developers abroad. You could open a local entity, or you can hire staff using an EOR or an employer of record service.

Each country has its own rules for establishing an entity — from needing a physical office to different business and payroll tax obligations.

Set up your own local legal entity

If you open an entity, don’t underestimate the investment required both to set up and to maintain it. The cost is not only financial; the time to learn local markets and laws often makes entity formation impractical unless you are planning a long‑term presence.

If you expect to hire fewer than around 25 employees in a country, forming an entity may not be cost‑effective. Entity setup costs can be high — bank accounts, tax registrations, and possibly a physical presence with staff. You will also need local legal counsel to remain compliant.

Hire developers as contractors

Another option is engaging software engineers as contractors. While this can be simpler than creating an entity, it carries risks.

You may be able to pay people as contractors rather than employees, but you must classify workers correctly. Misclassification can lead to fines and penalties, and could even bar your company from hiring in that country.

Before hiring contractors, ensure the agreement constitutes a legitimate contractor relationship under local law.

Use an employer of record to stay compliant

Working with an employer of record (EOR) can be an attractive solution for hiring developers overseas. An EOR lets you hire full‑time employees without opening an entity. If you opt for an EOR, know how to evaluate EOR partners.

Partnering with an EOR is often the most time‑ and cost‑effective route for global employment in most cases, particularly if you need to hire quickly or accept applications from multiple countries. An EOR saves you from forming local legal entities while shielding your business from compliance risk. The EOR becomes the legal employer and signs a service agreement with your company to protect transfer of your intellectual property.

What is an employer of record (EOR)?

An EOR is a service that helps companies employ people in other countries. EORs handle daily HR tasks like payroll, taxes and social contributions, benefits administration, and ensure compliance with local laws. When using an EOR, the provider takes on the legal employment risk, helping you hire faster with less exposure.

EORs are not co‑employment arrangements, like PEOs are. Legally, the EOR is the employer, but in practice it does not manage day‑to‑day supervision of your workers.

Think of an EOR as your local HR team in another country. Make sure your EOR has the right presence where you intend to hire so you do not breach local law. Do your research and learn the terminology 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 hiring managers who plan to hire in new regions worry about staying compliant when employing international talent.

• 34% show hesitance about learning local legal hiring requirements.

• 31% worry about understanding local payroll regulations.

• 26% say grasping local benefits packages is a challenge they do not want to tackle.

• 23% are concerned about managing payroll.

These concerns are valid, but staying compliant when hiring abroad can be straightforward with the right approach.

Hiring remote software engineers via an employer of record (EOR) is simple if you choose the right partner. Generally you sign up for an EOR platform and begin onboarding your employees.

Good EOR platforms guide you through employment agreements, localised contracts, and payroll setup.

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

Working with an EOR can save you thousands in legal fees and third‑party costs, and it centralises international employee management.

An EOR is useful for hiring remote developers. EORs have specialist teams that enable hiring in countries where you lack legal presence and offer insight into local talent pools and how to attract engineers suited to your needs.

EORs can also assist with the hiring process. To attract top talent and stay competitive, companies must adapt to a new reality where work and home increasingly overlap and inclusivity matters in global recruitment.global recruitment.

Through hiring, EORs can advise on which benefits will appeal to remote developers. Benefits can make or break a final offer. A superior package can give you the advantage when candidates compare multiple offers.

Employers sometimes overlook benefits while focusing on salary. You cannot afford to offer the bare minimum if you want top talent worldwide. With the right EOR, you can offer competitive benefits packages across the globe, giving you an edge in hiring the best remote engineers.

How to keep up with changing local employment laws

Local labour laws mix statutes, case law, and accepted practices. Depending on the country that processes payroll, laws may strongly protect employees or allow flexibility in payroll management.

To present a competitive offer you must know the norms and expectations where the candidate lives, including compliance basics, payroll habits, tax withholding, and benefits administration.

Labour laws cover a range of topics, including:

• Minimum wage

• Parental leave

• Sector-specific benefits

• Paid leave

• Mandatory benefits

• Worker classification

Dealing with all these factors in a single country is complex. Add multiple countries and you would likely need a dedicated arm of your business to manage the admin. That’s a major reason many companies partner with a global payroll services provider who already understands the landscape.

Not all global payroll services are equal. Some outsource local duties to third parties, which can frustrate employees and increase risk. If hiring abroad, work with an owned‑entity global payroll provider.

Each country handles payroll tax and compliance differently. Onboarding international talent is worthwhile, but do not proceed without understanding the commitments involved. A global payroll partner is one of the best ways to manage tax and payroll obligations.

Chapter 5

Managing payroll for global teams of remote software developers

Paying remote developers can be multifaceted. The process can be straightforward, even when hiring international employees, but you must consider a few key points before onboarding and paying someone.

Employee or contractor?

First, decide how to classify the worker. Should developers be engaged as a contractor or an employee. This is not simple: even intended contractor relationships may be seen as employment under local law, and misclassification is risky.

What is misclassification?

Misclassification happens when a worker is given the wrong status, either deliberately or accidentally. While penalties are harsher for intentional misclassification, honest mistakes can also incur fines. Avoiding misclassification is about actions: if you treat a worker like an employee, regulators may eventually deem them an employee even if you did not intend that outcome.

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

• In which currencies will you pay salaries and invoices?

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

• How will you transfer funds — via bank or fintech provider?

• How will you pay employees who are relocating and lack a local bank account?

• What payment method does the employee prefer? Local currency or your currency, and is it legal?

• How will you manage foreign exchange volatility?

What are the applicable local labour laws?

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

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

Whatever route you take, check local rules and work with a trusted global employment partner that can spot issues and reduce 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 maintain compliance for employees wherever they are based.

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

• Simplify payments for both full‑time employees and contractors, all within our user‑friendly platform

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

• Lower payroll costs and streamline payment workflows

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

How to handle taxes for remote software developers

Companies hiring engineers abroad must understand relevant tax implications (employer taxes vary by country of hire).

Large multinational companies have HR resources to manage payroll tax and compliance globally. For small and mid‑sized companies it’s harder. Limited resources mean a challenging responsibility to pay international employees compliantly without adding payroll and legal teams in every country.

An employer of record simplifies this. Remote’s platform is built to keep you compliant and help you manage varied tax codes worldwide. Partnering with Remote removes pressure from your Finance team and mitigates non‑compliance risks. An EOR handles global payroll compliance on your behalf so you can scale headcount without breaching international law.

Running global payroll involves much more than sending pay on the first of the month. Depending on the country and the worker type, payroll may require withholding taxes, wage calculations, and compliance with other local labour rules. This is time‑intensive for HR, payroll, finance and legal teams.

How to offer stock options to remote developers

Stock options are a powerful way to attract and retain talent, but it can be complex for private companies. You may wonder how to extend stock options to remote developers abroad or how to expand an existing plan internationally.

An employee stock ownership plan (ESOP) is a strong tool to engage employees. Ownership increases engagement and commitment. By using profit sharing, stock options, or employee stock purchase plans you can reward employees and incentivise performance. But offering stock to overseas full‑time employees is complex.

Remote helps you manage international stock option services for your global team, including setting up and administering equity incentives. We can bring international employees into your ESOP legally and handle tax withholding across multiple countries, giving you the benefits of a global equity plan without the administrative burden.

To reap the rewards of offering stock options to international employees you must plan and execute your ESOP strategy effectively. Consider employees’ locations, tax handling, and what your complete global benefits packages should include. Whether you offer stock to one remote developer or a distributed team, Remote can help execute it.

Should you hire remote software developers as employees or contractors?

Understanding the difference between contractors and employees is vital. Each option carries benefits and risks, and misclassification can be costly.

Deciding whether to engage an international contractor or hire an employee is important. Conduct a cost‑benefit analysis and weigh risks around contract management, local laws, and compliance. Knowing how to remain compliant avoids expensive legal and regulatory consequences.

An international contractor is someone who lives in another country and performs work for your company without being a full‑time employee. They are self‑employed, accountable for their own business, and may have multiple clients. Such contractors agree to:

International contractors are responsible for the work you hire them to do. They may service multiple clients and are responsible for running their own businesses.

Employees typically work for one employer over a longer term, may manage teams, and handle ongoing projects. Employee contracts usually don’t have fixed end dates. Classification risk mainly relates to employment duration and duties.

Employees typically work for one employer over a longer term, may manage teams, and handle ongoing projects. Employee contracts usually don’t have fixed end dates. Classification risk mainly relates to employment duration and duties.

Key considerations when hiring remote software developers include the projects assigned and ownership of the IP created. Remote work can complicate these issues.

If you do not draft compliant contracts and misclassify workers, you risk a contractor abroad owning IP you expected to retain.

This does not mean companies should avoid hiring overseas employees; a global workforce is a strength. But be cautious to avoid unnecessary risks. Each country has its own IP laws and you must understand these nuances to protect your business.

Remember contractors may split their focus between your company and others. Understand NDAs, local IP law, and how the work you share fits within those protections.

To protect your IP, Remote created Remote IP Guard so you receive maximum transfer of IP rights when hiring internationally.

Chapter 6

How to work with remote developers

Working with remote developers can be challenging. Many prefer flexibility and don’t thrive in rigid settings. They want to work when creativity strikes, with autonomy to build, test, fail and find solutions. When considering how to manage remote employees, software engineers are often a primary focus.

Many developers work best at their own pace. This can be difficult for companies used to a traditional 9–5. When hiring internationally you must adapt to varied schedules and time zones. There is, however, an effective approach: asynchronous work.

Asynchronous (async) work lets remote developers perform their best work at times that suit them, without expecting immediate replies. It encourages good documentation, public progress records and stretches of deep, uninterrupted work. The key is creating processes that enable autonomy and trust.

In short, async work isn’t about procrastination or isolation. It’s about enabling employees to reach a flow state so they can do the best work in the shortest time. Async lets remote developers focus on outcomes rather than micromanagement.

Synchronous work planning

Traditional synchronous planning launches work in large batches. It can be effective, but a system moves as fast as its slowest part: delays propagate across dependent stages.

The diagram shows a three‑stage development pipeline with synchronous planning. To deploy a feature, tasks A, B and C must finish sequentially, which can slow delivery, especially across time zones.

Asynchronous work planning

Async planning focuses on dividing work into the smallest possible parts and releasing Minimum Viable Changes (MVCs) frequently. This approach increases release cadence and enables quicker validation and response to feedback.

By separating Tasks A, B and C you could achieve roughly three times as many deploys as in the previous synchronous example. Multiplexing tasks with async work shortens iteration time to about a third of the original.

Generally, async methodology enables distributed developer teams to multiplex tasks and deliver faster while working across time zones without waiting for others to finish.

How to protect your intellectual property with remote developers

Protecting IP is critical. How can you safeguard information when employees are remote worldwide, and some contractors may work for multiple companies?

To protect IP you must recognise creation is cross‑border. Some jurisdictions favour companies, others favour creators. That doesn’t automatically grant contractors ownership, but you must be careful in how contracts are drafted and how you work with overseas talent.

IP is straightforward when everyone works from the same office: work produced on company time with company resources generally belongs to the company. For distributed teams, IP and invention rights become more complex as many countries lack detailed rules for diverse tech IP. Firms with foreign engineers, product managers and other tech staff must be vigilant.

Working with an EOR like Remote gives you the expertise and protections to reduce IP risk. Remote provides robust IP and invention rights safeguards through Remote IP Guard, our proprietary system for securing international IP rights. As a leading global employment provider, Remote helps companies with staff in numerous countries protect their IP.

Start hiring remote software engineers to grow your business

Hiring a remote developer can feel daunting. The first step is committing to strengthen your team — the next is partnering with experts for legal, social, compliance and payroll support, whether via an EOR or your own entity and local partners.

There will be challenges, but with persistence and the right resources you will find developers who diversify your team and boost your capacity to innovate.

Opening your organisation to a global pool of skilled remote engineers helps future‑proof your hiring and build a foundation for long‑term success.

Remote provides the tools and flexibility to address gaps and deliver protection where needed. Contact our global team if you would like further information on how to start hiring and paying remote software developers.