This is usually due to taxation and legal reasons. In the US for example, even a US based company out of, say, New York has to have paperwork set up with each state they want to hire in. So if this hypothetical company wanted to hire their first employee in, say, Texas, they’d have to do some kind of legal stuff with the state authorities in Texas to legally hire someone remotely there. Once that’s done they can hire more without much if any additional paperwork with the state, but that initial setup has to be done so they could pay employment taxes to the state. This goes for every state the company hires an employee in, based on where the employee does their work from. So if they later hired their first employee out of say California, more paperwork specifically for California.
Going internationally, particularly in today’s geopolitical climate, gets even more complicated.
It generally boils down to law, taxes, government issues when you get down to it.
We have some workers in other countries, and we have local companies for each of them due to all the legal stuff.
We also want to meet them fairly regularly, about once a month. There's just something about actual face to face that screens can't replace, both in terms of work but especially socially.
As such our remote workers are in our neighboring countries, so travel is not a huge ordeal and laws and regulations are similar.
I'm pasting my earlier reply to somebody else below. Would appreciate your thoughts:
The remote roles I have are all contractual. I mean, most companies want to save money — especially capitalism's capital — USA.
What's stopping startups and other mid-scale companies from hiring employees on a contract that is listed as a "contract role" and not "full-time"?
Regarding the time zone differences, I overlap pretty much with 8 hours EST. Also, most roles require you only to either overlap 4 or 6 hours, at least that was my experience. The point I'm getting to is, I could even overlap with PST hours healthily unless I was based in somewhere like Japan, Korea, or anywhere in Southeast Asia or Australia.
I guess I should have mentioned we're in EU and not US, and we're small (~100) so we don't really do contracts but full-time employees.
I guess for short-term contract work, fully remote might not be a big deal, but we do notice with our remote workers just how much is lost by them not being in the office all the time with the rest of us. Of course again that's probably amplified by us being so small so we're all on the same floor, so might be different for a huge company.
But now, with all the layoffs, companies that are hiring likely have a much larger local pool of talent to pick from, so if they have even a slight preference for local workers then they can get what they need there.
I know at least for us we had a much easier time after the big layoffs, and managed to hire several very talented developers for positions that we had had open for years before that.
The remote roles I have are all contractual. I mean, most companies want to save money — especially capitalism's capital — USA.
What's stopping startups and other mid-scale companies from hiring employees on a contract that is listed as a "contract role" and not "full-time"?
Regarding the time zone differences, I overlap pretty much with 8 hours EST. Also, most roles require you only to either overlap 4 or 6 hours, at least that was my experience. The point I'm getting to is, I could even overlap with PST hours healthily unless I was based in somewhere like Japan, Korea, or anywhere in Southeast Asia or Australia.
This is usually due to taxation and legal reasons. In the US for example, even a US based company out of, say, New York has to have paperwork set up with each state they want to hire in. So if this hypothetical company wanted to hire their first employee in, say, Texas, they’d have to do some kind of legal stuff with the state authorities in Texas to legally hire someone remotely there. Once that’s done they can hire more without much if any additional paperwork with the state, but that initial setup has to be done so they could pay employment taxes to the state. This goes for every state the company hires an employee in, based on where the employee does their work from. So if they later hired their first employee out of say California, more paperwork specifically for California.
Going internationally, particularly in today’s geopolitical climate, gets even more complicated.
It generally boils down to law, taxes, government issues when you get down to it.
We have some workers in other countries, and we have local companies for each of them due to all the legal stuff.
We also want to meet them fairly regularly, about once a month. There's just something about actual face to face that screens can't replace, both in terms of work but especially socially.
As such our remote workers are in our neighboring countries, so travel is not a huge ordeal and laws and regulations are similar.
I'm pasting my earlier reply to somebody else below. Would appreciate your thoughts:
The remote roles I have are all contractual. I mean, most companies want to save money — especially capitalism's capital — USA. What's stopping startups and other mid-scale companies from hiring employees on a contract that is listed as a "contract role" and not "full-time"?
Regarding the time zone differences, I overlap pretty much with 8 hours EST. Also, most roles require you only to either overlap 4 or 6 hours, at least that was my experience. The point I'm getting to is, I could even overlap with PST hours healthily unless I was based in somewhere like Japan, Korea, or anywhere in Southeast Asia or Australia.
I guess I should have mentioned we're in EU and not US, and we're small (~100) so we don't really do contracts but full-time employees.
I guess for short-term contract work, fully remote might not be a big deal, but we do notice with our remote workers just how much is lost by them not being in the office all the time with the rest of us. Of course again that's probably amplified by us being so small so we're all on the same floor, so might be different for a huge company.
But now, with all the layoffs, companies that are hiring likely have a much larger local pool of talent to pick from, so if they have even a slight preference for local workers then they can get what they need there.
I know at least for us we had a much easier time after the big layoffs, and managed to hire several very talented developers for positions that we had had open for years before that.
The remote roles I have are all contractual. I mean, most companies want to save money — especially capitalism's capital — USA.
What's stopping startups and other mid-scale companies from hiring employees on a contract that is listed as a "contract role" and not "full-time"?
Regarding the time zone differences, I overlap pretty much with 8 hours EST. Also, most roles require you only to either overlap 4 or 6 hours, at least that was my experience. The point I'm getting to is, I could even overlap with PST hours healthily unless I was based in somewhere like Japan, Korea, or anywhere in Southeast Asia or Australia.
Taxes, labor laws, and liability management.
In the case of India the time zone difference is killer.