Remote working has become a permanent fixture in most organizations today. With it, many companies are looking to take advantage of it and expand their horizons.
With workers no longer having to sit at the desk all day, companies don’t need to be limited to local hires. And this is especially useful in today’s economy, where skilled workers in many fields are extremely scarce.
These days, it’s not uncommon for a Dallas-based software company to hire developers based in remote parts of the world such as Europe, Asia, or Africa. The world is their oyster, and yet there remains one challenge: ensuring that the global workforce is paid on time, with minimal hassle.
That’s the challenge Deel Co-Founder and CEO Alex Bouaziz is determined to meet, and it does so in a way that’s safe for compliance-conscious employers. With Deel, businesses can pay using whatever method works best for them, and their contractors or employees receive their pay in a way that suits them – whether it’s local currency, crypto, or something else. Deel takes care of all compliance requirements, so employers can rest assured that the people they hire aren’t tax cheats or something worse.
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Bouaziz told Karen Webster of PYMNTS that hiring overseas has never been easy.
Previously, companies would open a local office in the country they were hiring in and absorb all the related expenses, or they would use a local agency that took a good chunk of the employee’s salary. They could also hire someone as 1099.
“But in France, honestly, we have no understanding of what a 1099 is,” Bouaziz said. “So that’s what we wanted to tackle, to help CEOs of companies hire people around the world in a compliant manner, while providing an incredible experience for everyone they hire. “
On the compliance side, Deel manages all the documents an employer may need to ensure they can legally hire someone as a 1099 or W-2, including location of contracts, compliance, collecting tax numbers, invoicing, etc.
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“We’re doing it in a super cool way that makes the flow super compliant from a [anti-money-laundering] perspective, ”Bouaziz said. “By doing this, we allow companies to think about talent and the quality of that talent versus things like restrictions. “
Pay workers as they wish
Another key advantage is the flexibility of payments. Agreeing on a payment method for workers based abroad has always been a major problem. Deel solves this problem in the best possible way, Bouaziz said, by allowing the employer to pay as they wish and then ensuring that the worker receives their salary as they wish.
Deel can make payments to local bank accounts, digital wallets like PayPal, Payoneer, and Revolv, or even pay directly in crypto. Bouaziz revealed that he is a strong believer in crypto and that his goal from day one was to ensure it was an option on the Deel platform, although he said the company must be careful before introducing it to ensure that the banks with which it works were happy.
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Fortunately, Deel’s biggest banking partner happens to be Morgan Stanley, who also works with Coinbase, one of the largest cryptocurrency exchanges in the United States. So the implementation of crypto payments was easy to do, Bouaziz said. To date, Deel supports a number of cryptocurrencies including bitcoin, ethereum, and more recently USD Coin.
Bouaziz insisted that there are many benefits to providing workers around the world with payment in crypto, including speed and cost. He pointed out that many remote workers are knowledge workers, which means they probably don’t live paycheck to paycheck and are happy to invest part of their wages in crypto. change each month.
“It’s a question of flexibility,” he said. “From an employer’s point of view, it gives them the ability to say, you are doing what is right for you. This is a big step up from what people had before when they were forced to use a specific payment method.
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A global change in hiring
Bouaziz said Deel’s payment platform has been well received and is growing rapidly. He said the company has more than 6,000 customers, ranging from small and medium businesses to large businesses such as Shopify, Coinbase, CloudFlare and even some airlines he declined to name.
This is proof, said Bouaziz, that more and more companies are realizing that they need to have a global talent recruitment strategy, which has become more vital than ever with the COVID-19 pandemic and the Great Resignation, creating labor shortages in many parts of the world. International hires by U.S. companies are increasing at a rate of about 20% month over month, he said.
Meanwhile, other companies have been forced to hire international workers, Bouaziz said.
“Because of COVID, your best engineer is going back to Croatia, so what are you going to do? He’s your best engineer, so you have to find a solution, ”he said. “So that accelerates the need for a product like ours. What we are doing is removing one of the main barriers to the effective adoption of this global workforce model.