Regardless of cultural differences, people are generally the same the world over. We all want fresh air, clean water, good food and happiness for ourselves and loved ones. However, all similarities aside, things can appear vastly different from one country to the next. Everything from currency to women’s rights varies depending on where someone lives and works.
For startups looking to outsource several layers of their operation, the nuanced differences between peoples of the world, coupled with a blanket of universal human traits, equal headaches when getting down to business. It may save the business tens of thousands of dollars to outsource, but it might mean an extra 200 hours of effort to ensure things run smoothly.
Enter the payroll process. Aforementioned factors, such as the value of the local currency versus the dollar and whether or not qualified female candidates can overcome oppressive local laws, make for a series of problems that need solving when making sure employees get their pay. Simply put, if workers abroad aren’t getting paid regularly and properly, they are unlikely to be the reliable, dedicated staff you count on to succeed.
As such, small businesses interested in outsourcing ought to consider paying their remote workers abroad via money transfer. Thanks to incentives such as those offered by money transfer service Ria, companies can have a trial run without committing right away. The Ria promo grants businesses a full month of no-fee debit-card transfers. This enables startups to see for themselves the benefits of money transfer with outsourced employees without risk.
But what makes money transfers preferable to traditional payroll schemes when outsourcing? There are several factors at play:
Speed: Traditional bank-to-bank transfers – especially international transfers – take days or even a week or more to process completely. This creates logistical hassles on both sides of the transaction, which are made more complicated by differing holidays between countries as well as sending money to employees in more than one country. Alternatively, “wire” transfers can go through within 24 hours in some cases.
Security: It might sound unreal to ears in more developed parts of the world, but bank accounts aren’t always the fully insured and theft-proof money management tools we’re familiar with using. A money transfer service tied to a debit card is actually sometimes more secure than a bank account. This is because there is little room for identity theft when money can only be accessed via physical swipe. Furthermore, this enables women in countries where it’s difficult for them to get bank accounts to have a way to be paid properly.
Elasticity: Many modern startups are abandoning the traditional salaried workforce model in favor of independent-contractor setups. This means a more reactive and unpredictable payment process, where work is measured piece-by-piece rather than hour-by-hour. In such circumstances, especially with outsourcing, the traditional payroll scheme is a clumsy and inefficient tool, requiring an hour or more per week dedicated to sorting out payments. On the other hand, money transfers seem almost designed for this situation, as they allow varying amounts of money to be sent swiftly with minimal accounting needed on the employer’s end; employees usually write their own invoices.
Hiring staff overseas has never been easier, but outsourcing is no cakewalk despite the significant savings accrued. This is due in part to the differences between parts of the world but is also attributed to the headaches associated with traditional payroll schemes. Fortunately, there’s an alternative in the form of money transfers. They enable businesses to hire talented people from wherever they happen to live without worrying about how to properly pay them.