For financial technology organisations (fintechs), market expansion and access to key skills are fundamental to business growth and success. Flexible work practices are needed to attract and retain top talent worldwide. Despite the multitude of demands on HR, Tax and Finance teams’ time in a fast-growing business, pausing now to consider your approach to international remote work will help you:
- Harness its benefits in support of your talent strategy
- Mitigate the accompanying risks, and
- Ensure scalability in future
Embracing remote work and its benefits
Increased workplace flexibility and remote working have become a powerful catalyst for talent attraction and international recruitment strategies. Fintechs are well publicised pioneers of international remote work, with many advocating its positive impact on employee wellbeing, engagement and productivity. Hiring internationally and embracing remote work not only expands the global talent pool but can foster employee diversity, agility and innovation, whilst driving business growth and supporting expansion.
Risks of an international workforce
The flipside is the accompanying risks for employees and fintechs, ranging from data security to employee safety. Local legislation, incoming fintech regulation and IPO readiness demand robust governance frameworks, under which tax and legal compliance is essential.
Requirements can include the payment of corporate and employment tax liabilities abroad, foreign payroll set up and management, ensuring employees’ right to work and operate in another country, as well as establishing transfer pricing. Compliance assumes even greater significance for high profile and senior employees such as founders, directors, and managers who tend to work globally. Failure to comply can result in severe penalties, disruption to business operations, and reputational damage.
Establishing policies, monitoring obligations and compliance
As fintechs experience rapid growth, governance frameworks must keep pace. Establishing comprehensive guidelines and a process to review and monitor employee international remote work – and of course fulfil your obligations as an employer - are key to supporting remote work in a compliant and efficient way. Such policies should outline the guardrails regarding who can work remotely, under what conditions, for how long and in which countries. Many organisations are using technology to track travel and manage compliance, minimising any admin burden on their teams.
Giving employees the flexibility to do their job from another country can bring a multitude of benefits. Harnessing the rewards and mitigating the risks involved are important for long term success. Please don’t hesitate to contact us if you have any questions or would like to discuss this topic in more detail.
