How to Pay Your Remote Team
Paying employees seems like it should be a simple task, but there’s more to it than you might think!
The gig economy has simplified many aspects of everyday working life. Aside for eliminating a daily commute for workers, things are also easier in some ways for companies. Most importantly, they don’t have to deal with the many complexities of employing a full staff of full-time workers. In fact, some companies have no full-time employees at all.
However, it also means some things have gotten more complex. With workers now scattered across the globe and many working on an ad hoc basis, the matter of paying these people can be a little daunting.
Thankfully, with a bit of careful planning and the utilization of the powerful tools at your disposal, payments can be a breeze.
In this post, we’ll explain how to go about paying your remote team so you can spend more time focusing on the bottom line. Let’s go!
Create a Contract
Before any work is completed, it’s crucial that rates and fees are clearly laid out. This way, when it comes time to pay, there are no gray areas and everyone is happy.
You may agree with workers to pay them per hour or per project, depending on the nature of their work. In addition, payment periods should be decided upon before any work commences. Ideally, this should all be clearly laid out in a contract signed by both parties.
You might not want to be splurging on professional fees for these kind of tasks. Thankfully, tools like DocuSign and HelloSign can help you create and send contracts in a matter of minutes.
While it may seem tedious, it’s important to take into consideration rules and regulations in the country of residence of each employee. For example, freelancers earning over a certain amount in some countries might have to charge you HST or another type of tax. Make sure they’re rolling this into their rate so you’re not stung with an extra charge.
Synchronize Billing Dates
One aspect of billing that can become a drain on resources is the timing of payments. If you’re paying workers at different times, it means you’re constantly being distracted from other important tasks.
As is the case with any type of task, batching payments will save time and effort. You may want to pay out biweekly or monthly. If your whole team is working on a large project, it might make more sense to pay at set milestones. Choose dates that work for you and stick to them.
This also helps to make sure you pay on time which is crucial is you want to keep your best people on board. Whether you pay immediately upon receipt of an invoice or two weeks after the date, make sure you’re consistent and that your team knows what to expect.
Track Time and Tasks
Again, depending on the nature of the work, you’ll need to agree on how you’d like it to be tracked. You may trust workers to give you a high level summary each month. Or you might prefer greater detail.
The latter requires more time and effort from both you and the worker. But it affords deeper insight into how time is being spent, and could show where improvements can be made.
Consider using a time-tracking tool like Toggl or a project management tool like Asana.
Streamline Payments
When it comes to actually handing over your cash, this is where things can get really complicated. With many companies employing remote workers across the globe, payment methods vary. Additionally, while traditional businesses often use direct deposits to bank accounts, many freelancers wouldn’t feel comfortable handing over this information to multiple employers at a time.
As such, secure global payment platforms like PayPal and Stripe tend to be popular options. Serving countries all over the world, choosing one or two of these methods can ensure you and your workers risk-free payments.
What’s more, you can make things even easier by going through a payment system like WorkSpoke. WorkSpoke enables you integrate various platforms including PayPal, Stripe, and Payoneer. You can manage invoices, automate payments, and view reports to help you keep track. It also ensures you always pay on time, which, as mentioned is imperative.
Paying multiple remote workers can quickly become overwhelming to say the least. However, armed with the information in this post, you should be well on your way to billing bliss (if there’s such a thing.)
Be sure to lay everything out on the table before any work begins, including rates, hidden fees, and payment dates. Then, use the tools at your disposal to track work efficiently and streamline payments.
Do you have any tips for making the payment process smoother? Let us know in the comments box below!
If you like this post, don’t forget to clap for it below and subscribe to get more such posts delivered straight to your inbox. :)
