Hiring International Workers for a Remote Tech Team: 4 Risks to Avoid

Building a remote tech team with talent from around the world is one of the coolest things about today’s job market. You’re no longer stuck hiring only from your local pool. You can find the best developers, designers, and product managers from across the globe. 

Globally, the share of employees working remotely increased from 20 percent in 2020 to 28 percent by 2023. Right now, almost a third of American workers who can work from home do so all the time. This growth is incredible! 

But just because you can, doesn’t mean it’s simple. Hiring internationally comes with a few traps that can mess things up fast if you’re not careful.

Let’s talk about the risks you really need to avoid before you start signing contracts and sending onboarding docs to your future global team.

#1 Hiring Without Understanding Local Labor Laws

Here’s where a lot of people slip up: they hire someone in another country without really digging into what the local laws are. It sounds like a minor detail, especially when you're used to working in one country where the rules are clear. 

But the truth is, every country has its own take on what's legal when it comes to employment, benefits, time off, and taxes. If you ignore these details, you could end up in legal trouble not just in your country, but in theirs too.

You might be treating everyone equally, offering remote jobs to people regardless of where they live, and that’s great in spirit. But in practice, remote work doesn't give you a free pass to ignore local labor laws. 

Whether you’re managing a global workforce or scaling a global team, each international hiring decision must factor in specific national requirements. Missteps in contracts, taxes, or benefits can lead to fines or lawsuits, and no one wants to deal with that mess after the fact.

Here, according to the global HR and payroll platform Remote, Employer of Record (EOR) services can be of great help. EORs ensure that hiring practices comply with local labor and tax regulations. This, in turn, shields businesses from legal liabilities and costly penalties for non-compliance.

#2 Failing to Classify Workers Correctly

This is one of those details that can feel like a formality, but it matters a lot more than you'd expect. When hiring internationally, many businesses mistakenly classify full-time workers as independent contractors just to avoid the hassle of international payroll and benefits. The problem is, many governments are cracking down on this.

Misclassifying a worker doesn’t just put your company at risk of legal action. It can also wreck your relationship with that worker if they find out later they should’ve been treated as an employee. 

If someone’s working 40 hours a week for you, most labor boards won’t accept the contractor label. It's better to go the extra mile upfront than scramble later trying to fix it.

#3 Overlooking Cultural and Communication Barriers

Having a diverse team is a huge asset, but if you don’t set up clear communication expectations, things can fall apart quickly. What’s obvious to you may not be obvious to someone from another culture or time zone. This isn't just about language barriers; it can be about how direct someone is, how they approach deadlines, or how they handle feedback.

If you don’t acknowledge these differences and build systems that support open communication, you might find your team’s productivity taking a hit. You don’t want someone keeping quiet about a blocker for three days because they didn’t feel comfortable speaking up. Cultural sensitivity training and regular check-ins aren’t just “nice-to-haves”; they’re essential for international success.

#4 Assuming Everyone is Always Available

Just because your team is remote doesn’t mean everyone’s working 24/7. Time zones are real, and burnout is a risk if you don’t plan around them. Expecting a developer in India to jump on a 10 PM call their time because it’s morning for you will lead to resentment.

It’s important to build a workflow that respects people’s time and allows asynchronous work. That means using tools that support communication without forcing people to be online at the same time and setting clear response-time expectations. 

When you don’t make time zone planning a priority, you risk losing great talent simply because the logistics wore them down.

Hiring international workers for your remote tech team can open the door to incredible talent and innovation. However, for this, you must go into it with your eyes open. 

Remember that it’s not just about finding the best coder or designer from a different country. It’s about doing the hard work of understanding the legal, cultural, and operational realities that come with building a global team.