Don’t be alarmed by the drastic pay difference between overseas and US employees.
Hiring overseas remote talent has become a top trend in recent years, thanks largely to the fact that it’s far more cost effective without sacrificing talent quality. Companies are tapping into a global talent pool to hire quality candidates quickly and affordably, allowing them to fill key positions that drive business success. But with the significant difference in pay between overseas employees and US counterparts, does this really benefit all parties involved?
It’s fair to ask whether a lower salary (by US standards) is an equitable deal for an overseas employee:
- Are they being exploited?
- This is too good to be true.
- This can’t be a good deal for the employee.
This is not an uncommon feeling or concern. Our prospective clients ask these and similar questions all the time. The easy answer is: Overseas hiring is a mutually beneficial arrangement. Here’s why:
There’s No Commute
Halo Recruiting primarily sources overseas candidates based in the Philippines. Post-pandemic, many employees are being mandated by local employers to return-to-office. In cities like Manila, average commute times can be two to three hours per day. As commutes are generally unpaid, this is a significant time sacrifice these workers would have to make.
Commutes can also be costly. Mass transportation is poorly organized. Manila was ranked as having the worst traffic congestion out of 387 metro areas worldwide. It’s a commute many locals dread.
Working with US-based companies gives Filipinos a chance to work remotely and avoid this grueling commute. They have more time to spend with family, rest, and improve their quality of life instead of dedicating several extra hours each day to work-related travel.
Overseas Employees Love US-Based Companies
Filipinos have an overall positive sentiment about US-based companies. They often prefer the corporate culture in American organizations compared to local companies. They also take pride in working for well-known US brands and companies, along with smaller US-based businesses.
US companies also generally provide better treatment to their employees. Many Filipinos prefer the professional environment of US companies and embrace the opportunity to contribute as a valued team member, even though they’re thousands of miles away. American companies tend to be more accommodating and collaborative, which are attractive qualities to overseas candidates.
They Make More Money Than They Would Working Locally
One of the biggest differences for American companies in choosing to hire overseas workers vs. local talent is the discrepancy in pay. Workers in countries like the Philippines command significantly lower salaries compared to domestic workers, which is one reason why some US companies hesitate to hire overseas talent. They want to make sure the pay matches the quality of work and that workers aren’t being taken advantage of.
Surprisingly, the pay overseas workers receive from US companies is usually a substantial increase compared to what they’re able to earn doing the same job locally . The US exchange rate is still very powerful in most countries where overseas employees are sourced. The cost of living in these countries is also substantially lower compared to here in the United States.
This means workers can reasonably accept lower salaries than US-based employees and still have enough money to pay bills, support their families, and enjoy a high quality of life. They’re making more money than they could from local companies, plus they’re saving more because they don’t have to spend on costly commutes.
Halo Was Founded to Be Mutually Beneficial
Halo Recruiting is committed to creating win/win situations for US employers and overseas workers. We always do the right thing in ensuring our talent is paid fairly and will always work in the best interests of our clients and candidates alike. This means suggesting fair and equitable compensation for our placements and maintaining open lines of communication throughout the hiring process.
Now is an excellent time to explore the benefits of hiring overseas workers. With inflation remaining high and costs tightening, companies can save money on one of their biggest operating expenses—payroll—while continuing to ensure the work gets done well.
Contact our team today to learn more about building mutually beneficial work relationships with Halo Recruiting.
