Quick Answer
International hiring allows companies to access diverse skills, reduce costs, and expand their talent pool globally. Recruiting from Scratch (RFS) specializes in identifying and placing top Engineering and AI/ML talent for seed through Series C startups worldwide. In our data from 0+ placements since 2019, we achieve an average time to fill of 29 days, with placed engineers earning an average salary of ~$252K.
In today's global economy, businesses have the unique opportunity to tap into a worldwide talent pool. Hiring outside of the United States offers access to diverse skills, innovative ideas, and potential cost savings. As remote work becomes more prevalent, the barriers to international hiring are lower than ever, making it a viable option for companies seeking specialized talent.
This guide explores the advantages and challenges of hiring internationally, including the benefits and potential drawbacks of a remote workforce. We also outline key criteria to determine if hiring abroad aligns with your business goals, such as access to unique skills, budget considerations, and the ability to manage a dispersed team.
By expanding your recruitment efforts globally, you can enhance your business's creativity, competitiveness, and overall growth. Whether you're aiming to diversify your team or optimize costs, international hiring can be a strategic move for your company.
Below, we're sharing insights on what it's like to hire internationally - and we've recruited within many of these markets ourselves!
Germany
Germany offers a highly educated workforce with strong talent, particularly in technology, engineering, and science. Employer's contributions for social benefits typically total around 19.4% of gross salary, and average tech salaries are approximately $50,880 USD annually, rising for senior AI roles. Employees are entitled to a minimum of 20 days of paid annual leave.
Germany is one of the strongest economies in the world, and boasts some of the top educational programs. Talent in Germany may also be among some of the top in Europe, especially for skilled positions in technology, engineering and science.
What should I know about employer taxes?
Health Insurance: Employer's contribution is approximately 7.3% of the employee’s gross salary.
Pension Insurance: Employer's contribution is approximately 9.3% of the employee’s gross salary.
Unemployment Insurance: Employer's contribution is approximately 1.3% of the employee’s gross salary.
Long-Term Care Insurance: Employer's contribution is approximately 1.525% of the employee’s gross salary.
Accident Insurance: Employer's contribution varies depending on the industry and risk level.
Approximate employer total: 19.4%
What should I know about wages?
Wages: As of 2024, the average tech salary in Germany is around $50,880 USD annually. However, for roles in AI, this can increase to $64,884-$78,000 USD for senior roles (Heads of, etc).
What should I know about leave?
Annual Leave: Employees are entitled to a minimum of 20 days of paid leave per year, based on a 5-day workweek.
Public Holidays: Germany has between 9 and 13 public holidays per year, depending on the state.
Sick Leave: Employees are entitled to up to six weeks of continued pay from their employer in case of illness.
Medical Leave: Additional leave can be taken under the statutory health insurance system if needed, including parental leave.
Notice Requirements: The statutory notice period for terminating an employment contract in Germany is 4 weeks to the 15th or the end of a calendar month. This period increases with the employee's length of service, reaching up to 7 months after 20 years of employment.
The bottom line
Hiring in Germany can be a great entry point into European markets and an excellent way to find highly-skilled, bilingual tech talent.
Argentina
Argentina offers a highly educated workforce with competitive labor costs and a strategic time zone alignment for US-based teams. Employer social contributions amount to approximately 30% of an employee's compensation, and median annual tech salaries are around $30,000 USD. Employees receive 14 days of paid annual leave, increasing with length of service.
Argentina has a highly educated workforce, competitive labor costs, and perhaps best of all: strategic time zone alignment with the US. Argentina's geographical location ensures convenient communication and collaboration with US-based teams, unlike countries in Asia or Europe.
What should I know about employer taxes?
Pension Fund: Employer’s contribution is approximately 21% of an employee’s compensation.
Health Insurance: Employer's contribution is approximately 6% of an employee’s compensation.
Labor Risk insurance: Employer’s contribution is approximately 2.41% of an employee’s compensation.
Life Insurance: Employer’s contribution is approximately 0.5% of an employee’s compensation.
Approximate employer total: 30%
What should I know about wages?
Wages: Tech and Engineering salaries may vary, but median annual compensation is around $30,000 USD, and at the high end (75th percentile), $84,000 USD.
What should I know about leave?
Annual Leave: Employees are entitled to 14 days of paid leave per year, increasing with the length of service.
Public Holidays: Argentina has 19 public holidays per year.
Sick Leave: Employees are entitled to paid sick leave, the duration of which depends on the length of employment. This can range from three months to a year.
Leave: Employees are entitled to leave under certain conditions, including marriage, bereavement and maternity leave (typically around 3 months).
Notice Requirements: Notice periods vary but are generally between 15 days to 2 months depending on the length of employment.
The bottom line
Hiring in Argentina can be extremely beneficial to US employers, especially those who want their extended workforce to work similar hours. When accounting for salary and compensation, factor in approximately 30% for additional employer-paid taxes.
Costa Rica
Costa Rica provides a stable political environment, high English proficiency, and a growing tech industry. Employer social contributions are at least 26% of wages, and median annual IT salaries are typically around $54,000 USD. Employees receive two weeks of paid leave after 50 weeks of continuous work.
In Costa Rica, companies can benefit from a stable political environment, high level of English proficiency, and a well-established tech industry within certain pockets of the country. The country's focus on education and bilingualism ensures a workforce capable of meeting diverse business needs.
What should I know about employer taxes?
Health and Maternity Leave: 9.25% of the base wage
A variety of taxes: Costa Rica’s pension system includes several mandatory contributions, the largest of which are:Disability, Old Age, and Death (IVM): 5.25% of wages. - Labor Capitalization Fund: 1.5% of wages.- Family Support: 5% of wages.- Additional taxes ranging from 0.25%-2%.
Approximate employer total: At least 26%+
What should I know about wages?
Wages: Median in Costa Rica for IT professionals are typically around $54,000 USD annually. The 25th percentile for wages is $27,744 USD and the 75th percentile is at $87,000 USD.
What should I know about leave?
Annual Leave: Employees are entitled to two weeks of paid leave after 50 weeks of continuous work.
Public Holidays: Costa Rica has 13 public holidays per year.
Sick Leave: Employees are entitled to paid sick leave, covered partially by the employer and partially by the social security system.
Medical Leave: Extended medical leave can be taken under certain conditions.
Notice Requirements: Notice periods vary depending on the length of employment but generally range from one to three months.
The bottom line
Hiring in Costa Rica can be a great option for companies who operate in Central, Eastern or Mountain time zones, as Costa Rica follows Central Standard time. When accounting for salary and compensation, factor in approximately 26+% for additional employer-paid taxes.
Bulgaria
Bulgaria offers a cost-effective workforce with strong technical skills within its growing IT sector. Employer contributions for health insurance and social security total over 18% of gross salary, and IT sector salaries range from $13,300 to $41,200 annually. Employees are entitled to at least 20 days of paid annual leave.
Bulgaria provides a cost-effective workforce, strong technical skills, and a growing IT sector, making it an attractive destination for outsourcing. The country's emphasis on technical education results in a steady supply of skilled professionals. Bulgaria's membership in the European Union further enhances its appeal, with regulatory stability and access to the European market.
What should I know about employer taxes?
Health Insurance: Employer's contribution is approximately 4.8% of the employee’s gross salary.
Social Security: Employer’s contribution is slightly over 14%
Approximate employer total: 18%+
What should I know about wages?
Wages: Salaries may vary, but within the IT Sector, salaries range from $13,300 annually to $41,200 annually.
What should I know about leave?
Annual Leave: Employees are entitled to at least 20 days of paid leave per year.
Public Holidays: Bulgaria has 14 public holidays per year.
Sick Leave: Employees are entitled to paid sick leave, with the employer covering the first three days and social security covering the rest.
Notice Requirements: Notice periods vary depending on the length of employment but generally aren’t shorter than 30 days.
The bottom line
Hiring employees in Bulgaria can be advantageous to US employers because of the cost and lower taxes compared to other markets.
Portugal
Portugal features a skilled workforce within a growing tech ecosystem and offers a high quality of life. Employer social security contributions are approximately 23.75% of gross salary, and gross tech salaries range from $20,300 to $65,400 annually. Employees are entitled to 22 working days of paid annual leave.
Portugal offers a high quality of life, robust tech ecosystem, and skilled workforce, making it an appealing environment for companies seeking European talent. Additionally, many American expats have relocated to Portugal over the last several years, an additional talent pool American companies can draw from. Portugal's relatively low cost of living compared to Western Europe can also mean competitive labor costs.
What should I know about employer taxes?
Social Security: Employer's contribution is approximately 23.75% of the employee’s gross salary.
Work Accident Insurance: Employer's contribution varies based on the industry and risk level.
Approximate employer total: At least 23.75%
What should I know about wages?
Wages: Salaries in Portugal may vary considerably, considering some tech professionals are American expats who may command higher salaries. Gross salaries may range from $20,300 to $65,400 annually.
What should I know about leave?
Annual Leave: Employees are entitled to 22 working days of paid leave per year.
Public Holidays: Portugal has 13 public holidays per year.
Sick Leave: Employees are entitled to up to 1,095 days of paid sick leave, with varying compensation rates.
Medical Leave: Extended medical leave can be taken under certain conditions.
Notice Requirements: Notice periods depend on the length of employment, generally ranging from 15 to months.
The bottom line
Hiring employees in Portugal can be a great stepping point into European markets, and can also be advantageous for US companies regarding time zones, as Lisbon is only five hours ahead of EST.
Poland
Poland's emphasis on STEM education produces highly skilled graduates, establishing it as a growing tech hub. Employer contributions for health, pension, and unemployment insurance total approximately 21.21% of gross salary, and software engineers can expect a median salary of $62,907. Employees receive 20 or 26 days of paid annual leave, depending on service length.
Poland’s focus on STEM education produces highly skilled graduates ready to tackle complex projects. Poland's growing reputation as a tech hub further solidifies its attractiveness for outsourcing.
What should I know about employer taxes?
Health Insurance: Employer's contribution is approximately 9% of the employee’s gross salary.
Pension Fund: Employer's contribution is approximately 9.76% of the employee’s gross salary.
Unemployment Insurance: Employer's contribution is approximately 2.45% of the employee’s gross salary.
Approximate employer total: 21.21%
What should I know about wages?
Wages: Salaries can vary, but Software Engineers in Poland may expect a median salary of $62,907, and some individuals may earn more.
What should I know about leave?
Annual Leave: Employees are entitled to 20 or 26 days of paid leave per year, depending on the length of service.
Public Holidays: Poland has 13 public holidays per year.
Sick Leave: Employees are entitled to 80% of their salary for the first 33 days of an illness, and a maximum of 182 days a year.
Notice Requirements: Notice periods depend on the length of employment, typically ranging from two weeks to three months.
The bottom line
Poland may also be a market worth considering when entering Europe as a US company, as tech salaries are affordable for many US companies.
Brazil
Brazil offers a large and diverse talent pool within growing tech and creative industries. Employer contributions for health, pension, and unemployment insurance total approximately 36% of gross salary, and software developers typically earn between $21,600 and $52,800 annually. Employees receive 30 days of paid annual leave.
Brazil has a large and diverse talent pool, along with growing tech and creative industries. The country's investment in education and technology drives continuous improvement in workforce skills.
What should I know about employer taxes?
Health Insurance (INSS): Employer's contribution is approximately 8% to 11% of the employee’s gross salary.
Pension Fund (INSS): Employer's contribution is approximately 20% of the employee’s gross salary.
Unemployment Insurance (FGTS): Employer's contribution is approximately 8% of the employee’s gross salary.
Approximate employer total: 36%
What should I know about wages?
Wages: Software developers can take home an average of $21,600 - $52,800 annually in Brazil.
What should I know about leave?
Annual Leave: Employees are entitled to 30 days of paid leave per year.
Public Holidays: Brazil has 12 national holidays and several regional holidays.
Sick Leave: Employees are entitled to 15 days of paid sick leave per year, after which the social security system covers further leave.
Medical Leave: Extended medical leave can be taken under certain conditions.
Notice requirements: Notice periods are generally around 30 days.
The bottom line
Overall, Brazil offers an excellent combination of skilled talent, cost advantages, cultural compatibility, and strategic location with proximity to the US, making it an attractive destination for U.S.-based companies seeking to hire internationally.
The Philippines
The Philippines stands out for its strong cultural affinity with the US, high English proficiency, and experience in the tech sector, making it suitable for customer service and back-office roles. Employer contributions for health and pension funds are at least 13% of gross salary, and software engineers earn an average of $10,271 annually. Employees receive five days of service incentive leave after one year of service.
The Philippines, with its strong cultural affinity to the US, high English proficiency, and extensive experience in the tech sector, remains a top choice for customer service and back-office operations. The country's focus on English language skills ensures a workforce capable of meeting international business demands.
What should I know about employer taxes?
Health Insurance: Employer's contribution is approximately 4% of the employee’s gross salary.
Pension Fund: Employer's contribution is approximately 9.5% of the employee’s gross salary.
Approximate employer total: At least 13%
What should I know about wages?
Wages: Software Engineers in the Philippines can earn an average $10,271 per year, with more experienced engineers earning closer to $14,000 USD.
What should I know about leave?
Annual Leave: Employees are entitled to five days of service incentive leave after one year of service.
Public Holidays: The Philippines has 12 regular holidays and several special non-working holidays per year.
Sick Leave: Employees are entitled to sick leave as part of the service incentive leave.
Medical Leave: Extended medical leave can be taken under certain conditions.
Notice Requirements: Notice periods are generally around 30 days.
The bottom line
The Philippines is technology-friendly, and can be an excellent location for companies who want to hire talent at a lower salary but without compromising on quality, although the time zone difference with the US could be a potential challenge.
India
India provides a vast pool of highly skilled IT and engineering professionals, offering a cost-effective solution for technical projects. Employer contributions for health, pension, and unemployment insurance are at least 19% of gross salary, and average salaries are around $8,400 USD, rising for experienced engineers. Employees receive a minimum of 12 days of paid annual leave.
India is known for its vast pool of highly skilled professionals, particularly in IT and engineering, providing a cost-effective solution for complex technical projects and software development. The country's emphasis on STEM education results in a continuous supply of talented graduates. India's thriving tech industry and innovation culture make it a global leader in outsourcing. Potential downsides however include the time zone difference – a full 12-hour difference depending on your location in either country.
What should I know about employer taxes?
Health Insurance (ESI): Employer's contribution is approximately 3.25% of the employee’s gross salary.
Pension Fund (EPF): Employer's contribution is approximately 12% of the employee’s gross salary.
Unemployment Insurance (ESI): Employer's contribution is 4%.
Approximate employer total: At least 19%+
What should I know about wages?
Wages: Base salaries in India vary by state and industry, but the average salary is close to $8,400 USD, with more experienced engineers earning in the $24K range.
What should I know about leave?
Annual Leave: Employees are entitled to a minimum of 12 days of paid leave per year.
Public Holidays: Holiday observance varies on the region, but there are at least 3 holidays per year.
Sick Leave: Employees are entitled to 15 days of paid sick leave per year.
Notice requirements: Notice periods vary, but can be 30-90 days.
The bottom line
Labor is generally most cost-effective in India, and while nearly-opposite time zone of the US can prove challenging, some companies enjoy the around-the-clock productivity.
Mexico
Mexico's proximity to the US, shared time zones, and skilled labor force make it an ideal location for nearshoring. Employer contributions for health insurance and state payroll tax total approximately 20% of gross salary, and software engineers can expect to earn close to $24,000 USD annually. Employees receive a minimum of 6 days of paid annual leave after one year of service, increasing with tenure.
Mexico's proximity to the US, shared time zones, and increasingly skilled labor force make it an ideal location for nearshoring manufacturing and technology services.
What should I know about taxes?
Health Insurance (IMSS): Employer's contribution is approximately 17% of the employee’s gross salary.
State Payroll tax: Employer's contribution is approximately 1-3% of the employee’s gross salary.
Approximate total: 20%
What should I know about wages?
Wages: On average, Software Engineers (for example) in Mexico can expect to earn close to $24,000 USD.
What should I know about leave?
Annual Leave: Employees in Mexico are entitled to a minimum of 6 days of paid annual leave after one year of service. This increases by 2 days for each additional year of service up to 12 days. After the fourth year, employees gain 2 additional days of leave for every 5 years of service.
Public Holidays: Mexico recognizes 7 national public holidays, including New Year's Day, Constitution Day, Benito Juarez's Birthday, Labor Day, Independence Day, Revolution Day, and Christmas Day. Additional state and local holidays may apply.
Sick Leave: Employees are entitled to paid sick leave, provided they have a medical certificate. The Mexican Social Security Institute (IMSS) pays 60% of the employee's salary starting from the fourth day of illness up to 52 weeks.
Medical Leave: For work-related injuries or illnesses, the IMSS provides benefits that cover 100% of the salary. The period can extend up to 52 weeks, with a possible extension of an additional 52 weeks if necessary.
Notice Period: The notice period depends on the cause of termination and the employee's length of service. Typically, at least 15 days' notice is required.
The bottom line
Hiring tech employees in Mexico can save on salary costs, and with its close proximity to the US for potential travel and it’s favorable time zone, Mexico can be a great option for an extended workforce.
Why Recruiting from Scratch Knows This
Recruiting from Scratch has extensive experience in technical talent acquisition across various global markets. Based on 0+ technical hires we've made since 2019, specializing in Engineering and AI/ML roles at 549+ active startup clients, we possess real-world data and insights into the nuances of international hiring. Our proven process results in an average time to fill of 29 days for critical roles, with placed engineers commanding an average salary of ~$252K, reflected in our consistent 90+ NPS. This direct experience informs our understanding of global talent pools and hiring practices.
FAQ
What are the main benefits of hiring internationally?
Hiring internationally allows companies to access a broader and more diverse talent pool, potentially find specialized skills not readily available domestically, and often realize cost savings on salaries and operational expenses. It can also enhance business creativity and competitiveness.
What are common employer tax rates in different countries?
Employer tax rates vary significantly by country, generally ranging from around 13% to over 30% of an employee's gross salary for social security, health, and pension contributions. For example, Germany's total is around 19.4%, while Brazil's is approximately 36%.
How long does it take to fill a technical role with international candidates?
The time to fill a technical role internationally can vary based on the specific country's regulations and talent availability. In our data from 0+ placements, Recruiting from Scratch achieves an average time to fill of 29 days from req open to offer accepted for technical roles.
What is the average salary for a software engineer in different global markets?
Salaries for software engineers differ greatly by region. For instance, median annual salaries can be around $50,880 in Germany, $30,000 in Argentina, $62,907 in Poland, and as low as $8,400 in India, demonstrating significant cost differences.
What is a contingency recruiting firm's fee for international placements?
A contingency recruiting firm typically charges a percentage of the placed candidate's first-year base salary. Recruiting from Scratch charges a contingency fee of 25-30% for our placements, which applies to both domestic and international technical hires.
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