Depending on where you want to hire, employee onboarding software allows you to bring new employees into your organization in compliance with the applicable laws. For local employees, this is usually a straightforward (or at least familiar) process for most businesses. New employees typically sign an employment agreement and upload important documents, all of which is managed by the software the company uses to onboard employees. Employee onboarding software often continues use when the employee begins working with the company, as most onboarding software is simply a feature of a larger employment software package.

Things become a little more complicated when you attempt to onboard remote employees in countries other than your own. Unfamiliarity with local laws and customs can make it difficult to onboard new employees quickly without breaking compliance. In these cases, employers usually use an employer of record, or EOR, to onboard new workers. An EOR allows businesses to employ workers in other countries by acting as a stand-in local employer while managing functions such as payroll, benefits, tax withholding, compliance, and stock options.

New employees do not automatically know what to do. Even for small companies, onboarding new employees is the first opportunity to manage administrative concerns; establish role expectations; and communicate about the company culture. In many countries, new employee onboarding involves a series of deadlines for paperwork and registrations, so companies hiring in multiple countries should always be vigilant when onboarding new workers.

Nothing frustrates a new employee quite like difficulty with payroll and benefits. You want your new employees to have a good experience with your company. If you can’t pay their first check on time or if they can’t sign up for insurance because of clerical errors, they may not get the best impression of the business. Efficient onboarding processes create a positive experience for employees from the outset, establishing a welcoming environment from day one.

Onboarding remote employees can be as easy as onboarding in-office employees — or it can be much more difficult, depending on where you’re hiring and how prepared you are. If you are hiring remote employees who live in the same general area as the rest of your team (like in the same city or state), your onboarding process is fairly straightforward. You will need to provide the new employee with the proper equipment and ensure they feel appropriately welcomed and included, but the legal aspects of onboarding (for example, signing the employment agreement) are generally the same.

Onboarding remote employees in other locations, such as another state or another country, presents a new set of challenges. Not only do you have to adjust for time zones, but you also need to account for the paperwork and registrations that accompany a distributed hire. For example, in certain countries, employees are required to undergo a medical exam as part of a new offer of employment, even when working remotely. In most cases, certain documents must be filed with the government by strict deadlines, and employees must be enrolled in social programs by a set date after employment begins. To onboard employees in a new country where your company does not own a legal entity, you will need to solicit the services of an employer of record, or EOR.

To onboard remote employees into your workforce, start with the basics. Do you have everything you need in place to employ this new person legally? For contractors, this is usually a quick and straightforward process. You can use an international contractor management service to pay your contractors in their local currencies.

For full employees who work remotely, onboarding can be a bit more complex. The key is to understand the regulations that apply in the country or region where your new employee lives and works. If you own an entity in the country where you plan to hire, you will be responsible for a variety of functions, including local compliance, payroll, taxes, benefits administration, and various types of paperwork. Because of these barriers, companies onboarding remote employees in other countries typically work with an employer of record.

Onboarding independent contractors is easier than onboarding full-time employees, but don’t be fooled. Failing to establish the correct boundaries of a working relationship could cost you — not only in fines, but potentially in ownership of your intellectual property, or IP.

To onboard independent contractors, you should first create and sign an official agreement with your chosen contractor. This contractor should cover factors such as pay rates, work deliverables, and ownership of created works. Different countries have different rules, so if you hire internationally, be sure to use an international contractor management tool — not just a tool that allows you to send payments without context or protections.

You may want to convert contractors to employees at some point. If this occurs, you have a few options. You will need to onboard the contractors into the new roles, complete with new paperwork depending on the country.