Overview
Remote hiring means recruiting engineers who will work outside a central office, either as fully remote employees or part of a distributed team. This has become standard since 2020, with most tech companies offering some form of remote work.
Remote hiring can mean different things: hiring anywhere in your country, hiring across time zones, or true global hiring. Each level adds complexity around compensation, legal employment, and collaboration. The benefits—larger talent pool, cost optimization, and employee flexibility—often outweigh the challenges for companies that invest in remote-first practices.
For hiring, remote expands your candidate pool 3-4x but requires adapted processes: async-friendly interviews, clear documentation, and structured onboarding. Companies hiring globally need to decide on compensation philosophy (location-based vs. role-based pay) and consider using Employer of Record services for international hires.
Remote Hiring Models
1. Same-Country Remote
Example: US company hiring across US states
- Easier legally (one employment framework)
- Minimal time zone issues
- Straightforward payroll
- May still need location-adjusted compensation
2. Time-Zone Adjacent
Example: US company hiring in Latin America
- Overlap for real-time collaboration
- Significant cost savings
- Growing talent pools
- EOR (Employer of Record) often needed
3. Global Distributed
Example: Hiring across US, Europe, and Asia
- Maximum talent access
- Complex coordination
- Highest administrative burden
- Requires async-first culture
Compensation Strategies
Pay Philosophies
1. Location-Based Pay
Pay market rate for candidate's location.
- Pros: Cost-efficient, fair to local markets
- Cons: May lose candidates to global-rate competitors
- Example: GitLab, Automattic (with adjustments)
2. Global Flat Rate
Same pay regardless of location.
- Pros: Simple, attractive to global talent
- Cons: Overpay in low-cost areas, underpay in high-cost
- Example: Some well-funded startups
3. Regional Tiers
Group locations into pay bands.
- Pros: Balances simplicity and cost efficiency
- Cons: Edge cases at tier boundaries
- Example: Many mid-sized companies
US Remote Salary Adjustments (2026 Benchmarks)
| Tier | Example Locations | Senior Engineer Range |
|---|---|---|
| Tier 1 | SF, NYC | $180-220K |
| Tier 2 | Seattle, Austin, Denver | $160-195K |
| Tier 3 | Other US metros | $140-175K |
| Tier 4 | Lower cost areas | $120-155K |
Global Remote (Senior Engineer Benchmarks)
| Region | Range (USD) | Notes |
|---|---|---|
| Western Europe | $100-150K | Strong talent, overlap with US East |
| Eastern Europe | $60-100K | Excellent engineering culture |
| Latin America | $60-100K | Time zone alignment with US |
| India | $40-80K | Large talent pool, variable quality |
| Southeast Asia | $40-70K | Growing hubs, time zone challenge |
Adapting Your Interview Process
What Changes for Remote
1. Video-First Interviews
- Test your video setup and the candidate's
- Allow for connection issues
- Use collaborative tools (screen sharing, virtual whiteboards)
- Record with permission for async reviewers
2. Async Components
- Take-home exercises (with reasonable time limits)
- Written communication samples
- Async video responses for early screening
3. Collaboration Simulation
- Pair programming over screen share
- Collaborative document editing
- Real-time problem-solving with tools you'd actually use
Assessing Remote-Specific Skills
Must Evaluate:
- Written communication quality
- Self-direction and proactivity
- Time management signals
- Comfort with async workflows
Interview Questions:
- "Describe your ideal remote work setup"
- "How do you stay connected with teammates across time zones?"
- "Tell me about a project where you worked primarily async"
- "How do you handle blocking issues when teammates are offline?"
Legal and Compliance
Hiring in Your Country (Remote)
- Standard employment relationship
- Same employment law across states/regions (varies by country)
- Straightforward payroll and benefits
- May need to register in employee's state (US)
Hiring Internationally
Option 1: Employer of Record (EOR)
- Third party employs the person legally
- You manage day-to-day, they handle compliance
- Costs 15-30% on top of salary
- Fastest way to hire globally
- Providers: Deel, Remote, Oyster, Papaya Global
Option 2: Establish Legal Entity
- Full control and lower ongoing costs
- High upfront cost and complexity
- Makes sense with 5+ employees in a country
- Requires local legal and accounting expertise
Option 3: Contractors
- Simplest legally
- Risk of misclassification (penalties vary by country)
- Less employee loyalty and protection
- Works for specialized, project-based work
Onboarding Remote Engineers
Week 1 Checklist
- Equipment shipped and working before day 1
- All accounts and access provisioned
- Onboarding buddy assigned
- Scheduled video calls with key teammates
- Written documentation on codebase and processes
- First small task identified
First 30 Days
- Daily check-ins with manager (async or sync)
- Complete codebase orientation
- Ship first small feature
- Meet all team members 1:1
- Understand communication norms
Common Onboarding Mistakes
1. Assuming Knowledge Transfer Happens Automatically
Remote requires explicit documentation. Hallway conversations don't exist.
2. Isolation
Schedule regular video calls. Remote engineers shouldn't go a full day without human contact.
3. Unclear Expectations
Document everything: working hours, response time norms, meeting expectations.