Introduction: What is Offshore Employment?

Simply put, offshore employment is a situation where a business employs an employee or a team in another location (most likely another country) for a multitude of purposes including but not limited to cost savings, delivery speed, and improved work quality.

Offshore employment is the best solution for companies seeking to cut costs, access specialized skills, and expand their global workforce. However, companies need to provide an employment package that not only attracts the best offshore talent but also ensures long-term retention and satisfaction.

This guide will help businesses understand the basics of a good offshore employment package and even guide them during their own package-curation process.

A well-thought-out offshore employment package is nothing less than a competitive edge. While basic salary and bonuses are a given, the right package goes beyond financial compensation to include benefits that address the unique local needs of offshore employees.

Why Offshore Employment Packages Matter

Offering an attractive offshore employment package sends the right signal to high-quality candidates. Offshore employees now have more options than ever before. Companies need to offer packages that show they value and support their offshore workers.

A carefully designed employment package helps you:

  • Retain top talent
  • Reduce turnover
  • Build a strong working culture
  • Boost employee productivity and satisfaction

Offshore Employment Package Checklist

1. Competitive Salary and Bonuses

While it may seem obvious, salary is the foundation of any offshore employment package. Offshore employees expect competitive pay based on their location, industry standards, and experience.

Inclusions:

  • Base salary
  • Performance-based bonuses
  • Cost-of-living adjustments (if applicable)

Considerations:

  • Research industry standards in the offshore employee’s country.
  • Offer bonuses for exceptional performance to motivate and retain employees.

2. Health and Wellness Benefits

Health benefits are essential in any employment package, and offshore employees are no different. Providing comprehensive health insurance is a strong signal that the company cares about its employees’ well-being. Offshore employees, especially those in remote regions, may face additional challenges accessing healthcare, making this an important aspect of the package.

Inclusions:

  • Health insurance coverage for the employee and their family
  • Wellness programs (e.g., mental health support, fitness memberships)
  • Vision and dental care, if applicable

Considerations:

  • Health insurance should align with the healthcare system in the employee’s country.
  • Consider offering a wellness allowance to help employees maintain a healthy work-life balance.

3. Work-Life Balance and Flexible Hours

Offshore employees often work in different time zones, which can create stress if the work schedule doesn’t accommodate their lifestyle. Providing flexible work hours allows employees to manage their time effectively and avoid burnout.

Inclusions:

  • Flexible working hours
  • Work-from-home options
  • Paid time off (PTO), including vacation, sick leave, and parental leave

Considerations:

  • Offshore employees may need flexibility to manage their work across time zones.
  • Offer a generous PTO policy that aligns with local labor laws and company culture.

4. Professional Development Opportunities

A strong offshore employment package should include opportunities for growth and career advancement. Professional development programs not only boost employee morale but also ensure that offshore teams remain competitive and up-to-date with the latest industry trends.

Inclusions:

  • Access to online courses and certifications
  • Sponsorship for professional conferences or workshops
  • Opportunities for career advancement within the company

Considerations:

  • Offer personalized development programs based on the employee’s career goals.
  • Provide mentoring or coaching to help offshore employees grow in their roles.

5. Technology and Equipment Allowances

Offshore employees rely on technology to stay connected with their teams. Providing them with the necessary tools is crucial for their productivity and overall job satisfaction.

Inclusions:

  • Laptops, monitors, or other required equipment
  • Monthly internet stipends or high-speed internet reimbursement
  • Software licenses and other tools needed to perform their job

Considerations:

  • Ensure that equipment allowances cover the cost of maintaining a productive home office.
  • Offer tech support for troubleshooting equipment issues, especially for employees in remote regions.

6. Retirement and Financial Planning Benefits

Offering retirement benefits is not just for domestic employees. Offshore employees should have access to similar financial planning services to secure their future.

Inclusions:

  • Pension plans or retirement contributions
  • Financial planning resources
  • Life insurance and long-term disability coverage

Considerations:

  • Pension and retirement plans should be made per the financial regulations of the employee’s country.
  • Offering financial planning tools can give offshore employees confidence in their long-term financial stability.

7. Relocation Assistance (if applicable)

For offshore employees who are relocating for work, providing relocation assistance is a valuable part of the employment package. This includes financial aid for moving costs and help with settling in their new location.

Inclusions:

  • Financial assistance for relocation expenses (e.g., moving, housing)
  • Temporary housing upon arrival
  • Visa and legal assistance for international employees

Considerations:

  • Ensure that relocation packages cover a generous portion of the cost of moving, including visa and work permits.
  • Provide local resources to help employees settle into their new environment.

8. Coworking Space or Home Office Setup (if applicable)

Although many offshore employees work from home, offering access to a coworking space can improve productivity and reduce isolation. If employees work from home, providing a home office setup or allowance ensures they have a professional workspace.

Inclusions:

  • Access to coworking spaces or membership fees
  • Financial support for setting up a home office (e.g., desks, chairs, ergonomic tools)
  • High-speed internet stipends

Considerations:

  • Provide flexibility to choose between coworking space and home office setup based on the employee’s preference.
  • Ensure that the allowance covers necessary ergonomic and office equipment.

9. Cultural and Team Integration

Offshore employees may feel isolated from the rest of the company if they are working in a different location. A sense of team culture helps fight this feeling of working in a silo.

Inclusions:

  • Regular team-building activities, even virtually
  • Onboarding programs to introduce offshore employees to the company culture
  • Annual or biannual company meetups (if possible)

Considerations:

  • Virtual team-building activities can help offshore employees feel connected to the team.
  • Onboarding programs should emphasize the company’s mission, values, and expectations.

10. Legal and Compliance Support

Compliance with local labor laws is a non-negotiable when hiring offshore employees. Providing legal support as part of the employment package protects both the company and the employee.

Inclusions:

  • Assistance with employment contracts that comply with local labor laws
  • Legal resources for employment disputes or queries
  • Support for understanding local tax regulations

Considerations:

  • Ensure that all employment contracts are compliant with the labor laws of the employee’s country.
  • Providing legal support helps employees feel secure in their role, knowing they have protection if needed.

When Not to Offer a Comprehensive Employment Package

In some cases, offering an elaborate offshore employment package may not be necessary or feasible. These situations include:

  • Short-term contracts: For short-term projects or freelancers, a full employment package might not be relevant.
  • Cost constraints: If your company is on a tight budget, providing competitive salaries and bonuses might be enough for certain roles.
  • Project-based work: For highly specific, one-off projects, you may focus solely on paying competitive wages without additional benefits.

Conclusion: The Importance of a Comprehensive Offshore Employment Package

A competitive offshore employment package is essential to attract and retain top talent in 2024. 

By offering more than just a salary, you show offshore employees that they are valued, leading to higher job satisfaction and retention rates.

Health and wellness benefits, flexible work hours, and professional development opportunities support offshore employees in their endeavors to do the best for you. A great package is also a way to help your colleagues do their work hassle-free, so you can be confident of having done your best to enable them to bring their A-game to work every day.