Recruitment Strategy: Preparing for an Out of State Hire
More and more companies are beginning to embrace the concept of a remote or hybrid work arrangement for their employees. This flexibility has offered employees a level of support and work-life balance that previously didn’t exist in most industries. And since technology has opened this door for us, many companies are even expanding their candidate search out of territory to find just the right person to fill their role, a hire who may never actually step foot in the company’s brick and mortar office building.
While this new work environment has many advantages for both the employers and the employees, you should consider the full impact on your budget and your way of doing business before making an out of state hiring decision. For example:
- Do your research: When you hire an employee outside of your home state, some states will require you to register your business there, even if you are not planning to solicit clients in that state. You may be required to work with a registered agent, acquire certain licenses or permits, and/or obtain a state tax ID. There will also likely be tax implications for your business, so consult with your accountant about sales tax requirements, income tax withholding and unemployment taxes.
- Talk to your brokers: Certain insurances may be affected by an out of state hire, such as your workers’ compensation and your business liability insurance. You may also need to expand your health insurance coverage to accommodate a new employee. Consult with your brokers to determine how the hire will affect your plans and contribution percentages.
- Be aware of state and local regulations: Each state has its own set of employment laws to consider – in some cases, laws vary even by city or town. And in many cases, those laws may be more favorable to the employee than your own state. When hiring an employee in a new state, determine if your policies will need to be adjusted or if you will need to make exceptions for this one employee due to a state requirement. Particularly look at minimum wage, sick leave and other types of required leave, meal break laws, wage deduction restrictions, final pay requirements, etc. Failure to adhere to state and local wage and hour laws, leave entitlements, and other employment laws can result in significant liability to the employer.
- Stay informed of compensation norms: Remember that certain locations may have a higher cost of living than others, which could drive higher salary ranges. This is important to keep in mind, not only to help you determine a reasonable starting salary for your new out of state employee, but also to help you stay competitive within ongoing salary increases in order to avoid unwanted turnover.
Once you’ve decided to hire out of state and have addressed all of the compliance concerns outlined above, there will still be other things to consider throughout your remote team member’s employment, such as:
- Remember your time zones. If you have employees in multiple parts of the country, be cognizant of scheduling meetings or events too early or too late in the day. When possible, avoid sending emails that require immediate attention after an employee’s business day.
- Be mindful of cultural diversity due to geographical origin. While there are many benefits to having a culturally diverse workplace, there can be some challenges associated with geographical differences. For example:
- Professional etiquette may vary across cultures. Employees in different parts of the country may interpret professional etiquette and dress codes differently. Make sure you clearly define your expectations and allow for accommodations when necessary.
- Different parts of the country may be more or less likely to celebrate certain holidays. Keep this in mind as you plan your holiday leave policies and avoid scheduling meetings or special events on any day that might be observed or celebrated by an employee in another geography.
- Consider your professional communication standards. Remember that certain words or phrases used commonly in one part of the country may be misinterpreted or misunderstood elsewhere.
In general, being able to hire someone based on their skillset and their ability to perform the job regardless of their geography is a huge benefit for most companies – one that just didn’t exist in past years. As long as you do your homework and fully understand the impact of an out of state hire, remote work arrangements can be incredibly successful. Let Berger HR Solutions assist you with navigating an out of state hire.
We are expert HR advisors who provide customized employee solutions that elevate your business. If you have questions about preparing for an Out-of-State hire, please contact us at info@bergerhrsolutions or (410) 695-9888. Berger HR Solutions is here to help.
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