Understanding Exchange Rates to Pay International Employees
- Outsourcing can be a real game changer 01:06
- David started outsourcing overseas about 3 years ago and it has had a huge impact on his business.
- He didn’t have the business yet to afford US rates, so he started outsourcing to countries that had favorable exchange rates.
- The US dollar is very strong 02:20
- One of the first things that David learned is how strong the US dollar is compared to a lot of countries in the world.
- A lot of countries have high quality high end developer talents, which will allow you to scale your company quicker.
- It is important to understand the ratio of our country to their country. A living wage in the US is very different than say a living wage in India.
- You can pay too much 03:43
- What may not be a lot of money to us here in the US can be a significant amount of money in other parts of the world.
- David learned a very valuable lesson about this early on. His company was giving out bonuses one year. One employee had been with the company for quite a while and David ended up giving what he thought was a pretty nice bonus. What he didn’t know was that he had put basically a year’s salary in the employee’s hand, who then decided to take the next year off and was never heard from again.
- Do your research 04:52
- Do your research ahead of time find out where they’re located.
- Look for the average salary for a web designer or web developer in the area and figure out what the cost of living is.
- This will help you also understand their country and their culture, which will help you communicate better.
- You can understand what the dollar is worth in their country, so that you don’t overpay and you pay them fairly.
- Scale your team quickly 05:38
- Outsourcing overseas means that your money will go much farther and you will be able to scale your business faster.
- However, this also presents some other challenges like keeping track of employees and such.
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