When it comes to hiring your senior engineering talent, startup companies need to move fast.
That's why keeping engineering in-house and US-based feels safe. Real-time collaboration, shared context, clean IP ownership - these are all incentives to keep your hiring ambitions limited to the U.S.
But here's the hard truth: at $192,000+ per San Francisco engineer, this approach is burning your runway twice as fast as necessary.
U.S. employee costs
Many Series A companies still concentrate their search in high-cost tech hubs, overlooking the potential for cost optimization even domestically. But what if you could maintain high engineering standards while dramatically improving your cost efficiency?
What if we looked further afield? How and where could you be saving money on hiring costs?
Countries in similar time zones
When startup founders think about expanding their engineering teams internationally, their first concern is often time zone alignment.
That's why markets like Canada and Mexico present such compelling opportunities.
A senior engineer in Canada, costing $156,076 annually including EOR fees, delivers the same real-time collaboration benefits as their San Francisco counterpart – at a $36,000 saving.
Even more dramatically, Mexico offers comparable time zone advantages while reducing costs by over $77,000 per engineer annually.
These aren't just cost savings; they're opportunities to extend your runway while maintaining the rapid development cycles crucial for Series A success
Countries that are closer in culture
Cultural alignment and clear communication form the bedrock of effective engineering teams. nCountries like Ireland, the UK, and Poland offer a compelling blend of technical excellence and cultural compatibility.
With total costs ranging from $116,000 to $118,000 including EOR fees, these markets represent significant savings over US tech hubs while minimizing cultural transition challenges.
The engineering talent in these regions often comes with experience in Western tech companies and strong English proficiency, making them ideal for startups looking to build their first international teams.
Hiring markets for startups on a budget
For startups ready to embrace fully distributed teams, markets like India and the Philippines present transformative cost advantages.
At $43,860 to $60,810 total annual cost per senior engineer, these regions could allow you to build larger engineering teams within your current budget constraints.
However, the key to success here isn't just cost savings – it's having the right infrastructure and support to manage distributed teams effectively. This is why more and more global companies have been turning to an Employer of Record to cut hiring costs & building the winning teams they need to succeed.
How the Employer of Record model is transforming global hiring
When U.S. startups think about international hiring, they often focus solely on salary differentials.
Here’s where they go wrong. They forget about the hidden complexities of managing currency fluctuations, maintaining compliance across multiple jurisdictions, and handling the administrative burden of global HR operations.
This is where an Employer of Record transforms from a service provider into a strategic advantage for your scaling business.
One monthly fee, no hidden costs
Global hiring without an EOR means establishing legal entities, managing local payroll systems, and navigating complex benefits administration in each country. These hidden costs – from entity setup fees to local accountants and benefits administrators – can quickly spiral into tens of thousands per country.
EOR providers replace this complexity with a simple, predictable model: one transparent monthly management fee (in Omnipresent’s case $599 per employee) plus the employee's agreed compensation and statutory benefits.
No surprises, no hidden fees, just straightforward pricing that lets you scale confidently.
FX risk management
Currency volatility can wreak havoc on your carefully planned budget. When managing payroll across multiple countries, even a 5% currency swing can significantly impact your runway.
An EOR shields your business from these market uncertainties by handling currency conversion and absorbing exchange rate fluctuations. This in turn helps you maintain stable, predictable costs in your home currency.
Compliance as a competitive advantage
For Series A/B companies, future funding rounds often hinge on clean compliance records and straightforward corporate structures. Our EOR service ensures your international hiring practices meet the highest compliance standards from day one. When it's time for due diligence, you'll have a clear, professional record of international operations that can withstand scrutiny from the most demanding investors.
Hire the team you need in days, not months
Traditional international expansion can take 6-12 months per country. And this can be a key reason why U.S. startups limit hiring to within their own borders. With an EOR, you can hire your first international employee within days.
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