In a hiring market that continues to trend towards highly collaborative remote and global teams, finding scalable solutions for compensation across borders is a top priority.
Globally Accessible Payroll
The paradigm shift towards remote work catalyzed by the COVID19 pandemic has underscored the need for innovative approaches to global workforce compensation.
At present, there are relatively few payroll solutions that enable borderless payments with reduced fees and instant transactions, while simultaneously ensuring complete adherence to tax and labor regulations. An international wire transfer, for example, can average $44 and take up to five days to arrive.
The inefficient and cumbersome solutions of the past cannot scale to meet the needs of today's workforce.
For this reason, expanded options for payouts in crypto have captured the attention of global contractors and employees. For one, transactions occurring on blockchains are significantly expedited, with networks such as Arbitrum averaging 15 seconds per block. Transaction fees are reduced as well, with lows of $0.368 per transfer. And perhaps most important with respect to the global workforce, transactions using blockchain technology are inherently borderless.
Mainstream Adoption and Wide-Ranging Applications of Crypto
In 2023, crypto has continued to shed its reputation as being a fringe and risky currency. It has officially entered into the mainstream with 90% of central banks worldwide now beginning the process of experimenting with or investigating some form of a central bank digital currency. This marks a significant turning point in the global adoption of blockchain technologies and their applications across diverse industries.
In tandem, stablecoins have seen explosive growth over the last few years. In 2021, USD-pegged stablecoins alone reached a circulating supply of $130 billion, which marked an increase of more than 500 percent from the previous year.
With usage rates steadily on the rise, the response of governments across the globe has been on the whole a positive one. A new wave of regulation has ushered in with it more opportunities for crypto’s integration into daily life. From payment in crypto for goods and services to mass donations in crypto for humanitarian needs in Ukraine, favorable policies have allowed for crypto’s utility to be experienced on a broader scale.
In countries such as Hong Kong, regulatory infrastructure has been implemented to encourage the development of the crypto industry and to attract global blockchain-based companies. This future-facing approach is sure to prove advantageous to both corporate and governmental entities with the crypto market anticipated to experience a compound annual growth rate of 56.4% between 2019 and 2025.
Crypto, Automation, and Payroll
A buzzword gaining equal traction to ‘crypto’ as it relates to payroll trends is ‘automation’. According to research conducted by PayrollOrg, automation can reduce payroll costs by an estimated 80%.
Automating payroll is an essential practice for businesses across all industries as it streamlines the complex process of compensating employees while reducing the risk of costly errors and compliance issues. With automation comes the freeing up of valuable time and resources that can be redirected toward strategic activities that foster overall business growth and productivity.
For companies that want to attract and retain top global talent, it is critical to integrate systems for automating fiat and crypto payments. Through offering the flexibility of remuneration across a wide range of currencies while ensuring that all payouts are received in a timely manner, companies can enhance the appeal of their compensation packages.
When working with dispersed, global teams, a first step in choosing a payroll solution is investigating how extensive the currency offerings are. While many Millenial and Gen Z workers would happily opt to receive their payments in crypto, it is important to also provide options for fiat compensation.
By identifying a platform that provides comprehensive payroll services in fiat and crypto, robust automation capabilities, and ensures local and global tax compliance, organizations can achieve seamless scalability for their global teams.
Automating Fiat and Crypto Payroll with Rise
Rise is an all-in-one payroll and compliance solution that introduces essential automation elements to HR processes. Built for traditional companies and web3-native organizations alike, Rise is an expert in local tax compliance worldwide, ensuring that payroll adheres to all regulations regardless of the country or currency in which it is being issued.
Automation with Rise begins with the onboarding process and extends across all payroll functions; companies can automate Professional Service Agreements and SOWs, set up automatic pay schedules and ensure mass, instant payouts for global teams.
Rise’s unique routing between fiat and crypto offers next-level flexibility to companies and employees alike. Companies can fund payroll in the currency of their choice, whether that is crypto in a digital wallet or fiat in a traditional bank account, and contractors can withdraw payouts in their preferred currency.
Experience the ease and efficiency of automation with Rise. Schedule a demo today to learn more about how Rise can streamline your payroll and hiring across more than 150 countries.