Hey remote workers: have you ever wondered whether you should look for employment through an offshore staffing firm or sign up directly with an employer?

There’s not much info out there – but to answer the question that many home-based professionals ask, we rolled up our sleeves and dug deep. Here’s what we found:

Offshore Staffing Firms – Pros and Cons

• Security – Unless you’re sure that your employer will pay you for your work, you’ll need protection when dealing with others online.
  
  Imagine this scenario: you work hard for a month (maybe you even stayed late for days on end) but your employer suddenly disappears without paying. How do you collect? Unfortunately, you can’t, and it’s a common occurrence online, even among freelancing platforms.
  
  An online staffing agency will ensure that you’re compensated for your work. They verify payment methods to confirm that everything is accounted for. Because if you don’t get paid, they don’t either.
  
  
• Mediation – If a remote worker has a concern (e.g. schedule, pay disputes), they can ask their offshore staffing firm for help.
  
  The staffing firm will then take all necessary steps to intervene and ensure that the client-contractor relationship is running smoothly.
  
  
• Future recruitment – If there ever comes a point that a client needs to let their remote employee go (e.g. budget issues, business closure), the offshore staffing firm will find another client for that remote worker.
  
  In fact, if you perform well, the staffing firm will recommend you.

• Time-tracking software can be intrusive – To ensure clients that their remote contractors are working, offshore staffing firms require the use of time-tracking software. This usually involves periodic screen captures and pop-ups reminding you to input your current activity.
  
  These features are necessary for monitoring, but can be quite meddlesome for remote employees, especially when it regularly interrupts your train of thought.
  
  
• Potential salary constraints – Offshore staffing companies don’t operate for free. They earn by charging clients administrative fees on top of a remote worker’s salary.
  
  These admin fees, however, are an extra expense for clients. Because of this, working with an offshore staffing firm can partially limit your maximum earning potential.

Direct Hiring – Pros and Cons

• Larger salary potential – If you’re hired directly by a company to work from home, the employer won’t have to shoulder any administrative fees which – as mentioned earlier – are how offshore staffing companies earn.
  
  Without these additional fees, you can earn a larger salary. Of course, it’s not a guarantee that you’ll get one; you still have to negotiate for it.

• Less intrusive oversight – This is a case-to-case basis, but unless an employer directly hires a virtual team and keeps track of their output through intricate software systems, working without a go-between agency likely means no intrusive time-tracking software.
  
  
• More risk – Direct hiring means you don’t have a safety net in case your employer skips town without paying.
  
  
• You have to deal with problems yourself – Because you’re hired directly, you will have to handle issues with your employer without backup. Even the mere fact that finding a company that will directly hire you is a challenge.