Direct Hire Offshore Employees:

How Direct Offshore Hiring Works

Direct hire is an offshore hiring model that lets you build a dedicated offshore team that works directly with your business - without the traditional BPO or offshore staffing agency model.

‍
With Pear Tree, you hire skilled professionals from the Philippines or South Africa. You choose who joins your team, manage their day-to-day work and know exactly what they earn.

Pear Tree handles offshore recruitment, payroll and local employment compliance through a Contractor of Record (COR) or Employer of Record (EOR) arrangement.

‍Their salary is passed through at zero markup. Pear Tree charges a separate, transparent monthly service fee.

Nick and Frank of Pear Tree in conversation

Direct hire vs BPO and offshore outsourcing

Direct hire, BPOs and offshore outsourcing can all give businesses access to overseas talent, but the employment structure, cost model and working relationship are different.

Direct hire vs BPO

In a traditional BPO model, the provider employs the offshore worker and sells their time or capacity to your business at a bundled monthly rate. With direct hire, the professional is dedicated to your business and you manage them as part of your team.

Direct hire vs offshore staffing agencies

Traditional offshore staffing providers commonly charge one blended monthly rate covering salary, overheads and agency margin. This can make it difficult to see how much of your monthly fee reaches the employee.

Under Pear Tree's direct hire model, the offshore professional's salary and Pear Tree's service fee are separated. Salary is passed through at zero markup.

Direct hire vs permanent recruitment

“Direct hire” can also refer to permanent recruitment, where an agency finds an employee, charges a placement fee and then exits the relationship.

Pear Tree uses direct hire to describe an offshore hiring model where you retain the working relationship with your team member while Pear Tree continues to manage local payroll and compliance.

Direct hire vs managed outsourcing

Direct hire isn't a managed service. Pear Tree doesn't manage your employee's workload or sit between you and your offshore team. You manage their role, priorities and performance just as you would with another member of your team.

Direct hire vs offshore staffing: what's the difference?

The biggest differences between direct hire and traditional offshore staffing come down to salary transparency, agency fees and the relationship you build with your offshore employee.

01 Transparent offshore salaries

With direct hire, you know exactly what your offshore team member earns. Their agreed salary is passed through at zero markup, so both sides can see what the employee is paid.

02 Transparent offshore staffing costs

Instead of one bundled staffing rate, salary and service fees are separated. This means you can see the cost of the employee and the cost of Pear Tree's service independently.

03 A dedicated offshore team

Your offshore employee works with your business rather than as part of a shared pool of outsourced staff. Pear Tree says 90% of its placements remain with their client after 12 months.

How does direct offshore hiring work?

Pear Tree's direct hire model combines offshore recruitment with ongoing payroll and compliance support.

1. We recruit your offshore employee.
Pear Tree sources and screens candidates in the Philippines and South Africa. For each role, we typically screen 200–400 applicants before presenting a shortlist of three to five candidates.

‍2. You choose who you hire.
You interview the shortlisted candidates and choose who you want to join your team.

‍3. Your employee works directly with your business.
You manage their role, workload, performance and day-to-day communication.

‍4. Pear Tree handles local payroll and compliance.
Your team member is engaged through either a Contractor of Record (COR) or Employer of Record (EOR) structure.

‍5. You receive transparent monthly costs.
Your invoice separates your team member's wages from Pear Tree's flat monthly service fee.

Direct hire

  • You
  • ‍↓  wages, passed through at zero markup
  • The person doing the work
  • ‍↓  a flat service fee, invoiced separately
  • Pear Tree.

The agency model

  • You
  • ‍↓  One blended monthly rate
  • ‍Agency - margin taken here, every month
  • ‍↓  undisclosed remainder
  • The person doing the work
    You never see the split.

How much does it cost to hire offshore employees?

The cost of hiring an offshore employee through Pear Tree consists of the employee's salary, a one-off recruitment fee and a flat monthly service fee.

‍Employee salary: Passed through at zero markup.

‍Contractor of Record (COR): $400 AUD per person, per month.

Employer of Record (EOR): $500 AUD per person, per month.

Because the service fee is fixed rather than calculated as a percentage of salary, Pear Tree's fee doesn't increase when you give your offshore employee a pay rise.

YOUR MONTHLY INVOICE

The talent's wages

passed through, zero markup

Pear Tree service fee, per person

$400 COR  /  $500 EOR

Contractor of Record vs Employer of Record for offshore employees

Pear Tree supports two ways of engaging offshore team members: Contractor of Record (COR) and Employer of Record (EOR).

A Contractor of Record arrangement engages the offshore professional as an independent contractor and manages the contracting, payments and associated administration.

An Employer of Record arrangement employs the offshore professional locally through Pear Tree and manages payroll, statutory contributions and local employment requirements.

The appropriate structure depends on the role, working arrangement and local employment requirements in the country where your team member is based.

Hiring offshore employees in the Philippines and South Africa

Pear Tree recruits offshore professionals in the Philippines and South Africa, two established talent markets for Australian and New Zealand businesses.

Available talent spans roles across administration, finance, accounting, customer service, marketing, construction support, estimating and other professional functions.

Pear Tree handles recruitment locally and provides the COR or EOR infrastructure required to engage and pay your chosen team member.

Direct offshore hiring for Australian and New Zealand businesses

Pear Tree helps Australian and New Zealand businesses hire dedicated offshore employees in the Philippines and South Africa without establishing their own overseas entity.

The direct hire model remains the same: Pear Tree recruits and handles the local employment infrastructure, while the offshore professional works directly with your business.

Whether it holds up: retention and repeat hires

750+
Companies placed with
90%
Still there at 12 months
6 mth
Replacement guarantee
30+
Team across 6 offices

A Sydney mortgage brokerage came to us in early 2025 with loan processing backed up and brokers doing paperwork on Friday mornings. They needed another full-time administrator, and Sydney salaries meant it was not going to happen.They made three offshore hires in twelve months. The second and third were not sold to them. They asked.

Atelier Wealth, Sydney · mortgage broking

Direct hire offshore hiring FAQs

What is direct hire in offshore hiring?

Direct hire is an offshore hiring model where an overseas professional works as a dedicated member of your business rather than as part of a traditional BPO or outsourced staffing arrangement.You choose who you hire, manage their day-to-day work and know exactly what they are paid. Pear Tree recruits and vets the talent, then handles the local payroll, contracts and compliance required to engage them in the Philippines or South Africa.

How does direct offshore hiring work?

Direct offshore hiring starts with recruiting an overseas professional for a specific role within your business. You interview the shortlisted candidates, choose who you want to hire and manage them directly as part of your team.

With Pear Tree, we handle the offshore recruitment process and then support the ongoing engagement through a Contractor of Record (COR) or Employer of Record (EOR) structure. Their wages are passed through at zero markup, with Pear Tree's service fee shown separately.

What is the difference between direct hire and outsourcing?

The main difference is the relationship between your business and the person doing the work.

With traditional outsourcing, a provider may supply a service, team or amount of capacity and manage the people delivering it. With direct hire, you select a specific offshore professional who works with your business. You manage their responsibilities, priorities and performance directly.

What is the difference between direct hire and a BPO?

A Business Process Outsourcing (BPO) provider typically employs offshore staff and sells their services or capacity to businesses at a bundled rate. The BPO remains responsible for managing the employment relationship and, depending on the model, may also manage the work being delivered.

With Pear Tree's direct hire model, you choose and manage your offshore team member directly. Their salary is transparent and passed through at zero markup, while Pear Tree's service fee is charged separately.

Is direct hire the same as an Employer of Record (EOR)?

No. Direct hire describes the relationship between your business and your offshore team member, while an Employer of Record (EOR) is one way that person can be legally employed in their country.

With Pear Tree, an offshore team member can be engaged through either an Employer of Record (EOR) or Contractor of Record (COR) structure, depending on the arrangement.

Who employs an offshore employee under direct hire?

Under Pear Tree's Employer of Record model, Pear Tree acts as the legal employer in the offshore employee's country and handles payroll, statutory contributions and local employment requirements.

Your business manages the employee's actual work -  including their role, responsibilities, priorities and day-to-day communication.

How much does it cost to hire an offshore employee?

With Pear Tree, the cost consists of a one-off recruitment fee, your offshore team member's wages and a flat monthly service fee.

Wages are passed through at zero markup. Pear Tree's ongoing service fee is $400 AUD per person per month for Contractor of Record (COR) or $500 AUD per person per month for Employer of Record (EOR).

The employee's salary varies depending on the role, experience level and talent market.

Under Pear Tree's Employer of Record model, Pear Tree acts as the legal employer in the offshore employee's country and handles payroll, statutory contributions and local employment requirements.

Is it legal to hire employees overseas?

Yes, businesses can hire people overseas, but the engagement needs to comply with the employment, tax and contractor laws that apply in the country where the person works.

This is why businesses commonly use structures such as an Employer of Record or Contractor of Record rather than trying to manage overseas employment independently.

Pear Tree handles the local contracts, payroll and compliance associated with its COR and EOR arrangements in the Philippines and South Africa.

Can an Australian company hire employees in the Philippines?

Yes. Australian businesses can hire professionals based in the Philippines without necessarily establishing their own Philippine entity by using an appropriate local employment or contractor structure.

Pear Tree recruits professionals in the Philippines and can manage their ongoing engagement through Contractor of Record or Employer of Record services, including local payroll and compliance.

Can a New Zealand company hire employees in the Philippines?

Yes. New Zealand businesses can build offshore teams in the Philippines using an appropriate employment or contractor structure without necessarily establishing their own local entity.

Pear Tree handles recruitment in the Philippines and provides Contractor of Record and Employer of Record options to manage local payroll, contracts and compliance.

Can I hire employees in South Africa from Australia or New Zealand?

Yes. Australian and New Zealand businesses can hire professionals based in South Africa using an appropriate local employment structure.

Pear Tree recruits South African professionals and supports their ongoing engagement through Contractor of Record or Employer of Record arrangements, while your business manages their day-to-day work.

Do I need to set up a company overseas to hire offshore staff?

Not necessarily. Using an Employer of Record or Contractor of Record can allow a business to engage offshore professionals without establishing its own legal entity in that country.

Pear Tree provides this infrastructure in the Philippines and South Africa, handling the local contracting or employment, payroll and associated administration while the offshore professional works with your business.

How long does it take to hire an offshore employee?

The timeframe depends on the role and candidate market. Pear Tree typically screens 200–400 applicants per role before presenting a shortlist of around three to five candidates.

Once you have selected your preferred candidate, Pear Tree can typically have them set up and working within one to two weeks, subject to notice periods and onboarding requirements.

What roles can be hired offshore?

Businesses can hire offshore professionals across a wide range of functions, including administration, finance and accounting, customer service, marketing, sales support, construction support and other professional roles.

The roles best suited to offshore hiring are generally those that can be performed remotely with clear responsibilities, systems and communication between the offshore employee and the local team.

What happens if an offshore hire doesn't work out?

Pear Tree provides a six-month replacement guarantee. If a placement isn't the right fit during that period, Pear Tree will recruit a replacement at no additional recruitment cost.

This gives businesses the ability to build an offshore team while reducing the recruitment risk associated with a new hire.