Where do employers look to staff their Virtual Teams?

Initially when a person is looking to staff a virtual team, there are many sources available. Monster.com is one of many online job listings that posts numerous Virtual Team openings. Many companies are turning to Virtual Teams for the flexibility that they provide. EWorks is a company that not only offers VT jobs but gives training and insight into Virtual Team management.

The monster.com Hiring Center has a lot of resorces for employers looking to staff Vitual Teams and the have published the article "Hiring Blind" that talks about creating a "committe" of current employees to help with the hiring of Virtual Team members.

How do employers evaluate people and skills?

Evaluation of Virtual Teams is carried out through progress reports and one on one discussion with members of the group. Scheduling meetings is difficult due to varying times that employees might be online for conferences. Managing Virtual Project Teams is a good tool for employers to learn what it takes to manage a Virtual Team. Annual conferences are also held to help facilitate dispersed teams that might stretch from country to country. The University of North Texas holds an annual event for individuals interested in online teams. You can find more information about their annual event here.

Non-Compete and Non-Disclosure Agreements

Any Virtual Team should seriously consider protecting its potential intellectual property, ideas, services and so on by entering into specific agreements with its VT members. The two basic agreements are Non-Compete and Non-Disclosure:

Non-Compete: The term "non-compete" means that the VT member shall not own, manage, operate, consult or be employed in a business substantially similar to, or competitive with, the present business of the VT or such other business activity in which the VT may substantially engage during the term of employment. This makes sense as you don't want to hire a member that is stealing business or stealing customers away to the competition. You should review this sample non-compete agreement.

Non-Disclosure: These "non-disclosure" agreements are just as important as the above mentioned 'non-complete' agreements. The last thing a VT needs is to spend many months or years developing a unique or patentable produce, only to have a member 'spy' steal that intellectual property and start their our company - or sell it to the competition. Examine this sample non-disclosure agreement.

State and National Borders Issues

There are generally two ways of making payments overseas: using a paper document like a check or money order or using what's called a wire transfer.

Checks are used mostly for lower value and/or non-recurring transactions since there can be a significant time lag between the time a check is written and when it is presented to the issuing bank for payment. The exchange rate is determined when the receiver deposits the check in his bank account. As an alternative, money orders can avoid the problem of non-sufficient funds and also offer the flexibility of purchase in some, but not all, foreign currencies.

Wire transfers, on the other hand, are direct, electronic bank-to-bank transfer of funds. Funds availability is verified prior to the transaction. Wire transfers do not "bounce" as a check might and are used primarily for high value transactions.

So, overseas workers might be paid a couple of different ways. A consultant, for example, you worded with on a single project might be paid directly with a check or money order. Any taxes would be their responsibility, to be paid according to the laws of the country they live in.

Alternatively, let's say you own a business in the U.S. and decide to open a branch office in, for example, Tokyo you would need to incorporate as a seperate business entity under Japanese law. You would then open an account with a Japanese bank, which could accept wire transfers of funds for operating capital to operate the business: pay overhead costs, buy equipment, enter into contracts for services, etc. Any employees you hire would be paid in the local currency. They would pay taxes and be subject to Japanese laws. Any profits the branch office generated could be wire-transferred back to the corporate office here in the U.S.