Thinking about hiring contractors in Singapore but unsure of how to pay them? The key to success for many small businesses is maintaining a dedicated network of international contractors. There are highly skilled workers in Singapore eager to provide much-needed services to business owners. But how can you get them paid?
Bank transfers have been the standard for sending international payments, but they’re time-consuming and not always accessible. When it comes to paying independent contractors in Singapore, it’s smart to research all options to make sure payment is convenient for everyone involved. Choosing an efficient, cost-effective payment method won’t only save you frustration and money, it also generates goodwill with contractors.
Why hire contractors in Singapore?
Singapore has a free-market economy, and it’s one of the most stable in the world. Many business owners find that Singapore has a very well-educated, industrious workforce, and there’s no shortage of contractors with specialized skills, including programming, engineering, administrative, accounting and more.
One of the best benefits to hiring contractors in Singapore is that they’ve generally been in the business for a long period of time. They can hit the ground running and provide immediate solutions for your business. This is especially important if you have urgent projects—an experienced contractor can start immediately and provide you with instant results. There’s no time wasted on training or getting a new hire up to speed.
While Singaporean contractors generally come at something of a premium compared to other countries, you’re paying for extremely reliable talent.
Currency and transfer considerations
While researching the best ways to pay an independent contractor in Singapore, keep in mind that there will be currency barriers to transactions. As of May 2021, every United States dollar (USD) equals 1.33 Singapore dollars (SGD). A currency conversion needs to happen either before or after the payment is sent. This can be a costly fee, and whoever’s on the receiving end won’t be pleased.
Singapore is a well-developed state, and it’s highly likely that contractors have access to banks. Despite this, it’s often a hassle for contractors to get to the bank to receive or deposit funds. They generally prefer receiving payments with digital apps—it gives them access to payments at the touch of a button.
Ways to pay contractors in Singapore
There are many ways to pay contractors in Singapore, each with pros and cons. In general, when it comes to paying contractors, they appreciate speed and ease of receiving the payment. If you’re sending regular payments to contractors, get acquainted with the most common ways to send funds internationally.
- Wire transfers. This form of payment is fast and reliable, but the receiver can only accept the payment as cash and the fees can be very high. It’s ideal for one-time payments but can get costly if you’re making regular payments.
- Check or money order. Physical checks and money orders are generally safe forms of payment, but they’re inconvenient for both the sender and the receiver. They’re much slower than online payments.
- Bank transfer. Many banks in the U.S. offer international transfer service, but the exchange rates are often expensive, and it takes a long time to process. These payments are ideal if you need to send one large sum but might be too costly for recurring payments.
- Digital payments. If you’re looking for simplicity and low fees, digital payments are often your best option. They offer rapid funds transfer and allow contractors flexibility to send the funds to whatever bank they choose.
Determine which payment is best for the needs of your business, as well as the contractor. While each payment method has pros and cons, there’s one option that’s reliable, affordable and stands out among the rest: digital payments.
The best way to pay independent contractors in Singapore
While many Singaporeans have access to banks, and the banking system itself is one of the safest in the world, contractors always appreciate instantaneous access to payments. There’s nothing as quick as digital payment systems like Veem. It’s the easiest, most-efficient way to make sure contractors get paid as quickly as possible and at the full amount they deserve.
Global contractors are often the key to success for small businesses. It helps them stay competitive and keep labor costs down without sacrificing the quality of work. Paying a contractor on-time and at the agreed amount is key to building a great working relationship for your business.
While there are plenty of options to get money into the hands of contractors, it’s best to choose the fastest one that gives the recipient control over the money they’ve rightfully earned.
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