What is

Direct Employee


Employees who are hired by a company and are paid through the company’s payroll.

What exactly is a direct employee, and how can you manage these types of employees on your distributed team? 

A direct employee works for a company or organization under an employment contract. They have a formal and direct relationship with the employer, which means they receive wages and benefits and are subject to the company's policies, rules, and regulations. 

Comparatively, indirect employees may work for third-party contractors, temporary staffing agencies, or freelancers who the organization does not directly employ. These types of employees an EOR service like Borderless can be particularly helpful in managing. There are a few hidden considerations to consider when working with indirect employees, and an EOR can significantly benefit your search. 

As direct employees, their roles and responsibilities depend on the specific job they hold within the company. Here are some common examples of what direct employees might do as a job:

  • Administrative Roles: Direct employees in administrative positions handle various office tasks, such as answering phone calls, managing schedules, coordinating meetings, and handling paperwork.
  • Sales and Marketing: Employees in sales and marketing positions promote products or services, reach out to potential customers, and close deals.
  • Customer Service: Direct employees in customer service roles interact with customers, address inquiries and complaints, and ensure a positive customer experience.
  • Production and Manufacturing: Employees in manufacturing or production jobs are involved in creating products, operating machinery, and ensuring the quality and efficiency of the production process.
  • Information Technology: IT employees manage and support the organization's technology infrastructure, including networks, software, hardware, and cybersecurity.
  • Finance and Accounting: Direct employees in finance and accounting roles handle financial transactions, maintain records, process payroll, and manage the company's financial health.
  • Human Resources: HR employees manage recruitment, employee onboarding, performance evaluations, employee relations, and other personnel-related tasks.
  • Management and Leadership: Managers and leaders within the company oversee operations, make strategic decisions, and guide their teams to achieve business objectives.
  • Research and Development: Employees in R&D roles work on developing new products, services, or technologies and conducting research to improve existing ones.
  • Operations and Logistics: Those in operations and logistics ensure the smooth functioning of supply chains, inventory management, and timely delivery of products or services.

It's important to note that the specific job roles and responsibilities can vary widely depending on the industry, company size, and the nature of the business. Each direct employee contributes to the organization's overall success and functioning.

How Can Borderless Help?

Managing a remote team is tough. At Borderless, we understand the ins and outs of global employment, including tricky topics like direct employees. We’re here to ensure you understand how direct employees impact both your payroll responsibilities as an employer and your legal compliance requirements.   

In over 170 countries, we can help you understand the different work cultures worldwide and act as your guide through your employees’ entire tenure with your company. 

Book a demo today to find out how we can help.