Your Trusted Partner for Recruitment in Thailand

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Thailand more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Thai talent market, giving you a significant advantage in securing the right candidates.

We know where to advertise your job openings to ensure maximum exposure and attract the best talent. Additionally, we assist in designing competitive, locally-appropriate compensation packages that not only appeal to top candidates but also help you optimize costs. 

Get in touch with us to navigate Thailand’s recruitment landscape with confidence and ease.

Key Takeaways

  1. Thailand’s growing economy, investment incentives, and lower cost of living make the country attractive for foreign investors and expats.
  2. However, Thailand has intricate labor laws and is not always a straightforward environment for non-Thai businesses or employees.
  3. Thai recruitment agencies can help employers navigate these challenges and a tight local labor market. 

As a newly industrialized upper middle-income country with the second-largest economy in Southeast Asia, Thailand’s strategic location also provides access to the fast-growing economies of China, India, Indochina, and the rest of ASEAN. 

Thailand’s 66+ million people are well-connected by excellent rail, road, port, and airport connections (that also connect with the rest of Asia). In addition, the economy has grown steadily since the 1960s – lifting millions of Thais out of poverty – and continues to grow fast as the government offers numerous incentives to attract new foreign investors. 

Thailand’s economy is heavily dependent on exports that account for 2/3rds of its GDP as the country is the largest exporter of computers and related electronic components in ASEAN, the regional leader in automotive production and sales, a competitive and diversified agricultural and processed food exporter, and the world’s second-largest exporter of rice. Thailand is also among the top 10 tourism destination countries and the top 10 for medical tourism. 

However, there is a talent crunch, and attracting and retaining skilled professionals (especially those who speak English or Chinese) can be difficult. While some manufacturers are increasingly relocating to countries where labor is more plentiful or cheaper, others are automating their Thai factories with robots – increasing the demand for more skilled employees. 

Overview of the Thailand Recruitment Industry

There are hundreds of licensed local and international recruitment agencies in Thailand. However, many Thai recruitment agencies focus on recruiting workers for manufacturing, construction trades, and other general types of employment. In contrast, others concentrate on deploying Thai workers abroad to places like Taiwan or the Middle East.   

Thai employees at all education levels are generally tech-savvy and know how to apply for jobs using digital tools. Popular local job boards include jobsDB.com, jobthai.com, jobth.com, Jobtopgun, and Monster Thailand, while LinkedIn is also widely used – especially for recruiting local English-speaking professionals and foreign expats.

Scale Your Team with
Expert Headhunters in Thailand

Having trouble finding top talent in Thailand? Partner with us, and our expert headhunters will connect you to the right candidates to accelerate your growth.

Get Your Customized Proposal

What Are the Benefits of Recruiting in Thailand?

Thailand’s standard corporate income rate is 20% (but may vary depending on the taxpayer type) – among the lower rates in Asia. The cost of living and doing business also tends to be lower than in other Asian countries (especially Singapore) – making the country attractive to foreign expats and for regional operating headquarters to be based. 

Thailand has a variety of policies to help new SMEs and attract foreign investment. The Thailand Board of Investment (BOI) promotes start-ups and projects in desirable sectors, while Special Economic Zones (SEZ) offer excellent infrastructure, one-stop services, lower taxation, access to foreign labor, and other investment incentives. 

Thailand is also the subject of several agreements with ASEAN, Australia, Japan, and the USA to encourage foreign investors from these countries or regions, and there are tariff-free trade agreements with major global economies as well as the ASEAN community.     

Legal and Other Considerations When Recruiting in Thailand

Labor law in Thailand is governed primarily by the Ministry of Labour under the Labour Protection Act, B.E. 2541 (1998), along with several other acts of parliament, Ministerial regulations, and decrees (from the Monarch).

However, Thai labor laws only protect workers in the formal labor sector – not the country’s large migrant worker population who are often employed illegally and in poor workplace conditions. Foreign businesses must be careful about hiring such workers and follow proper procedures.

Thailand has an aging population (a reason the country has many migrant workers from the neighboring countries of Myanmar, Cambodia, and Laos) and a low-skilled workforce that is mostly not fluent in English. Studies have also found that Thai workers are less productive than some of their ASEAN counterparts.

Nevertheless, foreigners cannot work in certain occupations but are entitled to the same rights and benefits as Thai workers. Foreigners must also have a valid visa (Non-Immigrant ‘B’ or Business Visa) and a work permit.

Thai employment contracts can be oral or written fixed-term or permanent contracts. They should cover important employment conditions (such as the role and responsibilities of the employee, period of employment, salary, benefits, and termination conditions).

However, if a clearly defined employment contract is not in place, the Thai legal system will often rule in favor of the employee. Therefore, employers should avoid using generic online employment contract templates or the same contracts used in other countries that may not comply with Thai labor law.

In addition, Thailand can be a more bureaucratic, complicated, and less transparent or straightforward environment than developed countries like Singapore. Foreign businesses must be extremely well documented in all matters (e.g. employment, tax, etc.) to avoid problems.

Thai culture values harmony and conflict avoidance, which leads to indirect communication and a focus on maintaining face. Punctuality and formality are expected in business, and how someone presents themself will correlate to their professional standing.

Collectivism, teamwork, seniority, and respect for authority are important in Thai business culture, while decisions are typically made at the top (with lower-ranking employees having little say). Employee compensation and benefits can also significantly increase when employees move up the corporate ladder or have fluency in English.

However, Thai professionals are increasingly seeking work that offers a better quality of life or work-life balance (e.g. flexible working hours, work-from-home arrangements, etc.) and opportunities for career advancement rather than just financial compensation.

Thai job candidates, especially those accustomed to working for foreign companies, also prefer a seamless, efficient, honest, and punctual recruitment process. A negative experience or a disorganized recruitment process can often lead to Thai candidates rejecting an otherwise attractive job offer.

To ensure full compliance with these regulations, it may be worth working with a Thailand recruitment partner that also offers Employer of Record compliance services. 

Choosing a Recruitment Agency in Thailand

Regulation of Recruitment Agencies in Thailand

The Employment and Job Seekers’ Protection Act regulates the activities of recruitment agencies in Thailand, and there are local and international recruitment licenses (for the deployment of Thai workers abroad). Businesses seeking a reliable recruitment company in Thailand often navigate this regulatory framework to ensure compliance and successful hiring.

Ownership and Office Requirements

The majority of shareholders and any director authorized to sign for recruitment agencies must be Thai nationals. The recruitment agency must have an office size of at least 16 square meters (separated from other organizations). The front of the office must display the company name, and a landlord letter of consent must confirm the property can be used for recruitment purposes. Additionally, a security deposit of 100,000 Baht in cash or with a letter of guarantee is required.

Recruitment License Fees and Renewal

The recruitment license fee is 5,000 Baht and is valid for two years from the date issued. The agency must renew the license no less than 30 days before its expiration date.

Recruitment Agency Fee Structure

Depending on the seniority and complexity of the role, Thai recruitment agencies typically charge 18% to 27% of an employee’s annual salary. More senior or harder-to-fill positions, or those handled by traditional executive search agencies, will tend to be at the top of that fee range or higher.

Caution for Unskilled or Temporary Positions

For unskilled or temporary positions, foreign employers must be careful about hiring migrant workers from local recruitment agencies. Some agencies charge employees excessive, hidden, or exploitative fees. In such cases, agencies may have disclosed and undisclosed agreements with employees, with the undisclosed agreements being exploitative and possibly illegal.

Thailand’s Recruitment Challenges

Despite its share of recruitment, business, and cultural challenges, Thailand remains attractive for foreign investors and expats willing to navigate these challenges. Finding a professional recruitment company in Thailand can be key to overcoming these obstacles and securing top talent efficiently.

Recruit Top Talent Across Asia-Pacific with Our Recruitment Expertise

Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a reliable recruitment agency ensures you stay compliant with local labor laws, streamline the hiring process, and secure top talent. Learn how Remote People can help you recruit in the following countries:

Recruitment Coverage in Asia-Pacific
Armenia Australia Bali
Bangladesh Bhutan Brunei
Cambodia China Fiji
Georgia Grenada Guam
Hong Kong India Indonesia
Japan Kazakhstan Kiribati
Kyrgyzstan Laos Macau
Malaysia Maldives Marshall Islands
Micronesia Myanmar Nauru
Nepal New Zealand Pakistan
Palau Papua New Guinea Philippines
Pitcairn Island Saint Kitts and Nevis Saint Lucia
Saint Vincent and the Grenadines Samoa Singapore
Solomon Islands South Korea Sri Lanka
Taiwan Thailand Timor-Leste
Tonga Trinidad and Tobago Turkmenistan
Tuvalu Uzbekistan Vanuatu
Vietnam

When you are ready to recruit for the best talent in Thailand, Remote People can assist your firm. Contact us today to discuss your recruitment needs and discover how we can help you in achieving your Thailand  recruitment objectives.