HR manager's guide on how to hire globally

Key takeaways

• Learn about your options: You can hire talent by creating your own legal entity, working with an employer of record (EOR), or engaging independent contractors.
• Find the best choice: Each hiring method serves different purposes. An EOR can support faster hiring without entity setup, contractors can fill project-based needs, and a local entity provides direct control but requires more resources.
• Improve your hiring process with technology: When hiring globally, use tools like applicant tracking software and AI agents to optimize your strategy.

If you're interested in hiring globally, you have three main options: using an employer of record (EOR), creating a legal entity, or working with independent contractors. Each method for hiring global teams serves different business needs and impacts your timeline, budget, legal protections, and control over the hiring process. The good news is that your approach can evolve as your international footprint grows.

Let’s explore the basics of global hiring, so you can tailor your strategy to suit your needs.

3 ways to hire global teams

1. Use an employer of record (EOR)

An EOR allows you to hire employees globally without having to set up a new legal entity. EORs handle the legal complexities, manage payroll for your global teams, and complete all compliance paperwork. Your company maintains control over day-to-day work management, while the EOR handles employment logistics and ensures compliance.

Best for: Quick hiring decisions, testing new markets, small teams across multiple countries

2. Create a legal entity

Creating a legal entity means establishing your own company branch or subsidiary in-country to hire global employees directly. While this approach gives you complete control, it requires a lot of time and investment. You'll need to learn how to navigate and comply with all local employment laws and regulations for each location you hire in.

Best for: Long-term expansion plans, large teams in strategic markets, permanent market presence

See the differences between an EOR and a legal entity.

3. Work with independent contractors

Independent contractors provide specialized services for your company without the commitment of full-time employment. Many countries let you hire independent contractors without setting up a local entity

This global hiring option offers the fastest path to specialized talent for project-based work, but misclassification risks arise if you treat contractors like traditional employees.

Best for: Project-based work, specialized skills, non-core business functions

Hiring decision tree: comparing your options

What to compare	EOR	Legal entity	Contractors
Speed to hire	Days to weeks	Months to years	Immediate
Starting cost for hiring global workers	Low	High	Low
Amount of work for your HR team	Low	High	High
Legal risk for your company	Low	Low (if done right)	High (worker misclassification)
Scalability for global teams	Very easy	Somewhat easy	Very easy
Intellectual property protection	Strong	Requires careful contracts	Requires careful contracts
Worker experience	Excellent (with right partner)	Excellent (with thoughtful approach)	Mixed

The steps of hiring globally

Regardless of whether you choose to work with an EOR, create your own entity, or hire contractors, there are some hiring details you'll always need to consider. Here's what to think about when you're working on a global hiring project.

Managing global payroll and taxes

Global payroll depends on the worker’s country, employment model, and classification. Payroll may include income-tax withholding, social insurance, statutory contributions, paid leave, and other required benefits. An EOR or local payroll provider can calculate deductions, make required payments, and submit filings.

If you hire through your own entity, you’re responsible for accurate payroll records, deadlines, and local reporting. Contractor payments may follow different rules, but you should still confirm withholding, invoicing, and tax requirements before you hire international workers.

Preparing documents for global hiring

Document requirements vary by country, but a practical checklist includes:

• A signed employment or contractor agreement
• Proof of identity and local address
• Tax identification and bank details for payroll
• Right-to-work or work authorization documents, where required
• Emergency contact and required benefits information
• Any role-specific licenses, certifications, or background-check consent

Collect only information required by local law, store it securely, and confirm whether documents need translation, notarization, or local-language versions.

Setting compensation for international hires

A strong global compensation strategy balances company-wide consistency with local market standards. For best results set pay using local market data rather than converting a home-country salary directly into another currency.

Review the role, seniority, location, currency, statutory benefits, required allowances, and local pay-frequency rules. A competitive package may include private benefits or equity, but these can have different tax and reporting treatment in each country. Document how you review exchange-rate changes and compensation adjustments so international hires get a clear, consistent offer.

Onboarding and managing global employees remotely

Before a remote employee starts, finalize the compliant contract, payroll setup, required benefits, equipment, system access, and data-security training. Build onboarding around the employee’s time zone and include local policies, holidays, leave rules, and communication expectations.

Managers should set clear goals, schedule regular one-to-ones, document performance feedback, and create opportunities for collaboration across locations. This global onboarding approach helps dispersed employees contribute quickly while supporting consistent remote management.

Checking employment verification and work authorization

For international hires, confirm the equivalent right-to-work requirements, employment contracts, payroll registrations, and local employment-law obligations before the start date. Requirements differ by country, so obtain qualified local guidance when the hiring model or worker’s status is unclear.

Creating a global workforce with helpful tools

While global hiring has always existed, modern technology has made the process easier than ever. If you want to make hiring as stress-free as possible, consider some of these helpful options:

Integrated central HRIS

A centralized Human Resources Information System (HRIS) can help global HR teams manage employee records and workforce data in one place. Depending on its capabilities and integrations, an HRIS can connect payroll information, time-off requests, onboarding records, and reporting across locations. Make sure the system has appropriate privacy and security controls for handling sensitive employee data.

Localized ATS

An applicant tracking system (ATS) can help global HR teams organize candidate information and maintain a consistent hiring process across locations. When supported, connect your ATS with localized contract generation and onboarding workflows to speed up hiring and reduce repetitive administrative work.

Global HR agent

Double-check that your hiring is compliant with local laws through an AI-powered global HR agent like G-P Gia™. Gia draws from expert-vetted sources to provide global HR and compliance guidance across 50 countries and 50 U.S. states.

AI-assisted contract audits

AI tools can help review lengthy contracts, flag missing or inconsistent terms, and summarize complex localized language. These capabilities can save HR teams time and money.

Choosing the right global hiring option

Learning how to hire globally involves choosing the best approach for your business. Many HR departments prefer EORs for quick market entry, legal entities for long-term commitment, and contractors for specialized projects. Ultimately, your hiring decision should balance urgency, budget, and strategic goals.

Hire globally with G-P

Our Global Employment Platform and its AI-powered products, EOR, Contractor, and Gia, enable companies of all sizes to build and manage global teams.

With more than a decade of experience, the largest team of HR, legal, and compliance experts, and a global proprietary knowledge base, G-P is the recognized leader in global employment.

Book a demo to see how G-P can support your global goals.

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