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Talent acquisition has changed dramatically over the last two years. With remote work gaining popularity, companies no longer view it as a benefit, but a necessity — opening a new field of hiring possibilities. Now that borders are no longer barriers to securing the best talent, why aren’t you hiring internationally?
Yes, it can be scary navigating international waters, and there are lots of requirements and regulations to deal with, but there are also many solutions designed to make the process easier and smoother.
The first thing companies need to do is dispel some of the misconceptions and fears surrounding international hiring. Here are five of the most common misunderstandings that are holding companies back and preventing them from expanding their hiring horizons.
1. “You can’t hire in another country without setting up a local entity.”
Many believe you can’t build an international team without establishing a legal entity in the target country. While some companies can easily do so, many others find the process to be extremely complex due to the multiple capital requirements involved — and the lack of expertise in local labor laws, taxes, compliance, and risk management also makes it a time-consuming process that can take up to a year or more.
Good news is, your company can hire the best talent, regardless of location, with the help of an Employer of Record. An Employer of Record has entities set up and serves as the legal employer on behalf of your company. Moreover, with Globalization Partners’ global employment platform, you can automate processes like contract generation, payroll setup, and onboarding — expediting complicated tasks that would otherwise take months.
2. “It is too expensive.”
Hiring international employees can affect your budget, but not hiring abroad can also cost your company a lot of money.
Taping into global markets was once a logistical nightmare that put companies off the idea of expanding their horizons. All the costs involved in building an international team are an expense some companies simply can’t afford without the help of a strategic ally.
Nowadays, a global employment platform like G-P’s is the most cost- effective solution to hire employees abroad. Not only can you cut hiring costs by avoiding entity set up — not to mention the burden of dealing with tax, legal, and HR matters — but growing your team globally means adding a key value to your workforce: diversity. According to a report by Mckinsey, diverse global teams make more money. By hiring internationally, you can make up for any costs associated with global growth.
3. “It is too risky.”
Compliance mistakes are always a potential risk when hiring international employees. Many companies lack expertise and experience when it comes to navigating local labor laws, taxes, contracts, and worker classification. This exposes companies to sanctions and penalties for failing to comply with in-country requirements and regulations.
However, risk can be mitigated with the help of a global employment platform [MB20] [AV21] that will tackle all the legal complexities and manage potential risk. Our in-country HR and legal experts will make sure you are fully compliant whenever you decide to scale your company.
4. “Communication barriers are difficult to overcome.”
In the past, communicating with people in other countries was complicated, expensive, and impersonal — making it unimaginable to hire international employees. Today, with all the collaboration tools and technology out there, long-distance communication is easier than ever. Resources like video calls bring teams together, regardless of location, so communication feels more personal and immediate. However, it’s important to not only secure the right tools; an effective communication strategy for dispersed teams is key.
G-P’s global employment platform breaks down barriers by providing technology to simplify the connectivity between global teams, streamlining communication to increase productivity and performance.
5. “Cultural differences divide teams.”
Cultural differences impact global teams, but companies that learn to bridge them will find that these differences enrich and add value to their business. It takes awareness and sensitivity, but it is attainable. Harnessing the potential of these differences also requires cultural competence, which is a crucial factor to understand, communicate, and manage multicultural teams.
G-P’s global employment platform can help you build and manage an international team to unleash the power of diversity and turn it into one of your top strengths.
Once companies overcome these misconceptions, they will realize that hiring internationally allows you to:
1. Evade local talent shortages
According to a study by Korn Ferry, the global talent shortage could result in a deficit of more than 85 million workers by 2030. But, in reality, there is talent everywhere.
The biggest benefit of hiring internationally is that you are no longer constrained by your local talent pool and can hire employees purely based on talent — anywhere in the world.
2. Enter new markets
Hiring international talent gives companies the opportunity to access new markets and showcase their service or product to a new audience. Growing into a new market while onboarding local talent in that region gives companies valuable insight. In-country expertise and skill sets are key to understanding each unique business culture and consumers needs.
3. Increase productivity
By hiring an international workforce and bringing different time zones together, you’re setting up an office that runs 24/7. This helps you increase productivity and instill credibility among clients and/or consumers. It also mitigates any delays or slow turnaround caused by lack of availability.
4. Improve employer brand
International companies have better reputations. Those that hire across borders and have a strong, proactive international team are often seen as easier to work with, more empathetic, and more socially responsible. This improves their employer brand, which helps them attract and retain the best global talent.
5. Enrich workplace culture
An international workforce helps build a rich and more fulfilling workplace culture for all employees. Sharing different global perspectives and ideas benefits teams and leads to better employee morale as well as a positive reputation, which in turn can strengthen your talent acquisition efforts.
Hiring international employees doesn’t have to be a complex process. Globalization Partners’ AI-driven global employment platform can help you hire, onboard, and manage your international team while you focus on scaling your brand.
Contact us and start hiring today!
