The actual cost of a bad hire is more than you think. According to the U.S. Department of Labor, this price is at least 30 percent of the first-year income earned by the employees. So, as an employer, while you are ready to make sufficient investment to onboard the best resources, at the same time, you also don't want to face losses out of bad hire.
Aware of bad hire costs, companies strictly stick to background checks as a part of their employee screening program. While for local or national level hiring, employers have satisfactory provisions for conducting background checks, but things get way more critical when hiring international employees. But if your company is aiming to expand borders for gaining a solid global foothold, then international hiring is indispensable for your organization. So what is the easiest and effective way of international hiring? Are you aware of the complexities involved in background checks of the international talents you intend to hire? Does your organization have relevant experience or networking, or tools to overcome these complexities?
Various Reasons Lead to International Hiring Background Check Complexities
Companies seek background verification at four levels of hiring, viz criminal records, education verification, employment verification, and credit reports. It isn't easy to pinpoint one single or exact reason that complicates background verification in a particular country as the reasons may differ from country to country. Yet, collectively some of the key reasons to site here are:
- Country-specific complex screening laws that prohibit any agencies from obtaining records
- Country-specific stringent labor laws
- Complexity in collecting documents from applicants
- Digital records of applicants are not available.
- Extreme delay in turnaround time (TAT) by local agencies to complete the screening process
- Heavy establishment cost involves an international background check
- Lack of centralized global criminal database
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International Hiring Background Check Complexities Differ from Country to Country
When it comes to the background check of international employees, the main challenge is that the employers are least familiar with the country-specific local law and regulations surrounding background checks.
For instance, Japan is a hotspot for any employer searching for globally distributed tech talent. Still, the country allows limited flexibility to international employers in regards to background verification of their people. In Japan, both civil and criminal courts are strictly confidential. Thus conducting criminal checks of their native people is way more complicated than in the United States. The same is true for matters like drug screening. Not just that, Japan is also very particular and stringent about the protection of labor rights. Thus, even the personal data and employment records of the native people are kept confidential. This doesn't mean that it is impossible to get hands-on with those pieces of information, but employers may need to approach them in a much different way.
Other countries with high background screening complexities are South Korea, India, Malaysia, Vietnam, and Pakistan. In Australia, drug screening is a complex affair.
Employer of Record (EOR) Can Help You With The Hiring And Managing Of International Employees
So, what is the way out for companies or employers to overcome the complexities in international hiring? How can a company get local accessibility into background verification processes necessary for hiring international employees? Here, partnership with an Employer of Record (EOR) can help. However, the services of an EOR are not limited to background verification only.
An EOR is a third-party talent solution provider that serves as an intermediary in an employer-employee relationship. EOR caters to the team-building requirements of companies and offers end-to-end solutions, including international background check/verification. Thereby, it enables businesses to connect with deeply vetted resources like product managers, software engineers, data scientists, digital marketers, including others. So, through an EOR, you get international employees to work for you. At the same time, all the employment-related tasks and liabilities like talent search, background verification, documentation, hiring, tax purposes, etc., are managed by the EOR. Services of EOR are beneficial for any business that has plans of global expansion or that wishes to hire international talents.
Range of Services Offered by EOR
You can outsource your team-building requirement to an EOR. It will take up all the necessary proceedings of talent acquisition to provide you with a talented, vetted, and reliable workforce. You can approach an EOR with all types of team-building requirements such as Full-time workforce, Contractual workforce, and Remote team. The prime responsibility of an EOR is to ensure that you have a committed and reliable workforce, and in that regards, it offers a range of services such as:
- Talent search as per the specific requirement of the client company
- Conducting background checks for shortlisted employees
- Hiring, onboarding, and managing international talent
- Processing or dismissing the employment contract on behalf of the client company
- Managing the documentation of the employees
- Handling all types of communication with the employees
- Handling the taxation details and issues of the employees
- Managing the payroll services on behalf of the client company
- Addressing different types of employee claims, such as compensation claims, tax claims, etc.
- Resolving employee complaints as per the client company’s policies
Key Advantages of EOR Services
As mentioned above, hiring international talent, especially vetting their records, is a tight rope walk. And it gets challenging for businesses to do the needful in compliance with local regulations that differ from country to country. Companies often don't know where to start; they lack relevant contacts, making the entire process time-consuming and financially draining.
EOR services are specifically designed to address these problem areas while maintaining complete compliance with all the mandated regulations. An EOR leaves the management stress-free by taking up the international employment-related responsibilities and liabilities, that too, without hindering the busines's working in any manner. Other key advantages are service cost-effectiveness and payment convenience. Since an EOR functions through a good network and takes up projects from multiple clients, it successfully establishes cost-effective and faster-processing channels for getting things done.
Also Read: How To Choose The Right Employer Of Record (EOR) For Your Business?
Progress in technology, infrastructure, and communication has made remote teams all the more functional. This has shaded the geographical boundaries in the talent pool. Thus, employers like you have access to the best international talent, especially if you are eyeing a global business expansion. Specialized skills, business expansion, or cost-effective rates, whatever is the reason for hiring international talent, employers worldwide have the provision for connecting, interview, hire, and onboard international employees.
But as mentioned above, you don't want to get duped by a bad hire. Thus, hiring someone without a thorough background check should not be your way of talent acquisition. And background check is not something as simple as taking an interview over Skype or a Zoom call. With the assistance of Skuad, a dedicated and experienced EOR, you can fix your worries like where to find good international talent, how to hire and onboard them, and how to conduct their background verification. Not limited to background verification, Skuad offers comprehensive and end-to-end talent solutions that enable employers like you to reach out to globally distributed but deeply vetted tech talents.