Hiring international employees has been a practice for years. The increase in remote opportunities has accelerated the growth of global hiring, giving companies more opportunities to access top talent locally and internationally. Besides accessing the best talent, hiring from different countries brings many benefits.
Read this guide to learn more about global hiring benefits and best practices to choose the best global hiring solutions for your organization.
Benefits of Hiring Global Employees
Access to Top Talent Worldwide
Global hiring allows you to hire employees from every corner of the world, not just in your local area. This gives you access to a much larger talent pool and lets you hire candidates based on talent instead of physical proximity.
Expanding Your Business
You may find that other countries have target markets that better match your business needs. Or you may want to keep your competition from snatching the international market share that you know you can have. Hiring qualified local talent in those countries can help your company expand faster. In other cases, you may not have enough domestic employees to keep up with your company’s growth. Having a local workforce to manage operations and carry out initiatives can be more time- and cost-efficient.
Increase Diversity and Cultural Awareness
Global hiring lends itself to increasing diversity in your workforce. Besides having the opportunity to work with professionals worldwide, your teams also have a chance to learn more about different cultures. Added benefits of having a diverse workforce include various perspectives on solving problems, higher employee engagement, and access to local contacts.
Save on Expenses
Looking internationally to hire expands your options when finding the best candidates to fill vacant positions. By initially choosing and hiring candidates that are a better fit, you end up with loyal employees who are more likely to stay with your company. This reduces turnover rates and the need to rehire for the position, saving you hiring costs.
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Global Hiring Best Practices
Global hiring benefits your company and teams, but hiring international professionals can be more challenging than hiring domestic workers. When hiring employees from other countries, you need to understand the local laws, customs, and common expectations around employment to ensure a smooth recruiting process. The following hiring best practices will prepare you to start hiring employees worldwide.
Consider Logistics and Timeline
Every country has its employment laws and requirements that organizations must meet to ensure the employee/employer relationship is legally compliant. You must comply with regulations in the country of hire and your company’s country to avoid serious legal ramifications. Common laws relate to social security contributions, taxes, and employee protections such as sick days and leaves.
You most likely must apply for and secure visas and work permits for employees you want to hire. These processes take time and a good understanding of each country’s laws. Consider starting the hiring process early, as you may encounter delays when applying for documents and may need more time to find the right candidate.
Use Your Tools and Resources
You must be thoroughly versed in relevant employment laws, market salary rates, and other employment information for the country you’re looking to hire in. After you’ve hired the right candidate, you need assistance onboarding and managing these local employees. It can be challenging to stay updated with everything regarding laws and on-the-ground operations.
That’s why it’s vital to use tools that let you communicate and collaborate with various teams. You may meet with your legal teams to discuss international work or communicate with your finance personnel to discuss tax requirements. Having the correct tools and resources in place can help you with communication, payroll, and compliance. A Global Employment Organization provides valuable tools for global hiring solutions.
Assess the Local Market
Before you enter a new market and hire employees in that country, you want to check if expanding into the market makes sense for your company and the talent you need. Choosing the best candidate may be difficult if the market is already short on a certain type of worker. On the other hand, if there’s an ample supply of that particular talent, you can choose from a larger pool of qualified candidates.
Additionally, you want to understand the average turnover and productivity rates to establish realistic expectations. Lastly, it would be best to consider the cost of living in your country of hire to set the appropriate budget for your new hires. A reasonable salary in one country may not be a sufficient wage in a different country.
Understand Cultural Customs
When entering a new talent market, especially an international one, you must first understand common customs and tailor your behavior accordingly. For example, appropriate speaking and body language manners vary from country to country. Demonstrating awareness of this and acting accordingly shows respect for the different cultures and will go a long way in building successful relationships.
Keep organized documentation of all actions, meetings, and goals, so you’re prepared if asked for these documents during the regulatory process. You can easily save your important documents on a unified platform like Skuad.
Steps To Follow When Hiring Globally
Here are some steps to prepare you for hiring international employees:
- Engage in Planning and Due Diligence: You’ll want to ensure your international recruitment process aligns with your company’s business goals and needs. Strategize with leadership and essential stakeholders to develop a plan for setting up processes and operations in the countries you want to hire.
- Understand the Country and Its Culture: Research the factors that will affect your ability to recruit internationally, such as local regulations, labor laws, taxes, and currency exchange rates. Each country has laws regarding recruiting and hiring candidates, so ensure you understand and comply with the legislation.
- Obtain Necessary Documents: Many countries require that you secure work visas and permits for international employment. Review your role requirements with your legal and HR departments to determine which forms you need to apply for. Countries also recognize different employment types (e.g., employees vs. independent contractors) and may require employment contracts to reflect that.
- Define Your Roles: Before you write out your job description, think about the skills, mindset, and experience that your ideal candidate should possess. Your job description should clearly outline the position’s responsibilities and comply with your country of hire’s regulations, which include necessary disclosures, IP rights, and employee protections.
- Screen and Interview Candidates: Comply with anti-discrimination laws as you screen applications. Interviewing internationally means paying attention to the different time zones and scheduling interviews at times that work for both parties.
- Manage Payroll Requirements: Each country has specific labor laws that mandate minimum wages, paid vacation, sick days, leaves, insurance, pensions, and bonuses. Set up your payroll so that you can make the necessary deductions and pay your employees on time in their local currency.
- Offer the Job: When you make a formal job offer, you may want to use the local language to clarify all of the expectations and responsibilities and make the new hire feel welcome.
- Onboard New Employees: You’ll need a convenient and reliable way to onboard new employees, including setting up payroll services and giving technological access.
Working with a global employment organization like Skuad to recruit and hire international employees can make the process simpler and more streamlined for you.
What You Need To Know Before Choosing a Global Employment Platform
A global employment platform can help you take care of many logistics in international recruitment. When deciding which global employment platform to choose, you must first find out if your company has a legal entity in the country you’re looking to hire. If you do, you can partner with platforms that offer professional employment organization (PEO) services to manage your HR administrative tasks. If you don’t own a legal entity, you must legally use an employer of record (EOR) service to legally hire global employees.
PEO and EOR service providers can help you manage payroll and comply with the country’s benefits, tax withholdings, and social contributions laws. Some also help with contract drafting, onboarding, probation, and terminations. Because global employment platforms may vary in pricing and services, decide which ones you need for your business and how much budget you have to afford them.
Skuad – A Global Employment and Payroll Platform
Skuad is a global employment and payroll platform that offers Employer of Record services to help you quickly hire and pay your international employees without setting up a subsidiary. With an extensive network in 160+ countries, Skuad lets you onboard and manage employees and contractors on a single interface. Skuad allows you to pay your international employees through a single invoice and ensures that your company’s IP rights are protected. With consistent pricing no matter which country you’re hiring in, Skuad provides a fast and affordable way to start hiring internationally immediately. Contact our expert team to kickstart your global expansion and begin hiring today.