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Expanding your company workforce into global markets is easier than a decade ago, but you still need to have the right strategy in place.
One of the great benefits of hiring in a globalized business world is having access to a gold mine of workforce talent that was unavailable just a decade ago. Often diverse, motivated, and flexible, when it comes to hiring global employees in new markets, large companies have never had it so good.
But with great choice comes great responsibility.
If you’re a head of HR or recruitment, having so much global talent within reach is exhilarating, especially in the tech market with its new generation of developers and engineers. But you also need to make sure you’re getting the best options for your company.
Knowing how to hire international employees is no easy feat and comes with a range of potential difficulties, including:
Nailing that employee-to-business fit, then, is more important than ever, especially in the professional services and tech industries, which suffer from above-average employee turnover rates, according to LinkedIn research.
The key to find and retain the right workers is to get the hiring process spot-on. Global expansion of your workforce doesn’t count for much if you don’t hire the right international employees that will help drive your company forward.
It calls for a recruiting system that utilizes the power of local scouting networks in different countries to find and screen remote employees.
It also calls for professional expertise that avoids misclassification and compliance issues.
And above all, it calls for a streamlined approach that cuts down on the time, costs, and paperwork that bogs down many foreign hires.
In this article, we’re going to discuss just how to hire international employees in a busy modern-day tech and business environment.
Tap into the best remote worker talent the world has to offer, without the costly red tape. Book a call with Remoti’s team today to find out how our embedded talent platform hunts, hires, and handles the quality employees that will help your global workforce grow.
‘Global expansion’ may seem like a daunting task to have in your intray, especially in the ever-competitive tech markets, but the world’s shift toward remote working since the start of the pandemic has led to more recruitment possibilities than ever before.
Companies who have a sensible action plan for hiring global employees can build a formidable competitive advantage over slower rivals.
Here’s how to go about it.
A detailed and accurate market research stage can save a lot of time and money later on.
The two key building blocks for this are 1) identifying the exact type of remote worker you’re looking for, and 2) having an in-depth knowledge of the market you’re searching in so that you know how to find them.
The first part is tricky. Is it worth hiring a remote employee (with the contractual nuances that come with them), or searching the country’s pool of independent contractors? Are full-time employees or part-time/project-based workers your goal?
The second can be tougher still. Every country’s labor market has different pros and cons: knowing how to hire an independent contractor in Brazil, for example, doesn’t count for much when searching the Mexican market, which recently introduced tough new recruitment measures.
Also, knowing where to look is crucial: just perusing local job boards or posting social media ads isn’t going to cut it.
Once you’ve located the candidates, you’ll need to know how to screen them. Are their language skills up to scratch? Do they have the right experience and attitude for the role? Are their salary demands in line with your budget?
One way around these stumbling blocks is to hire a local recruitment firm or professional employer organization (PEO). These companies use their scouting skills and regional connections to connect you to suitable jobseekers. They’ll know how to advertise the position, how to screen the candidates according to your specifications, and sometimes even prepare them for interviews.
Despite taking up to 10% of the employee’s monthly salary, using a PEO means you don’t have to go through the pain of setting up a legal entity in a foreign country, and frees up valuable time for you to focus on other tasks.
So, you’ve completed your search and are one step closer to hiring international employees you’re sure will be an asset to your company.
But how do you navigate the minefield that is cross-border contracting?
Work permits, employment contracts and tax compliance are potential booby traps you’ll need to look out for, not to mention the dangers of misclassifying worker roles, which often leads to heavy fines.
Many international businesses find Employer of Records (EORs) to be the defuse mechanism they’re looking for.
Like a PEO, they provide local employment services to companies, but they tend to specialize in the legal and administrative areas of the hiring process. This typically includes handling global payroll and compliance with local tax laws, as well as making sure you provide the right employee benefits and social security contributions. You could also use an EOR if you have a tricky work visa situation.
A good EOR helps iron out the creases when drawing up contracts. They provide accurate translations, make sure they’re in line with local labor laws, and look after foreign workers’ protections, as well as yours.
Their third-party status, though, means you’ll also need to keep an eye on the cost of employing an EOR. Like a PEO, they don’t come cheap, and often act as a barrier between you and your global team of international workers.
Finding a good EOR is just as important as finding the right workers. After all, they’ll be your company’s eyes and ears on the ground.
A good employee never stops learning. Nowhere is this more evident than in the growing Latin American market where 38% of all tech workforce investment is dedicated to Education Technology (EdTech) that helps to nurture new employees.
Yet, providing mentoring and training is much harder with remote workers.
Virtual training must be as engaging as possible if it’s going to compete with in-person tutoring, while overcoming language barriers is obviously essential if you want to get key ideas across.
Many international firms hire local experts to deliver courses on the ground. This might be as part of an introductory period to help get the worker up to speed with company culture, but also later on as part of their development. When done well, it empowers the worker by helping them form an upward trajectory within the company, and also enhances the skill sets at the employer’s disposal.
Educating employees also boosts worker retention rates.
Talented individuals are less likely to jump ship to a rival if they see their current roles as their best chance of progressing their career. According to Deloitte, organizations with a strong learning culture have engagement and retention rates up to 50% higher than rivals without one, something that’s backed up by the fact that over three-quarters of leaders favor employee training over recruitment.
To sum up, recruiting international workers in today’s competitive international business world demands a streamlined approach that’s both quick and cost-effective. Companies that find themselves wrapped up in red tape and bogged down with onboarding issues will be at a severe disadvantage.
A recruitment plan fit for hiring global employees in the modern business climate must contain the following:
Using an on-the-ground PEO or EOR service is helping many corporations hire international employees without the hassle of setting up a local entity.
Knowledgeable and efficient, the very best of these services act as a kind of extension to your existing recruitment team, and make the difference between a world-class recruitment process – or a cumbersome ordeal that drains valuable company resources.
Want access to the best of remote talent without the cost of a PEO? Book a call with Remoti today to find out how to save 40% of hiring costs by ‘cutting out the middleman’ and giving you direct access to talent pools in Latin America.
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