Harris KhanThe recent development in global trends such as the Covid-19 pandemic has created the need for diversification, especially for employers and companies. As an employer seeking to hire individuals to fill recruitment positions, sourcing from the global talent market will provide you with a wide range of options. Nonetheless, towing this path is not without its obstacles.
Foreign laws, tax systems, regulatory bodies among others are pertinent factors to be considered. You should also note that these vary from country to country. Thus, constructing your plans to suit each geographical location may be quite challenging. This article is designed for companies and employers who wish to hire talent outside the shores of their present location. If you want to move your business into foreign territory and even have a brief on safe expansion process and working with a PEO, you will find this a helpful guide.
Why should you Hire International Talent?
This decision gifts you the advantage of a wide range of skill sets. Your chances of engaging with a crop of innovative and talented individuals are higher. Also, if your company is seeking to break into the international market, hiring international talent is a quick window. Employing individuals, who may be bilingual, with adequate knowledge of their home country will foster easy access. With a culturally diverse workforce, innovation is sure to abound as individuals with different experiences can share their opinions. This will in turn promote company growth and competition on a global scale.
The Challenges of Hiring International Talent
Recruiting talent across borders involves quite some technical steps. This is because policies differ from one geographical location to another and what works in one may not apply to the other. Certain companies may require their new employees to relocate. If your company requires such, you may want to look at the employee’s willingness to do so. Another factor that may pose a challenge concerning this is visa requirements. With restrictions and even travel bans due to the pandemic, you may want to check the requirements and necessary documents for processing a visa for your new hire. You may also want to confirm if your employee is permitted to work in or travel to your country.
Other challenges include tax directives and employment regulations, especially for companies that do not require their employees to travel. It is important to get acquainted with these requirements and the bodies involved to ensure a hitch-free onboarding process for your employees as well as avoid violation of laws.
Tips for hiring anywhere in the world
The following are tips you should consider if you’re looking to hire anywhere in the world.
Source from the Right Market
Some specific countries are quite renowned for having skilled, talented workers and strong market economies. Identify your needs and specifications and curate them towards the environment that offers you the best pool of talents you seek. It is more advantageous to work with a target market in view. Asides from your needs, you may also need to consider factors such as language barrier and cultural influences while sourcing.
Leverage social media
The virtual world is encompassing. Social media is a viable tool when it comes to searching for talent. You can search for top talent in your desired location without leaving your personal space. Platforms such as LinkedIn can be a great place to start your hunt. Also, with social media, you will be able to come across useful information and recommendation about your intended business location.
Carry out your research
The importance of market research cannot be overemphasized. If you do not find out the needful, you may be at risk of getting booted out early. So, you must understand the local market, its operations, your competitors, work culture, cultural influences, labor laws and regulations, and so on. Doing this will provide you with the necessary forehand knowledge and aid your preparation. It will also help you understand your roles and responsibilities as an employer and save you from noncompliance and heavy fines. Being there in person may not be advisable with restrictions on travel. Hence, the internet can be your go-to and well as recommendations from trusted professionals.
Be open to working with a third-party employer
Due to the tasking nature of sourcing and hiring global talent, you may want to consider working with a third-party employer, that is, an EOR or PEO. This will save you long hours of rigorous research as they are often well acquainted with the target market and can provide you with necessary information. Engaging a third-party employer will help you save time and other resources, especially when it comes to onboarding and payroll management.
Geographical Differences in Hiring Practices
For most companies across the globe, employment is a common practice. However, hiring practices differ from one geographical location to another. For US employers who may wish to hire in Europe and vice versa, the following differences exist between them.
Employment laws
As an employer in the US, employment laws permit you to let go of your employee at any time and also give your employee the liberty to resign at will. The reverse is the case across Europe. The process of dismissal involves a series of warnings, queries, and so on, which will also involve the documentation of such reasons. For the employee, a notice period is required before resigning. To violate this law and others is to risk getting sued.
Social media usage
US employers often utilize social media platforms in searching for suitable candidates. It is not so common a practice in Europe. Also, LinkedIn is more used as an employment platform in the US. Europe has platforms tailored towards specific professional networks across different countries and so, LinkedIn is not so utilized. So for employers looking to recruit in Europe, you may want to take a look at these selected networks to find your best candidates.
Payroll benefits
The cost of living in Europe varies among countries and the basic salary is usually lower compared to that of the US, especially after conversion rates. Most countries in Europe require that benefits such as paid maternity leave, family leave, sick pay, and so on are included in the payroll. In the US, some employers choose to pay this as it is often not mandatory. Countries such as France and Sweden even require paternity leave.
The work culture in Europe also permits vacations, which often have to be taken care of by employers. This is not so in the US. You must understand the benefits required for your employees in these locations to suit their demands and avoid underpaying them.
Job application requirements
Employers in the US often request a resume. In Europe, a CV is what is required. These may be similar in terms of content. However, the pictorial representation of the applicant is not required on the American resume. On the other hand, it is necessary for parts of Europe. As an employer looking to hire in any of these locations, it is necessary to pay attention to these details to get the right information from your applicants.
Cross-cultural disparities
This is especially true of Europe as it consists of 44 different countries. The US shares more in terms of recruitment and other processes because of its government policies. Europe on the other hand is made up of different sovereign entities, but each with its cultural peculiarities and employment requirements. It may be easier to find uniformity in these processes when it comes to the US than Europe because of these disparities.
As with Europe, these cross-cultural differences also exist in other parts of the world. In China, for example, embracing local networks may be a more profitable means of finding suitable candidates as individuals often utilize these platforms more.
Labour laws in Australia require that recruiters not ask certain personal questions from candidates. This is usually in a bid to avoid discrimination. Also, background checks must be done with the consent of the candidate. Certain countries in Africa do not require written employment contracts as is the practice in some other parts of the world. Taking note of these differences while familiarizing yourself with the target practice is key.
Keys to Overcoming Recruitment Problems
The task of recruiting international talents can be time-consuming and challenging as you may need to cover a lot of ground in a short time. You can work with the following tips to aid your foreign recruitment journey.
Get advice
It is only logical that you seek counsel from professionals with expertise who understand the market you are walking into. This can include but is not limited to attorneys and business consultants in your intended location. This way, you will be able to gather crucial information and avoid risks.
Know your market
As tedious as this may sound, research will help you understand the nitty-gritty of the market. It propels adequate preparation. You can also familiarize yourself with the environment, its work culture, regulatory bodies, and their policies. This way, you have ideas on what to expect. With proper research, you won’t be kept in the dark. However, with so much information to delve into, you may want to streamline your needs and tailor your research in that direction to conserve resources.
Reach out to local business networks
In local business networks, you will come across individuals and organizations with similar interests who have tested the waters before you and may be willing to share useful tips as you navigate your journey. Doing this ensures that you establish profitable connections.
Work with third party employers
Working with third-party employers who already are familiar with the environment, saves you a lot of stress. This is like getting the job done halfway as they can help you select the cream of the crop, walk through the onboarding process, and even manage their payroll while you focus on other matters.
Hiring Remote International Talent
For many companies who want to expand into international spheres, employing remote foreign talent is a means of establishing their market presence. This can be done in different ways. It may be necessary to establish a legal entity in that country.
However, if you just need to fill in short-term employment roles, this may be an expensive venture. You may decide to opt for an independent contractor instead of searching for full-time employees. In essence, who you decide to choose to hire should be based on your needs to mitigate risks, conserve time and other resources.
What are the Differences between an Independent Contractor and an Employee?
As the word aptly describes it, an independent contractor is an individual who is employed to fill in short-term employment roles. The agreement is contractual and they often work on their terms. This also implies that the equipment used for work is often theirs, not their employer’s. An employee on the other hand is hired for long-term positions. The employee is paid a salary as against an independent contractor who may be paid per contractor or for each job done.
Also, part of an employer’s responsibilities towards an employee is to cover benefits such as a pension, health insurance, deduct income tax, and so on.
Engaging Independent Contractors
Working with independent contractors may be your best bet if you’re looking for talented individuals to take on a temporary project in another country. This way, you will save a lot of time and avoid the hassle that comes with setting up a legal entity. This option also provides you with a large network of skilled individuals within a short frame. Asides from the signed contract and their pay, employers often have no other legal obligations unless stated otherwise by labor laws. A lot of employers see this as a quick option, especially for companies who want to test the waters before fully launching out.
However, it is important to understand the provisions for job roles such as this in the country you intend to hire. This is because some countries have spelled out regulations on how to treat independent contractors. Thus, it may be dangerous to assume without finding out the necessary details. Certain countries, for example, will demand that the employer be liable for any injury or bodily harm caused to the contractor in the course of work. Some also state the required number of hours while some do not. To avoid overworking your contractors or even underpaying them due to misclassification, knowledge of the regulations is necessary.
EORs
These are known as Employer of Record. They function as third-party employers on behalf of a company in another country. They help to recruit, train, onboard new employees as well as manage payroll amongst other HR tasks. Since they are established legal entities, they are an easy go-to for companies who wish to recruit internationally. They serve as the official employers for the employees of such a company. However, the responsibilities of the employee are not towards them, but the company.
With an EOR, you can be sure to stay compliant with regulations. However, it is expedient to find an EOR that expertly caters for your HR needs and so, you may want to consider factors such as up-to-date technology, presence in your desired location, service fees, and previous work record.
The New Age of Talent Acquisition
In this age, the realities are endless. Talent acquisition had been made easy with our top-notch technology built to recruit the best for you. With our team of experts, your candidates of choice for that sought-after role are not far from you. Let us help you establish this connection, manage your talents HR functions, ensure compliance, and mitigate risks. Get in touch with us at WeHireGlobally.
