Global hiring is a great way to beat skills shortages, bring in diverse perspectives, and grow into new markets. But, without the right strategies and tools, it’s also incredibly anxiety-inducing.
With so much to think about — from managing global payroll to creating a well-connected team — the entire process of international hiring can feel like a minefield.
As Liz Ryan, Founder of the Human Workplace, former Fortune 500 HR SVP, and the world’s most widely-read career and workplace authority, says: “Even though so much work is virtual now, the further apart you are in the world matters. Everything gets way more complex.”
In this article, we explore Ryan’s insights into how small to midsize companies can hire international employees without stress. We also look at an EOR (Employer of Record) solution that allows you to hire, onboard, and manage teams without setting up a local entity or worrying about compliance.
The challenges of global hiring
Before we explore the strategies you could implement to make international hiring easier, let’s take a look at the landscape right now.
Hiring is a minefield
When you’re hiring internationally, you have three main options to consider.
- Setting up a local entity. This requires you to get to know the legal and tax systems in the country where you are hiring. Failure to comply can result in fines and legal trouble.
- Hiring contractors. Here you have to be careful to follow local laws to avoid misclassification where local authorities see the contractor as an employee. This can lead to penalties, back payment of taxes and benefits, and legal disputes.
- Using an EOR. A solution such as Multiplier will hire employees for you without you needing to set up a local entity or stay on top of local laws (but more on this later!).
Assessing candidates can be difficult
When you’re hiring across borders, it can be difficult to find an objective, fair way to assess who is the right fit for your role. Different countries have varying professional certifications and, if you can’t connect properly with applicants because of language barriers or different cultural conventions, it can be difficult to determine their soft skills too.
As Ryan highlights the onus of communication is on you as the employer to bridge this gap: “You always need to ask yourself “How does our new hire think about employment? What do they expect the hiring process to look like?” This can be challenging without the support of local experts.
It can be hard to attract a diverse pool of candidates
One of the core problems with hiring internationally is tailoring your hiring process to the expectations of applicants in other countries. “From interviews to job descriptions,” Ryan says, “there are probably 50 aspects of the hiring and onboarding process where the average company would benefit from more localization and customization.”
For instance, a job description that works well in the United States might emphasize individual achievement and assertiveness, using phrases like “self-starter” or “take charge.” Meanwhile, this same approach could alienate candidates in countries like Japan, where teamwork and humility are more highly valued.
Staying compliant is often time-consuming
When hiring overseas, you’ll need to stay on top of local laws surrounding leave policies, working hour limits, and overtime, make sure that you provide equitable pay, and offer benefits that meet local standards. And this can take up hours of your team’s time each week.
Global payroll in particular presents a number of logistical challenges. You need to stay on top of local tax regulations and currency conversions while providing on-time payments across the globe.
How to hire international employees: Key strategies to consider
Ready to start expanding your talent pool? Here’s how to make the process easier.
Define your candidate’s skills profile
Build your candidate profile based on the skills you will need in the next 3-5 years. This allows you to assess candidates based on objective abilities rather than qualifications which may vary from country to country. It can also help you find longer-term hires — in fact, 82% of employers believe that employees hired via skills-based hiring stay in their roles for more time.
Tweak your job ads
It’s important to ensure that your job ads speak directly to candidates in the countries you’re looking to hire. As Ryan says, “Making people feel comfortable gives you a competitive advantage.”
To tailor your job ads, build an understanding of each culture by researching, talking to locals, or speaking with an EOR like Multiplier. You can also use tools like Textio which analyzes the language in your job ads to ensure they are inclusive and free from cultural bias.
No matter which country you’re hiring in, it’s important to keep a sense of human connection in your ads. “In any culture, starting with phrases like ‘immediate need’ or ‘selected candidate’ can put candidates off.” She advises speaking as you would in person: “Tell your story, describe what your company is, and explain why you’re expanding.”
Use an EOR
As Ryan says, “Without support, legal issues and cultural differences can make international hiring feel totally out of bounds.” Luckily, EORs simplify the entire process of hiring, onboarding, and managing an international workforce. This is because you can:
- Hire employees and freelancers without setting up a local entity or learning local laws…. No more compliance worries!
- Outsource core HR functions. EORs like Multiplier often come with an in-built global workforce management solution for payroll, benefits, taxes, employment agreements, payments, leave, expenses, performance management, and more.
- Get expert help from on-the-ground teams. Familiarize yourself with local customs and communication expectations in a country you’ve never visited.
Reaping the rewards of an international workforce
If you’re hiring domestically, your productivity is limited to the size of your population. International hiring, on the other hand, allows your team to be online 24/7 serving a global customer base with local insights. Perhaps this is why diverse, distributed teams have been shown to generate 19% more revenue!
With the right global employment support, you can tap into different markets and hire talent anywhere in the world, scaling your company regardless of the existing size of your business.
Multiplier handles payroll, benefits, taxes, employment agreements, payments, leave, expenses, performance management, and more so you never have to worry about staying compliant or integrating new hires into your team.
