Hiring international employees can bring a wealth of benefits to a company, including diverse perspectives, language skills, and cultural knowledge. However, the process of sourcing, and subsequently hiring, the right international employees can be complex and requires thorough research to ensure compliance with local and international labor and tax laws.
This guide will provide tips and best practices for successfully hiring international employees, from where to find the best candidates, to how to hire them. Whether you’re a small business owner or a human resource professional, this guide will help you navigate the intricacies of hiring international talent.
Assessing your needs for an international employee
Before diving into the process of hiring an international employee, it's essential to assess your company's need for their skills and expertise. Hiring international employees can be costly and time-consuming, so it's crucial to ensure that it aligns with your business objectives.
Firstly, start by identifying the specific skills and qualifications that your company lacks or could benefit from. It’s important to consider whether these skills can be fulfilled by local talent or if an international employee would bring a unique perspective to your team.
Next, evaluate the potential impact of hiring an international employee on your company's growth strategy, competitiveness, and customer base. Determine if expanding your talent pool globally aligns with your long-term vision and goals.
By conducting a thorough assessment, you will have a better understanding of whether hiring an international employee is the right decision for your company.
Sourcing the best talent: where and how to find them
After making a decision to hire an international employee, the next step is finding the right candidate. There are three excellent ways in which to do so, which include: job boards, recruitment agencies, and LinkedIn.
1. Job boards
A job board is an online platform or website that is utilized by employers or HR personnel to post employment opportunities. Potential candidates have the opportunity to search and apply for positions. Job boards are invaluable resources for both job posters and applicants, particularly for those seeking to expand their workforce to include an international market.
To begin, they offer a vast and diverse pool of potential candidates, including those from varying countries and backgrounds, which increases the opportunity to find exceptional talent for a particular role. Secondly, they provide search features and filters, applicant tracking systems, and the ability to promote job listings, which streamlines the hiring process and saves valuable time. Most importantly, these job boards can attract talent from across the globe, making it easier to access a wealth of skills and expertise that may not readily be available in the local job market. Overall, job boards are a great starting point to first time recruiters or employers looking to find the right global talent.
2. Recruitment Agencies
A recruitment agency is a professional firm or organization that specializes in assisting employers find and hire potential employees for their job vacancies. These agencies have experienced recruiters whose expertise lay in sourcing, screening, and connecting employers with potential candidates.
Recruitment agencies are incredibly advantageous to have, particularly to those looking to hire abroad. This is because these agencies have built up a wealth of knowledge, resources, and practical experience invaluable to the entire recruitment process. Depending on the agency used, they can access a global network of candidates, especially those with a versatile skillset. Recruitment agencies are usually well versed in navigating the complexities of international hiring, ranging from finding the correct talent, to the legal, tax, and compliance related matters associated with onboarding new employees. Partnering with a recruitment agency can be hugely beneficial, as they are fully equipped to traverse the global recruitment market, and can be essential in ensuring a smooth and efficient hiring process.
3. LinkedIn
LinkedIn is a professional social networking platform that connects working professionals and businesses worldwide. It serves as a virtual hub for professionals to showcase their skills, expertise, experience, and accomplishments while also facilitating connections with others in their industry.
LinkedIn is an incredibly well-known and popular option for anyone pursuing international work opportunities. LinkedIn is a regularly used platform to post jobs, and is therefore the usual go-to for employers seeking to recruit abroad. Due to it being a professional network, it makes it much easier to view candidate profiles and their experience, their ‘endorsements’ (otherwise known as references),and even to communicate further with them should there be any points of clarification required. LinkedIn, similar to job boards, also provides excellent search features, allowing for employers or recruiters to seek out bespoke skills or countries in their job search. LinkedIn is a powerful tool for tapping into a global talent pool and building relationships with top international professionals.
Having the correct knowledge of where to find the best talent is crucial in the recruitment process, especially when recruiting in a foreign market. When looking to hire abroad, using either of the above three resources either independently or in conjunction can help boost your chances of finding the right candidate for your role.
How to hire
Once you have established where to recruit international talent, the next step is to decide how to hire them. There are three great ways in which to hire an international employee: independent contractor, Employer of Record, and setting up a new company.
1. Independent contractor
An independent contractor is an individual or entity that provides goods or services to a party under an agreement. Hiring through the independent contractor route is by far the most financially feasible option, particularly when hiring globally. This is because independent contractors are not registered as employees under a company, and therefore companies are not required to pay for the usual employee related costs such as benefits, insurance, equipment etc. This is a great alternative for those businesses looking to recruit in a foreign market but have budget constraints.
2. Employer of Record
An Employer of Record (‘EOR’) is an organization that facilitates the formal onboarding and management process of international employees. They have a knowledge bank consisting of legal, tax, payroll, and compliance related information for the various countries in which they operate in. Although a costly alternative, EORs are a powerful tool to use in ensuring a seamless onboarding process of an international hire, particularly for those businesses who are hiring globally for the first time. They have all the resources and experience to ensure that all legalities and formalities are complied with and continue to do so throughout the tenure of the new hire.
3. Subsidiary
A subsidiary is a separate, independent company that is owned, in whole or in part, by another lager corporation. If the subsidiary has long been established, recruiting employees from its jurisdiction is an uncomplicated process, as the process is identical to an ordinary company recruiting an employee. However, if a business is looking to expand into a foreign market, setting up a subsidiary can be expensive. However, although initially costly, the long-term effects of establishing the subsidiary in that jurisdiction will eventually outweigh the initial costs.
If you are seriously considering hiring globally, the above are the three best ways to go about it. Depending on your business and recruitment needs, either option can be an excellent alternative to expanding your business into a global market.
Conclusion
Hiring an international employee can be a valuable asset for your organization. By embracing diversity and leveraging the unique perspectives and talents that international employees bring, you can create a thriving global workforce that contributes to the success of your organization. Hiring an international employee may require some extra effort, but the benefits of a diverse team and the opportunities for growth and innovation are worth it!
