Companies that expand overseas are often faced with the challenge of finding and hiring team members to work in international locations. As companies build their teams, they discover the unique benefits of the talent pool available in their new countries. As they form a plan to hire globally, many companies find success hiring local talent.
Why Hire Local Talent?
Hiring local employees brings many benefits to global companies. Locals know the market, the culture, and may be able to build better relationships with current customers or help expand the market by reaching new clientele. In addition, local talent helps companies begin to build a high-quality global workforce that can help contribute towards the company’s global growth goals.
Learn Local Culture
Understanding the local culture in a new country is as important as knowing the economic and legal regulations in a new market. Local hires will not only help a company navigate the cultural differences with clients and vendors, but will also enrich the company culture by bringing diversity to the team.
Companies often think the best way to enter a new market is by either creating a legal entity or deploying expats into the country. However, these options do not provide companies with the flexibility and stability needed to navigate an unknown economy. For example, creating a legal entity can take months to get up and running and cost companies tens of thousands of dollars. Additionally, if a company decides to stop operations in a country, the time and money needed to tear down an entity can increase by a factor of three when compared to set-up.
Before attempting to hire globally, companies can benefit from considering all of their expansion options. This includes looking into agile solutions, like an International PEO (Professional Employer Organization), which gives companies a flexible and compliant way to enter new markets without the need to set up an entity.
Find a reliable partner
When companies expand overseas, they often need the help of businesses that are designed to help companies hire globally. Companies can benefit from forging partnerships with businesses that have experience helping others overcome global expansion challenges. Companies that provide employment solutions, like the International PEO solution mentioned above, can help companies by taking on the responsibility of hiring local talent.
When going global, companies need to work with people and companies that have a passion for growing their business and have experience navigating the cultural and legal requirements in new foreign markets.
If your company plans to hire globally by employing local talent in foreign markets, we can help. Reach out to the experts at Velocity Global to see how our International PEO solution can simplify global hiring and help you efficiently expand into new markets.