Finding the best and brightest talent is a top priority for global companies. In Velocity Global’s State of Global Expansion 2019 Report: Tech Industry, 45% of U.S. tech firms revealed that the main driver behind their global expansion plans is better access to qualified talent.
Companies must think globally for their next hire—or get left behind. Aside from staying competitive in the global marketplace, international recruiting allows employers to access a wealth of new talent and unique skillsets. However, if your teams are unfamiliar with hiring outside of their current market, international recruiting challenges are inevitable.
We compiled six important considerations that will help your teams anticipate problems, and take the headache out of global sourcing and hiring. Ask these questions to create the most efficient hiring process, and ultimately enable you to find the right people for the right roles—at the right time.
1. Develop a Global Recruiting Strategy
The first step to successful global recruiting is creating a strategy. Do not start building a global team until you decide exactly where, why, and how to hire. To help streamline the process, start by asking these questions:
- What is my primary goal for recruiting in new markets? What do I hope to achieve?
- What positions am I trying to fill?
- Have I identified the countries in which we are hiring? If there are multiple countries, what are the hiring needs of each?
Once your team has a clear picture of when and where you need to hire, they can successfully create a job description and start sourcing candidates in target markets.
2. Conduct Market Research
Labor laws and regulations, as well as economic stability, vary from country to country. It is crucial to understand how these legal and economic factors might impact recruiting efforts once you commit to expanding into a specific region. Ask these questions before you start recruiting:
- What is the economic outlook for the country in which I want to hire? Is the economy growing or is it stagnant?
- Are there any political events, such as major elections, on the horizon that could change the market? For example, Brexit proceedings make the future of hiring in the UK uncertain, as it impacts immigration laws and could create unstable markets.
- What does the talent pool look like for the specific roles I have open?
- Have I considered cultural differences between the new market and our headquarters location.
Answering these questions puts a heavy burden on internal HR, legal, and finance teams. When this happens, consider working with an expert partner who understands how to navigate the local labor laws in your target market.
3. Start Searching for The Right Candidate
When you are ready to source candidates, there is one final decision to make: do you use internal personnel to recruit talent or hire a local staffing firm? Keep in mind the following considerations when deciding which option is best:
- Are language barriers an issue?
- Do I have specific knowledge in the country in which I am hiring?
- How should I promote the job opening?
- Are there international professional networking sites in the local market that I can use to source talent?
Finding candidates is just the beginning. After sourcing quality candidates to interview, create a thorough process to evaluate them fairly.
4. Evaluate Your Candidates
Hiring in a different country requires adjustments to standard hiring procedures, based on local business culture nuances and expectations. Be patient throughout the hiring process and plan for multiple interviews to thoroughly assess both a candidate’s skillset and ensure a cultural fit for your organization.
Once it is time to start interviewing potential candidates, ask the following questions to critically evaluate skills and company culture fit:
- What does the full interview process look like?
- What tools or technology do I need to complete the process?
- Do I know how to gauge the foreign candidate’s cultural fit?
- Do I know how to assess the candidate’s skillset properly? Are there any technical skills that I need to test?
Finding the perfect candidate is only half of the battle. The key to securing top talent is crafting an offer they’re happy to accept.
5. Make a Competitive Offer
The competition is fierce for top global candidates. Before you make an offer, review local expectations to ensure that your offer is attractive to potential employees.
Do not miss out on top talent because another company offered better benefits. Ask the following questions ahead of extending an employment offer:
- What are the salary/hourly wage expectations for this specific market and position?
- What benefits do employees expect in this specific market? What is legally required?
Once a candidate accepts, decide how to compliantly hire them based on the labor laws in their country. Keep in mind that misclassified workers create significant legal and financial headaches for your company.
6. Compliantly Hire Candidates
After sourcing an ideal global candidate, research the unique labor laws in their country to determine how to compliantly hire and classify them. Classifications typically include a regular, full-time employee, part-time employee, or an independent contractor.
If the worker is as an independent contractor, be aware of the misclassification risks. The penalties for misclassification vary from country to country, but most take it very seriously, and companies face massive fines for noncompliance. In France, for example, the consequences for a noncompliant contractor are severe, including fines and possible imprisonment.
In addition to classification, your company must decide how to compliantly hire foreign workers. There are a few ways to compliantly hire overseas. These options include establishing a legal entity, registering as a Non-Resident Employer, or partnering with an International Professional Employer Organization (PEO), also known as an Employer of Record.
There are pros and cons to each hiring option, so consider both before making a decision:
- Legal entity establishment ensures compliance, but the process is time-consuming and expensive.
- Registering as a Non-Resident Employer is easier than establishing a legal entity; however, it is not available in every market.
- Working with an International PEO provider allows you to quickly and compliantly hire anywhere in the world, but your company cannot hold fixed assets.
Establishing a compliant presence involves less risk compared to hiring foreign independent contractors. Consider every possible outcome, and the potential consequences, before offering a foreign employee a position at your company.
Find the Right Candidate for Your Global Workforce
Hiring in a foreign market takes extra steps and careful consideration to ensure that your processes are compliant, and your offer is competitive. Asking the right questions from the beginning helps to avoid mistakes that could cost thousands of dollars and put an unnecessary burden on your internal teams.
The steps listed above are just a summary of everything you need to know to hire the right candidate. Download the complete Global Talent Acquisition Checklist for more questions and considerations that make a complicated, time-consuming process easier on your teams.