For many business leaders, the benefits of global expansion outweigh its challenges. This sentiment rings true in The State of Global Expansion 2019 Report. 43% of U.S. and UK tech companies stated they expand overseas to access talent, while 51% want to grow their customer base in new markets.
However, finding qualified, local talent to fill the growing number of job openings is increasingly difficult for employers. Companies must implement solutions to fill these positions, including hiring outside domestic borders. And while an international workforce undoubtedly helps companies grow and thrive, HR professionals must consider how international hiring affects employee retention and local labor law compliance.
Velocity Global and Core Elevation, Inc. teamed up for a webinar that highlights how current and future work trends impact businesses’ ever-changing workforce, as well as strategic ways to retain employees.
Couldn’t Make It to the Webinar? Watch It Here.
How to Ensure Compliance When Hiring Overseas Talent
Ben Wright, Velocity Global Founder and CEO, began the webinar by defining what the “future of work” means from an employment perspective. Historically low unemployment rates combined with an increase in job openings result in a deficit of local talent to fill the number of critical roles businesses need for long-term growth. With numerous job openings and a lack of domestic ability to fill these roles, employers hire international freelance and remote workers to fill the gaps. In short, global teams are the new normal for many businesses.
Building a global team means access to larger talent pools, local insights, and market knowledge. However, successful managers of remote teams must also consider how to:
- Navigate and embrace cultural nuances during the hiring process and beyond
- Contend with language barriers
- Meet deadlines across time zones
- Mitigate non-traditional workers’ legal and financial misclassification risks
Where Global Businesses Find Premier Talent
Where do businesses find the best talent to drive their growth? Wright discussed The Global Expansion Tech Index, a component of The State of Global Expansion 2019 Report, that lists the most promising international markets for expansion. Each market’s ranking accounts for its GDP growth, knowledge, regulation, connectivity, and infrastructure. According to the index, these markets ranked highest in the knowledge category for accessing skills and talent:
- Korea, Rep.
Wright also presented current and future workforce trends and the top markets for overseas talent. He then shared the four primary methods to engage and employ a global workforce, all of which have their own unique set of pros and cons:
- Hire foreign independent contractors
- Register as a non-resident employer
- Establish a legal entity
- Partner with an International Professional Employer Organization (PEO), also known as an Employer of Record
How Firms Retain Premier Global Talent
Following Ben’s presentation on future work trends and top talent markets, Gene and Amanda Hammett, Core Elevation’s co-founders, provided strategic ways to retain top talent, and also covered the negative impacts of employee turnover.
The couple cited SHRM’s Turnover Cost Calculation, which revealed that employee replacement costs up to two times the employee’s salary. Even more shocking, they noted Gallup employee turnover research, which explained employee turnover costs the U.S. economy over $1 trillion per year. Employee turnover is not just about money; it also drains focus, energy, team morale, productivity, and client relationships.
The co-founders also highlighted five areas that HR professionals identify during the hiring and offboarding process to improve retention:
- Recruit: Align job descriptions with the position and use group interviews.
- Onboard: Personalize the experience and educate new employees about the company, values, and culture.
- Lead: Empower your people and push beyond accountability.
- Develop: Understand an employee’s personal goals and align them with team and company goals.
- Exit: Develop an exit interview process, and go beyond listening to refine the employee experience.
Solutions to Successfully Hire and Retain Global Employees
While Ben, Gene, and Amanda outlined overseas hiring challenges, they also provided attendees with actionable ways to ensure success during the process. If you would like to learn more about how your company can retain talent in an evolving workforce, watch the entire webinar, and reach out to Velocity Global today.