Global recruitment is the process businesses use to source and hire talent in different countries. This strategy allows companies to tap into new markets, expand operations, and find skilled professionals worldwide.
In this article, we’ll explore these global recruitment strategies in-depth and share how companies use global talent sourcing to drive business growth.
Why do employers engage in global recruitment?
Employers engage in global recruitment for numerous reasons, from filling skills gaps to building diverse teams. Below are the most common reasons why businesses recruit international talent.
Access to a diverse and skilled talent pool
Many employers rely on global recruiting to access diverse talent with specialized skills while maximizing budget. Companies can find the best talent by looking beyond local borders and broadening their hiring pool to include international candidates, allowing them to find the right talent for their business needs—regardless of location.
Some regions offer comparably lower cost-of-living standards that can be leveraged to hire skilled talent while maximizing budget. For example, the average monthly salary of professionals in the Philippines is typically lower than that of professionals in the U.S. Employers can hire skilled employees in the Philippines and reinvest the money saved into onboarding costs or other areas of the business.
Tap into emerging markets and niche expertise
Another common reason businesses recruit globally is to tap into emerging markets with localized talent. Businesses expanding into new regions benefit from recruiting local employees who help them seamlessly integrate into new markets. This approach allows employers to gain localized insights about consumer behaviors, local market dynamics, and cultural nuances.
By hiring employees in emerging markets, businesses can gain a strategic edge in understanding new regions. Talent from other countries may also bring networking opportunities, which can help companies form business connections in a new area.
Certain regions are well-known for their specific industry expertise, and global recruitment allows businesses to tap into these talent pools. Examples of regional expertise include software developers in India, automotive engineers in Germany, and architects in Italy.
Strengthen global presence and cultural competency
Businesses looking to expand their global presence and cultural competency may also turn to global recruitment. Global recruitment enables companies to enhance their international presence by fostering innovation, boosting market credibility, and improving localization.
Teams composed of individuals from diverse backgrounds improve communication and collaboration with international clients. Diverse teams are also known for their creativity and problem-solving capabilities, bringing unique perspectives and solutions to global companies.
Adapt to remote work trends and distributed workforce needs
Global recruitment organically aligns with remote work and supports distributed workforces. Technological advancements have made hiring talented employees possible, regardless of physical location. Hiring a global team ensures nearly 24/7 productivity and maintains business operations across different time zones.
Additionally, remote work models can lead to increased cost savings by allowing businesses to tap into more cost-efficient labor markets and reduce the need for physical office infrastructure.
Challenges in global recruitment
While international recruitment provides many benefits, it also presents new challenges. Businesses must reexamine their hiring approach since global and domestic recruitment strategies are distinct from one another. Let’s explore some common global recruiting challenges below.
Navigating labor laws, tax regulations, and visa requirements
Going into global recruitment, HR teams must understand the local labor laws, tax regulations, and visa requirements of different countries. This knowledge sets HR teams up for success in the hiring and onboarding stages and ensures employment compliance in each country where the company hires new employees.
Compliance is especially important since different regions have specific regulatory frameworks that businesses must adhere to. Companies must manage cross-border tax obligations and country-specific employment laws to avoid fines or legal repercussions. These labor laws cover minimum wage requirements, working hours, mandatory benefits, employee classification, and local tax laws.
Cultural and language barriers
Businesses must overcome challenges related to cultural differences and language barriers during global recruitment, as they can disrupt the recruiting process if not handled effectively. HR teams can work with local experts in the recruitment region to prevent misunderstandings during the hiring process. Additionally, HR professionals should educate themselves on cultural differences to ensure equitable hiring practices.
Understanding local benefits expectations and competition
HR teams must know the benefits and compensation that candidates in different locales expect from employers. Companies must also understand and match or exceed what the local competition offers to stay competitive and attract new talent. This means global employers should offer locally tailored benefits packages specific to each region since employees in different regions will have separate preferences and needs.
Handling time zone differences
Time zone differences make global recruiting challenging for businesses with little experience managing an international workforce. HR teams must coordinate virtual interviews across various time zones, and time zone disparities can delay decision-making and slow progress if not managed effectively. To mitigate these challenges, businesses should invest in technology tools that streamline cross-border communication.
Tips for successful international recruitment
Global recruitment can be a complex but rewarding endeavor for employers. Follow these global recruitment tips to ensure a smooth process.
Conduct market research
Businesses and HR teams must start the global recruitment process with research that includes the following:
- Evaluating where to source professionals with specialized skills at competitive costs
- Investigating cost-of-living standards and market conditions in various regions to find the right fit
- Analyzing compensation benchmarks to develop fair compensation packages
- Researching local labor laws, mandatory benefits, wage requirements, and tax regulations to ensure compliance with country-specific employment legislation
Adapt employer messaging
Employer messaging is critical to attracting global talent from diverse cultures and regions. Messaging impacts job seekers’ perceptions of a company and whether they are interested in the possibility of working for that company. Businesses should research what candidates in the region value and customize messaging in job postings to resonate with the specific culture.
Prioritize diversity and inclusion
Diversity and inclusion aren’t only moral imperatives—they’re strategic initiatives. G2 research shows that 57% of employees say their company should prioritize diversity. In global recruitment, business owners should develop hiring strategies that promote diverse representation in the workplace. Such efforts can include blind hiring, targeted outreach, and standardized interview processes.
Partner with global talent sourcing experts
Businesses can streamline the recruitment process by partnering with a global talent sourcing expert. These experts help businesses find the right person for the job, regardless of location, so they can easily fill open positions and quickly onboard new employees. The right global talent sourcing partner can also help with the tips we mentioned above, such as being a resource on market-specific employment nuances and compliance.
Future trends in global recruitment
In the coming years, remote work will be more important than ever to support a globalized workforce. Dispersed teams will use remote work arrangements and technology to overcome geological boundaries and work together efficiently. Technology-driven recruitment will also become even more prevalent, empowering companies to hire internationally from anywhere.
Market opportunities for global talent acquisition will also continue to evolve. Specialized talent from different regions will enable businesses to respond to rising trends and challenges, and companies will continue to explore fast-growing markets with untapped potential.
Find and hire global talent faster than ever
Ready to build your global dream team? As a leading employer of record (EOR), Velocity Global helps organizations of all sizes recruit, hire, pay, and manage employees in 185+ countries without setting up local entities. Our global workforce platform and services, backed by our in-country HR, legal, and finance expertise, can help you quickly build your international workforce to meet business needs and achieve successful growth.
Learn more about our EOR solution and how we help businesses build a top-tier global workforce with speed and compliance.
