How international hiring helps your business grow beyond borders
International hiring helps companies tap into an incredibly diverse talent pool. It gives businesses the energy and innovation they need to diversify their brand, services and workplace culture.
Here, we break down how international hiring can help your business expedite growth on a global scale. We also detail how you can seamlessly integrate international hiring into your recruitment process.
What is international hiring?
International hiring is essentially employing people from anywhere in the world. This can mean hiring them with a view to relocating to another country where your office is located. It can also mean hiring talent local to where you have an office or legal entity.
As a result of the pandemic, international hiring is being embraced more widely. Now businesses are employing people outside of countries where they have a physical presence and opening roles to prospective candidates who are able to work remotely. Building a remote team through international hiring is a really cost-effective way to expand your business on a global scale.
Why hire internationally?
There are a number of benefits to having an international workforce, where talent is not limited to those geographically in close proximity. Here are just a few of the advantages of a diverse workplace:
- Tapping into new markets: international hiring can also help businesses understand and tap into new markets. Employees operating overseas will understand the local business environment better and will likely have access to the right networks that will be able to offer valuable insight in order to foster fast growth.
- Output whilst you sleep: Global presence means that whilst your team in Europe is wrapping up their working day, comrades across the pond are just getting started, so you can move the business forward whilst you sleep. Equally, if something crops up last minute there’s the option to lean on teams in other timezones to manage those “out of hours” emergencies.
- A diverse team: by hiring internationally, you can tap into a diverse talent pool. You won’t be limited to a particular location or country to find the right person, but can cast your net wide to find the ideal fit for your company both in terms of skill set and culturally. This making for a more inclusive working environment and attracting more great talent.
- Innovative solutions: people from diverse backgrounds will have a wider range of experiences, expertise and more innovative responses to complex problems. Finding the right international talent, brings a greater range of perspectives to the table.
- Better communication: though this may seem contradictory, a diverse team can actually lead to better communication. Even if your working language is not the first language of many or most of your employees, with the right approach, a diverse and inclusive team can optimise team-wide communication.
Challenges to hiring internationally
While international hiring can really help you explore the global market and become a more diverse and inclusive company, this can be tricky business. But with the right planning, challenges can be overcome:
- Establishing a legal presence: this may be necessary if you want to hire talent directly and depending on the type of business you intend to conduct. Anything that requires a workplace, such as an office or factory, will require a legal presence. Unfortunately, opening a legal entity can be a long and expensive process.
But a legal presence isn’t always necessary to employ new hires. This will depend on the country you are hiring in. You can also use a global employment service provider to help you employ compliantly.
- Legal compliance as an employer: hiring internationally also means you are obliged to employ your staff in compliance with local and international labour law. Each jurisdiction has its very own regulations that you must follow as an employer in order to remain compliant and to continue to operate your business. Working hours, salaries, social security, and benefits are all strictly regulated by local authorities.
- Permanent establishment (PE) risk: having a PE in a jurisdiction means you are obligated to pay corporation taxes. Generally, a PE is triggered if you are conducting revenue-generating activities in a jurisdiction. If you hire an employee abroad, they may trigger a PE presence for your company if they are involved in revenue-generating tasks, such as closing sales deals.
You need to be fully aware of what your employees are doing for you in a particular jurisdiction and, if PE is triggered, you need to let the relevant authorities know. This will ensure you are staying on the right side of the law.
With international hiring, the sky's the limit...
International hiring requires foresight and careful planning. While this may seem daunting, it can be incredibly rewarding. By hiring all around the globe, you can build a presence, operate and conduct business worldwide. The right international hiring strategy can be your path to smooth growth globally. But the devil lies in the details. You will need the right support structure to get your team exactly where it needs to be.
How you can hire internationally
Fortunately, all the help you need is right here. At Ben, we are helping companies deliver exciting, relevant and flexible benefits to attract and retain employees, wherever they might be. You can take inspiration from leading international companies like Thirdfort who are using Ben to support team members in London, Manchester and Sri Lanka.
A big thank you to Omnipresent for contributing to this post. Omnipresent are experts in international hiring and will be able to answer all of your questions from how to manage permanent establishment risk to how to remain a compliant employer.
You can find out more about how to navigate international hiring in Ben’s complete guide to remote-first recruitment and hiring. Or book a call with Omnipresent to find out more about how international hiring can help you with your expansion strategy.