The rise of remote work has removed many limitations companies face when hiring. Without the constraints of working from a physical business location, organizations are free to hire from around the globe. This widens the pool of talent beyond a small region, allowing companies to secure skilled workers no matter where they live.
That said, hiring internationally is not going to be as straightforward as hiring in your home country. Nevertheless, it comes with myriad benefits that make it worth the added effort. Outlined below are five benefits of hiring employees from around the globe.
1. It Facilitates Expansion Into International Markets
For many companies, expanding business across borders is an essential step in their growth strategy. However, entering a foreign market isn’t an easy task.
Every country has its own unique customs and habits. Hiring a local team can help organizations better understand their new market, increasing the likelihood of success. While companies can research the market they’re expanding into, it doesn’t beat talking to people within the market itself. Hiring international talent can help provide insights into what customers in different regions truly want.
In an ideal world, organizations could hire employees in new markets without worrying about employment law compliance. Unfortunately, creating an international team isn’t that simple. In order to more easily hire across borders, organizations generally partner with an employer of record or professional employer organization.
When making the EOR vs. PEO decision, companies must consider whether to establish a business presence in the country where they’ll be hiring. Organizations that don’t wish to own a legal entity in their new market will need to work with an EOR. An EOR becomes the employer on paper, hiring workers on the client company’s behalf. Those that opt to open a branch office or subsidiary in the target country can work with a PEO instead.
2. It Increases Company Diversity
When you think about who works at your organization, does everyone look the same? If the answer is “yes,” you may have a problem.
Lack of organizational diversity reduces creativity, impeding innovation and costing companies money. On the flip side, companies that hire a diverse workforce have a competitive edge over their peers. In fact, diverse organizations are 70% more likely to capture additional markets than their less diverse competitors.
Hiring international employees cultivates company diversity and contributes unique perspectives that workers from your home country may not have. To attract top talent from other countries, though, it’s important that companies review job descriptions to eliminate biased language.
For example, organizations should check to ensure their job postings aren’t accidentally discouraging foreign workers from applying. For example, advertising paid time off for only Christian holidays like Christmas and Easter could discourage candidates of other faiths. Not unjustifiably, they may feel they won’t be accepted or treated fairly by the organization.
3. It Can Yield Payroll Cost Savings
A company’s team is both its greatest asset and largest expense. Hiring nearby talent can quickly become pricey depending on where an organization is located. For example, workers in high-cost cities like San Francisco will look for larger salaries than those in other areas. In fact, 67% of employees expect their salary to reflect their geographical location.
Hiring international workers can sometimes be more cost-efficient than hiring domestic ones. Employing people from low-cost-of-living locations helps companies avoid raising wages across the board to meet employee expectations in expensive cities.
In addition, providing the benefits expected by full-time U.S.-based employees can add up fast. By hiring international contractors, companies may be off the hook for providing employee benefits, making this a less expensive strategy. Nevertheless, organizations should offer competitive pay to every worker, no matter where they live.
4. It Promotes Around-the-Clock Productivity
In today’s digital world, the concept of “business hours” is dead. Whether you run an e-commerce store or provide a service, customers expect access to your organization 24 hours a day. Failing to provide fast, reliable customer service negatively impacts your customer experience and can drive customers to your competitors.
If your team is based out of one location, providing 24-hour support can feel impossible.
However, tapping into the global workforce can help you extend your business hours and improve your CX.
When you employ people in different time zones, that means someone is available around the clock. This makes it easier to answer customer questions quickly and complete quick-turnaround projects.
5. It Enables Hiring Flexibility
When you’re running a business, eventually you’ll decide you need help. However, you may not know whether you want to bring on an employee or work with a contractor. The good news is that you can hire international workers as either contractors or as employees. The decision depends on what’s most convenient for both parties.
If you find an international worker with whom you’d like to create a long-term working relationship, hire them as an employee. Hiring employees is also a great option if you plan on establishing a permanent presence in that country.
If, on the other hand, you have a short-term need like building a website, consider an international contractor instead. This approach entails less complexity and fewer overall expenses than adding an employee to your team.
Start Growing Your International Team
Remote work is here to stay, which means companies have access to more talent than ever before. Businesses that expand their talent search across borders reap many benefits, including lower costs, higher productivity, and increased diversity. If you’ve been thinking about hiring workers from overseas, consider this your push to explore the topic further.