8 Things To Consider Before Hiring Global Teams

Hiring internationally is a sign of a well-functioning business. It creates opportunities for people from different parts of the world to share their creativity and talent for the betterment of your company.

However, the process of hiring internationally can be daunting. Nevertheless, knowing what to do and the things to consider can make the hiring process an easy one.

If you are looking forward to hiring a global team, it is vital to consider the following:

1. Employment Laws

When hiring individuals, you must adhere to vital employment laws in their respective countries as these things differ from one place to another.

For instance, what works for the United States might not work in Europe. Also, payment methods can be different for each country. Therefore, you also need to figure out the best way to pay global teams.

Generally, when recruiting or hiring a global team, you must understand the rules dictating taxation, required benefits, termination, paid and unpaid leave, vacation time, and notice period. While these may be few, they give you an idea of the factors to be considered when hiring international team members.

2. Recruitment Costs

International recruitment is more costly than local recruitment. The amount you use to find the best employees in money and other resources can’t be compared with what you can use to employ local teammates.

That said, you should be ready to spend more by the end of the process. While recruiting a global team can also be done efficiently, this information tends to notify you that as you seek to take your business to an international level, you are also more likely to spend a lot.

3. Steps Needed To Establish A Business Entity

Before hiring, you need to develop ways to pay your new staff. Since some countries are yet to accept remote payroll, you require business entities in countries where you are hiring to be able to pay the employees legally. However, it is important to note that it is incredibly time-consuming to establish a business entity in some countries.

For instance, as per the World Bank, it takes the longest period of about 230 days to establish a business entity in Venezuela. While you can decide to hire from countries where you can start a business in just a few days, you’ll still require enough time to officially make it functional since you need to meet all requirements.

The requirements might range from having a business representative from the country to opening a bank account in the same country.

Suppose you are in a situation whereby you need to open a business entity to hire international employees. In that case, you must first understand what the process will entail knowing the amount of time and resources you’ll need.

4. Labor Force In the Countries You Consider

Considering the labour force of the countries you intend to hire from is also essential. It helps you understand the pros and cons of hiring from those countries.

Additionally, there are other aspects related to the labour market to consider. For instance, you need to know whether or not the market is tight. Like in Japan, there’s a tight labour market with about 1.62 jobs for each applicant. 

That said, you’ll need to be extra convincing for workers to join your team in such countries. On the other hand, in a non-tight labour market, you’re more likely to experience multiple applicants vying for a specific position in your company.

Another consideration is the qualifications to expect from the county’s labour force. Research hire learning facilities in the country to determine if they offer courses required in your field. While you might not be able to research every potential team member, understanding what’s offered at schools can be a great starting point.

5. Retaining Your Company Culture

International team members joining your company should feel that they are truly part of the organization.

While it is easily said, it can be tough to bring employees from different countries on the same page. This is because mimicking the cultures and communication styles of individuals from different parts of the world can be close to impossible.

Therefore, you must take steps to make each team member valued and treated equally regardless of where they come from.

6. Statutory Benefits

Before hiring from different countries, you should first understand the statutory benefits legally entitled to employees. You should also know the customary benefits to offer to remain competitive.

Some expected benefits in most countries include holidays, vacation leave, sick leave, caregiver leave, parental leave, and retirement savings.

In some countries, employees are entitled to transportation, meal vouchers, and special rest periods each week. The point here is that different countries have varying employee benefits, and knowing them before hiring is beneficial. Remember, collective bargains might even attract more benefits for international team members.

Studying these benefits will help you know how much a particular team member will cost your company. In some cases, the total amount of statutory benefits might be more than the basic salary by a considerable amount.

7. Employee Laws To Be Followed

Besides benefits and compensations, other employees’ laws must be followed in every country. Ensure to do your homework to identify laws concerning hiring and firing in the country.

For instance, most countries emphasize anti-discrimination practices in workplaces. Additionally, you might need to structure workweeks or handle terminations in a specific manner in different countries.

It’s advisable to consult legal professionals who are aware of these laws to help you understand them better. Given that the non-compliance risk is relatively high when navigating the process on your own, it is best to always be on the safe side.

8. Cultural Considerations

It is common for different cultures to hold high regard for different values, conversations, and priorities concerning the business setting. Therefore, you should be more considerate of these considerations when hiring internationally.

When approaching, interviewing, and hiring a team member, these considerations should be adhered to—failure to do so, and you might lose a potential team member for failing to understand their culture.

How do I Hire A Global Team?

As a business grows locally, every business owner’s dream is to take it globally. At this point, you’ll need to hire international employees to keep the business running. Here are the things to consider before hiring a global team for your business:

• Employment laws.

• Recruitment costs.

• Steps needed to establish a business entity.

• Labour force in the countries you consider.

• Retaining your company culture.

• Statutory benefits.

• Employee laws to be followed.

• Cultural considerations.

While hiring global employees might not be a walk in the park, it isn’t that challenging either. With the above-mentioned pointers, your global hiring will be as easy as ever.