The Considerations for Adding Global Talent to Your Workforce
Accessing the global talent pool can be the best thing for your business. But you need to know how to make it a reality.
Many organizations reach a point where they are interested in a particular market but don’t know where to start. These days, companies recognize that they have a gap in their talent pool and there are many benefits to hiring employees in a new market.
For example, hiring global talent can be a fantastic solution for supporting a business’s Diversity and Inclusion (D&I) activity, which can ultimately create a positive business reputation and, therefore, contribute to the business’s ongoing success.
Another benefit is that it allows businesses to hire in lower-cost markets. Typically, workers in the US are more expensive, whereas paying workers’ salaries in different countries can be a cost-effective solution for businesses that wish to expand while sticking to a budget.
The most natural first step is to evaluate certain markets to determine their fit. Still, many businesses fail to dig deeper into the WHY for that market. They also fail to invest time in preparing for future planning.
We detail the three core areas of consideration when employing people in a new market:
Which country?
There are many considerations to consider when choosing a country to expand to. For example, suppose your competitors are operating in Germany. In that case, you might also want to consider entering that market to remain competitive, especially if there is an engaged audience and demand for your products/services in that country.
Also, certain countries can be cheaper or more expensive than others regarding hiring and paying for global talent.
What type of role(s) are you hiring?
Once you decide what country is right for you, you need to figure out not only the best way to approach that market, the kind of people you are looking for, and what roles will add the most value to your organization.
Do you need a global director or a specialist with a set of skills to add value to your business? Businesses should consider the types of roles they’re hiring for, how they can add value, and how they will fit into the business infrastructure.
What kind of infrastructure?
From here, you need to consider how the organization will be structured. Will you set up a physical entity or opt for an Employer of Record (EoR)?
Typically, businesses will go to an accountant or a lawyer to determine their infrastructure; however, they can only give top-level platform recommendations instead of delving deeper to understand the businesses’ reasons for global expansion.
Businesses should find someone to help them make these evaluated decisions with the business’s long-term success in mind.
So, why choose EoR solutions?
While EoR solutions have been around for years, the effects of the pandemic and the introduction of “Work From Anywhere” meant that remote working was pushed into the mainstream for businesses. As such, EoR solutions became an increasingly popular option for companies looking to hire internationally without needing a legal entity.
Acting as a quick-to-market, mitigated risk solution, EoR provides businesses with access to a fresh pool of talents in various countries, meaning they can conduct global business expansion with minimal chances of risk, such as violating local employment or tax laws.
Inflation-proofing your business.
EoR services can be the perfect solution for inflation-proofing your business. This is prevalent in the current climate.
But how does it work?
1. Local expertise – with a team of local workers with a wealth of knowledge and experience operating in specific jurisdictions and a full understanding of local regulations and market conditions, a business can make more informed decisions in line with economic situations.
2. Flexible business operations – naturally, inflation creates uncertainty. However, by utilizing EoR solutions, a business can scale up or down depending on the environment and adjust staffing without the long-term commitments and costs associated with traditional employment arrangements. This level of flexibility means that businesses can effectively respond to changing conditions in the market and better manage their expenses during periods of inflation.
3. Informed budget allocation – by outsourcing recruitment via EoR, businesses can free up their time to focus on core competencies, such as strategies and opportunities for growth, instead of focusing on administrative duties associated with managing a global workforce.
Kickstart your EoR activity today.
HSP has a roster of global expansion experts uniquely positioned to support businesses seeking to expand internationally utilizing EoR, backed by expert-driven managed services and technical consulting solutions.
HSP seeks to elevate the conversation around EoR for the next wave of globally expanding organizations, working on a consultative basis to ensure businesses understand the benefits and drawbacks and advise on how to manage these going forward.
Simply get in touch with us today to enquire about our comprehensive EoR solutions.
