The Considerations for Adding Global Talent to your Workforce
By Steve Malley, Global EoR Director, HSP Group
Accessing the global talent pool can be the next best thing for your business, but you need to know how to make it a reality.
Many organizations reach a point in their business journey where they realize that they are interested in a particular market, but they just don’t know where to start. And these days many companies realize that they have a gap in their talent pool and that 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 ongoing success of the business.
Another benefit is that it allows businesses to hire in lower cost markets. Typically, workers in the US are more expensive, whereas paying the salaries of workers in different counties can be a cost-effective solution for businesses that wish to expand whilst sticking to a budget.
The most natural first step is to evaluate certain markets to determine their fit, but many businesses fail to dig deeper into the WHY for that market and invest time in preparing for what future planning could look like.
We detail the three core areas of consideration when employing people in a new market:
There are many considerations to keep in mind when choosing a country to expand to. For example, if your competitors are operating in Germany, you might want to consider entering that market too 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 when it comes to hiring and paying for global talent.
What type of role(s) are you hiring for?
Once you decide what country is right for you, not only do you need to figure out the best way to approach that market, but also 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 an individual with a specialist 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 truly 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?
Whilst 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, and as such, EoR solutions became an increasingly popular option for businesses looking to hire internationally without the need for a legal entity.
Acting as a quick-to-market, mitigated risk solution, EoR provides businesses with access to 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, with a full understanding of local regulations and market conditions, a business is able to make more informed decisions in line with economic situations.
2. Flexible business operations – naturally, inflation creates uncertainty. However, through 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 are able to 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 as opposed to focusing on administrative duties that are associated with managing a global workforce.
Kickstart your EoR activity today
HSP has a roster of global expansion experts that are uniquely positioned to support businesses seeking to expand internationally utilizing EoR, backed by expert-driven managed services and technical consulting solutions.
HSP is seeking 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 the drawbacks, and advise on how to manage these going forward.