Hiring employees internationally has a wealth of benefits, especially if a business hopes to expand into a new international market. There is the option to send an employee abroad to try out a new market. However, they will not have as much local knowledge of the culture and business market as a local employee will.
Locals are also fluent in the language; they use local resources and may cost less than ex-pats. There are three options to hire international employees. Although, not all are as effective or efficient as is needed to expand quickly and cost-effectively.
1. Hire Employees Directly
As previously mentioned, an employee local to the area will know the market better, be fluent in the language and have access to local resources.
Hiring a local employee directly can ensure the candidate is a good cultural and skill fit. This is also the cheaper option. Although hiring an employee directly is achievable, a business will need to create a local entity to do so legally and compliantly. Each country has its own unique rules, laws, and regulations, affecting your ability to do business and employ its citizens.
Establishing a legal entity will take time, usually around six to 12 months. It is also expensive and legal documents typically require a “wet” signature, meaning you will need to send sensitive legal documents worldwide.
2. Find a Local Agency
Using a local agency to hire employees offers its own advantages. As the recruitment agency will be local, they will speak the local language and understand the job market better.
They will act as a point of contact between the hiring business and the candidates, ensuring they find the best fit for the job.
A local agency will also have the time and resources to invest in finding the ideal candidate for the role, as well as knowledge of local labor and tax laws. However, it does come with its disadvantages. By hiring a local agency, a business will still need to establish a legal entity and the agency will not know the ins and outs of hiring from abroad.
This means although they will understand local recruitment laws and regulations, they may not know what is required of a company hiring from abroad to remain compliant.
3. Work With a Global PEO
Investing in a Global Professional Employment Organization (PEO) offers various benefits. A Global PEO provides employee management services and assists with the hiring and onboarding employees, payroll, benefits and other HR responsibilities.
Global PEOs offer an end-to-end recruitment solution that enables organizations to source, hire and onboard talent from abroad. They also ensure an organization remains compliant with local legal requirements.
By using a team of local employment experts, a Global PEO recruits international employees and becomes the legal Employer of Record. Ultimately, this means businesses can get to market quicker while also saving on expansion costs. Risk mitigation, compliance and benefits are all taken care of by the Global PEO, allowing a business to focus on other important matters.
With the help of a Global PEO, a business can break into international markets without setting up a local entity. This fast-tracks the process and saves the organization money.
A Global PEO ensures business growth and protects international compliance. If you would like more knowledge on what a Global PEO is and how they can help you hire international employees, we have the perfect guide. Go ahead and access the unique insights below.