3 Truths about Global Hiring

Global hiring, for those organizations that have the resources to commit to it, is an opportunity to solve for a labor shortage, enhance diversity, find skilled labor, and provide employees with cultural exchanges. Still, many Human Resources professionals feel overwhelmed by the thought of it. They wonder about how to confront issues ranging from where to seek out talent to setting up tax structures and being able to comply with a different set of rules, regulations, and laws.

Recently, the HR community gathered to discuss the challenges of global hiring with experts Lina Szaks, SVP of Operations at Multiplier, and Shayla Myers, HR Leader at Pay Ready. They provided insight and solutions to some of the problems keeping people from investing in global hiring. 

Click here to watch this webinar on demand: 

Global Hiring Helps Solve Labor Shortage

A shift in demographics and a lack of immigration reform policy has led to a long-term labor shortage for many industries, including technology, in the United States. The speakers at the event said that global hiring was a great solution to the tech talent crunch. They also asked the audience to weigh in.  

Although many in the tech sector experienced rounds of layoffs recently, it still has had trouble finding skilled labor that is necessary for staying on the cutting edge in a swiftly advancing industry. To attract top talent anywhere in the world, organizations must offer competitive compensation and benefits, better work-life balance, and reskilling and upskilling in that order, according to the responses of the audience.

Compliance Is a Big Challenge 

Global hiring can be intimidating. It requires employers to confront a number of issues, besides the usual recruiting processes. Apparently, legal and compliance issues are among the most overwhelming aspect, according to the HR leaders in the audience. Cultural differences and communication barriers are also a challenge. Just about anyone with a global team can relate to the time zone and collaboration difficulties. Hiring and onboarding seems to be less of an obstacle than the other aspects of the process. 

Compliance and cultural exchanges are challenging if HR is on its own. However, having employment lawyers and staff in the local region where a company is hiring or using a third-party vendor, like an employer of record, can help solve for these problems. 

Employer of Record Companies Can Help

The majority of the audience had never used an employer of record and more than 10% had never heard of such a resource. Employer or record companies help employers handle the recruiting, onboarding, and compliance when hiring someone abroad. In addition, they stand in as the employer to ensure compliance when it comes to local tax regulations. 

Global hiring comes with pros and cons. While it can help employers grow their teams, gain diversity, and find skilled labor, it requires overcoming some challenges like following local laws and customs, language barriers in some cases, and paying taxes according to local regulations. Employer of record companies can help organizations that have the means to invest. Ultimately, global hiring can be a great option for companies facing a labor shortage, but HR must be willing to tackle these issues first. 

Watch the conversation on global hiring to get more information on global hiring.

Graphics by Stefanie Calinda for HR Exchange Network  

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