Global business: The ins and outs of hiring internationally

Developing a global business can be a thrilling and financially rewarding venture. Instead of limiting your business to just those who can commute to your office, you can attract talent from all over the world and connect with international clients on a deeper level.

But hiring a global workforce isn't as easy as throwing up an ad on Indeed. Depending on the country, hiring outside of the U.S. may require a lot more thought and planning.

Here's what you need to know.

Apply for a labor certification

U.S. employers can hire professionals internationally on both a full-time and contracting basis. There is no need, if your business allows it, to work in an office for an applicant to be eligible to work for a U.S.-based company.

However, you must prove you require an employee outside of your country of origin and that the new hire will be paid a reasonable wage. You'll have to file with the U.S. Department of Labor for a certification that will outline the occupational requirements of the job vacancy. Once approved, you may begin sourcing for talent.

Setting salary levels

Compensating someone for their work varies from one country to the next. The cost of a job in the U.S. or Australia versus South Africa or India differs significantly. Countries with a high cost of labor will necessitate a larger salary to align with the cost of living in the area. The best way to attract and maintain employees is by considering not only their skills and experience but how much it costs to live in the area you're advertising a job opening.

Paying foreign employees

Conduct thorough research on the local market of your target region. You'll need to establish a banking entity in the worker's country of origin so no monetary conversion is necessary, and you can thus hire as many employees as you'd like in that country.

Alternatively, you could establish an employer of record (EoR), which takes on the legal responsibility of employing workers around the world on behalf of your business. This entity would handle all of the HR, payroll, taxes and benefits of the employees to ensure local requirements are met.

Setting up benefits

Hiring remotely means you still need to care for your employees' benefits packages, which could include health insurance. You must pay attention to the local requirements for what is included in their benefits package based on if they're hired full- or part-time.

However, like in the U.S., if the hire is on a contracting basis, then offering benefits is not necessary. This includes applying for work visas for your employees. If they need to travel to the U.S. for assignment, then this could be negotiated in their contract before they start. But, if they're only operating in their home country, then you do not have to sponsor them for a work permit.

Depending on your line of employment, you should consider including equipment for your employees no matter where they operate. This can ensure that they're ready for their first day, and you can control software licenses and cybersecurity on their company computers. If they're working from home, an internet connection and a comfortable space to perform should be a requirement before getting hired. But a work computer and compensating the employee for some or all of their internet bill could be a great perk to add.

Retaining top international talent

Like hiring anywhere else, if you want to attract and retain top talent, then you need to ensure that the working conditions are superb. That means offering competitive compensation, benefits packages, work hours, culture and more.

Before hiring anyone outside of the U.S. — or even your own state — research employee expectations in the local area. What are the turnover rates and the biggest reasons for leaving a job in the industry? How do you keep employees motivated and engaged?

Doing routine check-ins with your employees in regular intervals can help ensure they feel comfortable asking for what they need, and can communicate any growth opportunities they're interested in.

Final thoughts

Employees from all over the world are bursting with talent and excited to showcase their skills for worthy employers. As long as you can nail down your onboarding tactics, HR legal requirements and establish a friendly place to work, you're ready to expand your network.

To learn new and essential entrepreneurial skills, reach out to the Law Offices of Donald W. Hudspeth, P.C.

Categorised in: Starting a Business in Arizona

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