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Benefits and Risks of Hiring Internationally

2022-05-20 05:06:59

With a growing trend of global and cross-cultural business environments, a need to fill skills-gap and increasing a company’s talent pool; it has become essential for organizations to hire internationally. 


International hiring is a key feature of a global expansion of companies. Whether a company is hiring locals of a particular country to work remotely or bringing foreign nationals to a new country, companies need to follow the best practices, abide by rules and regulations and be careful with each and every step in following stringent procedures. As more companies consider going global, it is important to understand the risks and benefits of hiring internationally.



  • Increased talent pool: Companies can tap into a larger talent pool of highly efficient, competent, motivated and dedicated employees in different parts of the world. Hiring local talent in a particular region has added benefits for the company. 


  • Cross-cultural workplace: Every country and market has its own work culture. By hiring internationally from within a country or region where the job is based, companies get the advantage of using local knowledge and experience. This helps companies perform better in unknown or new regions.


  • Competitive advantage: Global markets function in fierce competition. Having a competent team of employees who are capable of executing the company’s goals is important. It is often not possible to find the right talent within the country and that’s when companies need to scout internationally. 



  • Legal risks: Every country has different laws pertaining to work and labor. While hiring internationally, companies have to have know-how about a particular country’s legal requirements and regulations of payroll, benefits, terminations and leave structures. One of the biggest challenges that organizations face is maintaining compliance with the rules and regulations of other countries. 


  • Complicated procedure: Hiring internationally isn’t only about finding the right talent and making sure the employee is suitable and trustworthy. Finding the right employee is only half the task. A company needs to learn and understand laws and requirements of the other country, such as foreign tax law, creating a country-specific employee contract, benefit to employee regulations, termination laws, work visa requirements and more. If companies fail to follow these rules, they could face legal actions. 


  • Burn out and attrition: Studies have shown that expats usually have a high burnout rate. This is especially true for those in high stress and demanding jobs. In cases where employees are hired internationally, companies often face the challenge of retaining employees. It is difficult to keep the employees motivated and engaged to retain them. Companies risk their investment of time, money and energy when internationally hired employees quit.


  • Termination: Each country has specific laws relating to terminating an employees contract and it is not easy to terminate contracts. For example, an employee’s performance might not be satisfactory and the company decides to terminate the contract or the company decides to shut shop and stop operations in the specific country abruptly. The company will have to follow rules and regulations and comply with the procedures before terminating the employee’s contract.


What should companies do to hire internationally?

It is practically impossible for companies to deal with and manage international hiring with in-house expertise. Companies need to avail of services of other relevant companies. Fact Suite’s experience and understanding in international hiring and finding solutions to a company’s requirement related to hiring internationally is known and trusted. 

How does outsourcing international hiring procedure help?

Hiring internationally is not only expensive; it is risky and consumes time and energy. Fact Suite helps companies minimize risks, control expansion costs when going global and complete procedures of international hiring with their expert understanding of laws and regulations.


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