Recruiting internationally has become a growing trend for many companies in recent years. Especially considering factors like the globalization of the economy, the shortage of skilled workers in certain industries, and the development of new technologies to improve remote working.
HR professionals can access individuals from other countries with the necessary skills, knowledge and experience to fulfill any business need. With that being said, here are the top five benefits of global recruiting:
Access to a larger talent pool
New market opportunities
Improved reputation and brand
1. Access to a larger talent pool
A larger talent pool means greater access to a diverse range of highly skilled and qualified candidates. Organizations can access expertise and skills that may not be readily available within the local talent pool. This is especially true for industries that require highly specialized skills or experience that may be scarce in the local market.
Additionally, diversity in the workplace can increase productivity by as much as 33%, according to McKinsey & Company. Creativity and innovation is often the result of bringing in varying perspectives and experiences to solve problems. With ever changing market conditions, access to a diverse talent pool creates a strategic advantage.
Developing your company culture should always be an underlying condition in your recruiting strategy. International talent can enhance the team and also bridge any skills gaps that your team is currently facing.
2. Reduced costs
One of the biggest benefits to recruiting and hiring global talent is the cost savings. In many cases, a company can still acquire the best international candidates within their industry, while paying lower salaries and benefits. Where the cost of living is lower, the wages for skilled professionals correlate to their economic needs. This can be especially beneficial for startups and small businesses that are looking to grow rapidly without incurring significant costs.
Working remotely allows employees to work from their own locations, removing the need for office space and equipment. This can lead to significant cost savings in terms of rent, utilities and other expenses associated with maintaining an office space. Because businesses aren't limited to a specific geographic location, they can access a much wider pool of talent.
However, it is important to note that recruiting internationally may also come with its own set of challenges and costs. For example, organizations may need to provide language and cultural training during the hiring process. Companies may also need to invest in technology and infrastructure to support remote work. Additionally, you may be required to provide additional benefits and support as required by the local laws for new international employees.
3. New market opportunities
Local knowledge and cultural expertise is a key component to international expansion. It's important to have employees that are familiar with local markets, regulations and business practices. They can help companies adapt to new markets and better understand the needs or preferences of local customers.
Having local employees can also help companies establish relationships with local suppliers, distributors and other key stakeholders. This creates a network of contacts in the local market, which allows you to quickly adapt to the regional expectations.
Their understanding of the cultural expectations can lead to greater customer satisfaction and more significant market share. For example, McDonald’s adapts its menu to the local preferences within various countries to ensure successful expansion efforts.
Leveraging the expertise of local employees empowers companies to tailor products and services to local markets. Over time, this ensures you can build a strong brand presence in new markets for sustainable growth.
4. Risk management
The COVID-19 pandemic showed the world the importance of having a risk management strategy in place for your business. With international hires, your business can expect a greater level of protection in the event of political unrest or natural disasters. When a company operates in a single country or region, it's susceptible to the risks associated with that particular job market.
Having employees in different regions of the world can also allow companies to operate 24/7 and reduce downtime. With a team spread out across multiple countries, employees can be working across multiple time zones. This ensures that their operations are running smoothly around the clock. This can be particularly beneficial for companies that provide 24/7 customer support or have critical business functions that require continuous monitoring.
Moreover, having employees in different time zones can allow the company to expand its working hours across time zones. This means that the company can complete tasks and projects faster by utilizing the expertise of employees across different time zones. This can help to improve efficiency, reduce project turnaround times, and increase productivity.
5. Improved reputation and brand
An international organization can attract talent that is searching for diverse and inclusive workplaces. It also can be an exciting opportunity for employees to work in different countries and cultures. Not only does this improve your reputation, it also also enhances your overall brand image.
Companies with strong employer brands tend to have higher employee satisfaction and lower turnover rates. This is an important factor of developing a more engaged and productive workforce. Those that are more committed to diversity are more likely to have a positive brand image.
This reputation with customers, suppliers and investors can ultimately enhance the company's overall success. This can be leveraged online through social media or company reviews.
Challenges and considerations
While we wanted to focus on the benefits of international hiring, it's important to address potential challenges. Whether you're recruiting and hiring in the European Union, or in Latin America, here are a few general challenges to be aware of.
1. Language barriers
One of the biggest challenges is language barriers. Companies that recruit and hire employees from other countries must ensure that they have effective communication systems in place to overcome language barriers. This may involve providing language training or hiring bilingual employees to act as translators.
2. Cultural differences
Cultural differences can also be a challenge. Different cultures may have different work styles, communication styles, and attitudes toward work. Companies must ensure that they are aware of these cultural differences and are prepared to adapt to them. This may involve providing cultural training or working with cross-cultural consultants to help employees better understand each other's perspectives.
Legal requirements are another consideration. Companies that hire employees from other countries must ensure that they comply with local labor laws and regulations. You'll need to consider permit requirements, benefits, taxes and other employment regulations. When recruiting, the interview process and employment contracts may also require HR consideration.
Although recruiting internationally has its challenges, the benefits outweigh the obstacles. Our recruiting experts are always happy to help you implement a global talent strategy.