Every company that is interested in expanding globally must have a global hiring strategy. Although many businesses want to increase global market share and raise revenue in the process, some of them do it so they can hire the right talent for their operations. Before getting on with the hiring process, you should have a strategy that will help you attract and keep the right talent. Below are a few strategies to help you do that.
Foreign Subsidy Vs Legal Presence
When expanding internationally, you might assume that you need to establish a local legal entity to do business in the new country. This is a huge commitment as it is expensive and takes a lot of time. These legal entities also become a liability when the market does not work for you and you need to exit quickly.
Smaller businesses do not have to deal with all of this as they can establish a foreign subsidy. The foreign subsidy will take care of their business interest there, the most important of which is employing the right people to ensure the success of the expansion. A foreign subsidy is also a leaner, cheaper option for businesses that cannot afford to waste any resources in case things do not go as planned.
Regardless of how you choose to hire international talent, you must ensure that you are compliant. This is much more difficult than it sounds because there are different regulations and rules to know about and follow in each country. For example, if you are starting a business in South Korea, you will face different issues than if you were opening one in Brazil.
For every market you get into and decide to hire in, you will need to take care of employee benefits, taxes, contracts, and agreements, as well as taxes. Things get a lot more complicated when you understand that the rules you have to comply with change all the time. If you are not an expert in the local rules and regulations, you may fail to comply with some requirements. A good example is employee termination. Some countries require that you give notice while others do not.
Many companies choose to hire an Employer of Record (EOR) to handle all these issues for them, so they do not have to deal with them themselves.
Timing is Important
Because you are interested in a global presence, your company may be looking to get started in a new market as fast as possible. If you are starting a business in South Korea, for example, it will take a few months to establish an entity in that market before you can start hiring. Additionally, it will take some time to understand the culture, how to attract the right talent, and find trusted partners to handle the hiring if you are not in the country.
All of the above has to be done quickly enough so you do not miss out on top talent especially if there is strong competition in the country you are starting the business in.
When getting into a market like South Korea, one way to speed up this process is by using a recruitment agency South Korea. Recruitment agencies help simplify the recruitment process by leading the recruitment drive on your business’ behalf. This recruitment agency employs professional consultants to review resumes to ensure you get the right candidate. In this way, you end up with the most qualified candidates who also have the talent, experience, and values you need in an employee. All this is done in weeks and not the months it would take if you did it yourself, which ensures you do not lose talented potential employees to your competitors.
Independent Contractors Are an Option
Hiring a team using an EOR as discussed above is a huge commitment to your business. However, you also have the option of hiring independent contractors if you do not have the resources to support full-time employees.
As with recruiting in this new market, you need to hire a local to help you avoid labor disputes and help you stay compliant. The local company can also help you maintain a good relationship with your independent contractors, so they are willing to work for you when you need them the next time. The local company or international consultant will also help you draft proper agreements, cover liability, and clearly establish the autonomy of your independent contractors.
Attracting the right talent is only half of the equation, as you also need to keep them. This is getting harder as the global economy gets more competitive. An effective strategy for maintaining top talent is offering competitive benefits. These can include housing subsidies, competitive salaries, foreign language classes, relocation benefits, or any other benefit that helps keep the talent on board.
When hiring globally, you need to find ways to balance your business needs with those of your employees. Paying attention to the market, staying compliant, and deciding whether to hire full-time employees or independent contractors will all help shape the global recruitment strategy you end up with.