Hiring the Right Staff in a New Country: All You Need to Know
The methods used for international hiring differ depending on the countries where you will be hiring. In several countries, prospects are used to applying for jobs online. Therefore, it is a good idea to look for the most suitable websites for publishing your advertisements. Some of the popular platforms used for this purpose include LinkedIn and other international job aggregators in some countries. However, the same thing is not applicable everywhere. You can search online to get help from hiring guides for the specific countries you are interested in hiring.
1. Hiring international PEO services:
You can find the resources online that tell you about the ways of finding international employees in specific countries. Many organizations choose to partner with different hiring agencies specific to the country for simplifying the hiring process. Others prefer the use of better control over this process. It doesn’t matter what kind of hiring method you are using, when you have found the right people there are some alternatives available for recruiting international employees such as hiring international PEO services. They are helpful in both hiring and employee management processes.
2. Establish your entity in the country:
If you can establish a subsidiary or a branch of your company in a specific country, you will be legally entitled to recruit employees in the place. The process involved in the incorporation and registration of your business in a new country can turn out to be expensive, complex, and time-consuming. Therefore, you must opt for this alternative only when you need a physical presence in a business location and hire the employees permanently. Setting up your business entity is normally not a strategic alternative when you are just hiring remote employees or conducting temporary business operations in the country.
Regio centric approach
3. Hiring employees as independent contractors:
Many businesses choose to avoid the employee-employer relationship completely by hiring international workers in the form of independent contractors. Before deciding on these alternatives, businesses truly need to understand the meaning of the word contractor and the difference to an employee. All countries have their legal definition however, normally the contractors are hired for temporary projects. They can also work for other clients apart from your business. As these contractors are not your employees, there is no need to have them on the payroll and offer different benefits for fulfilling the mandatory legal labor requirements.
You must be taking the necessary steps to make sure that you are not misclassifying the employees as contractors. This is easy to do especially in countries such as China that use broader definitions for what is termed as an employee. They use narrower terms for what is constituted as a contractor. In case the authorities decide that your contractor has to be an employee, you will find yourself owing huge taxes, benefits, and extra backpay to them.
4. Use the EOR or Employer of Record:
One of the great alternatives while hiring an international employee is partnering with the EOR or Employer of Record. The EOR takes on the legal role provided by an employer for the staff members. It includes responsibilities related to HR tasks and compliance such as managing payroll and time-off policies. Recruiting global employees is made a lot simpler if you can partner with the EOR. As the EOR will have the entity within the country where you wish to hire, it paves the way for an easy and quick hiring process. You can select the employees while the EOR will employ them legally and perform the everyday responsibilities for your business.
You can find several top-quality EOR and PEO services in most countries around the world. When you are working with them you can pretty much rest assured that the international employees are receiving all the advantages that are entitled to them under the local law. You can also mitigate the risk of non-compliance to a greater degree or worry less about employment classification. You can learn more about these solutions online to decide whether they are the right fit for your company. Deciding who you wish to recruit during the process of global expansion depends a great deal on your business and niche.