The days of employers being restricted to hiring local candidates are in the past. Technology trends and other factors have resulted in a rise in worldwide hiring. There are many reasons for the uptick in location-agnostic hiring, from advances in telecommunications technology to the influences of the COVID-19 pandemic, which prompted companies to adopt work-from-home policies.
Tech companies, in particular, have led the charge, recognizing the distinct advantages of global hiring—which benefits both employers and employees. Workers are no longer restricted to job shopping in their immediate area, while companies can source the best of the best from a global pool of talent.
However, as tech companies expand their reach beyond borders, there are also logistical and administrative practicalities to consider. If you're a People professional or a business leader, you're probably familiar with some of the common concerns. For instance, what local regulations do you need to respect when hiring abroad, and how will you compensate employees in their local currency?
A global employment partner can help you with these and other practicalities, promoting global hiring success. However, finding the perfect partner isn't always easy. Different providers offer different services, so you want to shop around for a solution that suits your needs.
Below, we outline what People Operations leaders, particularly those at tech companies, should look for when selecting a global employment partner.
Why finding the right partner is crucial to global hiring success
Global expansion comes with a unique set of challenges, from navigating complex international labor laws to managing payroll and benefits across multiple countries. Ideally, you’ll want to entrust your global hiring needs to a partner that can streamline processes, ensure compliance, and reduce risks. A global employment platform (GEP) might be just what you’re looking for. A GEP is a software solution for people operations managers that makes it possible to seamlessly build, manage, and scale global teams.
Depending on the GEP solution, it may help HR and People Ops teams with everything from managing local payroll and taxes to determining country-relevant benefits, safeguarding IP, and more. With this end-to-end solution, companies with a geographically diverse workforce can manage all their HR and people management needs through a single tool.
Many tools also address compliance issues, reducing headaches around the legal complexities of tax legislation, labor laws, and other regulations—which usually differ from country to country.
In most cases, the company pays a subscription fee to access the GEP. Costs vary according to the provider. Rest assured that this business expense is well worth it, as it helps to streamline all people management and HR processes and ensures compliance. When these headaches are relegated to a GEP, businesses can save time and stress, and focus their energy on their core business competencies.
For workers, a GEP is beneficial as well. A GEP allows workers to get paid in their local currency, provides access to localized benefits (like health insurance or government-mandated time off), and ensures their working contracts are recognized in their jurisdiction.
That said, not all global employment partners are created equal. What should you consider to ensure you choose the right one for your organization’s needs? Here are some factors worth thinking about.
Expertise in international employment regulations
Employment regulations vary between countries. Take the standard workweek, for example. It’s 40 hours in Spain but 44 hours in Brazil and 48 hours in Colombia. Details like overtime pay also vary according to the location.
There are also rules regarding mandatory benefits, like health insurance, parental leave, paid time off, and pensions. You want a global employment partner that understands the intricacies of the relevant legislation for every country you hire in. With their expertise, you can navigate the legal complexities of international hiring, reduce compliance risks, and ensure an equitable global workforce.
Global payroll and tax management
Knowing the rules is just the first step. What about managing active payroll duties? Many global employment partners will take care of these administrative tasks for you. They can make sure employees are compensated fairly, accurately, and in a timely manner, wherever they’re located. This reduces the administrative burden on your team.
Proactive global payroll and tax management further reduces liability and compliance risks. A knowledgeable global employment partner will stay on top of evolving legislation regarding payroll and tax regimens so that you don't miss any updates. This helps prevent payroll errors that could otherwise lead to lawsuits or similar issues.
Comprehensive benefits administration
Similarly, it's important that your global employment partner manages employee benefits. This requires not only having knowledge of the legislative landscape but also staying on top of new regulations or amendments to existing regulations. A trustworthy partner can also actively manage these benefits, ensuring that employees are cared for—and satisfied. By keeping an eye on market norms in the area, they can ensure that you're a competitive employer.
Take something as seemingly simple as time off, for example. When giving global employees time off, you have to deal with each country's laws regarding mandatory time-off minimums. You also have to consider public holidays, which can vary significantly depending on not only the country, but also the area within the country. For example, in Switzerland, Corpus Christi is a mandated public holiday in some cantons—but not all.
Efficient onboarding and offboarding processes
Global hiring is a big boon for companies, allowing them to access talent from all around the world. However, having such a distributed workforce also presents challenges. For instance, it can be difficult to integrate far-flung team members so that they feel welcomed as part of the company.
An effective and efficient onboarding process can help ensure that employees make a smooth transition into their new roles. A comprehensive global employment solution may also take care of this aspect of hiring. Then there's offboarding—all the processes that go into an employee exiting an organization. For instance, when someone leaves, you have to wrap up details like social security and pension contribution reporting.
Technology-driven solutions
There's no point in investing in a global employment solution if it's too complicated to use. Look for technology-driven solutions that use cutting-edge software to collect and centralize data, streamline workflows, and provide real-time insights into your workforce. You also want to make sure the solution is user-friendly, with a clear-cut interface.
Tech-driven solutions can help optimize human resources decision-making, allowing you to adapt to evolving market conditions. If you've seen an uptick in people leaving your workforce in a given region, you’ll want to investigate this trend and figure out why. It could be that competitors in the area are paying higher salaries, for instance—an easy fix on your side.
Global network and local expertise
A strong partner should have a global network that covers all the countries you hire in. They won't do you any good if they offer services exclusively in the European Union, but you're hiring across Asia, Africa, and South America, too.
However, a global network alone isn't enough. Your global employment partner should have dedicated local experts who understand the nuances of each market you hire in. Their in-depth insights can help you tailor your HR strategies, allowing you to navigate not only regulatory differences, but also cultural norms and language barriers.
A demonstrated breadth and depth of global expertise is especially important in the hyper-competitive tech industry. A partner with expertise in all the above points will help People Operations leaders ensure seamless global hiring and management. With the right partner, you'll be well equipped to achieve sustainable growth on the international stage.
Oyster: Your global employment partner in 180+ countries
Finding the right global employment partner starts with asking the right questions. For example, what geographies do they cover? Do they offer country-specific compliance and legal expertise? Can they manage your admin and global payroll? What about risk management services?
For a solution that checks all the boxes, trust Oyster. Oyster offers coverage in more than 180 countries around the world, giving you a single, streamlined solution to cover all your global employment needs.
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