Employees from foreign countries fill a significant portion of the employment gap worldwide. They offer a great range of skills, experiences, and perspectives to any company looking to improve their workforce. However, employing foreign workers in the US is not as simple as hiring domestically.
Nonetheless, given the increased potential advantages that come with it, this may be a worthwhile effort. That’s why we’ve put together this guide to take you through the pros and cons of hiring internationally, as well as offer a simple solution to boost your hiring efficiency.
Several Hiring Solutions for International Talent
Corporate leaders realize that an organization’s growth depends on its workforce quality. The largest industrial forces encourage productive and engaging immigration policies that assist organizations in filling job openings and boosting the economy.
For businesses considering recruiting foreign staff, several solutions are available to assist you in making the process simple.
Outsourcing the Hassle with an Employer of Record
Employing international workers involves a combination of employment and tax systems that can quickly become challenging. The heightened risks involved mean incurring costly fees and fines is more likely.
An Employer of Record (EOR) will manage onboarding, payroll, taxation, benefits, and compliance when recruiting foreign talent. Outsourcing these tasks frees you to focus on managing and developing top talent.
An employee legally working in the United States needs a work visa issued by the U.S. Citizenship and Immigration Service.
Obtaining these documents is notoriously difficult. However, the work permit and visa are part of an EOR’s service, saving companies invaluable time.
It is also no longer necessary for organizations to transfer their workforce. EORs use well-established local entities worldwide to hire foreign workers on your behalf.
The primary advantage of using an EOR to hire talent from overseas is the ease at which you can pursue opportunities across new markets. An EOR is the safest and fastest way to go multinational. The recruiting freedom provided by an EOR solution makes it an efficient and cost-effective option, resulting in a valuable partnership.
Really Consider Using an Independent Contractor
An independent contractor works under a different company name from yours and completes specific work duties based on a limited contract. A company has less control over the contractor compared to its employees.
Here are more substantial differences:
- Independent workers may work from anywhere, while company employees are found on-site.
- An employer provides their workers with the equipment needed to perform their jobs. However, contract workers are solely liable for their equipment.
- An employee has a schedule to follow, but a contractor has flexibility regarding how much and when they operate.
Companies considering hiring workers from overseas should likely use independent contractors for short-term projects. An experienced contractor may be perfect for companies missing essential skills or expertise when hiring or transferring a full-time worker would not be feasible.
Depending on Your Expansion Plans, Make Use of New Entities Abroad
A foreign entity is a legal business independently formed in another region but controlled by a holding organization. Forming new separate entities may feature in a company’s long-term international goals. However, setting up a legal entity in a country is expensive whenever you want to hire someone abroad and requires months of complex planning.
Developing a new entity requires a very long time and is the most costly option.
Hiring Foreign Workers: Advantages and Disadvantages
Employing international workers from overseas can provide a business with multiple advantages. If you hire foreign workers, it helps to diversify your organization’s skills by bringing in people from around the world.
So, among the many benefits of hiring foreign employees are:
- Increasing a company’s productivity and growth
- Providing exposure to foreign talent pools
- Employing unique experience sets that are in short supply in the United States
- Making use of time zone differences to create a global workforce that can operate 24 hours a day
- Improving problem-solving qualities through out-of-the-box strategies from a diverse team
- Reducing costs by compensating employees in their native currency
The task of expanding your business and introducing it into the worldwide industry is not without its drawbacks.
As a result, the disadvantages of recruiting talent from abroad include:
- Lengthy and complicated hiring processes
- Maintaining international contractors and employees
- We can smoothly assist you in recruiting, hiring, and managing your workers’ payroll and employee benefits needs.
INS Global Helps You Choose an Employment Solution
If your company needs to hire talent overseas but is not ready to establish a local entity, our EOR solution can help. INS Global has over 15 years of experience providing organizations worldwide with the global recruitment and expansion assistance they need to succeed.
Cooperation with us thus equals confidence that your foreign hires are obtaining all the local benefits permitted under local regulations.
Finally, working with an EOR helps reduce time and money while concentrating on the tasks that further develop your business.
Our EOR experts are ready to discuss your expansion strategy in a free consultation today.