If your business is seeking to hire talented individuals from other countries, it is important to familiarise yourself with the international hiring process. The process of international hiring involves recruiting and employing personnel from outside the country where the company is based. Hiring globally can offer various benefits, such as a larger pool of skilled candidates, increased diversity in the workforce, and access to international markets. Companies that choose to engage in international recruitment do so with the aim of gaining specific skills or expertise that may not be available in their local labour market. Moreover, hiring from other countries can lead to cost savings on labour and promote innovation within the organisation.
Statista reported that global employment rates dropped in 2020, potentially due to the Covid-19 pandemic, reducing from 3.33 billion to 3.19 billion. However, there has been an improvement since then, with a 4% increase observed in 2022.
Technological advancements have significantly contributed to the global employment growth. Businesses seeking skilled talents in the information technology sector have been refining their recruitment processes to draw from a global talent pool.
How applicable is the term “international recruiting”?
The process of international recruiting entails searching worldwide for the most qualified candidates and hiring them.
Reasons for hiring foreign workers
The Covid-19 pandemic validated the efforts of businesses beyond Silicon Valley that were already leveraging the trend of hiring talent from other countries. Major corporations in Silicon Valley began to recognise the benefits of hiring foreign workers. The pandemic-driven increase in remote work has also expanded the talent pool, allowing these companies to consider hiring foreign workers without them having to relocate.
In present times, many companies proactively seek out and hire talent from other countries.
Variety, originality, and innovation are integral to the success of businesses. To achieve growth, businesses should not only rely on internal resources but also consider hiring personnel from diverse backgrounds. Such an approach brings new perspectives, fresh ideas, and opportunities for businesses to reach new heights.
To acquire and retain the best IT personnel, globally renowned organisations such as Microsoft, Twitter, Facebook, and Apple are investing in the most talented individuals in the technology industry. This move is necessary due to the scarcity of highly qualified personnel in this field.
Why do technology firms hire talent from overseas?
According to reports, it takes approximately 35 days to hire a developer in the United States and roughly 45 days in Canada using a professional recruitment service. This begs the question of why it takes such a significant amount of time to fill even one position. Can someone provide an explanation for this extended timeline?
The answer to this question is simple.
Most businesses limit their recruitment to the local area, which restricts them to specific geographical regions.
Benefits of Hiring Talent from Other Countries
- To access a broader pool of talent with specialized skills that are currently lacking in the domestic labour market
- As a cost-cutting measure for personnel expenditure
- We must tap into the enormous potential of the underrepresented workforce. Some individuals prefer to work part-time for personal reasons, while others may be unable to work full-time due to physical or mental health issues. Accessing this underrepresented labour pool can provide more employment opportunities and enhance diversity in the workforce.
- Enhancing creativity and productivity through increased corporate diversity
- Managing the overall tax burden is crucial due to varying tax rates across different countries.
How can IT companies attract and retain top foreign talent?
Offering salaries higher than the local market rate can help in attracting and retaining top talent.
Countries like India, Brazil, the Philippines, Poland, Costa Rica, Argentina, Vietnam, and others are becoming popular destinations for international talent as the cost of living and wages are relatively lower in these regions. Companies can leverage this trend to compete with local firms in acquiring the most skilled and experienced workers by providing higher compensation packages than the standard rates. For instance, Works offers developers compensation that exceeds the average wage in many countries.
There are several ways to increase compensation, such as:- Offering a comprehensive benefits package that includes medical insurance, paid time off, bonuses, commissions, and dividends is crucial to maximizing financial rewards for employees. Providing a full range of financial benefits demonstrates an employer’s appreciation and dedication to their workforce.
- Contract-based hiring enables workers to deduct business expenses from their taxable income. Offering competitive and fair benefits can enhance employee satisfaction, and this can be achieved by implementing better hiring practices and improving staff retention rates. By doing so, companies can cultivate a more content and productive workforce.
Here are some additional benefits of hiring remote workers.
Creating a welcoming and diverse workplace environment
A recent survey conducted by Deloitte found that 74% of millennial workers feel more creative in an inclusive workplace culture, and 47% of job seekers prioritize a company’s commitment to diversity and inclusion. These results underscore the importance of fostering a work environment that values a variety of perspectives and supports innovation.
A diverse team, including members from different genders and backgrounds, can greatly contribute to the success of an organization. Therefore, it is crucial that diversity and inclusion are vital considerations throughout the entire employment process, including recruitment practices that do not lead to discrimination and equal distribution of promotion and development opportunities, regardless of gender or other characteristics. Here are some workplace values that can foster a more diverse environment.
Businesses in the United States can benefit from hiring foreign workers from countries like Latin America and Asia to foster a more diverse workforce. Latin American countries, in particular, offer a unique benefit as they share many cultural similarities with the United States. Additionally, the proximity in time zones between these countries allows for effective collaboration and communication. Latin America also offers lower cost of living compared to other parts of the world, making it an attractive option for businesses looking to recruit bilingual employees at a lower cost.
When it comes to hiring overseas employees, Latin America presents a compelling option due to its proximity and cultural similarities.Building a recognizable business brand
According to research by Glassdoor, companies with a strong and positive corporate brand can effectively reduce hiring costs by up to 50%. To attract top talent from all over the world, it is crucial to establish a positive and attractive reputation that appeals to potential candidates.
The most effective approach to building brand credibility among international customers is to use video content and corporate-run blogs to share the personal stories and experiences of your current global workforce. By doing so, you can provide customers with an intimate look into your company and its operations and demonstrate your company’s commitment to its global presence. This approach can foster trust and a stronger relationship between your brand and customers across different countries.Emphasizing a person’s actual skills over their resume
Leading companies like Works, Google, Apple, and Microsoft prioritize practical experience over academic credentials when recruiting. Instead of relying solely on resumes, these companies may use tests, coding challenges, and real-world projects to assess candidates’ skills and capabilities.
This approach can benefit employers in two ways: by providing access to top talent and by increasing the depth of the talent pool.Creating an engaging job seeker process
Recruiting is a crucial process for businesses, and it is important for them to make the procedure clear and straightforward. This can help to alleviate any stress or anxiety that potential applicants may feel during the interview process. Companies should value the time and effort that candidates put into preparing for the interview and demonstrate appreciation for their contributions. This helps create a positive experience for the job seeker and builds a favorable relationship between the company and the candidate.
Here are some suggestions to improve the experience of job seekers:- If the recruitment process is explained to candidates in detail.
- By providing suitable educational materials.
- By offering helpful feedback to each applicant.
Conclusion
Hiring staff from other countries can offer numerous advantages. Firstly, there is a reduction in time and cost spent on sourcing and orienting new employees to their roles. Additionally, the integration of new ideas from foreign workers can lead to a more diverse and innovative work environment. Therefore, if an organization wants to leverage the potential of international talent, it is advisable to weigh the benefits of this approach.
Are you looking to build a remote software development team? It might be worth considering. With Works, a cloud-based platform that leverages AI technology, businesses can find and manage the most talented software engineers from around the world at a fraction of the cost of hiring locally. Works provides access to experienced programmers in more than 150 countries. To learn more about our services, visit our dedicated Developers for Hire website.
FAQs
What is meant by “international recruiting”?
The term “international hiring” refers to the process of actively searching and recruiting the best talent from across the globe.What are the benefits of hiring foreign workers?
The advantages of hiring talent from outside include:- This provides access to a larger pool of candidates with desirable, niche expertise.
- In an attempt to reduce labor costs
- To leverage the potential that has not been utilized
- In an attempt to enhance workplace diversity
- Efficiently reducing and managing one’s tax liability
How and where to locate foreign workers.
Below are some of the most successful methods for attracting and retaining the best talent from overseas:- By offering higher compensation than the prevailing market rate,
- By promoting openness and diversity,
- Establishing a distinctive brand for your company
- By recruiting based on an individual’s actual skills instead of their written resume.
- By building an intriguing atmosphere for prospective employees,
