Disclaimer: This article is intended to provide general advice and best practices on hiring international employees. It is not intended to be a substitute for professional legal or financial advice.
Did you know that Google has over 100,000 employees outside of the US? But why would a California-based tech company want to hire a global team of international employees?
Here’s why: a global team helps them access a bigger and richer talent pool, provides a competitive edge, introduces new perspectives and cultures, allows entry into untapped international markets, and helps improve productivity with teams working around the clock.
With a major difference in time zones, they take over exactly where you left off. As you can imagine, this means your organization can work double as fast to complete projects.
This global presence is one of the many benefits of hiring workers internationally.
Moreover, hiring foreign workers helps 86% of SMBs manage costs and fill vacancies. This strategy also helps the 58% of SMBs who struggle with skill shortages.
In this article, we will discuss why you should hire international workers, the different recruitment channels to do so, and how you can make this process simpler using ClickUp’s project management tool.
How to Hire International Employees: A Practical Guide for Recruitment Pros
- Why Hire an International Employee?
- The Process of Hiring International Employees
- Understanding the Costs and Legalities of Hiring Internationally
- Addressing the Challenges of Hiring International Employees
- Best Practices and Strategies for Successful International Hiring
- The Role of ClickUp in Facilitating International Hiring
Summarize this article for me pleaseWhy Hire an International Employee?
American author Jim Collins once said, “People are not your most important asset. The right people are.”
Here are four reasons why employers are looking to hire the “right” remote employees across borders:
1. Increased diversity, better performance
Diversity has become a buzzword across the industry, but it is much more than that.
A 2020 McKinsey study found companies leading in ethnic and cultural diversity outperformed competitors by 36% in profitability.
The reason is simple. A wider talent pool, fresh ideas, and specialized skills. It also helps employees and new recruits look favorably toward companies more committed to diversity, equity, and inclusion (DEI).
Naturally, employees choose companies with progressive DEI. Isn’t that a win-win situation for both employees and companies?
2. Remote foreign employees increase organizational productivity
It’s natural that when you hire foreign workers, it increases employee productivity across all global timezones and helps with retention too—especially if you are a remote-first workplace.
With so much on the line, many SMBs are looking to convert independent foreign contractors into full-time foreign employees to tap into this massive opportunity.
Did You Know: The global contingent workforce generated $171.5 trillion in 2021 and is expected to reach $465.2 trillion by 2031.2. Global hires open up the doors to new talent.
By moving beyond domestic borders to hire foreign workers, companies gain access to a wider pool of skilled foreign employees.
3. Expand faster with foreign workers
Businesses are always on the lookout for new regions to expand their business operations.
However, relocating existing employees to these new locations can be a hassle. For them, hiring foreign employees is the perfect solution, as it allows companies to gain a local advantage in those regions.
Summarize this article for me pleaseThe Process of Hiring International Employees
If you’re convinced of the benefits of hiring international employees, now let’s understand the ‘how.’
With so many job boards, portals, geographical regions, and possibly thousands of ideal candidates to choose from—what’s the best possible way to hire global talent?
Here are a few steps for you to follow:
Step 1: Build a comprehensive job description
The most important part of hiring international employees is knowing who you are looking for. Better job descriptions lead to positive responses from 75% of candidates.
When it comes to international job postings, a little bit of research goes a long way. Check out how other domestic or international companies in your industry are building their job descriptions (for just a little inspiration).
Be sure to explicitly define the required qualifications, skills, and experience.
Then, focus on cultural adaptability, language proficiency, and cross-cultural collaboration skills.
Step 2: Choose the region you want your candidates from
After you have your ideal candidate profile down, you need to decide which international location(s) you wish to hire a foreign employee from.
💡Pro Tip: Before diving into specific foreign countries, ask yourself:
- What is your company’s tolerance for time zone differences?
- What specific skills or expertise are you seeking?
- What is your budget for salaries and benefits?
- Are there particular industries or sectors you want to target?
A couple of more things to keep in mind are local labor laws, work permits, and visa regulations to ensure legal compliance. For these, you can use resources like Remote’s “Where to Hire” report.
Step 3: International recruitment channels can help
Global job boards are often a great place to begin your international recruitment process. They help you filter international candidates based on industry and professional networks so you can reach a global talent pool.
However, partnering with recruitment agencies specializing in international hiring can also significantly enhance your hiring process.
If you are planning on working with an international recruitment agency, be sure to choose them based on two factors:
- Your industry
- The country where you would like to hire your employees
For example: Recruitment agencies specializing in IT employees from India can help you hire the best local talents in the IT industry there, as compared to an agency that sources candidates globally from different industries.
Step 4: Conduct video interviews and e-meetings your candidates
How do you know you’ve got the right person?
There’s no one easy answer—but many HR recruiters will tell you that a candidate’s body language and confidence are good indicators of their fit and suitability.
Now, this won’t be possible to gauge through emails or texts. But a video interview? While it may not be as good as a face-to-face interview, it’s the closest alternative.
Especially once you start the interview process, video calls can help you mimic the environment of face-to-face interactions.
🧠 Did You Know: Statistics show that video technology is being used by at least 60% of hiring managers and recruiters. A survey of 506 companies revealed that 47% use video interviewing to shorten the hiring timeframe, and 22% would consider it for interviewing candidates that aren’t local.
Summarize this article for me pleaseUnderstanding the Costs and Legalities of Hiring Internationally
Now that we have covered the process of hiring international employees, it’s time we move on to the most important (and tricky) part of our discussion—the costs and legalities associated with international hiring.
Pay packages depend on the employee’s country
Here’s the thing: A software engineer in San Francisco might have a higher salary than one in Manila, Philippines, due to the higher living costs in the US.
This makes it important for employers to offer competitive compensation packages to attract and retain local talent.
But when you’re hiring employees internationally, you need to adjust pay based on the cost of living in the employee’s country. This approach ensures fairness and maintains foreign employees’ purchasing power across different regions.
The role of work permits and visas in hiring international employees
In the European Union, the Blue Card is a common work permit for highly skilled non-EU nationals, while the H-1B visa is prominent in the United States for specialized workers.
If you’re not already aware of the work permits and visas you’ll need, it’s important to consult and collaborate with immigration specialists or legal experts before you decide on an international hiring plan.
🧠 Remember: Requirements vary significantly by country, and as an employer, you must always ensure compliance in your hiring process.
Global payroll solutions can simplify payroll management
Alright, you’ve completed your interviews, shortlisted candidates, and figured out their salary structures—but now you are stuck on the next question.
How do you pay your international employees?
Managing salaries and payroll taxes for a global workforce can often be a significant challenge for companies. This is because of the differences in international employment laws and tax regulations across countries.
The solution can be as simple as using a global payroll provider who can manage your payroll across countries. Do your due diligence and consider partnering with a global payroll solution provider that can ensure you adhere to local regulations and specializes in every country’s tax laws.
Solutions like Deel and Papaya Payroll are both excellent at managing global payrolls.
Legal requirements: labor certification and tax law compliance
Hiring foreign workers comes with significant legal responsibilities.
For example: Companies must carefully navigate labor certification processes, like the US Department of Labor’s PERM program, to ensure they’re not taking jobs away from qualified American workers.
And let’s not forget tax laws, which can differ from country to country. This means your international employee’s country probably has different tax rules than your country.
Here again, hire or enlist the services of a credible legal professional or law firm to ensure that everything you do is above board.
Working with an employer of record (EOR) can be a game-changer for your company, as they will handle all the tax filing and administrative tasks.
This can help you and your international employees focus on what’s important to you—getting your work done!
Understanding employment legislation
When you hire employees to build a global workforce, you want to make sure you provide them with a fair workplace.
Now what do we mean by a “fair workplace?”
Well, each country is different. So their local labor laws, rules about minimum wage, working hours, and how foreign nationals exercise employee benefits all vary.
For example, Europe has the Working Time Directive, which calls for 11 hours of continuous rest every 24 hours. Meanwhile, Japanese culture follows stricter labor laws.
To make sure that you are following the most updated versions of the regulations, once again, talk to an expert. Consult with legal s[specialists who regularly review local and foreign labor certification laws.
Summarize this article for me pleaseAddressing the Challenges of Hiring International Employees
Hiring international employees can be a relatively smooth process for you if you follow the steps well—but there can be some challenges.
Most of these are contractual and legal challenges that can be solved by hiring an experienced immigration attorney or onboarding a legal consultant. Let’s explore them, and see how we can navigate the challenges.
Misclassification risk
Misclassification risk arises when foreign employees are incorrectly classified as independent contractors.
The effects are detrimental—misclassified employees may have to pay significant fines and penalties, and in severe cases, they can lose their license to work in the country.
This misclassification can occur due to tax evasion, cost-cutting on foreign employee benefits, or misunderstandings of different employment laws and tax laws.
For instance, in the United States, the IRS imposes penalties on employers who misclassify workers, and the cost of non-compliance can be steep, often exceeding tens of thousands of dollars.
How to navigate this: To avoid these risks, companies can work with an employer of record (EOR) that understands local regulations and can help ensure compliance with global payroll and local employment regulations.
Permanent establishment risk
Permanent establishment (PE) is slightly technical, so let’s understand it with an example.
Suppose you have hired international employees from Dubai. You don’t have a physical office in Dubai, so your employees live and work from their homes. However, if the Dubai government observes that these employees have been serving your company for a substantial amount of time, they could potentially trigger your permanent establishment (PE) status.
How can it hurt your organization? PE risk can lead to double taxation, where the company is taxed both in its home country and the foreign country of operation.
The rise of remote work has made governments more vigilant about enforcing PE regulations. For example, in Germany, having a remote worker can sometimes create a PE, making the company subject to local corporate tax rates, which can be as high as 30%.
How to navigate this: To mitigate this risk, consult with experts in local tax laws. Simultaneously, work with a legal entity or professional employer organization (PEO).
Intellectual property risks
Here’s why you need to be careful about intellectual property (IP): it can potentially make you lose a lot of money.
How much? Patent litigation can cost you somewhere between $2.3 and $4 million (or more!).
Protecting intellectual property (IP) is critical when hiring international employees, as IP laws vary significantly across countries. Without proper agreements, local employees might have claims to IP rights.
For example, in China, IP theft is a significant concern, with a 2019 report estimating that IP theft costs the U.S. economy between $225 billion and $600 billion annually.
How to navigate this: To safeguard IP, companies should include specific clauses in employment contracts, clearly outlining IP ownership. Industries such as technology, finance, and manufacturing must be especially diligent.
Overcoming relocation hurdles and residency requirements
Each country has its own set of regulations when it comes to relocating.
For example: In the UK, obtaining a Tier 2 (general) visa requires meeting specific salary thresholds and proving that the job cannot be filled by a local worker.
How to navigate this: Provide comprehensive relocation packages that include assistance with visa applications, finding housing, and settling into the new environment.
You can also partner with relocation specialists and legal entities familiar with local employment laws to make sure you are on the right legal track.
Summarize this article for me pleaseBest Practices and Strategies for Successful International Hiring
Now that we have a good overview of all the processes and steps to successfully hire international employees, let’s quickly go through some best practices.
| Option | Pros | Cons |
| Open a local entity or hire a foreign subsidiary | (a). Establishes a committed local presence (b). Builds trust within the local business community (c). Increases brand awareness (d). Provides international experience for current staff | (a). Requires significant capital investment (b). Time-consuming to set up (c). Involves numerous administrative tasks (d). High ongoing operational costs |
| Co-employ with a Professional Employer Organization (PEO) | (a). Streamlines human resource management (b). Provides access to comprehensive foreign employee benefits for remote employees (c). Ensures local expertise and compliance | (a). Can be costly for larger organizations (b). Shared responsibility means less control over HR and management decisions |
| Use an Employer of Record (EOR) | (a). Enables efficient onboarding of foreign workers (b). Facilitates faster market entry and project execution (c). Reduces operational costs and administrative complexities (d). Ensures compliance with local employment laws | (a). Varies in service quality; requires choosing a reputable EOR |
| Hire an independent contractor | (a). Offers flexibility (b). Provides access to specialized skills and expertise (c). Cost-effective as you only pay for the services provided | (a). Limited long-term commitment and loyalty (b). Potential legal and tax complexities (c). Less direct control over workflow and schedule |
Think about your global compensation strategy
It’s also vital for your business to ideate and flesh out a global compensation strategy.
This includes managing direct financial payments like salaries, bonuses, and allowances. It also involves managing indirect financial benefits like health and life insurance, paid time off, etc.
While building your global compensation strategy, it may help to keep these pointers in mind.
- Regularly review and adjust your global compensation strategy to keep up with international regulations and employee expectations
- Study to international compliance rules to set payment parameters
- Remember to account for exchange rate fluctuations in your payment flows
- Plan all compensation-related communication to be clear, specific, and relevant
Summarize this article for me pleaseThe Role of ClickUp in Facilitating International Hiring
You may not expect this, but the trickiest part of hiring internationally is keeping track of the process.
This is why our HR friends swear by talent management software such as ClickUp, which helps them track every step of the recruitment process and much more!
Here are five ways in which ClickUp simplifies international hiring:
Candidate tracking
- Application Tracking System (ATS) integration: Easily integrates ClickUp with ATS to track candidate progress from application to hiring
- Custom Fields: ClickUp allows recruiters to manage interview phases, foreign worker contact information, deadlines, and more
- Candidate pipeline management: Utilizes tasks to move candidates through different stages of the recruitment process via a visual representation of their Status
Project management
- Task assignment and tracking: Assigns specific recruitment tasks to team members, ensuring clarity and accountability
- Automations: Automatically assigns tasks, triggers status updates, and switches priorities to keep the recruitment process on track
- Time management: Tracks the team’s workload using time estimates and a time tracker to gauge productivity effectively
Interview scheduling and coordination
- Calendar view: Schedules tasks and syncs them to external calendars across time zones to avoid double booking
- Automated reminders: Sends automated reminders to both interviewers and candidates, which makes it a very effective recruitment tool for reducing no-shows
Team collaboration and feedback
- Task comments and attachments: Collaborate with team members, comment on tasks, and attach relevant documents, such as resumes and interview notes
- Feedback collection: Collect feedback from interviewers and hiring managers within the task, simplifying the decision-making process
Templates and customization
Interview Processes
- Templates: Save folders or lists as templates, like onboarding templates and ATS templates for reuse, ensuring a consistent structure for recruitment tasks
- Custom Fields and task descriptions: Customize task fields to manage various aspects of the hiring process, such as interview scorecards and candidate evaluations
- Task organization: Place a task for each candidate in the appropriate list, complete with relevant custom fields and attachments
- Standardized evaluation: Use an interview scorecard template to maintain a consistent evaluation standard across all candidates and roles
Bonus: Here are some free HR templates that are used by talent resource teams across the world.
Remote Onboarding
First up, the ClickUp Remote Onboarding template. It doubles as an onboarding software that helps you track the entire recruitment process from Day 1 and contains a lot of useful features, such as:
- A customized task checklist
- Beautiful visual timelines
- Super-easy collaboration tools that can help you include other decision-makers
All the above and more make ClickUp an easy-to-use onboarding software that is perfect for teams of all sizes.
Recruiting and hiring
Hiring involves a whole set of steps. If you find it hard to keep track of all the steps, you’re not alone.
It is no secret that HR managers hate using multiple apps to track a candidate’s progress—it’s cumbersome and complicated. For them (and probably you), ClickUp’s Recruiting & Hiring template will work like a dream.
Hiring candidates
Finding it difficult to manage your candidate pipeline?
Then try out ClickUp’s Hiring Candidates template. It’s a ready-to-use, fully customizable workspace that is feature-packed for all your hiring needs.
However, if you have just started and need something more simple, then you should instead give ClickUp’s Hiring Checklist a shot. It will work well for beginners and has enough customizations in it to breeze through basic hiring processes.
Also Read: Human Resource KPIs – 10 HR KPIs & Examples
Summarize this article for me pleaseHire Better with ClickUp
Whether it is international hiring or domestic hiring, HR managers have multiple roles to fulfill. From writing job descriptions to getting on interviews, choosing candidates, and writing endless chains of emails—it can seem endless.
Candidates struggle with less-than-ideal hiring processes, too. 54% of candidates abandon the recruitment process midway because of poor communication from the hiring manager. This can be especially tough for companies looking to hire global talent.
But there’s a way around this.
Project management software like ClickUp can prove invaluable in your hiring process. HR teams use it to track candidates, manage deadlines, schedule interviews, and collaborate with other decision-makers.
Additionally, with ClickUp Brain, they get AI-powered insights that let them create detailed reports and analytics—all of which lead to better data-driven decisions. Are you ready to change the way you hire talent?
Sign up on ClickUp for free and experience the future of recruitment.
Everything you need to stay organized and get work done.
