5 Reasons to Hire Employees Overseas
In today’s increasingly interconnected and continuously changing business environment, expanding operations overseas is no longer an option - it is a necessity.
Gone are the days of relying solely on the resources of your local community to build your business.
Just think about it: there are now over 8 billion people in the world. How likely is it that the person with the exact skills needed for the role lives at a driving distance from your office?
Businesses in all industries and of all sizes need to adapt to the changing market to bring the best talent possible to their team.
Why settle for “good enough” when you can go bigger and better?
Let’s take a look at the five main advantages that a global workforce can bring to your business:
Reduced operational costs
One of the biggest benefits of recruiting and hiring overseas is the cost savings. Global expansion may give you the workforce you need at a significantly cheaper price.
In many cases, companies can hire the best international talent at a lower cost, as wages for skilled professionals in countries with lower costs of living correlate to their economic needs. The cost of office space, equipment, and other overhead expenses can also be lower in some countries. And for companies that can offer remote work, it’s even cheaper again! This is particularly beneficial for start-ups and small companies that are looking to grow rapidly without breaking the bank.
This economical advantage extends to employees, as remote work diminishes commuting hours and associated transportation costs. According to Harvard Business Review, the average American travels 16 miles each way to their office and 220 million people spend at least 1.5 hours a day in their cars. Less time spent commuting = happier employees!
Access to a global talent pool
The tight labor market is making it difficult for employers to recruit, especially for specialized roles such as software engineering and data science. However, hiring internationally can solve this problem by giving employers access to a much larger pool of potential applicants. While talent is abundant in international hubs like London, New York, and Hong Kong, countries such as Poland, Slovakia, and India are renowned for their pool of highly qualified tech professionals who are readily available to work remotely for international companies.
Alternatively, international experience is something that a lot of employees are looking for, in particular the younger generations. A recent survey found that 39% of Gen Z and Millennial workers wouldn’t accept a job that didn’t allow them to travel. So limiting your employees to one country might discourage these young, talented individuals from considering your company as a potential employer. Keep in mind that, come 2025, Gen Z and Millennials will make up 75% of the global workforce by 2025!
Global reach with local expertise
The biggest hurdle to international expansion is often the lack of local knowledge. By hiring a global team with employees who are distributed across different consumer markets and who have knowledge of the local culture, etiquette, language, and customer base, businesses can accelerate their international expansion and launch new markets quicker. These local employees are an invaluable asset to your company as they can help you gain a better understanding of what the local market is looking for and how you can customize your products or services to meet these demands.
Furthermore, by having employees in different time zones, businesses can also have someone working at all times, which can help to reduce downtime and improve customer service. This is especially important for businesses that have critical business functions that require continuous monitoring, such as customer support or data centers.
Diverse talent network
In today’s globalized economy, businesses need to be able to connect with customers from all over the world. Global expansion is one way to ensure that your staff can engage with all of your customers, regardless of their language or culture.
Leaders who tap into the benefits of international diversity can build teams that are more creative, innovative, and better at problem-solving. This is because these teams are made up of people from different cultures and backgrounds, who bring with them different perspectives and experiences. A study by Forbes revealed that on average, diverse teams deliver 60% better results and make better decisions in 87% of cases – quite the compelling statistic! Not to mention that multilingualism will help you build relationships with partners and suppliers in other countries and give your business a competitive edge in the global marketplace.
Employing a global workforce offers a strategic advantage by streamlining operational expenses. The time typically allocated to administrative tasks, such as calendar management, can be more effectively channelled towards business growth. By entrusting these time-intensive responsibilities to proficient professionals, organizations can amass substantial time and resources over the long term.
Globalize Your Workforce with Outsourcing
In a rapidly evolving landscape that values swiftness, ingenuity, and adaptability, seizing every available opportunity to enhance productivity is essential. Organizations that can successfully adapt to this new era of work will be able to tap into the power of a diverse workforce, which can lead to greater productivity, innovation, and growth.
However, global expansion is not without its challenges. Businesses need to carefully assess their readiness for global expansion and be prepared to overcome the challenges of cultural differences, legal and regulatory requirements, and financial risks.
Having a reliable partner like Procorre Global can be invaluable in helping businesses navigate the challenges of global expansion. With their extensive expertise as a PEO/EOR provider, Procorre Global can help businesses with everything from talent acquisition to compliance with local laws.
Reach out to us today to find out how we can help.