Small business owners are often penny-pinchers by necessity. They know their likelihood of success depends on how well they can guide their business through those first risky years. Spending money with reckless abandon is one of the fastest ways to drive a startup into the ground.
However, keeping too tight a hold on your company’s purse strings can also be harmful to your success. Being too cautious might cause you to miss out on opportunities that could lead to unprecedented growth. Hiring international employees is one such opportunity, though it may seem like an overly risky move at first glance. Not only will you be dealing with differences in time zone, culture, and — potentially — language, there are another country’s labor laws to consider. One misstep could get you in legal trouble with local authorities.
Fortunately, there are approaches you can take to make the process as uncomplicated as possible. Since hiring employees in another country can be a risky business if you don’t know what you’re doing, work with someone who does. You can avoid problems and keep your international reputation spotless by engaging the right human resources partner to smooth your way.
If you’re aiming to establish a business unit in the country in question, you can work with a professional employer organization. A PEO can take care of your payroll, administer employee benefits, and file applicable payroll taxes. But if you really want to reduce the complications of hiring globally, work with an employer of record. An EOR can do everything a PEO does, but you’re not required to establish a business entity in the country where you intend to hire. Since the EOR acts as the legal employer, it both handles the administrative responsibilities and assumes the burden of regulatory compliance.
Even with these HR providers offering assistance with global hiring, you may be wondering why you should bother. Well, wonder no more. Here are three ways international employees can become an asset to your small business.
1. They Increase Your Company’s Understanding of International Markets
Once your business is well established in your home country, it may be time to consider market expansion. Bringing your products and services to new, untapped markets can increase your revenue and make you more profitable. But it’s important to make your move strategically, or your overseas efforts may not yield the results you want. You need to make sure there’s enough interest to fuel your expansion before you jump in head first. Products that experience high demand in one country may be total flops in another country.
Hiring talent from the area you hope to expand into is an effective way to gain an understanding of the market. Local employees can help you determine how to make the international expansion of your business a success. They understand what consumers in their country want and can give you invaluable product development and marketing insights.
2. They Provide Access to Exceptional Talent
There are over 160 million people in the U.S. workforce, but it’s not always easy to fill vacancies. Many small business owners learn the hard way that finding top state-side talent is much harder than it should be. Often, local job seekers with the best experience and potential are snatched up by large companies with deeper pockets. It can be hard to compete when you’re a small company with more limited resources.
Hiring internationally not only offers you a broader pool of employees to draw from, but it also gives you access to top global talent. Some of the most qualified and well-educated professionals come from countries outside of the U.S., where job pickings are often slimmer. Skilled workers in countries with higher unemployment rates may jump at the chance to work for you. Plus, you may also find that it’s easier to pay international employees’ salaries. This is especially true in countries where the cost of living — and thus the average salary — is lower.
3. They Enhance Your Company’s Diversity
Hiring internationally is one way to show that you welcome employees from all cultures and walks of life. An international workforce is likely to be more racially and ethnically diverse, which is important for employee morale and retention. Minority staff members who feel socially isolated at work are less likely to stick around. If they do choose to remain on the payroll, they’re more likely to experience lower organizational engagement and commitment.
Enhancing your workforce diversity can help employees from underrepresented groups feel like they belong. That’s important, as a healthy sense of belonging is linked to a 50% reduction in turnover risk. Even more importantly, workers who feel like they fit in at work tend to have dramatically higher job performance. They’re also promoted more often than employees who are disenchanted by the lack of inclusion at work.
Bringing a World of Talent to Your Small Business
Hiring internationally can seem like a risky endeavor if you’re preparing to do it for the first time. But when you realize you can do so relatively easily with the help of an EOR, it becomes much less scary. For many small businesses, the pros of hiring local talent in areas of expansion greatly outweigh any cons. If you’re looking for ways to help your small business reach new heights, consider building a skilled and diverse international team.
