The way we work has changed significantly over the past decade. The days of reporting to a local office from nine to five are behind us, as digital technologies make it easier than ever to collaborate across distances. This is good news for companies and workers alike. Businesses can source top candidates from a global talent pool, while jobseekers enjoy greater access to opportunities regardless of location.
Cross-border recruitment has other benefits as well, allowing for more diverse teams culturally and linguistically. For businesses, there is also a cost-savings angle, as hiring individuals in countries with lower benchmark salaries can help save money. International hiring can also set the stage for global expansion, allowing businesses to expand their operations into other countries and reach a larger market.
Hiring managers and HR leaders who want to take advantage of the benefits of international hiring for global expansion should plan carefully. This guide offers a primer to growing your company globally by hiring international employees.
What is global expansion?
Global expansion doesn't have to mean world domination. It simply means you're expanding your business beyond domestic borders. It's a strategic move that allows a company to reach international markets, thereby accessing new revenue streams.
This is one way to achieve business growth, which is important to sustaining a company long-term. Growth goes hand-in-hand with fresh sales opportunities, expanded product and service lines, and the acquisition of new customers. All of that can add up to greater credibility, stability, and, of course, profits.
Through global expansion, a company can broaden its market presence and reach a larger and more diverse target audience. A bigger, diversified audience can mean greater demand for new products and services. Plus, by introducing existing products or services to new markets, it's possible to revitalize sales and extend the life cycle of existing products or services.
Global expansion, step by step
Global expansion requires an investment of time, money, and human resources. You want to plan carefully to make sure your investment is wisely spent and to mitigate the potential risks of expanding globally.
Here are some steps to keep in mind:
- Research the market: Where will you expand to? Research various geographies, considering market size, growth opportunities, market trends, regulatory and legal frameworks, and infrastructure. You also want to consider the competitive landscape. Ideally, there will be a market gap that you can fill.
- Consider compliance: Before you start taking steps to expand in a given region, research the relevant regulations. If you're selling a product, is there anything that might bar you from selling it in that country? For instance, cannabis products that are legal in some countries are illegal in others. There are also compliance issues to consider later in the expansion process, such as country-specific labor laws governing employer-employee relationships.
- Write a business plan: Once you've identified a market you want to move into, draft a business plan specifically for that market. Create a timeline for all the steps you need to take to expand there, such as setting up a business entity, hiring local employees, and registering with the relevant tax authorities.
- Hire your international team: Local hiring can be done in various ways. You might establish a business entity in the given country and hire through that entity. Another option is to work with an employer of record (EOR), a third-party entity that employs individuals on behalf of your business. Global hiring platforms like Oyster are another possibility.
- Address supply chain issues: If you're selling physical products in another country, there are supply chain issues to consider. Will you manufacture goods locally or ship them across borders? What kinds of regulations will apply? What tax considerations are there to think about, such as import duties?
- Localize, localize, localize: Global expansion doesn't simply mean taking your product or service as-is and selling it elsewhere. You'll want to localize details like marketing and advertising materials, for example. You may even need to adapt your product or service to the market. This is an area where someone with local knowledge, like an international employee, can help.
Oyster's global employment tools can help at various stages of the expansion process. For example, if you're wondering what hiring international employees will cost you, our employment cost calculator can give you an idea.
How hiring international employees can support cross-border expansion
A local team can play a pivotal role in global expansion. Individuals with localized knowledge will be familiar with cultural norms, for example, which can impact everything from workplace interactions to geographically targeted marketing.
Having a boots-on-the-ground presence in a given country can also make other elements of global expansion easier. For example, when it comes to coordinating local manufacturing or logistics, it's useful to have an onsite presence. A local team can address any potential linguistic or cultural barriers when liaising with third-party service providers, keeping everything running smoothly.
Having a local presence can also simplify further expansion. You don't have to hire a full team immediately. Instead, consider starting with a few core employees who will then oversee the expansion within the country. These individuals can then manage subsequent hiring and onboarding.
5 steps for hiring international employees
International team members can play a pivotal role in your business’s global expansion strategy. Here are the steps for recruiting and onboarding international employees.
1. Write a job description
Determine exactly what duties the person will do and what skills and qualifications they need. Write this out in a detailed job advertisement in line with local regulatory requirements. For example, some countries require you to post the salary range in the job ad.
2. Decide on the vetting process
Define the criteria you'll use for hiring and map out the hiring process before you post the job. Will candidates have to go through a series of interviews? Will they need to complete skills assessments or tests? How will you handle asking for references? Again, compliance is an issue here, as local laws on references (like what you can ask) may vary.
3. Post the job and pick your candidate
You may not be able to use the job boards or sites you use in your current geography. Research locally relevant websites or look into using country-specific recruitment agencies for hiring. Then, use your predetermined vetting process for sifting through applications to ensure objectivity.
4. Establish a clear onboarding process
You don't want remote team members to feel isolated. Set up a comprehensive onboarding process that covers both administrative paperwork and cultural components. Hosting a digital welcome session is a chance for international employees to get to know the team.
5. Keep compliance in mind
Throughout the hiring process, make sure you're remaining compliant with any labor laws in the country. For example, it's important to classify individuals correctly as either employees or independent contractors. If you hire someone as an employee, you have to consider labor laws governing points like paid time off, minimum wage, and overtime.
Our guide to hiring international employees has more best practices for hiring globally.
Let Oyster support your global expansion
A global hiring platform like Oyster can simplify your global expansion process by providing a streamlined, end-to-end platform for onboarding, managing, and paying international workers in 180+ countries.
Oyster is an industry-leading global employment platform (GEP), a software solution that People leaders use to scale global teams. We take care of contracts, onboarding, payroll, benefits, and more—so you can focus on your business.
Learn how Oyster can help you expand compliantly across borders.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
