How much does it cost to hire internationally?

There's never been a better time to grow your team internationally. As remote work continues to grow in popularity, employers have even greater opportunities to hire employees from anywhere in the world. Hiring an international employee allows U.S.-based companies to expand their talent search, explore new markets, and increase the diversity in their workforce.

Wondering how Oyster fits into your big picture? Book a customized demo to see what your day-to-day could look like with our global employment platform.

You may still face some challenges when hiring international employees, though. To hire someone from another country, your easiest option is often to use a global employment platform (like Oyster) rather than register a local entity or go through a local agency. Managing a global workforce can be difficult, especially considering factors like language barriers and global payrolls, and the process may introduce additional costs. These challenges don't have to be deal breakers—knowing what to expect puts your company in a position to be competitive when hiring.

Why Companies Are Hiring Internationally

Before diving into the costs, it's important to understand the strategic value. Companies that hire globally aren't just filling roles—they're accessing the best talent, no matter where it exists. This approach allows you to build more diverse, resilient teams and gain a foothold in new markets, turning your talent strategy into a competitive advantage.

What Are the Main Costs of Hiring International Employees?

So, what does it actually cost to hire internationally? Beyond base salary, you're looking at recruitment fees, visa costs, mandatory employer contributions, and compliance expenses. Here's what you need to budget for:

• One-time costs: Recruitment, visa sponsorship, legal setup
• Ongoing costs: Statutory benefits, employer taxes, EOR fees
• Variable costs: Currency fluctuations, regional compliance requirements

Recruitment and Sourcing Costs

The first expense you'll encounter is the cost to find your candidate. This can vary widely depending on your approach. You might budget for international job board postings, subscription fees for talent databases, or fees for working with a specialized global recruitment agency. These are typically one-time costs per hire but are essential to include in your initial budget.

How much does it cost to hire an international employee?

The total cost varies significantly by country and role. There are several broadly applicable categories to be aware of.

Work visas

If you plan to have your new international employee come to the United States to work, they will need a work visa. It costs around $5,000 to sponsor an H-1B visa (the standard employment visa in the U.S.) between immigration lawyer fees and filing fees.

Local currency

If your new hire lives in a different country, the strength of the local currency relative to the U.S. dollar will affect your overall hiring costs. Be aware of the exchange rate between the two currencies when you consider fees and salary negotiations.

Mandatory employer costs

Here's what catches many companies off guard: mandatory employer costs that vary dramatically by country. These aren't optional—they're one of the most pressing challenges of international HR.

Mandatory costs typically include:

• Statutory benefits: Vacation time, sick leave, holiday pay, 13th-month bonuses
• Employer taxes: Social security, healthcare contributions, unemployment insurance
• Compliance fees: Legal setup, ongoing regulatory requirements

Check out our guides to global hiring costs to see specific breakdowns by country.

EOR management fee (if applicable)

If you choose to work with an employer of record (EOR), keep in mind that you will have to pay an EOR management fee. This fee varies depending on the EOR you choose and other factors, but 20% of your hiring costs is a good estimate.

Total Employment Cost Examples by Region

Let's make this concrete with real examples. Employment costs vary dramatically by region due to local tax laws and statutory benefits. For instance, employing a software developer in Western Europe may involve higher social security contributions than employing a similar role in Southeast Asia. Using a global employment cost calculator can help you model these scenarios for your specific roles.

How to hire international employees

1. Apply for U.S. Department of Labor certification

If you're bringing talent to the U.S., you'll need U.S. Department of Labor certification first. This involves proving you need the role filled and can pay prevailing wages.

Key requirements:

• Job justification: Evidence the role can't be filled domestically
• Wage compliance: Proof you'll pay prevailing or higher wages
• Program eligibility: Completed ETA forms for your specific program

2. Place an international job ad

If you want to attract global candidates, you should post your job ad on job sites catering to these workers. Make sure the post clearly specifies that you are accepting international applicants and clarify whether it's a remote or in-person position.

3. Select your candidate

Opening applications to the global talent pool may mean that you get more resumes than you're used to, especially if you're in an industry with many strong international candidates, like tech.

As you go through the resumes, pick some of your top candidates for interviews, just like usual. Using video conferencing tools to conduct interviews makes it easier to communicate with applicants in other countries.

4. Obtain necessary work visas

Needing to sponsor a work visa is one of the biggest challenges of hiring international workers to work in-person in the U.S. On average, the total hiring time for first-time H-1B visa recipients is 275 days.

Prepare to experience some delays while sponsoring your new employee's work visa. If you need someone to fill your in-person job vacancy quickly, it may be best to hire a domestic worker.

5. Follow tax regulations

For employee's based in other countries, your company will likely be subject to tax regulations in the international employee's home country as well as the United States. Foreign workers need to obtain a Social Security number from the Social Security Administration, for example, and share it with their employer. Payroll taxes apply to all workers, regardless of their citizenship and location.

For help estimating the total cost of employing a new international team member, use Oyster's Employee Cost Calculator. You can use these estimates to get a better idea of what it will cost to build your global team.

Planning Your International Hiring Budget

Hiring internationally is a powerful growth lever, but it requires careful financial planning. By understanding all the components of employment costs—from recruitment and visas to mandatory benefits and platform fees—you can build a realistic budget and make informed decisions. With the right partner and tools, you can navigate the complexities of global employment with confidence. Ready to build your global team? Start hiring globally with a platform that makes it simple and compliant.