So, you’re setting sails to expand your business globally. Congratulations! But have you given much thought to how you’re going to put together your local team? Actually, have you considered what steps you’re going to take to make sure all your hiring is compliant with local laws and regulations?
Recruiting and hiring employees during a global expansion is one of the more challenging parts to figure out. Sure, you could obtain work visas for some of your team members to go over and perform operations. Still, I’m willing to gamble that they’ll run into cultural issues and different business proceedings pretty fast. And those issues could lead to loss of revenue. The best solution would be teaming up with a group to help source local talent and ensure all hiring processes are above board.
Global Expansion Compliance Issues
One of the things I see most often is companies believing that they can hire and onboard employees in their new expansion country the same way they do in their homeland. This can be a costly error. For example, if you’re expanding to the UK, you must provide all your local employees a contract outlining employment details – not to mention the time period you have to do so in.
There’s also an issue of shifting business norms. Say you’re one of the many US companies going global – you’re accustomed to at-will employment. But as Stuart Buglass points out in his contribution to The Balance Careers, “…there is no concept of an at-will employee outside of the US.” He further explains that in some countries, like Brazil, termination can only stem from “gross misconduct” and not “because of poor performance or economic reasons.” These are critical differences that can shake a global recruiting and hiring strategy from top to bottom. If companies expanding internationally aren’t aware of these variances, it could be disastrous for successfully building international teams.
Another significant factor that trips businesses up from fulfilling the extensive advantages of doing business globally is not being aware of the cultural differences that impact day to day transactions in the office. That is why many consider hiring talent local to your expansion country imperative. However, handling the engagement and onboarding of that unit on your own can lead to miscommunications and prevent top talent from partnering with your organization.
So how do you counter this? Gwen Moran writes in Entrepreneur:
“It also helps to understand the culture of the country and what the expectations of employers include. Work on understanding business norms. For example, employees in some countries may be open and direct, whereas in other countries, the approach to communicating with them may require a more measured approach.” This insight is invaluable. Suppose you fail to acknowledge the cultural differences from the onset of the recruiting and hiring process. In that case, you and your team will likely begin a working relationship on mixed signals – leading to poor performance, low morale, and quick turnover.
Moran also suggests that this is where a partnership would help set you up for success, and that’s a valid point. By working with an experienced team, you’ll be aware of any unique steps in the hiring process in your new international location. You’ll also rest easy understanding whether the person you’re bringing on should classify as an employee or independent contractor. This is important because those terms have different definitions from country to country. So not only will a partnership aid in bridging the gap between cultural diversity, but it also eliminates the chances of experiencing regulation hiccups.
Global Expansion Hiring and Recruiting
The recruiting and hiring process needs to be at the forefront of your international expansion strategy. Hiring miscues and a workforce that doesn’t align well with your company are blows that you sorely want to risk. That’s why your global hiring and recruiting efforts must be at the foundation of your move abroad. Too much is on the line to not be flawless in these baseline steps. Fortunately, there are experts that can support these efforts – giving you one less thing to stress over.