7 Steps to Take When Hiring International Employees

Today's businesses face fierce competition like never before. There's no shortage of enterprising minds, after all. Not to mention, various technologies have allowed virtually anyone with creativity and capital to bring their visions to fruition.

Stiff competition means not all businesses will hold out for the long haul. Or, not all companies will yield the growth their proponents visualized before they launched their entrepreneurial endeavors.

Thankfully, there are strategies to which businesses can anchor their short- and long-term plans amid challenges. Here, outsourcing fits the bill.

Outsourcing is the process of hiring international employees to streamline and scale business operations. It has become a go-to strategy for businesses that wish to expand into new markets and create global branding. On top of that, one of the key advantages of overseas hiring is access to a diverse and dynamic talent pool.

To maximize the benefits mentioned above, you must outsource with care and precision. Here's your guide to international hiring.

1. Assess your prospects

Knowing the ins and outs of this business strategy is vital for joining the outsourcing trend. Begin with the different types of outsourcing models at your disposal. They include the following models:

• Professional Outsourcing
• IT Outsourcing
• Business Process Outsourcing
• Manufacturing Outsourcing
• Operational Outsourcing
• Process-Specific Outsourcing
• Project-based Outsourcing
• Multisourcing

Remember that these iterations are unique and serve a specific purpose. For example, business process outsourcing (BPO) refers to hiring a third-party provider to carry out business processes on your behalf, such as customer service. Meanwhile, manufacturing outsourcing involves the creation of goods.

It's also crucial to study outsourcing hotspots. The goal is for you to find a host country whose employment and cultural peculiarities fit your organization.

2. Outline your needs

Outsourcing allows businesses scalability. You can hire staff based on your most pressing needs. For example, if you're ramping up sales efforts, you can add more people to your sales team. Or, if you're in the process of transitioning to automated processes, you can hire IT experts to render project-based service.

Based on the arrangement with your international hires, you'll have to classify them as either employees or contractors. The main difference is that the latter spares you from employment tax.

Once you've outlined the types of labor you require, the next order of business is crafting a job description and posting a job ad. The details of these must be clear.

3. Choose the right approach

You have the option to DIY or partner with an outsourcing firm. With DIY outsourcing, you can join gig economy platforms such as Upwork. There you can have workers bid on your project. However, keep in mind that DIY outsourcing is suited only to businesses requiring a few people.

Meanwhile, signing up with an outsourcing firm is recommended for bigger companies requiring a whole team to carry out business processes, such as digital marketing. An outsourced digital marketing team can manage all your online campaigns from conception to execution.

4. Evaluate candidates

This factor will depend on which approach you choose. For DIY outsourcing, you'll be responsible for the entire selection process. Meanwhile, an outsourcing company will do most of the HR work on your behalf.

That goes without saying that you'll still play a crucial role in the process. After all, you'll need to meet the people you'll be working with. So make sure to schedule virtual interviews. Refer to resumes to carefully evaluate candidates.

When evaluating potential hires, be conscious of any cultural or racial biases. That's the first step to eliminating racism in the workplace.

5. Comply with tax regulations

Your tax responsibilities to a foreign country will depend on the scope of the business you wish to conduct within its jurisdiction. Since tax laws differ from country to country, you might need a tax expert to guide you. Also, identify the tax duties your outsourced staff will have to shoulder so you can adjust salary contracts accordingly. Lastly, don't forget to claim tax credits for foreign taxes you pay.

6. Review other legal and operational requirements

You may need to procure a certification from the Department of Labor that entitles you to hire overseas. That is on top of other federal and state requirements.

Also, you may opt to set up a foreign entity in your chosen country for outsourcing. That affords your business more autonomy. However, that's only recommended for organizations that wish to set up an office abroad.

7. Draft a contract

A contract may not be necessary if you're outsourcing a short-term project to one or a few people you hire from gig platforms.

However, if you're looking for a long-term relationship with a team assembled by an outsourcing firm, you must pay close attention to the service-level agreement (SLA). That will define the terms of the professional relationship, including who owns the work outputs accomplished throughout the partnership. Again, let a legal expert guide you.

Wrapping It Up

Gone are the days when businesses were limited to their location to carry out critical operational functions and systems. These days, the most ingenious leaders and managers know that it's a big world out there. And it's full of untapped talents that could help advance their business vision.

Exhausting international employees' potential is part of the organizational design of the most successful brands we know. And that's something you, too, should get behind. Follow this guide to yield the best results from your outsourcing journey.