If you’re running an international business, then getting access to the right personnel can be critical. But when you’re expanding into new territories, hiring can be a complex process – and it’s easy to find yourself on the wrong side of the law.
Let’s take a look at how you might mitigate the risks associated with hiring as an international business.
Understand Local Employment Laws and Compliance Requirements
The biggest risk to think about is employment law. The laws that apply in one country might be vastly different in another. Fail to comply with the local law, and you could suffer considerable legal and financial penalties, as well as reputational damage.
Legal problems can also stem from your tax obligations, environmental protections, and any special licences and permissions that might be necessary. Getting the right advice before you start your expansion can be essential.
Utilise an Employer of Record (EOR)
To stay on the right side of the law, you might use what’s called an employer of record. This is a third-party organisation that will employ workers on your behalf. Since these organisations are based in the country you’re working with, they tend to have the knowledge required to remain compliant – and they’ll assume the risk that comes with it.
Leverage Technology for Remote Workforce Management
Many modern businesses function with the help of a remote workforce. However, this can make it difficult to spread the message and culture of your business and ensure that everyone is on the same page.
There are ways to offset this risk while still retaining the advantages of a remote workforce. The right HR technology can be essential in overseeing a hybrid or wholly-remote workforce. In some cases, the employer might be legally responsible for the health and safety of the remote worker, which makes risk assessments necessary, sometimes.
Perform Thorough Background Checks
When you’re hiring internationally, it can be easy to get things wrong. The importance of due diligence, and thorough background checks, is therefore difficult to overstate. In the UK, the Home Office provides resources and advice centred around background checks for prospective international recruits. By putting a robust system in place for checking new hires, you can reduce the risk considerably.
Cultural Training and Adaptation
International businesses draw on employees from a diverse set of cultures. This can be a source of creativity and great new ideas – but it can also cause tension, especially if someone feels that their cultural sensibilities aren’t being respected. By providing managers and other leaders with cultural training, you can build a cohesive workplace where everyone can contribute – and you can spot potential clashes before they actually happen.
