Top Global Recruitment Challenges for 2023 and Beyond

The rise of remote work has made international recruitment more attainable for companies across industries. You can widen and deepen your talent pool, gaining a competitive advantage. However, HR leaders must also account for global recruitment challenges, especially if your organization hasn’t hired across borders before.

Learn more about what hiring managers must understand when recruiting talent internationally, including how to translate the employer brand and how to comply with local regulations.

 

Local Recruitment

Global recruitment is much more than posting an online ad, especially when reaching local markets that have different languages, cultures and expectations than you’re used to. Organizations can struggle to convey their employee value proposition, and online recruiting alone can seem cold and sterile. Many high-potential recruits prefer a more personal candidate experience.

That’s why many organizations are sending in-house recruiters to these markets or working with local recruitment agencies to represent them. Whether you are opening an office, hiring new employees to live in the target market or sourcing independent contractors, a local human resource representative can make your intentions and expectations clear. They can also humanize your company by forming connections with potential new hires and answering their questions quickly.

The global job market is still influenced by the COVID-19 pandemic. The International Data Corporation’s 2022 Return to Office and Hybrid Work: What Employers Need to Know survey revealed that more than 56% of the employees located in Asia-Pacific (APAC) countries excluding Japan want flexible work options to endure. This presents opportunities for companies that hire in a range of countries and accommodate different schedules and asynchronous work.

To get the best results in your talent acquisition efforts, understand each local market on a deeper level. Learn about the most popular channels for reaching candidates, what they expect from the hiring process and the cultural climate you are recruiting in.

 

Brand Awareness

Competition is increasing for high-potential talent in all industries and markets as companies realize the value of international talent. Employers must stand out by increasing their brand awareness so candidates know who they are and what to expect.

Positive brand awareness can have a cascading effect, as qualified candidates explore your listings, join your organization and later recommend you to people in their network. By contrast, if a potential candidate has never heard of your company or has a negative impression, they’re less likely to submit an application.

Ensure your employer brand has a focus on diversity in all areas, including job listings, workplace policies and the language and images you use in your marketing. One way to promote your attention to diversity, equity and inclusion in your employer brand is to tell employee stories (with their permission, of course). These employee stories can live on your website, be shared on social media or used in marketing.

Candidates are watching to see whether your organization has people like them and reflects their interests, background and mindset. If you are recruiting in the Europe, Middle East and Africa (EMEA) region, for example, and your employer brand doesn’t reflect that region’s diversity or range of cultures, what message does that send to potential candidates?

If you already operate in a country or jurisdiction, you can tap into your existing employee network to improve your recruiting. This can extend to any interns you’ve had for a semester. Many organizations create campus ambassador programs, where former interns advocate for the company and present at on-campus events.

 

Tax Compliance

Your company could face tax obligations depending on how you’re incorporated in a particular market. For example, when you have operations in a country outside the location where your business is headquartered, you can incur corporate or turnover tax liability because your foreign operations count as a permanent establishment (PE).

A dependent agent PE status means that your company is liable to pay tax where you have agents with the authority to conclude contracts considered binding upon the enterprise, even when they are not full-time employees.

In some cases, it may be more cost-effective to set up a subsidiary based in your target market. A subsidiary is a company operating overseas that is part of a larger parent or holding company headquartered elsewhere.

Foreign subsidiaries are separate legal entities and must observe local laws. They’re also responsible for their own assets and tax compliance. Since a subsidiary is its own legal entity, it is not necessarily considered a PE of its parent company.

Creating a subsidiary can be an effective solution for large companies with multiple foreign operations and employees who intend to do business in a foreign country long term. Whether this situation makes sense for your business depends on the circumstance and the qualified professional advice you receive.

 

Overcome Challenges to Find the Best Talent

Organizations want to find the best talent wherever it happens to be. International recruiting is more promising than ever for companies with sound recruitment strategies, clear policies and savvy hiring managers.

Create a competitive advantage and overcome global recruitment challenges by delivering an exceptional employee experience, understanding your market, strengthening your employer brand and meeting tax compliance obligations.

 

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