3 October 2023
Global Hiring: a Pathway to a World of Top Talent
In today's fast-paced and competitive business landscape, talent shortages have become a significant obstacle to growth and success.
Companies across industries are grappling with the daunting challenge of finding and retaining skilled workers with the expertise needed to drive innovation, meet customer demands, and stay ahead of the competition. In fact, Oxford Learning College has projected that by 2030, an estimated 20% of the UK's workforce, equivalent to approximately 6.5 million people, could be significantly under-skilled for their job roles.
The shortage of qualified talent is not only disrupting recruitment processes, but it also triggers a cascade of issues that affect productivity, employee morale, and, ultimately, a company's bottom line. Moreover, talent shortages can lead to understaffing, straining existing employees with extra work and responsibilities. In fact, a survey by Express Employment Professionals discovered that 79% of workers are currently experiencing burnout, with 35% reporting both physical and mental exhaustion.
However, in the face of such labor market challenges, global hiring has emerged as a strategic solution to the talent shortage puzzle.
The role of global hiring
Global hiring allows organizations to tap into a broader talent pool that transcends geographic boundaries, thereby overcoming local limitations and providing access to highly qualified individuals with specialized skills and experience, especially for niche or hard-to-fill positions.
Diverse thought and expertise stemming from employees with varying backgrounds can also result in broader perspectives and innovative solutions. As a matter of fact, according to research conducted by McKinsey & Company, diverse workforces are 35% more likely to achieve financial returns above their national industry medians.
Nevertheless, global hiring comes with its fair share of hurdles. Navigating the complexities of international labor laws, visa requirements, work permits, and tax regulations can be daunting for both growing businesses and multinational corporations alike. Getting it wrong can have consequences. For instance, Amazon was fined USD 887 million by the Luxembourg National Commission for Data Protection for noncompliance with the EU's General Data Protection Regulation (GDPR) in processing employees' data.
Furthermore, sourcing and evaluating candidates from various locations necessitates understanding diverse local talent markets. Determining competitive and equitable compensation packages that align with different countries' cost of living and market standards is another tricky aspect of global hiring.
Not to mention payroll procedures, which also vary significantly. Pension requirements, for example, are just one component of international payroll that can lead to compliance headaches. For instance, France funds a defined-benefit pension program by taxing a percentage of employee income. In contrast, Denmark funds its pension program with a fixed annual fee per employee. Meanwhile, India has defined contribution and defined-benefit plans with complex options, including exemptions for businesses that exceed the minimum. Making an error here can have high-stake consequences, such as fines, reputational damage, or even being banned from doing business in that country.
So, in a world characterized by local talent shortages and ever-evolving workforce dynamics, how can companies go global swiftly and compliantly?
Enter: the employer of record category
Few companies have the time or resources to navigate global hiring, as the traditional route can be expensive and complex. The required bandwidth can be a major obstacle to a company’s growth, making the entire process feel like a second job on top of actual day-to-day workloads. In fact, this realization is what inspired G-P’s founder and CEO Nicole Sahin to create the employer of record industry in 2012.
Building off a reality where establishing a business presence in a new country often meant six or more months of intricate legal and administrative processes, Sahin created an antidote to the time- and cost-consuming problem. Today, thanks to G-P’s worldwide entities, Sahin’s vision of democratizing access to global jobs via the digital world enables companies to hire anyone, anywhere.
G-P takes on the legal, tax, HR, and regulatory responsibilities so clients can find, hire, and onboard talent around the world, quickly and easily. This means companies don’t have to decipher labor laws or spend months setting up their own business entities. Instead, they can focus on growth, without the regulatory burdens that typically slow companies down.
By working in tandem with G-P, we solve immediate problems, accelerate progress towards goals, and build value for our client’s business — mitigating risk to make achieving global success possible for companies at all stages and sizes, anywhere in the world. Learn more about hiring internationally with G-P by requesting a proposal today.