Common Mistakes Companies Make When Hiring Internationally

For many businesses, hiring internationally just makes sense. It opens up a wide talent pool, increases opportunities for growth, and can accelerate market growth. But it also introduces more risk to the company, and for the most part, all companies don’t see the vast amount of risk until it’s too late and the problems have already started to surface.

And honestly, these issues aren’t huge failings; they’re mistakes made at an everyday level that build. It’s legal mistakes, operational breakdowns, and damaged employee relationships.

Let’s take a look at some of the more common mistakes companies make when hiring across borders.

Assuming Employment Laws Are Universal

A huge error companies make is assuming that just because they’re registered in one country, those laws apply to domestic and international employees. They don’t. Each country has its own labor and employment laws you need to adhere to, and trying to transfer laws to international workers is a recipe for disaster. And if things go wrong, it can be expensive to fix. Working with recruitment companies that are experts in hiring in your chosen new location can help you ensure you know what you need to know as per the hiring process.

Misclassifying Contractors and Employees

International hiring will usually involve freelancers or contractors of some sort. And what you might classify as a contractor might have very different parameters in your new location. There are strict controls on what a contractor and freelancer are in different countries, and you need to understand these differences prior to hiring anyone to make sure you’re staying above board legally and sidestepping things like fines, back taxes, and benefit obligations, to name a few consequences.

Overlooking Cultural and Communication Differences

Cultural differences are one of the main pain points for businesses. Communication, feedback styles and expectations, and working norms aren’t universal. And going into a new country with new employees and expecting things to be the same as “back home” won’t go down well.

For example, direct communication in the US can feel aggressive in other countries. Silence in meetings for some can signal disagreement, but be a sign of respect in other cultures. These misunderstandings will lead to damaged reputation, poor results, and serious implications for success in the new locations.

Poor Data Protection

Each country will have differences in its data laws, and you need to be aware of the implications of data protection everywhere you operate.

You are required to have certain levels of protection for things like ID documents, payroll data, health information, and performance records. But what this looks like will vary.

So, before you make any big decision, check out what policies you need for the company pertaining to data protection and ensure you have what you need in place before bringing anyone on board.

The key to avoiding these common mistakes when hiring internationally is to make sure you do your research first. It’s not just market research; it is employment research. You need to be confident you can meet the legalities involved with hiring in different countries, so you don’t land yourself in hot water before you get operational.

Allen Brown