How to Hire International Employees in 6 Easy Steps: A Full Guide for 2024

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In this guide, we take you through how to hire international employees and effectively manage a remote workforce in different countries. 

The adage, ‘It’s a small world,’ has never been truer. Collaborative technology and the rise of remote working have lowered the barriers between the global workforce and your business. It’s a great time to build an international team.

Whether you’re just hiring freelancers from abroad or establishing a presence in another country, the advantages are many. Companies that employ international employees benefit from new energy, insights, and ideas. These teams also tend to be more productive and inclusive.

However, hiring internationally can be daunting, especially when dealing with employment laws, relocation processes, and employee benefits. This guide also helps you navigate these challenges so you can feel confident when onboarding your international team.

We’ve also tested, reviewed, and compared the best recruitment software on the market to give you everything you need to succeed in your global hiring journey.

Read on to find out how to grow your most significant asset: your employees.

Summary of the Pros and Cons of Hiring International Employees

No doubt, hiring internationally brings many advantages. However, it also brings unique challenges. Here’s an overview of the pros and cons of hiring international employees:

The Key Benefits of Hiring International Employees

Hiring abroad can significantly benefit your business. Not only financially but also culturally, a diverse workplace gives us a greater understanding of the world around us.

Here’s a quick breakdown of the top advantages of international hiring:

Overview of Options for Hiring International Employees

If you’re looking to expand globally, there are several avenues through which you can find and employ international employees:

Each option has its advantages and disadvantages. Finding the right one for you depends on your needs and budget. Here’s a quick rundown of what each entails to help you decide.

Hiring independent contractors

Hiring freelance workers is useful if your business has unpredictable needs or has to fill short-term employee gaps. You can leverage the experience and knowledge of international experts without the complexities (and expense) that go with hiring permanent staff.

Unlike full-time employees, independent contractors take care of their own taxes and social security, so there’s less paperwork for you. They also don’t receive the same protection and benefits as employees on your payroll. 

However, if you choose this route, there are some factors you need to consider. For example, every country has its laws governing the classification of workers, and it’s important that you understand them. A common mistake is misclassifying a contractor as an employee, which can lead to legal disputes, fines, and damage to your company’s reputation.

Hiring an independent contractor is usually more cost-effective than hiring a full-time employee. It also gives you more flexibility. This option may be right for you if you need short-term, specialized, project-specific skills.

It’s also worth considering if you lack the funds to provide benefits such as health insurance and social security or don’t have the time to train and develop full-time staff.

Here’s a summary of what you need to know.

Hiring Through Opening a Local Entity

A foreign subsidiary is an independent entity (daughter company) created in another country that the holding (parent) company controls.

Although the parent company has complete ownership, the local entity must abide by the laws and tax regulations of the country where it’s been established. Once you’re up and running, you can legally hire employees in that country.

Opening a company in a foreign country involves vast amounts of paperwork to comply with local regulations. You’ll also have to open bank accounts and research payroll requirements. Hence, it’s advisable to consult a lawyer before you proceed.

This method of hiring internationally is ideal if you plan to expand to one country only and want to increase your local presence and brand identity. It’s also worth considering if you need to set up an office or production facility and understand the country’s tax and labor legislation.

Here’s a summary of what you need to know.

Hiring Through Employer of Records

An employer of record (EOR) is a company that can help you hire workers abroad without establishing a local office. It’s a safe and convenient option to quickly and easily access global talent.

EORs set up local entities all over the world so you can hire employees from any country. The best EOR services also handle the employee’s wages and taxes. Plus, they ensure you comply with local labor laws, tax regulations, and payroll. For example, if you’re a company based in the UK and want to hire someone from the UK, an EOR will help you provide all the employee benefits the UK requires.

Theoretically, the EOR is the legal employer of the staff in that country. Practically, however, you manage these employees in the same way as your domestic employees.

This option is worth considering if you want to expand globally and work with international workers from many countries, especially if you don’t want or can’t afford to set up multiple local entities. Using an EOR may also be a good option if you’d rather work with remote employees, need to hire staff quickly, and prefer to outsource payroll and onboarding.

Here’s a summary of what you need to know.

We’ve researched many such platforms and found Deel the best option for hiring international employees. With it, you don’t have to let compliance prevent you from accessing the global talent pool because it manages international taxes and employment benefits from 150+ countries through its onboarding and expert visa support.

Using International Payroll Services

An international payroll service or professional employer organization (PEO) helps with your HR processes to hire international employees. These companies are similar to EORs but with some key differences.

The main difference is that the PEO works with you to jointly hire your employees. It’s an excellent solution for small and medium-sized businesses that want help hiring full-time employees in a country where they already have a local presence. The service provider takes some of the HR duties off your hands, such as payroll and benefits, but you are still responsible for ensuring you comply with all legal requirements.

Here’s a summary of what you need to know.

After testing and comparing countless payroll solutions, we recommend Multiplier as one of the best services for international hiring. It lets you outsource compliance-related tasks and payroll and benefits administration in over 120 countries. Multiplier helps you manage employee benefits, onboarding, and compliance with local laws and regulations.

A Full Step-By-Step Guide on Hiring Globally

As mentioned, building a multicultural workforce brings great opportunities, including learning new ways of problem-solving and communication. However, it can be risky if you’re unfamiliar with local regulations and customs.

So, before you start looking for candidates, it’s important to be aware of these challenges and ask some questions. To help you answer these questions about how to hire international employees, we’ve developed this step-by-step guide. 

Step 1: Understand the Legal Requirements and Visa Processes

Knowing the labor laws in your and the candidate’s country is imperative, as the regulations in each country differ. For example, certain countries may ask you to cover a percentage of staff housing or office space costs. Also, review the tax and remuneration laws in both countries, as well as your federal and state regulations, as they may differ depending on whether you’re hiring permanent or temporary staff.

Once you understand what you need to do, it’s time to obtain the necessary certifications. In the US, for example, you’ll want to apply for the foreign labor certification from the U.S. Department of Labor (DOL). To submit this, you must demonstrate the following:

The DOL requires this information to ensure that hiring internationally doesn’t impact domestic employment, compensation, or working conditions.

The next step is petitioning the United States Citizen and Immigration Services (USCIS) for visas, which will vary depending on your requirements. For example, you might want to temporarily apply for a non-resident to work in the US or petition for a foreign employee to become a permanent US citizen. 

Obtaining a work visa for a foreign national can be challenging. As well as sponsoring the person, you need to prove that there are no qualified local candidates. 

Visa Types for Foreign Employees

Here are some common visa types for foreign employees:

Also, make sure you understand the visa restrictions and requirements. Common visa requirements include proof of employment, qualification credentials, financial records showing they can support themselves, a police background check, character references, and a medical examination. 

Consulting with an immigration lawyer or a licensed immigration specialist can help ensure you comply with all visa requirements.

We found that Deel can help you navigate your way through often confusing legislation. The platform has over 200 legal experts who ensure your contracts are locally compliant and up-to-date. It is also GDPR and privacy law compliant.

Obtaining visas for international employees can take several months. Thankfully, Deel’s in-house team of immigration experts can handle everything visa-related, making the process seamless and stress-free.

Step 2: Define the Job Requirements and Qualifications

Writing a compelling job description is essential to finding the right employee as it helps determine how their skills align with your needs and holds the employee accountable for their responsibilities. 

Include the required education and skills and briefly explain the tasks involved. Also, describe your business and the benefits you can offer. For example, why would they want to work for you? What advantages do you offer? What makes your company stand out from the competition? 

It’s also worth mentioning the corporate culture and lifestyle options if you’re offering a relocation opportunity and the available support to ease the transition.

Bear in mind that language can be a barrier to productivity and integration, so you may want to consider a language proficiency test as part of the application process. It can assist you in deciding whether you can complete the task. 

Step 3: Develop a Recruitment Strategy

Next, you need to decide on a strategy for hiring international employees:

Step 4: Conduct Online Interviews

Now that you’ve clearly defined your job requirements, advertised your job opening, and have potential candidates, it’s time to conduct online interviews. While it’s easier than ever to conduct online interviews, don’t forget to consider time differences!

Asking the right questions is key to finding a candidate who’s the right fit for you and vice versa. Here are some that may help:

If possible and appropriate, consider conducting the first interview in the candidate’s native language. This can help ease tension, enabling the interviewee to express themselves freely.

Step 5: Provide Comprehensive Onboarding and Support

Your usual onboarding process focuses on introducing new employees to the position in a local context, such as company culture and job expectations.

Conversely, onboarding international employees is far more involved. You need to understand and be sensitive to various cultures, languages, and business practices. It’s a big responsibility, but with the right approach, you can create a welcoming and inclusive environment for your new global team members.

The benefits of assigning a mentor to help international employees adapt to new business values and processes are invaluable.

Deel is our global HR provider of choice. It equips your team with the tools, guidance, and features they need in a single platform to eliminate hiring and management borders.

Step 6: Foster a Diverse and Inclusive Work Culture

When working with people from different countries, creating a work environment that promotes mutual understanding and connectivity is vital. Diversity training helps combat prejudices, promote inclusion, and improve communication among people from different backgrounds.

Encourage discussions on values and beliefs and how they impact people’s attitudes and behaviors. Also, educate your employees on the similarities and differences between cultures. One way to do this is by observing holidays from each culture to demonstrate that every employee’s background is valued and respected.

It’s best to implement diversity training as early as possible to set a positive tone.

A Comparison of the Best Tools for Hiring Abroad

Numerous recruitment tools are available to help you hire the best international talent. We’ve reviewed some of the best and compiled this overview of their key features.

Reviews of The Top 3 Global Hiring Tools

Here’s a little more detail about our top three recommendations.

1. Deel — Best for Compliance Concerns, Global Hiring, and Payroll Taxes

Deel is a highly trusted platform that allows employers to hire individuals in over 150 countries, including the US, UK, Canada, Australia, Germany, Spain, Italy, and India. With it, employers can use the skills and experience of a worldwide workforce by expanding abroad without creating a new company.

Deel also streamlines contract administration by providing built-in compliance and automatic invoicing, ensuring you pay international employees the right amount on time. To assist you in calculating the cost of an international worker, the platform provides free calculator tools.

With their internal experts, they provide the best advice and support for your pre-existing payroll setup. Plus, they offer fast and accurate help whenever you need it, with live chat and 24/7 customer service available to all users.

Deel also offers end-to-end management, including onboarding and termination services, and their easy-to-use web application makes it easy for you to manage your workforce properly. With features like contract management, overseas benefits, and expense tracking, you’ll have everything you need to keep your business running smoothly.

And if you need sophisticated adaptations like stipends, signing bonuses, and stock options, their integrated contract management feature has you covered!

2. Rippling — Best for Running Global Payroll

Rippling is a trusted all-in-one HR, payroll, and IT platform that simplifies payroll administration by paying each distributed team or employee in their local currency. The unified platform takes care of everything from payroll and benefits to time tracking and reporting, making managing your staff from a single user interface easy. 

Plus, it ensures enterprise-grade security, scalability, and operational efficiency. With its EOR service, you can hire and pay staff members anywhere in the world without having to establish a local subsidiary. Rippling takes care of payroll, contracts, employment taxes, benefits, and other legal and compliance concerns so that you can focus on growing your business. 

With the platform, there’s no need for manual calculations and data entry, as everything is done automatically. All you have to do is select the pay intervals for your staff, review the payroll, and give your approval.

Rippling also takes care of assigning country-specific compliance training to EOR staff members, so you don’t have to worry about whether your employees are getting the training they need.

The US payroll system takes care of tax deductions and filing and even provides a mobile app allowing employees to view their W-2s, check their pay stubs, and request time off.

3. Papaya — Best for Employee Benefit Packages and Workforce Management

Papaya’s cloud-based SaaS platform offers an all-in-one solution to help you manage your labor-related tasks effortlessly. You can use it in over 160 countries without needing to establish a local entity. It has country-specific onboarding workflows, an intelligent onboarding status tracker, and immigration services to make creating work permits a breeze. It also helps with employee relocation.

Moreover, Papaya connects with all management systems, supports all employee types (payroll, EOR, and contractors), and uses cutting-edge technologies to ensure compliance and avoid errors. Plus, it has a highly visible system for monitoring business intelligence and payroll expenditures in real time.

It also offers premium features like liability protection, advanced compliance, immigration and visa support, employee contract lifecycle management, and data security monitoring.

How We Test Hiring Software

So, how did we decide on our best hiring tools?

We thoroughly test, review, and compare all the leading EOR and HR service providers based on criteria like features, price, ease of use, and use case. We use the same approach for all our reviews so you can easily compare the different providers. 

We’ve included verified user reviews from reputable sites like G2, Reddit, and Trustpilot to give you different perspectives, ensuring our analysis is comprehensive and unbiased.

Our Other EOR and HR Guides

If you’re still undecided and need more information, we have other EOR and HR guides that may help ease your international hiring in 2024:

Embrace the Benefits of Hiring International Talent

Hiring international employees significantly benefits your company and opens opportunities for growth in new markets. You’ll also save on hiring costs, and there’s huge potential for remote collaboration.

However, hiring international employees isn’t a walk in the park. It involves numerous processes, from defining job requirements to interviewing potential candidates and visa processing. But it doesn’t have to be daunting; the right tool can streamline your global expansion. That’s why choosing the provider with the expertise that best fits your business needs is important.

This is why we recommend Deel. With it, you can hire potential candidates from over 150 countries without worrying about legal requirements. Plus, you’ll enjoy excellent 24/7 customer support. 

If you’ve considered hiring international employees but are daunted by its complexities, we hope this guide will help. 

International Hiring FAQs