NewsCase StudiesEvents

Challenges of Hiring Talent Overseas

Also in the news...

International Trade Secretary opens the Global Investment Summit

Secretary of State for International Trade, Anne-Marie Trevelyan, welcomes overseas investors and delegates to the Global Investment Summit in London.

Croatia: providing services and travelling for business

Guidance for UK businesses on rules for selling services to Croatia.

Prime Minister and Bill Gates launch £400m partnership to boost green investment

The strategic partnership with the Breakthrough Energy Catalyst will mobilise £200 million of private sector funding over 10 years.

What is the Superbonus and how to benefit from it, even if you donít pay Italian income tax

Itís recent news the Superbonus 110% has been recently extended to 2023, and this is great if you intend to renovate your home. Superbonus 110% isnít the only available tax break on house renovations; find out how you can save on your taxes whilst renovating your Italian home.


If you have a VAT number in your EU country and you want to sell to individuals (with no VAT number) in Italy, you are required to have a VAT number in Italy. Back in the days, you were required to set up an entity in Italy or have a fiscal representative located here; this process is costly and develops multiple tax and accounting issues.

Challenges of Hiring Talent Overseas

Back to News

As your business expands, the need to hire talent overseas grows. The recruiting and hiring process in other countries is very different from the U.S., and can cause issues for companies trying to expand. Here are the top 3 challenges companies face when hiring overseas:

Hiring Local Talent vs. Utilizing Expats
Itís a common question: do you send US employees overseas to start a new office or hire local talent? The US employee will bring product and company expertise, and can quickly introduce the company culture to the new office, but a local hire will speak the language, provide understanding of the local business culture and can help with local contacts and referrals. Sometimes it can be helpful to start with both an expat and a local hire Ė they can each utilize their unique skill sets to get the office up and running smoothly.

Navigating Labor Laws
Many companies are surprised to learn that labor laws in other countries are more favorable to the employees than the employer. Most countries have specific guidelines for employment agreements and employee handbooks, and very strict policies for terminating employees. Labor compliance is always evolving, and most countries strictly punish companies for breaching labor laws. In some countries, they ďname and shameĒ companies publicly for not adhering to certain policies! It is best to talk to a global HR compliance expert before hiring in other countries to make sure you have policies in place to maintain compliance.

Planning for Expenses
Hiring talent overseas is not cheap! Most countries outside the US have more generous vacation and leave policies, pension requirements, and large severance packages. Determining if an employee is an independent contractor versus employee also has ramifications for payroll, and non-compliance or misrepresenting employees as contractors can carry severe penalties.

To get started, it is recommended that you consult with a global HR compliance expert before hiring employees in other countries. Using global consultants, local recruiters and resources can ease your transition into new territories. There are compliance tools and technology to help ensure you donít make compliance mistakes along the way. To learn more about global HR compliance and how we can help, click here

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.