Expert Strategies for Building Global Teams

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The Rise of Global Hiring: Opportunity Meets Complexity

The landscape of global hiring has evolved dramatically over the past decade, with companies of all sizes now considering international talent acquisition. What was once the domain of large multinational corporations has become a viable strategy for startups, scale-ups, and enterprises alike, thanks to advances in technology, remote work capabilities, and shifting workforce expectations.

In a recent webinar, HR leaders from AMS, Veremark, and Deel shared insights on how organizations can effectively build and manage global teams. From compliance challenges to cultural nuances, here are the key takeaways from the discussion.

The Evolution of Global Hiring

Global hiring is no longer a luxury reserved for large enterprises. As technology continues to advance, companies can access a broader talent pool without the logistical constraints that once made international recruitment difficult.

According to Melinda Todd (AMS), the shift has been driven by:

Tech-Enabled Recruitment: Digital assessments, video interviews, and automated scheduling tools have made cross-border hiring more efficient.
Remote Work Models: The pandemic accelerated remote work adoption, pushing companies to rethink traditional hiring models.
Strategic Location Planning: Businesses are adopting hub-and-spoke models where employees work remotely but have access to a physical office in key locations.

Compliance and Cultural Nuances: The Hidden Challenges

While the benefits of global hiring are clear, companies must navigate significant challenges when expanding internationally. Regulatory compliance, cultural differences, and operational complexities can create risks if not managed correctly.

1. Compliance Risks in Global Hiring

Compliance remains a key concern for businesses hiring across multiple jurisdictions. According to Mark Salamy (Veremark), companies must consider:

Local Labor Laws: Regulations around employment contracts, termination policies, and benefits vary widely.
Data Privacy Regulations: Background checks and personal data storage must comply with country-specific laws like GDPR in Europe and PDPA in Singapore.
Worker Classification Risks: Misclassifying employees as contractors can lead to fines and legal complications.

2. Cultural Differences in Hiring and Workforce Management

Understanding regional nuances is critical for companies looking to build strong, engaged global teams. As Mike Wingfield (Deel) highlighted, cultural factors such as workplace hierarchy, communication styles, and employee expectations can impact hiring success.

For example:

In Japan, job seekers may expect long-term employment and value corporate stability.
In the Philippines, family-centric benefits and work-life balance play a key role in employment decisions.
In India, commute time significantly affects work schedules, influencing office attendance policies.

Strategies for Successful Global Hiring

Companies that successfully expand their teams internationally follow structured approaches to mitigate risks and maximize opportunities.

1. Define Your Hiring Goals

Before expanding globally, businesses should clarify their objectives:

Are you addressing a local skill shortage?
Are you entering a new market?
Are you looking to optimize costs through labor arbitrage?

Each of these goals will shape the hiring strategy and determine which markets to prioritize.

2. Select the Right Hiring Model

Companies have multiple approaches to structuring their global hiring strategies:

Employer of Record (EOR): Ideal for testing new markets without establishing a legal entity.
Hub-and-Spoke Model: Employees work remotely with access to a co-working space or regional office.
Direct Local Hiring: Establishing a legal entity for full-scale operations in the new market.

3. Invest in the Right Technology Stack

Technology plays a pivotal role in simplifying global hiring. Key tools include:

Applicant Tracking Systems (ATS): Streamline the recruitment process and ensure compliance.
HRIS Platforms: Manage payroll, benefits, and compliance in multiple regions.
AI-Driven Screening Tools: Identify top candidates efficiently while reducing hiring bias.

4. Measure and Optimize Hiring Success

To assess the effectiveness of global hiring, companies should track:

Time-to-Hire: Speed of recruitment in different markets.
Cost-per-Hire: Efficiency of international hiring processes.
Retention Rates: Success in onboarding and retaining global talent.

Looking Ahead: The Future of Global Hiring

As businesses continue to embrace global hiring, several trends will shape the future workforce:

AI and Automation: AI-driven recruitment tools will enhance candidate screening and reduce administrative burdens.
Skills-Based Hiring: Companies will focus on capabilities over location, leading to more flexible work arrangements.
Regulatory Changes: New labor laws and compliance frameworks will emerge, requiring businesses to stay proactive.

Final Thoughts

Global hiring presents immense opportunities for companies looking to access top talent, drive innovation, and expand their operations. However, it requires careful planning, a strong compliance framework, and a deep understanding of cultural nuances.

For organizations considering global expansion, the key takeaway is clear: success comes from a strategic, informed approach that balances technology, compliance, and workforce engagement.

Want to learn more about navigating the complexities of global hiring? Watch the full webinar recording or reach out to our expert panelists for tailored insights.

‍

Mark Salamy

Client Director, Veremark

Fill out the form below to WATCH THE WEBINAR

FAQs

What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.