How Do I Hire Foreign Employees

By Ken Zwerdling on Oct 08, 2017

How Do I Hire Foreign Employees

When your company is ready to expand overseas, knowing how to hire foreign employees is a necessity. Unfortunately, many employers are unaware of the numerous international rules and regulations governing foreign expansion and hiring.

The first and most crucial step is to understand where to start. Hiring employees to work from the foreign location is a complicated process, riddled with wide-ranging tax and employment laws. For instance, there are regulations regarding vacations, holidays, employee benefits, maternity leave, non-compete agreements, and acceptable termination practices, all of which may differ according to each foreign country. All too often, these laws and guidelines make foreign expansion extremely difficult and risky. For many businesses, hiring a professional consultant with foreign expansion expertise is extremely valuable.

US companies may find it necessary to form separate subsidiaries for each country in order to better navigate international tax regulations. In many situations, countries have formal agreements designating the amount of employee tax withholdings and to which country these payments go. Another issue is the Foreign Corrupt Practices Policy, prohibiting US companies from paying bribes to foreign officials for business purposes. Some countries also enforce strict privacy laws regarding personal information, which makes creating a simple employee directory for an international company a legal risk.

Aside from the myriad legal implications, expanding businesses must learn the cultural norms of new countries. For example, how much are workers normally paid for this job and what benefits are typically granted? A consultant will be of immense assistance, not only by explaining acceptable compensation packages, but also the differences in business culture. How do people in this foreign country communicate in a business setting, and how do they view leadership?

Finally, when hiring foreign employees it is vital that any expanding business take the time necessary to properly implement the various steps. Hiring foreign employees can be a difficult process, complicated even further by the logistics of working with people overseas. Different languages, time zones, and communication styles must be considered to ensure that working together is productive. Attempting to rush the process increases the risk of encountering obstacles. And while business expansion is a huge step, taking appropriate time and strategic steps will ensure the best chance for success. 

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