5 Reasons to Hire Globally in 2022

The opinions expressed by entrepreneurs contributors are their own.

Despite the turmoil, there is reason to be optimistic about future economic growth. Most economies have weathered the global pandemic harder than expected: real GDP in the United States is now 2.8% higher than it was at the end of 2019.

Nevertheless, the prospect of a recession, as well as global energy and cost-of-living challenges, mean companies need to be strategic in their decisions. In my opinion, the best way to do this is to hire globally: there is no longer any good reason to only hire locals. Here are five reasons why global hiring is the smart option in 2022.

1. Expand the talent pool

Unemployment in the United States is 3.6%, close to the full rate and similar to pre-pandemic levels. At the same time, job postings/vacancies remain strong - 11.3 million were counted in July's Job Postings and Labor Turnover Summary (JOLTS). Notably, the largest number of vacancies were for skilled positions, jobs in the Professionals and Services category.

This tight labor market means that employers are finding it increasingly difficult to recruit, especially for specialist positions such as software engineering and data science. Hiring globally goes a long way to solving this problem. When you hire internationally, you have access to a much larger pool of potential candidates. For example, Poland, Slovakia and are renowned for their pool of highly skilled technology professionals available remotely for international companies.

Related: The Global Talent Pack is Being Revamped

2. Profitability

Hiring means access to employees who live in a location with a much lower salary, which usually means correspondingly lower salary expectations.

Countries also vary in requirements for mandatory employer contributions and payroll taxes that increase the cost of employment. For example, Germany and Germany generally require employers to deduct a certain amount from the employee's salary for health insurance. But Australia and New Zealand, with public health systems, do not require such employer insurance contributions. Overall, hiring an international team can significantly reduce your company's payroll burden.

3. Tap into resilient international markets

Global economic challenges have not been evenly distributed among countries. Asian economies, in particular, were more lightly affected. In China, India and the -5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), strong growth of more than 5% per year is still expected for the rest of the year and into 2023.

For ambitious companies, this means attractive consumer markets for overseas expansion. And probably the most important factor in your success in the foreign market is employees who are familiar with this market.

When it comes to your international business presence, the two most popular options for ensuring full legal compliance are:

Creating a local entity or subsidiary at this location: This entity or subsidiary becomes the local employer and must comply with all employment laws.

Using an Employer of Record (EOR) solution: The Employer of Record becomes the legal employer there and handles all payroll, HR compliance, and tax withholding for employees for employees based there.

Related: Are you considering a global expansion? Now could be your best opportunity.

4. Benefits of Compliance

In some countries, employer compliance is more onerous than in others. For example, in some countries:

Termination at will is permitted - continuation of employment is entirely at the discretion of the employer. Oh...