International hiring isn't the easiest task. Still, with the right employer of record (EOR), it can certainly be a lot easier—particularly in regions where neighbouring countries have a wide variance in documentation, compliance, payroll, and more.
In this article, we want to help you establish your core challenges in international hiring and where your EOR should help.
Critical Challenges of International Hiring
Here are the top 5 challenges we see in international hiring.
1. Navigating complex legal and regulatory frameworks
Every country in the world has its own legal framework, which will differ from its neighbours. For example, Saudi Arabia (one of the many countries we operate in) has stringent Saudization policies that prioritise local hires, while the UAE offers more flexible policies but requires strict employment contracts. Appreciating and understanding these differences will help you avoid unnecessary penalties, legal issues, or even revoked licences if you operate in both regions.
An EOR can quickly help you adapt to ensure that your contracts, payroll practices, and employment terms meet local requirements. And they can do this by keeping current with each country's legal changes. Having a base in the region is a big help.
2. Cultural nuances and expectations
Just as it is vital to work compliantly in a region, it is also essential to be culturally sensitive. For example, in the Middle East, life and work cultures vary significantly, and practices typical in one country may not be acceptable in other countries. If you operate in the West or in Austral Asia, you'll find further differences. Accommodating cultural nuance is essential if you wish to maintain employee satisfaction and a positive reputation as an employer.
A simple example of cultural sensitivity is the observance of religious holidays. Let's look at Ashura, a Shia and Sunni Muslim holy day, which is only observed in three of the countries we work in. The exact date for this holiday changes each year based on the lunar calendar, and it has different meanings for both Shia and Sunni. Appreciating where, when and how religious holidays are observed goes a long way to connecting with your employees as an employer.
An EOR should bring in-country knowledge and culturally aware practices that enhance your hiring processes and help you build a positive workplace environment where employees can thrive.
3. Visa and work permit differences
One of the biggest barriers to international hiring is the legal paperwork your employees need: work permits and visas. Each country has its own visa types, processing times, and eligibility criteria, which can make cross-border or near-shoring a bit of a challenge.
So too can policy change. And that is why finding the right support for your international hiring process is critical.
Your EOR should have an established process for managing visas, and work permits to ensure a faster and more efficient process. They should also have local connections to ensure a timely hire without costly compliance errors.
4. Managing payroll and benefits across borders
Just as there is compliance to employing people in a country, there are also laws on pay, benefits and tax. Each country has distinct expectations for salary structures, mandatory benefits, and severance packages, just as they do taxes.
Saudi Arabia, for example, requires end-of-service gratuities, as do a few other MENA countries, but in some regions of the Middle East, there is no federally mandated minimum wage. Instead, regional labour offices have the power to set minimum wages, and they can also be agreed during the hiring process.
In the UK, you should expect to abide by frameworks like PAYE policies, pension plans and national insurance contributions. While in the US, you have FICA and Medicare tax, FLSA and overtime conditions.
It is for reasons like these that we have multiple international bases, ensuring consistent and compliant payroll processes tailored to local standards. We find this also offers fairness and transparency for your employees.
Currency value and fluctuations will add a further layer of complexity. Our top tip is to find an EOR that can work with you to manage costs during currency volatility. To ensure this for our clients, we have built-in contingency planning.
5. Political instability and economic uncertainties
Businesses and their employees will face uncertainty from time to time, particularly around political and economic change. Appreciating where and how this affects your international hiring process is important.
For instance, we can experience periodic volatility in some regions that impacts hiring and workforce stability. This is why we work to ensure your hiring strategies are adaptable by offering flexible hiring arrangements, such as short-term contracts or remote work options. Any EOR you choose to work with should do the same.
How mselect helped Huawei deliver a seamless international hiring process in a new region
Expanding in a market can only happen quickly and effectively if you have the right people on the ground. Huawei could see the potential the Middle East offered and contacted us to act as their EOR in specific regions, knowing that we also offered other business services that could help them acquire and man essential infrastructure. Contingent labour would be a big factor in their roll-out.
Having access to a network of the region's top talent, we were able to act fast, aligning Huawei's exacting standards with a cultural and compliance-led international hiring process. Onboarding a team of contingent workers for multiple areas of their project, from tower engineers to IT experts.
Our success in this area led to further contracts for fleet and driver services as well asfacilities management services.
The key to our success? A deep understanding and strong reputation in the region. We are able to act faster than most, and with accuracy helping Huawei to achieve positive market disruption.
Would you like help with international hiring and payroll? Contact our mselect team today.