Recent research from Harvard Business School highlights a growing disparity in the U.S. workforce: the number of jobs requiring certain specialized skills and credentials far exceeds the number of workers in the local workforce who possess them.
This ‘skills gap’ is particularly pronounced in fields like healthcare, technology and advanced manufacturing. As a result, international hiring has become not just a strategy but a necessity for companies looking to stay competitive.
While opportunities for tapping into international talent are vast, the challenges are equally significant. From navigating complex compliance regulations to managing cross-cultural teams and time zone differences, US-based companies must be prepared to tackle unique hurdles when expanding their talent acquisition efforts globally.
In the second installment of this special blog series, we are excited to bring you an in-depth Q&A with Sharon Hui, Senior HR Partner at MP-HR. She offers a sneak peek of our upcoming webinar ‘US vs. Global Talent Acquisition: Key Differences and Best Practices’ on Wednesday, Sept. 18, 2024.
What are the key challenges and opportunities US-based companies face when considering international hiring and outsourcing?
Sharon Hui: Key challenges when considering international hiring and outsourcing include many factors.
Work schedules are tough to maneuver due to time differences across the globe. Managing and maintaining quality control of work performances is generally hard to balance as is with remote work. In addition, managers may have the added obstacle of managing employees internationally. This is due to language barriers and cultural differences when not having much, or any, in-person interaction.
Work ethics and business practices may also be areas where employees and managers encounter challenges, as variations in work culture and expectations may impact productivity and partnerships.
What roles or functions are you finding are best suited for international hiring? How can companies determine which positions to tap into international talent?
Sharon Hui: Jobs that can be performed remotely and don’t require specialized tools or equipment are ideal for international hiring. Companies should review and analyze which positions within the organization they can capitalize on for international hiring.
For example, software development, IT and customer support can all provide around-the-clock availability across the globe from different time zones.
Marketing, finance/accounting and sales roles may require more support from their internal partners but can still have the flexibility to perform work outside their headquarters’ core hours. They typically only require some electronic supplies which can be shipped to them from the home offices.
Industries with roles like direct care services personnel (home health aides, counselors, au pairs, etc.) often find many qualified candidates in countries where there are fewer local job opportunities for these individuals. They may be attracted by not only higher pay but also other benefits they otherwise would not be offered in comparable jobs locally. These may include 401k, medical benefits, etc.
How important is compliance in the international hiring process? What are some common compliance pitfalls to watch out for? What steps can companies take to ensure they remain compliant with various international laws and regulations?
Sharon Hui: Compliance is a complex piece of the international hiring puzzle. One missing piece can potentially create a vital gap. For example, not having sound workplace safety procedures in place can impact production and prevent a company from operating.
Other common pitfalls include not securing the right resources to navigate compliance. Having a sound professional in employment law can help employers understand international guidelines when it comes to interpreting and understanding contracts and agreements. They can also support with data protection laws, labor relations (including union contracts), benefits, compensation and handling intellectual property (IP).
Employers also need to have a very knowledgeable tax professional to help navigate the intricacies of international tax regulations. This helps them understand what their obligations are.
What innovations should companies be aware of to stay ahead in their HR practices?
Sharon Hui: Artificial Intelligence (AI) is at the forefront of many discussions in the HR world. It is being used for recruitment which streamlines hiring processes with automated screenings. This can enhance candidate matching and provide predictive analytics on their potential success.
Post-pandemic, more employees prefer flexible work arrangements. We’ve noticed a shortage of applicants for service industry jobs, such as waiting tables and daycare services. This is partly because people have discovered other opportunities that allow them to thrive using collaborative tools, without incurring daily time and cost of commuting or the costs associated with work attire.
Employee feedback and engagement tools can help employers identify strengths and areas for improvement, offering a more satisfying work environment. Additionally, HR automation can reduce the administrative burden by streamlining tasks such as payroll processing, benefits administration and compliance reporting.
Register for the upcoming webinar now and take the first step toward building a successful global talent strategy!