Hiring International Workers: 3 Options for Expanding Businesses

Hiring International Workers


Diverse, worldwide teams are more resilient and innovative. But when it comes to building these teams, you need to find a way that ensures the entire process is compliant and seamless.

The process of establishing yourself in a new talent market involves a fair amount of risk, legal expertise and time. That’s why many companies look for EOR services when tapping into new labour markets.

While two more options are available, EOR has proven to be the quickest and easiest way to hire international workers seamlessly and compliantly. You can click here to learn more about some of the best EOR service providers and the services they offer.

Let’s discover more about the three options for hiring global talent, including the following:

  • Establish a local legal entity in markets you want to tap into
  • Freelancers/Independent Contractors
  • Use employer of record (EOR) services

Establish a Local Legal Entity in Markets You Want to Tap Into

A local entity is a lawfully independent business subsidiary established in a foreign jurisdiction under the holding business’s control. The holding company can have full ownership, but the entity must operate according to the local rules and regulations as well as tax liabilities.

After establishing a foreign subsidiary, a business can compliantly hire workers in that particular territory. Anytime you want to tap into another jurisdiction’s talent pool, you’ll need to repeat the same process.

Which Companies Can Benefit from Establishing Local Entities?

Establishing a legal local subsidiary is challenging and time-consuming. However, it enables businesses to establish physical locations and create a robust brand in a new state or country. You should consider setting up a local subsidiary if your company plans to:

  • Expand to only a single country
  • Develop strong brand awareness and presence
  • Understand that jurisdiction’s local labour laws and tax requirements
  • Open an office or a manufacturing facility in a foreign state

Choose this option if you’ve got sufficient legal counsel and time. If you establish a company in a foreign country, it means you understand local labour and tax laws. Also, it means that you know how to prepare extensive paperwork to make sure you remain compliant and open local bank accounts, among several other tasks.

Freelancers/Independent Contractors

If establishing a foreign subsidiary is an overwhelming process, you can try out hiring freelancers or independent contractors. The freelancers or independent contractors option can be useful and ideal in fluctuating global markets.

Also, it can be a perfect choice when your business is operating on a project-by-project basis. That means you’ll hire talented people from different locations depending on the project you want to complete.

Freelancers or contractors, you hire, use their own equipment and work according to their schedule. In fact, they’re self-employed and not working for your company at all. Compliant risks when using independent contractors or freelancers are pretty low.

But you need to define their roles clearly to side-step the risk of “fake self-employment”. If you want your freelancers to operate according to your requirements or within the normal employment bounds, especially for a long period, you should employ them.

Which Companies Can Benefit from Using Freelancers or Independent Contractors?

Your company should have any of these needs if it wants to use freelancers or independent contractors.

  • Want to build and scale up its brand and business quickly and easily
  • Requires flexibility
  • Want to find expertise on a project or short-term basis

Use Employer of Record (EOR) Services

An EOR is a third-party company that hires, onboards, and pays employees on a business’s behalf. EOR service providers allow businesses to lawfully hire and work with workers from foreign countries without establishing offices in those jurisdictions.

Top-rated EOR companies have subsidiaries in many countries globally. That means they understand local labour and tax laws and can engage anyone, anywhere. They don’t have to relocate their workers. EORs offer several services, such as:

  • Processing contract terminations
  • Managing benefits and compensation
  • Running payroll internationally
  • Onboarding new team members
  • Ensuring workers are hired in accordance with the local laws in every jurisdiction or country

Which Companies Can Benefit from EOR Services?

An employer of record service provider is a perfect solution for businesses looking to benefit from international talent while at the same time remaining compliant. Businesses that want to use EOR services are those that want to fulfil the following:

  • Test new markets and not willing to focus on one location
  • Don’t have a talented local pool or expertise and want to hire global workers
  • Want to hire international workers easily, quickly and compliantly
  • Want to utilise international hiring support like onboarding and payroll

If you want to save time and money, remain compliant, and tap into the exciting global talent pool without establishing an entity, employer of record services are a perfect option. You only need to find a trustworthy and reliable employer of record service provider with a proven track record to enjoy all the benefits that global talent provides.