Winning Collaboration: Boosting your team's performance!

As the hybrid mode and telecommuting become a reality, the boundaries between companies and international talents are dissolving. Never before has it been so favorable to build an international team. Why not seize this opportunity? However, hiring employees or collaborating with freelancers internationally can pose risks if you are not sufficiently informed about issues such as compensation, legality, taxation, social benefits, and compliance in each country where you seek to recruit.

This guide will answer all your questions regarding international recruitment and give you the confidence needed to successfully integrate your teams.

The benefits of hiring internationally are manifold

Expansion of the talent pool

By recruiting globally, you have access to qualified professionals from new horizons, enriching your team with specialized or rare skills, which can invigorate your business. Your most experienced employees may even benefit from potential skills exchanges.

Access to new markets

If you wish to expand your operations into global markets, recruiting internationally can lend legitimacy to your brand, whether you are a startup or an established company. Employees familiar with the local market can assist you in avoiding pitfalls related to opening an office, providing:

• Language skills,
• Knowledge of local business customs and practices,
• Access to established professional networks,
• Knowledge and contacts in the local business world to facilitate relationships with local companies,
• Insight into employee expectations regarding compensation and social benefits,
• Professional and social support for staff relocating to another country to open a new office.

Global coverage

Hiring employees or freelancers abroad allows for working across different time zones. When your team is distributed worldwide and work is conducted continuously over 24 hours, overall productivity increases.

Improvement of diversity, equity, and inclusion (DEI)

The real value that a company derives from a diverse group of skills, opinions, and experiences cannot be overstated. Studies have repeatedly shown that diversity enhances business benefits. When you recruit international collaborators, your entire team benefits from the advantages of DEI, including:

• Improved employee performance,
• Increased productivity,
• More creativity and innovation,
• Reduced employee and freelancer turnover rates.

Strategies for recruiting internationally

Strategies for recruiting internationally are varied and depend on the immediate and long-term needs of your company. Here are some options to consider:

Engage freelancers

Engaging freelancers is an excellent solution to quickly start building your international team. This solution is ideal for startups looking to expand their operations, especially if they need specific skills not available in their region. Good news: it is entirely possible to recruit and pay freelancers residing abroad quickly, simply, and without hidden fees. You can onboard, pay, and manage freelancers anywhere in the world using an international freelance management platform.

However, it is crucial to understand local regulations regarding freelancer classification to avoid contract requalification issues.

Apply for a work permit

In Canada, particularly in Quebec, most employers are required to obtain a Labour Market Impact Assessment (LMIA) before hiring a foreign worker wishing to settle in the country. This step, while necessary, can prolong the integration process of international talents into the company.

Despite the additional time involved in the work permit application for foreign workers, this process has long-term benefits. Indeed, it helps to foster the retention of international resources within the company. By offering employment opportunities to temporary foreign workers and facilitating their integration into Canadian society, employers demonstrate their commitment to diversity and inclusion. This openness to international labor also enhances the company's reputation as a respectful and progressive employer, which can attract more talent from around the world.

Before starting the hiring process, refer to this page to know the necessary steps: https://www.canada.ca/fr/immigration-refugies-citoyennete/services/travailler-canada.html#employers

Collaboration with an Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that allows you to hire staff abroad by acting on your behalf as the legal employer in the country concerned. The EOR manages HR activities, payroll, taxation, legal issues, compliance, and social benefits for members of your international team.

The EOR facilitates local integration in your hiring country. It handles administrative tasks such as employment contracts, background checks, and organizing payroll.

• It simplifies the payment process for team members in their local currency.
• It manages employees' social benefits. They can offer social benefits that comply with local regulations and meet employees' expectations, including health and retirement plans, as well as many other benefits.
• The EOR takes care of withholding taxes for team members, in compliance with the tax laws of each person's country.
• It also fills out employment-related tax forms on your behalf, such as those related to income tax, social security, and unemployment taxes. This saves you penalties and helps strengthen regulatory compliance.
• The EOR manages contributions to public organizations such as social security, unemployment insurance, and workers' compensation for collaborators. They keep accurate records of contributions made on behalf of the employer and employee.

This service is particularly useful for companies with teams dispersed across different countries. It ensures compliance with local legislation and regulations and helps protect the interests of both parties.

Use of an international payroll management solution

If you already have an entity in a given country but need help managing payroll, benefits, and compliance, an international payroll management solution may be suitable.

An international payroll management solution typically acts as an extension of your own HR or legal department. With international payroll management services, you can outsource payroll processing, benefits management, and certain aspects of compliance.

Establishing a local entity or foreign subsidiary

Establishing your own offices abroad may be part of your international development strategy. This involves creating your business in the legal sense (also known as a "local entity"), in accordance with each country's legislation regarding government and commercial compliance.

However, significant investment is required in terms of capital, time, and from your staff to facilitate entry into a new market as a local entity. The following elements are not exhaustive, but they provide a good checklist of the items needed to set up a dedicated office in a foreign country.

Establishment of a foreign subsidiary: Business registration; Domain name registration; Accounting service fees; Legal service fees; Professional registration and fees; Licenses and permits; Consultant fees

Finances: Company insurance: liability, income protection, vehicles, stocks, employee indemnification, unemployment, disability, and others; Working capital; Banking arrangements, such as overdraft authorizations, credit lines, business credit cards; Business loans

Recruitment: Salaries; Benefits; Taxation; Employment or service contracts; Stock options; Retirement and pension obligations; Relocation packages to another country; Tax equalization; Visas; Work permits; Repatriation

There is a lot to organize, especially if you do not have experienced human resources in a particular market to guide you.

The practical aspects of international recruitment can be daunting, especially if you are used to recruiting locally. But as the world moves towards telecommuting, traditional barriers to international recruitment disappear.

Think about what you could accomplish with all the talent in the world at your fingertips!