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Global Hiring 101: The Beginnings

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It’s customary to begin introductory discussions of any business-related topic with a deep dive into the usually precarious economic conditions and an acknowledgment of any significant challenges that lay ahead of entrepreneurs trying to be ahead of the game. We’ll be taking a break from tradition by stating right at the outset that times are not so desperate. The race for recruitment is real and immediate, but it was always there. Organizational leaders have struggled with sourcing the right talent for a long time. No matter when you read this, a certain industry or segments of industries will be undergoing critical changes.

 

And even if all processes are streamlined and effective, unforeseen circumstances (like pandemics or natural disasters) can force us to rethink perfectly healthy business conditions.

Using large-scale layoffs or diminishing profits as a backdrop to understanding ‘global hiring’ is fundamentally flawed. We’re not going to be looking at global hiring as a quick fix or a turbocharged scaling method – although it can be used that way. The best way to evaluate it is to look at it without any assumptions of any kind.

What is ‘global hiring’?

The simplest definition of global hiring is recruiting anyone from anywhere. But the very core of global hiring is recruiting the correct fit, irrespective of their location.
In case you immediately think of Western nations sending low-value jobs to low-wage countries, it’s because we do not take account of industries that regularly deploy work to developed nations, like K-Beauty, fitness, and/or music production. And we also don’t recognize how the 9-to-5 work life has changed. For many people, a job is something that can be done from anywhere with an internet connection. The world is always connected via email, social media, and better network coverage than ever before. Options like 100% remote jobs, hybrid work, working from home, and full-time freelancing offer substantial benefits to individuals and industries alike.
The road to this flexibility has been long.

How has global hiring evolved?

Outsourcing was initially a strictly regulated area, and cross-border delegation of payroll and/or certain manufacturing processes was admittedly begun solely to cut costs. Textiles, automotive, and electronics had sent many of their processes overseas by the middle of the twentieth century. Again, these jobs were sent to low-wage countries to reduce expenses. General Electric was probably the best-known company to do this during the sixties and seventies. Countries like India, the Philippines, and China emerged as some of the best places to offshore entire operations during the IT boom of the nineties.

Outsourcing and offshoring are often used synonymously, but for the sake of clarity, outsourcing means involving a third party in the business process, while offshoring usually refers to sending a specific task or process to a different country.

Gradually, customer service, human resources, finances, and other non-primary processes began to be offshored, giving rise to the concept of BPOs. Eventually this gave way to KPOs, where businesses offshored crucial business activities like specialized research and analytics. 

It isn’t uncommon for companies to offshore processes not only to India or China, but to countries in Eastern Europe and Latin America. Additionally, offshoring isn’t limited to IT or manufacturing anymore; legal services, education, marketing, and designing jobs are also offshored now, as befits a truly globalized world. Freelance editors, writers, and video makers on Fiverr/Upwork who cater to international businesses had already been a regular part of this equation for more than ten years.

We are standing on the edge of something that promises to change the game, especially as tech has transformed the way we understand the words ‘global’ and ‘hiring’. Will robotic automation eventually take over all sourcing practices? Robotics and AI – very much a double-edged sword at the moment – render multiple entry-level roles irrelevant, but they are also poised to become a constant in every office. Companies will increasingly choose to integrate AI-powered solutions into hiring and team management. Of course, not every effort to boost efficiency and cut costs has a smooth journey, but we know these efforts are on their way. 

Modes of global hiring

Part of these enterprises are already working. Multiple hybrid models of work exist to counter the many genuine challenges of global hiring. There are businesses that:

– Build entire full-time teams in a different country
– Hire some (or many) skilled part-timers in a different country
–Work with contractors on specific time-bound projects

An ideal team is a combination of onsite (there are many crucial roles that are location-sensitive) and overseas talent. It’s possible for headquarters to not have as many experts as you need in your field; you might be interested in spreading the risk across separate locations. Whatever the reason, hiring talent globally is an accessible solution for most businesses today. 

The accessibility is a by-product of the straightforward nature of the process, since tech makes most of the steps very simple, and hiring – whether within borders or crossborder – entails a fairly streamlined series of activities. It would be a good idea to break this down into bite-sized portions.

How to ‘globally hire’: The first steps

Admittedly the process begins with the toughest job of all: looking for the best place to source from. Alternately, you might choose to keep all your options open.

1. Going through résumés and choosing shortlisted candidates is a location-agnostic step

2. Remote onboarding is a genuinely difficult thing, but guided offshoring services make it easier. You might choose not to opt for any offshoring assistance, and this is as valid as getting assistance. It’s your choice, and yours alone.

3. Compliance and payroll services exist, and many current e-platforms simplify these tasks .

4. Slack, Discord, and Teams make remote team management inexpensive and easy

An ideal team is a combination of onsite (there are many crucial roles that are location-sensitive) and overseas talent. It’s possible for headquarters to not have as many experts as you need in your field; you might be interested in spreading the risk across separate locations. Whatever the reason, hiring talent globally is an accessible solution for most businesses today. 

The accessibility is a by-product of the straightforward nature of the process, since tech makes most of the steps very simple, and hiring – whether within borders or crossborder – entails a fairly streamlined series of activities. It would be a good idea to break this down into bite-sized portions.

Pros & Cons

A number of these steps are routine for any company that has 20% of its team working from home. But the real issues of hiring someone or a team in another country are quite different. Language barriers are a significant dampener on team spirit, and cultural differences only widen that gap. Separate time zones may be another communication bottleneck. Leadership may be rightfully concerned about maintaining quality, legal issues, and, more importantly, data security. And there may be hidden costs too. Low labor costs may camouflage the cost of setting up an entire office in a different country, a high-risk undertaking that leaves people vulnerable to being taken financial advantage of.
These are legitimate worries.
The high number of companies who continue to hire in other countries is due to the many short- and long-term benefits of this practice. Cost efficiency is certainly a major plus, but this is not the most solid one ( in fact, when done incorrectly, global hiring can be very pricey). The unbeatable advantage of this method is the kind of access you gain to an unharnessed, large pool of skilled talent. Delegating non-local tasks to a global hire improves business operations overall. It allows management to focus on areas that need their attention. Sometimes, it opens a new market for their business, and many countries have attractive incentives for international businesses investing in their talent. But nothing tops the fact that you have a diverse, inclusive team where people of different backgrounds learn from each other’s experiences everyday. In time, barriers can evolve into contrasts that can be celebrated. This team is the promise that global hiring holds.
But the potential of a globalized workforce can only be exploited by an economy that understands nuance. It requires unwavering commitment to balancing location-blind hiring with ensuring that specific professional communities don’t feel targeted or threatened. And global hires need fair treatment and equitable compensation; it is a mistake to go into a market looking for ‘cheap’ but skilled workers. There are many processes that have cost and business operation advantages, but global hiring isn’t focused solely on the bottomline. When businesses have the freedom to work with the right person irrespective of borders, opportunity itself is equalized. Neither do businesses need to settle for available talent, nor does a skilled person need to upend their life completely to move to a high-paying job market. The true measure of success for a global hiring project, therefore, will always be a well-performing business, a fulfilled professional, and a prosperous global workforce.
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