Why entrepreneurs are hiring internationally

Finding the right candidates for the team has always been the goal for employers and hiring managers. The good thing is that this has become easier with international hiring.

Geographical borders no longer restrict finding the right talents. And entrepreneurs are increasingly leveraging this possibility. But finding the right people isn’t the only reason they are hiring internationally. Entrepreneurs hiring international employees have far more reasons to do so, which we will focus on below. We also look at some of the different ways that they are doing it.  

Increased diversity

Hiring international talents paves the way for diverse people in the organisation. This is important for enhancing a company’s inclusivity and diversity efforts. In addition, diverse people bring in diverse skills, experiences, perspectives, and ideas. Consequently, this leads to greater creativity, increased innovation, and improved problem-solving in an organisation.

Ease of entering new markets

Expanding to new markets is a great move for entrepreneurs to tap into new customer demographics and increase sales. However, entering foreign markets can be quite difficult. Hiring people in the target markets make it easier for businesses to penetrate those markets. A local team can be valuable in building connections and strategising. The team also plays a big role in overcoming challenges such as cultural and language barriers.

Enhanced customer care

Creating delightful customer experiences is vital for being successful in the business world. And the modern consumer expects fast and reliable support. Entrepreneurs have a greater responsibility to ensure that all customers get the care they need when they need it. Now that technology has made it possible to have customers around the world, ensuring a customer care team in different time zones is paramount. Moreover, hiring internationally enables this.

Larger talent pool

Despite huge unemployment rates in different countries, employers still find it hard to fill positions that require some skills such as data science and tech. The international talent pool is wide, and the possibility of finding skilled professionals is high. Entrepreneurs take the international route to fill positions that are hard to fill locally.

Reduced cost of employment

Salary expectations differ for different regions. Likewise, employees’ benefits and compulsory employer contributions also vary. Finding talents where salary expectations and employer contributions are lower contributes to greater savings for entrepreneurs.

How to hire internationally

Hiring internationally surely comes with a variety of benefits. But you could be wondering how entrepreneurs are doing it. Let’s look at three common ways employers are using to hire internationally.

Setting up a legal entity

Organisations have the option to set up a legal entity in the countries that they want to hire in. Some organisations opt to go this way and establish brand awareness in those countries. A legal entity allows them to hire employees legally in those countries. However, registering a legal entity takes time and money. It is important to be sure that this is viable for your business before taking the plunge.

In addition, opting to hire through an established legal entity requires you to ensure global compliance. You must be able to follow all the laid down rules and regulations. This includes understanding the local employment laws and taxation requirements among other regulations for doing business in each country.

Hiring independent contractors

Another way entrepreneurs are hiring international talents is by bringing on board independent contractors or freelancers who work remotely. The advantage of this is that organisations don’t need to comply with local laws and regulations. They also don’t have the responsibility of paying employee benefits and withholding taxes on behalf of the employees. However, it is important to pay attention to employee classification to avoid landing into regulation troubles.

Using an employer of record

The third common way of hiring internationally is to hire through an employer of record such as a PEO. This option doesn’t require the employer to set up a legal entity in foreign countries. The third-party acts as the employer of record, paying salaries and employment taxes on behalf of the employer. The advantage of this is that the EOR ensures legal compliance, so the employer doesn’t have to stress about that.


Employers are increasingly tapping the international talent pool. Some of the reasons entrepreneurs are doing this are increased diversity and bridging the skills gap in the local talent pool. They also want to make it easier to penetrate new markets and improve customer care. Moreover, hiring internationally has the potential to lower employment costs.