Companies should consider these 10 factors while selecting a recruitment outsourcing partner abroad.
By Anmol Kumar
Employment laws in other countries are often hard to understand, and they are usually made to safeguard the employee, not the employer. When hiring local people outside of the home country, you should be very careful. A contract for work may need to be written in the language of the home country.
It's also important to follow local rules about social health insurance, disability insurance, pensions, and other things. When hiring people from the host country or people who are equivalent to residents of the host country, it is important to hire professional lawyers who know the employment laws of the host country.
For these reasons, it is essential to select an efficient recruitment outsourcing partner. In order to choose the most effective recruitment outsourcing partner, it is first important to comprehend exactly why it matters which recruitment partner you pick.
Why is a reliable recruitment partner important?
Selecting a reliable recruiting agency ensures that you choose a qualified applicant who will help your organization.
With multiple recruiting firms fighting for your attention, shifting recruitment trends, and a talent crunch, how can you choose one with a strong talent pool?
Here are some tips to help you choose a reliable recruitment partner for your hiring needs:
Recruiting firms' primary focus should be on locating qualified candidates for their clients' open positions, although not all of them will share this priority.
Recruiting firms have the responsibility of checking out candidates to make sure they can offer what clients need, yet they may only be interested in finding someone who will do the job.
Even if someone looks great on paper, they might not be a good fit for your company. Since the recruiting agency is in charge of keeping things running behind the scenes, if you don't choose the right one, it can cost you time and money.
If the person they recommend doesn't work out, you'll have to start the whole drawn-out procedure over again.
So, it's important to choose a recruitment partner who can find candidates who will make your business more productive and give you a good return on your investment.
When you work with the best recruitment agency and find that a candidate doesn't fit well with the way your company works, you don't have to worry about wasting money.
Most of the time, the best staffing agencies will give you a full refund and help you find a replacement as soon as they can. This way, even if you can't avoid making a bad hire, you can avoid losing a lot of money.
So, if you work with the best recruiting agency that has been around for a long time, you have a safety net.
Factors to Select the Best Recruitment Agency for Your International Markets
No matter what the task is, it's hard to find the right partner. To figure out which recruitment agency might be best, you also need to look at your business.
It can be hard to find the best recruiting partner, but once you do, all your hiring problems will be solved.
Also, it is smarter to take the time to find a good recruitment agency than to do a lot of interviews each time you need to fill a position.
A recruitment agency is better than holding interviews for a business that needs seasonal workers or has employees on leave.
So, how do you find the best recruiting agency for you? Consider these things:
Factor #1: How important it is to follow local laws
Before getting into how to hire people from other countries, it's important to mention the biggest problem: compliance. Unfortunately, it's not as easy as having a private relationship with someone abroad and paying them for their time. Tax and work laws are the main reasons for this.
The worker will live in a country that has its own taxes on jobs, laws about jobs, and so on. It can be hard to meet this requirement. First of all, the country where the employee lives (the country that will govern this relationship) may have tighter regulations on the rights of workers in addition to mandatory statutory entitlements. One has to do payroll on their terms so the employee can pay their local taxes correctly.
Factor #2: The flaw of the subsidiary
Businesses often think that they need to set up a branch in the country where they will start hiring. Hiring someone overseas through a local company is one way to do things, but it's not the only way. If you don't know what this means, it means that you set up a legal entity in another country that is controlled by the holding company.
This is a good idea because you'll have a clear legal presence in that country and will be able to hire people from there. There are some benefits to doing this, and you might be able to meet the rules, but it won't be easy.
The main benefit is that you have complete control over who you hire and how much you pay them. Under this subsidiary, you can also start to build a brand. This is often done when hiring a lot of people, but it's a complicated option that costs a lot to handle.
Most countries protect the rights of their citizens by mandating a minimum share of domestic companies in the local entity being set up by foreign companies. In the UAE, for example, 51% of the business must be owned by UAE citizens. Even if you're given the go-ahead, you don't know anything about the paperwork, local laws, or customs, and mistakes can be very expensive (i.e., fines).
This usually means hiring someone who knows the area well to help with compliance and paperwork, which costs more money and takes more time.
Most businesses want to hire people from other countries because they can get cheaper labour from a larger pool of skilled workers. Would it make sense to do this through a subsidiary? Probably not, unless you are building your business on a larger scale or with a larger scope of work.
Factor #3: They create win-win situations for all stakeholders.
A reputable agency will always work for you and your future employee to make sure that the transition to your new hire goes smoothly. The agency takes care of things like visa paperwork, contracts, and employment issues so that you don't have to worry about getting into trouble when you're hiring in the host country.
Factor #4: What fees do they charge?
A company should always try to negotiate fees with an agency, but it should also think about what it is getting for its money. Remember, "You get what you pay for." You wouldn't go into a store looking for a 4K, Ultra HD, 70-inch LED SMART TV and leave with a 42-inch HD-ready TV because it was a few thousand pounds cheaper. So why would you do the same, especially when it comes to hiring people you will work with every day and who will help make a product you worked hard on?
The other thing to watch out for is how much the agency is willing to drop its fees. If they drop their price from, say, 30% to 15%, you have to wonder if they really value their service or if they were just trying to rip you off. A good agency will not only know how valuable they are but will also be able to show you.
Always keep in mind that if the agency doesn't find the right person, you don't pay anything unless you've built a strong relationship and signed a retainer, which you wouldn't have at this early stage of an introduction. The advice would be to put them to the test and see if they're worth the money.
Factor #5: What impact have they had on other client and candidate journeys?
When you work with a recruiter, you should think of it as a partnership. They work with you, not for you, and that's how it can work well. You have to keep in mind that they are the first point of contact for thousands of potential candidates and will be talking about your company with them.
Because of this, it is important that your recruiter can give you references from both candidates and clients, so you can see how they have done for other people. If an agency can't give you references, you have to wonder what they're trying to hide.
Don't rely on LinkedIn posts because anyone could have written them. Instead, ask for their contact information and talk to them yourself.
Factor #6: Make sure they ask the right questions.
As was said in Factor #5, Recruitment agencies have the first information about your company that many candidates will get. The agency should know everything there is to know about your company, the role, and what you are looking for.
If you tell them about a new job opening and they don't ask for a meeting or at least a 15-20 minute phone call to talk about it, why not? The most likely reason is that they don't care that much. Work with an agency that knows that a quick overview meeting or phone call will save you hours of reviewing resumes that aren't quite right because the people who wrote them didn't have the whole picture.
Factor #7: They know how important it is to communicate across cultures.
You should be able to learn about the customs and culture of your host country from the agency you choose to work with. As soon as you ask for their help, they have an honest conversation with you and your future employees, and they must give you clear information about what to expect when you hire someone overseas.
Factor #8: They know what people want.
In your host country, the best international recruitment agencies are part of a well-established network of professional workers. They are the agency that high-quality companies keep going back to because they know they will find the most qualified and dedicated workers for their industries there.
Factor #9: They know what makes international companies hire people.
You want to see the world and want to make a difference in the lives of your employees abroad, just like many global employers. When you decide to hire people in other countries, your world grows in a big way. The best agencies will show you the way, be there for you along the way, and give you lots of advice on how to make your trip memorable.
After all, your skills and your adventure are also part of it.
Factor #10: They know exactly what your employee is looking for... You!
International recruitment agencies look for people who are good at adapting to new situations and cultures, have a good attitude, and are resourceful. Due to high demand, they are always looking for motivated people who are willing to work with overseas companies, which is a very rewarding job.
Employees who want to move up in their careers and try new things are looking for the best agency to help them get started on their new career path. And that’s where recruiting partners bring you into the picture.
Bottom Line
Most of these tips on how to choose the best recruitment outsourcing partner require careful planning and thought. Taking the time to evaluate the recruitment agency is important because this is a step you can't go back on if you want to build a productive team and build your employer brand. Once you've found the right recruitment agency, you won't have to worry about how you'll find your next employee.
Talent'd for Recruitment
Need help finding proven candidates? Talent’d can help you. We have a lot of experience bringing you the best candidates that fit your needs in the shortest amount of time you could ever imagine. With Talent'd, you can even hire a workforce on a global scale, giving you a large pool of candidates to choose from. Get in touch with us at talentd@worldref.co.
Shortage of Talents
Almost seven out of ten firms worldwide are having difficulty finding skilled workers. Skilled individuals have more freedom to look for positions that best suit their interests, and technological innovation has increased the demand for their abilities: 40% of employers hired tech staff during the pandemic, and 66% expect to hire more in 2021.
Following a drop in employment and working hours across Europe in 2020, economies began to show indications of recovery in the first quarter of 2021. The slow resumption of economic activity has resulted in an increase in demand for workers, rekindling fears about labour shortages. Before the COVID-19 outbreak, it was thought that the difficulty of filling open jobs was one of the main things holding back growth, competitiveness, and service delivery. Despite a temporary decrease in labour demand during the pandemic, this was not the case in all industries, with some experiencing a worsening of pre-existing shortages.
Even before the pandemic, businesses were having difficulty finding qualified candidates. However, economies have undergone significant shifts in the last few years, which means that the skills required to fill vacancies have also evolved - and the skills gap has widened.
For example, the pandemic has accelerated the shift to digital and online business models, particularly those that involve businesses delivering items to customers' homes that were previously purchased in person. As a result, the jobs that are being created require different skill sets than many of those who are being laid off do. As a result, there is a shortage of skilled workers.
Job vacancy rates are rising in the construction, technology, and communication sectors, where skills shortages have long been a structural issue unconnected to short-term economic fluctuations. The faster-than-expected economic recovery in Eastern Europe, along with increased industrial output, has overheated the labour market and created recruitment bottlenecks in the manufacturing sector. Due to the loosening of pandemic restrictions, the need for workers has also grown in the hospitality industry, where businesses are struggling to fill open positions.
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