Attraction of key talent includes the availability of fair compensation packages. A company needs to consider compensation elements and standards internationally to establish sustainable offerings.
Fremont, CA: The move to remote work has opened up the prospect of recruiting a global workforce. The benefits of recruiting an international workforce go beyond broadening the talent pool to solve skills shortages, although this is undoubtedly a huge advantage. It also enables a business to gain awareness of the market, communicates with audiences in other countries, and build a rich workplace culture.
The global workforce and remote workforce are facing challenges. An obvious challenge is the logistics of recruiting and onboarding and the remote incorporation of staff from around the world into your company culture in a consistent manner. Additional problems include budgeting accordingly to connect with foreign talent and recording the working relationship correctly.
Negotiating compensation and benefits with a candidate in the same city or state as a company can present difficulties, but most HR departments are trained to deal with such circumstances. However, the international negotiation of compensation is an entirely different undertaking.
Understand the Social Charges
Social charges – or required contributions to taxation, insurance, social funds, etc. – are measured on top of the employee’s wages. These sums are necessary costs for talent participation in the country and can vary widely across the country. Social charges are also a vital consideration of the budget.
Considering social charges is a crucial first step in recognizing the global workforce’s cost.
Understanding Compensation Requirements
In addition to the basic salary, you should be prepared to pay for additional compensation requirements. Competitive employers’ budget for all areas of the compensation package needed and many jurisdictions allow compensation packages to include elements other than basic wages.
Understanding Required Documentation
Having budgeted for and found your ideal candidate, it may be tempting to reach an offer letter or a letter of intent to finalize an agreement with that person. While letters and letters of intent may not have legal weight in all jurisdictions, they can often produce a legally binding document. This means that you will not be able to change your mind after the letter is out, and you will be bound by the compensation plan given in the letter.
Also, work on a voluntary basis is not recognized outside the United States. That means, if you submit a letter of offer or enter into an employment agreement with a foreign applicant, it can be difficult and expensive to terminate that partnership.