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International Hiring

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Advantages and Disadvantages of Hiring Foreign Workers

Foreign workers contribute to a large part of the employment window across many countries in the world. It is a known fact that hiring foreign workers is not a straightforward approach as opposed to hiring employees who hail from your home country. Yet, this could be a well worth effort while considering the significant benefits associated with it.

Advantages of hiring foreign workers

Hiring employees from outside the home country can add innumerable benefits to your organization. As in, hiring foreign workers diversifies your workplace with individuals from various countries. Besides this, the recruitment process also highlights unique knowledge and varied experiences amidst the candidates.

This contributes to improving the productivity and growth of your organization. Some of the prominent advantages of recruiting foreign talent include,

Access to international talent

The primary reason to hire foreign workers is to introduce individuals with diverse knowledge-base to the organization. There is always a possibility for the local workforce to lack certain skill sets. During such instances, you should be extending the search radius across borders to hire foreign employees. This would help in identifying the best talent to work with you for any corresponding job role.

The process of hiring and managing an international employee would seem quite daunting. But with the right help, this process can be relatively smooth. Post hiring, Multiplier can take the load off you, by managing all your foreign employees. Besides this, we also help with processing their payrolls and addressing their employment demands.

Reduction in employability costs

Yet another primary benefit of hiring international employees is the profit margin. This is further supported by the increase in efficiency in terms of work. This is a major advantage while hiring foreign workers from developing nations, as it would result in saving more money. Meaning, these employees would get paid in their local currency. It would be significantly lesser than the average pay scale of any developed nation.

Increased Productivity

While hiring an international workforce, you basically set up an office that runs for all 24-hours in a day due to the change in time zones. This helps you to build credibility about your organization amidst the clients. It also mitigates any delay caused by quick turnaround projects due to lack of resources.

Flexibility with the job profile

Generally, foreign workers would be comfortable to take-up challenging job profiles. They would also be flexible to work from any location or at varying shift timings. Whereas, local employees would not be adaptable to such demands. Also, they ask for more benefits when compared to foreign workers.

Increased problem-solving capabilities

Hiring international employees brings different people with various experiences onto the same platform. Hence, these employees would extend varied approaches to solve an issue based on their background or experience.

This builds an agile forum for the organization to develop commendable problem-solving approaches. Besides this, diversified views would also mitigate the roadblocks encountered at work. It would also help with educating the entire team to think strategically and emerge with out-of-the-box solutions.

Exploring into new markets

Extending job offers to international employees would enable the company to venture into the global markets. This is a very close-knit move and if not pioneered at the right pace, it may tumble the company’s reputation. Therefore, recruiting people from other countries to help you with getting acquainted with the local client requirements or etiquettes could be highly beneficial.

Furthermore, international workers can also help with overcoming the language barrier. Thus, hiring international workers helps you to blend with the native crowd without alienating your company’s products or services.

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Disadvantages of hiring foreign employees

Although hiring international workers could be a cost-efficient and witty practice. The process of diversifying your company and launching it in the global market, has significant disadvantages as well. The cons associated with hiring foreign workers include,

Local entity Registration

Hiring international employees could be graded into two types. Firstly, hiring an employee from outside the country to report at your head office in-person. This involves relocation packages and settlement assistance which may incur a noticeable hike in the recruitment or employability cost allotted by your company.

Most companies prefer the second type wherein, the employees work remotely from their home countries. This applies to the most recent trend created by the pandemic. In a recent survey conducted by one of the job portals, we identified that 65% of respondents wanted to work as remote employees post-pandemic. While 31% opted for a hybrid remote work environment. This makes a cumulative score of 96% workforce considering remote working environment over the legacy practice due to the flexibility it offers.

However, hiring a remote employee from a different country demands the company to register a local entity in that particular country. The companies encounter potential limitations while attempting to remain compliant with the federal and state laws of each country.

To ease this process, Multiplier offers to serve as the local entity in any specific country on behalf of your company. We are also equipped to manage the general compliance and other benefits for your global employees thereby, helping you to access international expertise even without a registered entity.

Global Payscale

Every country may have a different pay scale for any job role and if your international employees are working remotely, it is essential to pay them per the local standards in their own currency. This process has been simplified for you by Multiplier.

Our in-house experts are equipped with the capability to handle complex international payroll and other tax payments. Through our platform, you can also track all the payroll payments initiated by your company to your foreign employees and amend it whenever required.

Thus, Multiplier offers a one-click solution to pay all your international employees instantly.

Managing foreign workers and contractors

Depending on the growth and economy of the company, it is a wise move to hire both contractors and employees. This would direct the company’s momentum towards international exposure. However, the task of managing the varying employment benefits for both contractors and full-time employees from different countries could be tedious.

Here again, Multiplier can step in and help you with onboarding and overseeing your foreign contractors seamlessly. Furthermore, we also own a full stack of services to deliver all the requirements demanded by your international employees. Therefore, you can effortlessly oversee the benefits provided to your contractors as well as employees through a single platform.

Biased employment opportunities

Owing to the benefits of hiring foreign workers both on the financial front as well as the professional front, companies prefer them over the locals. This gradually results in scarcity of jobs and unemployment amidst the locals of a country which inevitably affects the entire economy of the nation.

Such long-term unemployment also leads to a significant increase in the crime ratio which poses an additional threat to the respective countries.

Lack of Communication

The process of hiring foreign talent indirectly results in promoting a remote working environment. Such setup may cause technical glitches like unstable internet connection, difficulties around using communication applications, or inability to provide office supplies.

Also, most of the internal communications are executed through video conferences or via email which may cause miscommunication or project delays.

Lack of commitment and Integrity

It is relatively easy to find an international employee who fits your requirement. However, you may have to train them per se to comply with the company practices and get them accustomed to other process-based requirements. Moreover, it is evident that international employees share relatively lesser interpersonal relationships with the company than the in-house or local employees. This leads to potential loss to the company as well.

As in, after a certain period, if the employees decide to quit, the investment incurred towards their training might go in vain. This may be because the employee lacked actual connection as the entire process relied only on online interaction with the management. These interactions may not be enough to build long-term relationships with foreign workers. Thus, there is always a risk of losing employees in terms of international hiring. ‍


To sum up, we can still debate over the pros and cons of hiring foreign workers but it is a highly subjective decision to be made by companies. It is imperative to consider all the aspects mentioned above before making a suitable decision. If the concern is just managing the international employees, then head to our website now and book a demo to know how Multiplier can help with mitigating your concerns.

Employ the best person for job, regardless of location

Employ the best person for job, regardless of location

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