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Whether for existing or new clients, read here to find out why it makes sense to expand your staffing organization globally and how to do it.
How to find the right talent
To meet the talent needs of their clients, find the best candidates, and maintain their competitive advantage, staffing organizations are now looking globally to identify talented and skilled workers, to fill open roles. Candidates today around the world have access to better education and practical experience. Combined with evolving technology platforms, workers now can work from anywhere. Staffing firms in the USA and globally that do not take advantage of the potential gains from expanding globally and identifying global talent will be left behind.
Many staffing firm owners and operators in the USA and globally are not aware that the potential to expand their recruitment efforts globally can easily be accomplished. In other words, any staffing organization can now find, engage, and manage talent globally, without the requirement of setting up a local entity in the country where the talent resides. Having an in-country Employer of Record (EOR) solution partner like CXC Global in their partner eco-system to manage worker compliance, on-boarding, monthly payroll, taxes and benefits expands the talent pool instantly.
Global expansion
Partnering with an Employer of Record (EOR), International Professional Employment Organization (IPEO) or Global Employment Organization (GEO) enables staffing organizations no matter where they are headquartered, to develop and implement a strategic plan to approach demographics where they may not already have a presence or are not currently setup for service.
Employment laws, payroll and taxes are very complex globally and expose a business to risk if not adhered to. Compliance requirements vary between countries. Using a third-party workforce management company with global capabilities will reduce risk and ensure compliance with local governance.
Why use a third party to expand
We’ve listed below 3 key motivators for partnering with a third party, such as CXC.
1. EXISTING CLIENT OPPORTUNITIES
You may have an existing client that comes to you and asks if you can source and hire a worker globally or who has identified potential candidates globally. Your client may be looking for experienced talent globally and strategic partners to assist with adding additional countries to their scope. In this scenario, having an established eco-system and experienced global partner for in-country EOR and global workforce management will enable you to provide that service. That new global worker could be classified as ‘similar to’ full time, or part of you partner’s contingent workforce management program for short or fixed term assignments.
2. SERVICE NEW CLIENTS
A new or potential client may approach you for support in countries where you do not currently have offerings or are not offering supporting. Don’t ever say no. Your company has the recruitment expertise. You will be able to provide them a solution through a proven and trusted partner with in-country experience.
3. BUSINESS CASE FOR EXPANSION
You may make the business decision, to gain a better market position, and become more competitive, to expand your staffing operation globally, and market your capabilities to existing and new clients.
When evaluating a business case and a potential global partner, investigate the associated costs, markups and any ‘hidden fees’. Some staffing partners may be able to find higher margins for outside countries that could provide a higher ROI than what they currently support based on labor market and the client expected pay rate. A trusted partner like CXC Global prides itself on being the most transparent with all employer cost, taxes, paid time off and no hidden fees.
Staffing organizations have the capability to recruit and engage workers anywhere across the Globe. If your strategic focus for growth is domestic in nature, you may be limiting your organization’s success. A partnership with CXC Global provides the framework to pay workers anywhere in the world, on time and compliantly, thereby reducing your risk and expanding your world.
The US staffing and recruiting industry
The staffing and recruiting industry is one of the most competitive industries in the U.S. and includes companies which help other organizations find staff. This can be achieved through either assisting companies to recruit new internal staff (recruiting), or directly providing temporary staff to fill specific functions (temporary or agency staffing). The temporary staffing segment is significantly larger than the recruitment segment. In 2019, search and placement sales constituted 15 percent of the staffing and recruiting industry sales in the U.S.
While the portion of the temporary workers is not larger in the U.S. than in other developed economies, the U.S. temporary worker industry is the world’s largest due to the size of the overall economy. On average, temporary workers in the U.S. are engaged for 10 to 11 weeks.
About CXC
CXC Global enables, simplifies and enriches the experience of engaging skilled talent, on demand, across the globe. We’ve been in business since 1992, helping businesses all around the world to compliantly engage, pay and manage their global workers.
We partner with staffing companies in the US and Canada to assist their clients with the international EOR function and enable companies to hire employees in foreign countries, alleviating the need for them to establish local entity. An international EOR acts as a third party to hire the workers on the client’s behalf, while managing the risk and ensuring compliance.
Our global workforce solution footprint continues to expand, as we take on new territories to meet our clients’ needs.
A recent global landscape survey, focusing on global capabilities, saw CXC Global consistently ranked among the top providers in coverage, breadth and diversity of employer of record “EOR” and self-employed / independent agent of record “AOR” solutions.
CXC’s proprietary platform, CXC Comply automates the onboarding process and ensures compliance with local laws. Request a demo today!
Speak with one of our international workforce specialists to learn more about our global EOR solutions.
