From sourcing to recruitment to retirement, how businesses engage with talent has been revolutionised in recent years. But with the pearls come pitfalls. So what are the major risk factors employers face today when engaging international talent? And how can they be avoided? You’ll be surprised.
The current global war for talent impacts employers regardless of location. According to the iCIMS 2022 Workforce Report, more than 90% of business leaders said their organization would not meet goals without the right talent. They also singled out hiring or retaining talent as one of the biggest challenges faced by business in 2022.
The risks involved in sourcing and hiring new talent are many and varied. And magnified when you are recruiting foreign or remote workers.
For example, here are just a few:
- You can’t find any quality candidates
- You hire people who do not fit the job – aka bad hiring – with disastrous outcomes
- Your costs of recruitment are too high; or you’re not using the latest technology
- You hire people who are not qualified for the job, or are non-compliant and subsequent events cause reputational damage for your company
- You hire someone and they are mis-classified and this leads to issues with the person involved and the local authorities, along with financial penalties and tax and legal wrangles down the track
So what can you do to avoid risks when engaging talent? Here’s some blockbuster risk mitigation measures you can take today.
Establish an Employer of Record service. It’s an essential business tool in the new world of work
One very smart way to enable your business to access the global talent pool, quickly and easily, is by establishing an Employer of Record service with a specialist workforce management and recruitment partner like CXC.
With it, you can hire anyone, from anywhere in the world with minimal risk.
An Employer of Record is a firm legally established to deal with employee remuneration, including taxation, employment benefits, visa application, insurance, performance appraisals, and all other administrative tasks that would provide a logistical headache for global companies.
In addition to ensuring full compliance with local laws and regulations, this arrangement also offers many other risk mitigation benefits, including:
Legal Liability Coverage
CXC’s Employer of Record solution manages legal liability in order to protect you from potential fines and/or loss of business permits. Just some of the areas we cover includes pensions and insurance enrolment, employee benefits and entitlements, tax withholdings, early termination liabilities, onsite health and safety, and more.
Simplify the payroll process
Empowering an Employer of Record to manage your company’s payroll frees up your employees and helps avoid breaking the local payroll laws and regulations. By streamlining the payroll process, the EOR functions as a dedicated HR team to ensure your local employees are paid in-full and on time, along with the correct taxation services etc.
Quicker Time to Hire
Working with an EOR through CXC gives businesses the advantage of being able to hire in a matter of days, as opposed to the weeks or sometimes months it can take to hire an international candidate on your own.
Onboarding expertise
Post hiring, the EOR will assist with all aspects of onboarding new local employees and ensuring a smooth and productive transition to full productivity.
An EoR arrangement with CXC means you can also benefit from a range of additional risk reduction services designed to make your international talent recruitment goals easier.
King Hit Risk with CXC Comply
Having a true global footprint servicing over 50 countries with offices in 30 cities means our teams know and understand local employment and compliance requirements firsthand. This knowledge is complemented by our CXC Comply product, which allows workers to be fully vetted and validated, speeding up the time-to-fill process and increasing access to talent. It’s more cost-sensitive and moves workers into jobs in a timelier manner. With minimal risks.
CXC Comply’s impressive functionality serves to mitigate risk across three key areas of compliance:
Worker Classification: CXC Comply’s classification assessment and vetting process ensures proper classification of independent, freelance, sole trader, limited company and corporate contractors. It also mitigates any risks to your organisation by ensuring they adhere to local classification guidelines for taxation purposes and are set up properly and working in compliance with local and in-country laws
Right to Work: Right to work requirements vary in every country. CXC Comply’s right to work assessments and digital vetting ensures the contractor that you want to engage has the proper work authorisation in the country or region where the work will be performed by verifying domestic right to work eligibility and proper setup within their country’s schemes.
Background Screening: CXC Comply ensures your contingent workers are properly checked and vetted by facilitating checks for issues such as criminal checks, education checks, work verification, international sanctions and credit checks.
To learn more about how CXC Global can help you to king hit risks when engaging international talent don’t hesitate to contact us today.
