Today’s guest blogger is Narissa Johnson, the global brand and content manager of SafeGuard World International. For nearly a decade, organizations around the world have relied on SafeGuard World for their global HR needs, specifically around payroll and employee compliance. SafeGuard World is an Alliance Partner of NPAworldwide.
To succeed, companies will come to recruiters like you to find and hire the best talent, no matter where they live. Successful recruitment of global talent means finding the right talent and ensuring your client is able to get them working quickly. You are in a unique position to inform your clients of the risks involved with international hiring.
Social costs are usually made up of statutory benefits and insurance. Statutory benefit requirements, such as healthcare, vary by country. To employ legally, you must understand the required level of benefits.
The range of social costs differ drastically from country to country. If operating in the UAE, for instance, they are around 0% and in Brazil, employers pay from 60% to 120% of an individual employee’s total compensation (collective bargaining agreements, full private healthcare or full life insurance).
An employer’s liability insurance provides protection for their workers. While not all countries have a state-mandated plan, companies generally set up their own liability insurance to protect the worksite and workers. This ensures the company’s legal protection but also impacts its culture, assuring employees that they are being treated equally and fairly, regardless of where they work.
Minimum Wage and Collective Bargaining
As with most issues of remuneration, minimum wage is measured differently depending on the country. In Germany, minimum wage is measured hourly, while in Taiwan it’s measured annually.
Collective Bargaining Agreements (CBA) contain terms and conditions that set HR and payroll standards for workers. CBAs vary widely – when recruiting in foreign markets, it’s essential to understand these differences.
Paid Time Off
Paid time off (PTO) is particularly challenging when hiring internationally. For example, some countries federally mandate minimum PTO. However with CBAs, some positions may have additional requirements. Offering additional days off can also be a useful recruiting tactic. Having the right local knowledge will inform your PTO pitch.
Paid Family Leave
Family leave requirements aren’t consistent across the globe and the amount of leave may differ depending on the employee’s position and seniority. Your client shouldn’t only satisfy legislative requirements but also conform to local customs and expectations. Again, this is an opportunity to leverage leave in offer negotiations.
Termination Policies and Practices
Outside of the U.S., “at-will employment” is rare; companies operating in foreign markets must be aware of the differences in termination policies to avoid non-compliance. While finding the perfect candidate for your client is important, understanding unique termination policies and practices will protect them from the unforeseen.
While the world isn’t getting smaller, our ability to erase international borders certainly makes it feel that way. This is good news for recruiters and companies that understand the best talent isn’t always in their home country. Understanding global employment issues will ensure companies can make smart hires and focus on their core business.
By: Veronica Scrimshaw, NPAworldwide