If you run a company whose growth has been limited because of talent shortages, huge wages and commercial costs on physical infrastructure, then there’s just a practical solution.

To solve the above issues, many companies have adopted the remote work model and hired employees from abroad. This way they performed more productively and are growing smartly in the world of surging inflation. 

Below, read the 7 productivity benefits you can bring to your business when you do international hiring.

7 Benefits of hiring global talent

1. Global talent is more affordable

A global workforce comes cheaper to your company compared to hiring local talent. This is because of two reasons. First, in some regions there’s a wider talent pool who face lower profession demand. An international company can benefit from the higher supply of the overseas talent while offering them comparatively lower wages than what they would pay to local employees. 

And second, the economic differences in countries allow companies from stable countries to attract valuable talent at wages that are still less than in their country. 

2. Employee retention is higher 

A global workforce, who’s paid well by an international company, sticks for long. These remote workers get to earn higher than what they would expect from a local company, while also staying at the comfort of their home.

In contrast, a local workforce is more likely to shift workplace when they find a better opportunity in their region. This brings costs for a company in two ways: either raise salary to retain the talent or recruit new talent and spend resources in training them for the job.

Hence, hiring overseas means a company saves expensive retention costs on keeping talented employees onboard. This improves the productivity of the company as it is run by a loyal employee base.

3. Diverse mindsets tap better productivity

Hiring abroad brings new ideas at the workplace which can tap better productivity for a company. Mickensy’s research shows companies who employ a diverse workforce get 35% greater financial returns compared to non-diverse counterparts.

Having a diverse workforce means employing people of all genders, races, ethnicities, ages and education levels. When a company hires remote employees, they are giving diversity a chance. This works in the favor of the company as the unique intellect brings newer perspectives of how a company produces or serves its customers. 

The reason diversity is so useful for companies is because it allows easy reach to unexplored and creative ideas that can be developed into business products or services. It has become a competitive difference among companies globally (read research).  

Hiring an international workforce thus brings intellectual diversity to your company which can make you reach for a greater market share. 

4. Work with a fast-paced workforce

An international workforce who’s working remotely can be more productive than on-prem employees.

Recently, Forbes concluded a better productivity performance by remote teams. It showed that a 5% greater productivity is seen in the remote work setting. 

Another research, by University of Chicago found that 60% of employees thought they focused better in remote work compared to only 14% who found it boring. This is because employees were able to enjoy exclusive work-from-home benefits such as saved commuting time. 

Remote work also brings the opportunity to take enough-rest and enjoy better work-life balance. This leads to a 53% better ability to focus compared to the on-prem work model, found by Future Forums.

In conclusion, a global workforce performs more productively as they save significant time and enjoy ample rest.

5. Unlimited talent pool

Do you have to wait for months to find the right talent? That’s probably because there’s a talent shortage in your local area. 

One benefit of hiring abroad is that you get access to a limitless pool of talent. Moreover, people across international borders increasingly show interest in remote international jobs. A Harvard Business Review (HBR) research, performed on LinkedIn data showed a 46% increase in job applications in 2022 for US remote jobs compared to prior year. 

Thus, advertising remote job offers across international borders brings a vast pool of valuable talent at a company’s door. 

6. Virtual offices save administrative costs

Hiring remote overseas employees helps you save significant office expenditure. This might be the costs of office space, maintenance, food and drinks, stationary, and energy tariffs. By assigning virtual offices to your overseas employees you omit all these costs. 

As per a research, an employer can save up to $11,000 per employee, annually, if they assign work from home half of the time.

In other words, hiring overseas talent helps a company improve the financial cash flows and ultimately generate more profit.

7. Access large pool of pre-vetted candidates

Global hiring is easier with access to tightly pre-vetted profiles. When a company gets talent that’s already evaluated by industry experts, it saves them with intense hiring efforts. 

Given the demand, there’s a rising number of companies who provide staff augmentation services by outsourcing talent to companies looking for remote resources..

Apart from talent evaluation, staff augmentation services provide various benefits such as:

• Payroll management– the company saves the burden of distributing pays to remote workforce and calculating currency transformations.
• Legal and local labor laws– remote hiring takes care of the local labor laws. It brings employment contracts that ensure compliance with local tax and employment responsibilities and rights.
• IP and confidentiality protection– when employees work in virtual spaces there needs to be contracts that ensure company’s data is protected. The third party hiring organizations ensure the employees comply with IP and confidentiality policies.