How to successfully employ a workforce across different countries

Expanding your business globally brings exciting opportunities, but it also introduces complex challenges. You probably already know this.

Unique employment laws, diverse cultural expectations, varying compensation standards, and distinct employee relations practices. These are likely some factors that have kept you from taking that next step.

In this article, we discuss the common challenges of international hiring and explore how you can confidently tackle them.

What are the requirements for employing workers in different countries?

The requirements for employing a workforce vary widely across countries. This generally falls into four major categories: legal, cultural, compensation, and employee relations.

Legal requirements

Each country enforces specific labour laws covering employment contracts, work permits, tax obligations, and termination policies. Non-compliance can lead to costly penalties or legal complications.

Challenges:

• Navigating complex, country-specific regulations can be daunting: Especially as each country has unique employee protections and policies.  For example, in countries with strict labour laws, such as many European nations, terminating employees can be challenging, requiring just cause and often a lengthy process. By contrast, in the United States, employment is often “at-will,” allowing easier terminations with fewer legal restrictions.

Solutions:

• Establish clear, country-specific policies and procedures: Creating location-specific guidelines reduces compliance risks and standardises processes like onboarding, benefits management, and compensation in a way that respects local practices. This framework ensures your team can manage international operations consistently and confidently.
• Partner with local legal experts or an Employer of Record (EOR) company: Partnering with trustworthy local experts ensures you’re fully compliant with these regulations and any updates as they happen. An EOR can also manage these aspects across multiple markets, handling payroll, benefits, and employee documentation for you while staying up-to-date with local changes. 

Cultural considerations

It is essential to recognise cultural diversity when entering any international market. Each region has unique norms, including business etiquette, communication styles, views on hierarchy, public holidays, and approaches to diversity and inclusion. These cultural differences shape how people interact, make decisions, and conduct business. If not well understood, they can introduce communication barriers.

Challenges:

• Misunderstanding hierarchical structures: In countries where hierarchy is valued, such as Japan, failing to respect these structures can lead to misunderstandings and hinder relationship-building. Conversely, in cultures with a more relaxed view of hierarchy, such as Australia, a formal approach may feel out of place.
• Differing communication styles: Direct versus indirect communication styles can lead to misinterpretation. For example, a straightforward approach may be well-received in the U.S. but seen as too blunt in other cultures, potentially leading to strained relations.
• Varying views on diversity, equity and inclusion (DEI): Different cultures have distinct approaches to DEI and work-life balance, impacting teamwork and employee satisfaction.

Solutions:

• Invest in cultural sensitivity training: This can help managers and employees understand and respect local business norms, ensuring smoother interactions and avoiding potential conflicts.
• Adapt management and communication styles: Tailor management practices to each region’s norms. For instance, in hierarchical cultures, formal acknowledgement of titles and roles can foster respect, while more casual approaches work well in egalitarian cultures.
• Celebrate local practices and holidays: Incorporate regional holidays and cultural practices into your policies to demonstrate cultural respect, improve employee satisfaction, and promote inclusivity.

Compensation and benefits

Offering a competitive package requires understanding customary practices and what international employees expect. This is essential for driving employee satisfaction and retaining top talent globally.

Challenges:

• Understanding country-specific expectations: Employee expectations for benefits vary greatly. For instance, healthcare and retirement benefits are prioritised in the U.S., while European countries often have legally mandated, comprehensive benefits.
• Navigating legal requirements: Certain benefits, such as paid parental leave, healthcare, or retirement plans, may be required by law in some countries, which can increase administrative and financial complexity.
• Cultural expectations for incentives: In some countries, like Japan, annual bonuses or performance-based incentives are expected and even seen as a standard part of compensation. Not providing them may affect recruitment and retention efforts.

Solutions:

• Conduct local market research. This will let you understand compensation trends and mandated benefits in each country. It will also help you offer competitive, compliant packages that are both attractive and legally sound.
• Partner with global benefits providers: This can streamline the administration of complex benefits and ensure that offerings meet local standards and expectations.
• Tailor incentive structures to local preferences: Align performance incentives, bonuses, and recognition programs with cultural norms to increase appeal and engagement. For example, in markets where bonuses are customary, consider including them to strengthen your compensation package.

Employee relations

This includes dispute resolution, the role of labour unions in upholding employee rights, and occupational safety regulations, which differ based on local laws and workplace expectations.

Challenges:

• Varying influence of labour unions: In countries like Germany and France, labour unions play a significant role, with collective bargaining and union representation being standard. However, in regions like the United States, union participation is lower, and employee relations are often managed directly by employers.
• Differing standards in occupational safety: Safety regulations and enforcement standards vary globally. For example, countries with strict safety laws may require more frequent inspections or specific compliance documentation, adding to operational complexity.
• Dispute resolution requirements: Each country has its approach to handling workplace disputes. Some nations mandate mediation or other specific processes, while others offer more flexibility, affecting how quickly and effectively disputes are resolved.

Solutions:

• Engage with local HR experts or labour consultants: This can help you to navigate labour laws, union requirements, and safety standards, ensuring compliance and fostering positive employee relations.
• Establish flexible employee relations policies: Develop a framework for managing employee relations that can be adapted to different regions, respecting local standards for dispute resolution, union involvement, and safety practices.
• Prioritise workplace safety compliance: Implement a global safety policy that can be adjusted to align with local safety regulations. Regular training and audits can help maintain compliance and promote a safe working environment.

How does work culture vary across different countries?

Work cultures differ greatly from one country to another, and understanding these distinctions can enhance cultural sensitivity and help you adapt to new professional environments.

For anyone managing or working as part of international teams, awareness of these nuances is key to fostering effective collaboration. Here are a few common cultural traits that may vary by region:

Time management

In many cultures, punctuality is essential and reflects respect and reliability. Being late may be seen as disrespectful, especially in places with strict views on time management.

Example: In parts of Northern Europe, like Germany or the Nordic countries, punctuality is valued, while in other regions, like certain parts of Latin America or the Middle East, time management can be more flexible, and arriving late is not always seen as a breach of etiquette.

Direct vs. indirect communication styles

Some cultures value direct, clear communication, favouring efficiency over formality, while others prioritise indirect communication and place greater emphasis on pleasantries and formalities.

Example: In the U.S. or Germany, people often prefer straightforward communication. In contrast, indirect or polite language is common in cultures like Japan or parts of Southeast Asia, and extensive small talk can be expected before discussing business.

Focus on quality, precision, or innovation

Different regions may place greater importance on quality, precision, or speed, affecting how work is approached and valued.

Example: In regions like Switzerland or Japan, precision and quality are often prioritised, while in tech hubs like Silicon Valley, the focus may be on rapid innovation, with more room for trial and error over perfection.

Professionalism and formality

Workplace expectations regarding dress code, formality, and interactions vary significantly, with some cultures leaning towards formality and others adopting a more relaxed approach.

Example: In places like the U.K. or France, formal attire and polite communication are often expected, while in countries like Australia or the Netherlands, casual attire and less formal interactions are common.

What should I look for in an international recruitment partner?

It’s often best to work with a reliable recruitment partner to manage international employment complexities. Here’s what to look for, according to Airswift's Vice President, Colby Clark:

Compliance and legal expertise

Your partner should have in-depth knowledge of local labour laws, taxes, benefits, and termination protocols to ensure compliance and avoid legal issues. Expertise in cross-cultural training is also valuable to help bridge language barriers and support employees from different cultural backgrounds.

Example: If you’re hiring in the UK, your partner should have a thorough understanding of UK employment regulations, including changes in remote work policies and health and safety standards.

Employee experience support

A good partner will treat employee experience with the same level of care as your in-house HR team, providing resources, benefits, and support for international employees. This is crucial for enhancing employee retention and ensuring team members feel valued. Support for work-life balance, mental health, and benefits specific to the region can greatly impact satisfaction.

Example: When hiring in Japan, where employees highly value work-life balance and company benefits, a supportive employment partner can help meet these expectations, ensuring that employees feel valued and supported.

The services your partner provides are critical to the success of your employees.  Recruitment can be the beginning aspect into the country, but a partner that excels in multiple levels will understand your target country better.

- Colby Clark - Vice President, Airswift

Range of services offered

Look for a partner that provides a comprehensive suite of services—payroll, compliance management, employee benefits, onboarding, and more— that can be customised to your needs. This can streamline your expansion efforts, particularly if they offer collaboration tools to improve team communication and reduce language barriers.

Example: When expanding to Brazil, a partner that handles payroll, compliance reporting, and employee onboarding can minimise administrative tasks and provide valuable insights into local performance metrics. Access to cross-cultural training also ensures smooth integration and effective collaboration within a globally diverse workforce.

For professionals: How should I prepare for a job search abroad?

Starting a job search in a foreign country requires careful preparation, research, and an openness to cultural perspectives.

Here are some tips:

Understand visa and work permit requirements

Research the documents you’ll need to legally work in your target country. Some nations require sponsorship from a local employer, while others offer more lenient work visas for specific industries or job categories, particularly for international workers with specialised professional backgrounds.

Research local job market trends

Look into high-demand industries, popular job boards, and networking events in your area. Knowing what skills are valued can give you a competitive edge, especially if your professional background aligns with these needs.

Tailor your resume and cover letter

Consider local resume formats and etiquette. For example, photos on resumes are common in Europe but often discouraged in the U.S. In your cover letter, demonstrate knowledge of local work culture to show that you’re prepared to adapt.

Simplify your global expansion plans

Hiring internationally is complex, but it’s achievable with the right preparation and support. By understanding each country's unique legal requirements, cultural nuances, compensation norms, and employee relations expectations, you can create a smoother path to building a successful global team.

Whether exploring new markets or navigating the specifics of international work cultures, choosing a knowledgeable partner will ensure your international expansion is legally sound and culturally adapted.

Contact us to learn more about our workforce solutions and how we can help you safely and efficiently expand into new markets.