Local Versus Global Hiring: How to Attract Talent When Geography Is No Longer an Issue
The pandemic initially changed the way businesses operated out of necessity, primarily due to the requirement to work remotely amid a global lockdown. However, many companies have chosen to continue allowing remote work indefinitely or have adopted a hybrid working model that combines remote and office work.
The desire for some organizations to remain at least partially remote can be attributed to a certain extent to the cost savings seen by reducing office space overhead — as much as $18,000 per employee, according to one study — with a remote workforce. Employees have also voiced their opinions about their desire to work remotely, with 92% of workers stating they expect to work at least one day per week remotely, and 80% expecting to work at least three days per week from home following the pandemic.
In addition to the pros and cons of remote work and maintaining a sense of connection among the workforce, another vital topic to discuss is recruiting. Now that geography is no longer an issue in attracting talent for remote positions within organizations, does it make sense to continue hiring locally? Only by assessing the pros and cons of hiring locally vs. globally can one determine the best approach for the company.
Pros of Hiring Local Talent vs. Global Talent
The pros of hiring local talent come down to ease of access, familiarity, and cost. In a remote work environment, it’s a perk when employees have easy access to the office. This proves to be beneficial regarding company events and gatherings, in-person meetings, and access when the employee would appreciate some in-person interaction and connection with other employees.
Hiring local talent is also less expensive and stressful than hiring nationally or internationally. Hiring nonlocal talent (and making sure the individual is brought onboard smoothly) involves certain costs, including the HR support necessary for hiring and onboarding remote workers.
Another benefit of hiring local talent is familiarity with local culture, norms, and businesses. The organization will already spend a significant amount of time training the new hire on their new job duties and responsibilities and the organization’s culture, so it’s a plus not to have to include training on navigating the culture and norms of the local work environment, especially in cases where the new hire might be working with external clients that are considered local. Local talent also often come with local contacts that can support the business in networking, clients, services, and resources. Clients and customers usually appreciate when you’re hiring locally to support the local economy, as well.
One of the most significant cost savings when hiring local vs. global talent relates to compensation design and benefits administration. When organizations hire local talent only, they can generally apply their compensation design and benefits platform across the entire workforce because they are located in the same geographic region of the country. Also, organizations only need to comply with local legislation and employment laws when hiring local talent.
On the other hand, when hiring nonlocal talent, companies must consider the compensation and benefits design landscape in the talents’ markets and conduct market research to ensure they remain competitive in those markets, too. Organizations must also stay compliant regarding employment laws and requirements in the markets where their employees work. Outside of the United States, benefits administration gets even more complicated since each country has its own set of rules, regulations, and requirements for hiring practices and employee benefits and compensation. Employers must consider the costs of implementing and managing various hiring practices and compensation and benefits platforms if they desire to employ nonlocal and global remote talent.
Cons of Hiring Only Local Talent vs. Hiring Globally
Employers limit themselves to a smaller talent pool if they only hire local talent. Expanding to a nonlocal and global talent pool can significantly benefit hard-to-fill positions. For example, if an organization outside of the U.S. tech hubs like Austin, TX, or Silicon Valley needs a highly specialized tech employee to keep up with the required digital transformation, hiring a remote, nonlocal employee from one of those markets might prove easier than hiring locally.
Though it can be beneficial for employers to hire locally due to the talent’s familiarity with local customs and norms, it can also be viewed as a con. Global hiring provides the ability to expand the organization’s diversity, opening it up to new ideas and ways of doing things. Hiring from a worldwide market offers differing opinions and perspectives to bring the best ideas and solutions to the table. Hiring globally also allows the organization to expand into global markets, whereas local hiring does not.
Employers who desire to hire nonlocal and global talent need to weigh the benefits of an expanded talent pool and the increased cultural diversity and thinking that comes with it with the costs associated with such recruiting efforts. For many, the goals of expanding globally might make the costs worth it in the long run.
Author: Gabriel Ionita
Resources
$18,000 overhead office space cost per employee:
https://www.kcrepsource.com/library/media/pdf/MASTER-WISENET.pdf
https://www.iofficecorp.com/blog/space-management-empty-desk
Employee Trends Remote Work Stats:
https://owllabs.com/state-of-remote-work/2020
https://www.apollotechnical.com/statistics-on-remote-workers/
