What Business Leaders Should Consider Before Entering New Talent Markets

If you want to successfully enter a country that is a completely different job market, you can't just place the job advertisement on the internet and expect results the way you would do it in your native country or city. You can expect legal issues and expensive costs as well as hiring problems from making hasty decisions.

So, don't take it lightly; here are some essential things that a business leader should be aware of prior to making the big move to a new market.

Know the labor laws of the local market

Labor is the main commodity being exchanged, and labor law is the rulebook that governs it in different local markets. Labor laws vary so much that even the laws from two neighboring countries may differ!

First off, you can't just start hiring blindly; you need to figure out the local rules for the following areas:

• Contract agreements, periods with probation, etc.
• Duties in terms of working time, work hours, mandatory rest, and overtime.
• End-of-service gratuities, pensions, and statutory benefits.
• Laws related to employee termination and severance pay. 

Not following these will not only cost you financially but also seriously damage your company's brand image. Also, you know the Middle East, for example, is one of the most regulated regions on the globe. If you are expanding into highly regulated regions like the Middle East, partnering with a professional recruitment agency Dubai will help you stay on the right side of the law from day one. 

Determine the Most Appropriate Way of Employing Workers

Establishing a legal entity of a company in another country involves a significant investment of time and money. If you want to explore the market with a minimal commitment, then you have to consider alternative ways of hiring.

A lot of businesspeople use professional employer organizations. The company (PEO) acts as the employee's EOR, and the company provides the necessary documentation for taxes. payroll, and employee benefits, the employees are still doing their main job under your supervision only.

Take a Complete Look at the Hiring Costs

It is an all-too-prevalent situation that the cost of hiring an employee has been estimated only by basing it on the salary alone, which is the basic component. Real hidden costs that are involved with talent acquisition are many.

In some cases you can be forced to pay for the following:

• Mandatory health insurance for staff.
• Visa quotas, residency permits, and visa processing fees.
• Annual flight tickets for expatriates or their family or relocation allowance
• Pension scheme or taxation according to local laws

Do consider the cost of employment as a whole while setting your prices and budgeting your money.

Learn About the Local Working Culture 

Talents can move, but one's work expectations may remain fixed to a place; it is skills that get universal. That being the case, the way in which a team member is being motivated in, say, London will not be applicable if one is working in Dubai or Mumbai, for example.

Study the nature in which top workers are retained and hired:

• Perks: Are employees drawn to work-life balance, performance bonuses, or high-paying base?
• Leave: Are there local religious holidays or cultural festivals that need to be acknowledged by the company?
• Language: Are they businesslike or casual in their work relationships?

If management changes their communication and working style to match that of the local employee culture, the staff become more comfortable, work more efficiently and the team becomes stronger

See What Skills Are Truly Available In Different Countries

A country having hundreds of millions of people does not guarantee that those people have the exact skills your company seeks.

Take a complete talent stock check before going into a country. See whether there are many local people with university degrees or highly experienced ones in your sector. In case local talents are really scarce; you might have to think of international transfers or even a fully remote team operation model.

Get Your Market Entry Risk-Free

Opening up in a new country isn't a walk in the park, and at least one of the reasons for that is the high risk. But we at TASC Outsourcing understand the pain of this, and we stand by our customers with the top-notch talent and HR solutions in the region. Be it that you need an efficient and experienced recruitment outsourcing agency in Dubai to procure you the highest caliber professionals in your field or the support from good dependable PEO companies to carry out all your payroll, compliance works, and even visas, TASC will enable you to enter in one way, the correct way, and legally with full peace of mind and all the headaches left behind.

Want to safely hire more workers? Call TASC Outsourcing to talk to our market entry experts straight away.

Frequently Asked Questions

1. What is the difference between a recruitment agency and a PEO?

A recruitment agency supports your organization to find the ideal candidates for open positions; they conduct the search process, they assess the candidates, and they carry out the interviews.

A PEO company, the Employer Partnership Organization, offers not only to officially employ your new recruits, but it also provides comprehensive legal support in matters such as payroll, visas, and general local HR matters in compliance.

2. Is it possible to hire people in a new country without the need for setting up a local office?

Sure thing. Through the use of PEO services you can lawfully employ and remunerate full-time personnel in another country without going through the hassle, costs, and paperwork of establishing a local company.

3. What makes it so tough to be compliant with the laws if you are going into a new market?

Labor laws keep changing very often. Each country has different sets of rules concerning employees' rights, taxes, retirement savings, and procedures for ending a contract. It is very hard to keep track of these changes from a foreign location without the help of a local expert.

4. On average, how long does it usually take in terms of hours to hire new talent?

Setting up your legal entity yourself may take a few months, whereas if you work with a local staffing agency or a PEO, you can often recruit candidates and onboard them in just a few weeks.

5. What industries are most advantaged from using outsourcing partners?

In a large majority of cases outsourcing partners are useful. However, such arrangements have become a norm very quickly in technology, healthcare, retail, construction, and financial services businesses, where they need to scale fast and adhere strictly to the regulations.