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Recruitment Risks Companies Face Without Overseas HR Expertise

Recruitment | Skill Up-gradation | Consulting

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Recruitment Risks Companies Face Without Overseas HR Expertise

Hiring the correct workforce remains the key challenge for every organisation today, and when it comes to hiring talent from outside. Opening up to the global talent pool through global recruitment creates additional issues if done incorrectly. Many organisations try to manage their own international recruitment, and that can often result in significant cost implications if not done correctly, such as legal issues, delays and poor quality of talent; all of which can impact business performance and long-term growth.

Numerous organisations across different industries count on Dynamic Staffing Services to manage these international recruitment issues. Dynamic Staffing Services has many years of international talent acquisition experience, helping employers minimise risks associated with international recruitment and build sustainable teams. 

This article reviews some of the recruitment-related risks employers face when they don't have access to international HR expertise and how the right partner can help you mitigate these risks.

Common Hiring Mistakes Employers Make

Unverified Candidates

Hiring candidates without verifying their qualifications is one of the most common errors made by employers. The majority of employers only use resumes and/or basic job interviews in order to evaluate a candidate's capabilities and experience, which can create an increased risk of hiring an unqualified candidate. As a result, this can lead to poor performance, safety problems and extra costs to the employer.

Dynamic Staffing Services avoids this risk by performing thorough background checks, skill assessments, and trade tests on all candidates so that the candidate has been fully verified prior to being hired.

Delayed Deployment

Long delays in construction, oil & gas, and manufacturing are often caused by the lack of coordination between multiple parties involved in visa application processing, documentation and travel arrangements. If this happens, it could lead to a delay in the project's planned schedule and a negative effect on the client/vendor relationship.

To help the clients with this issue, Dynamic Staffing Services provides an effective and efficient means of managing all logistics for mobilising their workforce at the project site so that employees can begin working as soon as possible.

Documentation Errors

The complexity of international recruitment entails a lot of documentation, such as visas, contracts, and compliance documents. If an error is made on one of the necessary documents, the result may end up in having a rejected visa, penalties, and/or delays. Many employers are not used to international regulations, thus adding to their potential for making an error. Dynamic Staffing Services' full documentation support service offers accurate and compliant documentation throughout all aspects of the hiring process, which helps in reducing the risk to an employer.

High Attrition Problems

There is a significant amount of employee turnover in international staffing. If candidates aren’t matched to their positions correctly or trained for their current environment, they could leave the company after a short period. This creates additional costs to the company for hiring and training. Partnering with Dynamic Staffing Services will give companies a larger pool of candidates who are screened and prepared to work overseas, reducing employee attrition and providing stability within the workforce.

Compliance & Legal Risks

Every country has international compliance, which is a vital component of the recruitment process. Each country has its own labour laws, visa requirements and employment laws. So, if you do not have enough knowledge of the applicable laws, you can make potentially serious mistakes, including:

  • Hiring as an employer who does not have the necessary work permits
  • Violating labour laws
  • Failing to comply with safety regulations

Any of these mistakes can result in large fines, lawsuits, and/or project termination. At Dynamic Staffing Services, we ensure that both international compliance and other related business laws and regulations are adhered to. We have staff who are well-versed in the labour laws across the globe and will handle all needed visa/immigration and paperwork. In this manner, our clients will be able to continue conducting their business activities in accordance with applicable laws worldwide.

Productivity Loss Risks

The productivity of a company can be impacted when you hire the wrong group of employees. Employing unqualified/unskilled workers will create several disadvantages, such as:

  • A lack of quality product/service delivery (incl. rework).
  • Additional supervision required.
  • Extended timelines for completion.
  • Increased labour costs.

Inefficiencies in labour-intensive sectors cause large amounts of monetary loss. In a construction project, an owner can incur additional costs due to the need to redo work performed by unskilled labour, as well as a longer duration for the project. In manufacturing, the use of unskilled labour increases both error rates and decreases the efficiency of the production process. 

At Dynamic Staffing Services, we source skilled, experienced, and job-ready candidates for employers to alleviate these challenges. Employees recruited by us will be able to perform efficiently on their first day of overseas employment.

Benefits of Partnering with Dynamic Staffing Services

Proper international hiring, in particular, should happen with the support of the right international recruitment partner. Dynamic Staffing Services has been providing full-service international ethical recruitment services to employers across all types of industries since 1977 (Founded by Maj. S. P. Khosla). With a unique international network of recruitment partners, Dynamic Staffing Services has successfully linked employers and niche-skilled talent worldwide by providing employers with innovative, compliant workforce solutions, either through large-scale blue-collar recruiting or through niche-skilled professionals. 

When you are recruiting international candidates, before you make the final decision on your staffing solution, partner with an expert who understands the international recruitment process. Dynamic Staffing Services offers innovative, cost-effective, scalable staffing and employee integration solutions for global employers. Dynamic Staffing Services is here to assist you in ensuring that your recruiting process runs as smoothly as possible and that your new hires integrate successfully into your workforce.

To learn more about hiring internationally without incident, or to recruit internationally with safe and efficient procedures, contact Dynamic Staffing Services at +91-11-40410000 or email clientservices@dss-hr.com

Partnering with Dynamic Staffing Services will provide your company with decreased risk, increased confidence and long-term capability to support a sustainable international workforce.

Frequently Asked Questions

What are the major risks associated with hiring internationally without any HR experience?

The major risks of hiring internationally without any HR experience are those of legal compliance for employment laws, hiring unqualified candidates, visa processing and documentation errors, and late start dates for employees, which will negatively affect the project. All these issues can create significant financial problems for a business, as well as a lawsuit, financial penalty and/or delay in the project's completion.

What must businesses do to establish legal compliance when hiring internationally?

Businesses must understand and comply with the employment and taxation laws of the country where they are trying to hire an employee (or where they will be working). This means that businesses must organise and process the visa and work permit correctly, use the proper contract type (e.g. fixed term, temporary and/or permanent) when establishing an employment relationship, and organise a payroll structure which complies with the respective country. 

What will cause delays with an international hire, and how will a business avoid delays?

Visa processing issues, incomplete or missing documentation, and poor communications cause most delays in recruiting employees internationally. The lack of established recruitment processes creates a lack of urgency to get people to work in a timely manner. By utilising a worldwide recruitment agency, which has the experience to manage all recruitment processes, the employer will have reduced delays.

What common compliance errors will create liabilities associated with international hiring?

Common compliance errors include employing individuals without proper work visas, failing to perform work eligibility verification, misclassification of employees, and/or failing to comply with the local employment laws. Each of the above compliance errors has financial liability and/or may result in litigation against the employer.

Can hiring internationally without working with a recruitment agency be perceived as a risk to the employer?

Yes, hiring internationally without the assistance of a recruitment agency places the employer at an increased risk of selecting poor candidates, legal compliance risks and potential delays in operation. The complexities of the multiple legal steps involved cause employers to have similar complexities in their administrative and logistical processes. 

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