When hiring, do you consider hiring overseas employees? Gusto recently conducted a survey about hiring internationally. Highlights of their findings:
- SMBs that have embraced remote work are more likely to hire internationally: 67% of SMBs with international employees had a remote employee within the U.S. before they made their first international hire. Out of these companies, 72% reported their prior experience managing remote U.S. employees had a positive influence on their decision to hire international employees.
- More SMBs are building global workforces: 75% of SMBs say they plan to increase their international employee headcount—with 54% saying they plan to increase both international and U.S. headcount over the next one to three years.
- Access to global talent helps SMBs manage their costs while filling the gaps of a talent shortage. As of July 2023, there were 1.4 job openings for every unemployed person in the U.S. With a continued talent shortage pushing many employers to raise wages, SMBs are turning to international employees for the help they need—86% reported they’re hiring internationally to manage costs. Another 58% said they’re turning to global talent because they’re facing a shortage of available U.S. employees.
- Hiring international employees helps SMBs accelerate their expansion plans: 51% of SMBs said they’re seeking international employees to help them serve new markets, which is easier to do with on-the-ground employees with local expertise.
- More SMBs are hiring international contractors—and are interested in converting them to full-time employees: 49% of SMBs said they want to convert their international contractors into full-time employees, enabling them to boost retention while also ensuring they stay compliant with international regulations and avoid penalties.
- Understanding compliance is still the biggest blocker for SMBs seeking to hire internationally: 71% of companies say understanding and complying with foreign employment and tax laws is one of the most important issues they face when hiring and working with international employees. However, it’s critical they get it right—penalties can range from hefty fines of tens to hundreds of thousands of dollars, depending on the country.