Have you explored distant horizons lately? Even if you haven’t, your recruitment strategy might be crossing borders soon.

Recent data from ADP reveals a growing trend: more U.S. companies are looking to expand their workforces internationally. A survey of over 1,700 business leaders and HR professionals shows that 32% of mid-sized companies (50-1,000 employees) and 36% of large companies (1,000+ employees) in the U.S. plan to hire abroad. Interestingly, most haven’t made this leap yet—75% of mid-sized and 46% of large firms still operate solely within U.S. borders.

Why the Push for Global Talent?

Jason Delserro, ADP’s Chief Talent Acquisition Officer, attributes this shift to companies expanding operations overseas. “You need people on the ground to support your growth,” Delserro says. As of this year, 56% of U.S. businesses are considering international expansion, according to Santander UK.

Beyond operational needs, hiring abroad often comes with financial benefits. Many roles, from HR to software development, can be filled more cost-effectively overseas. Stanford economist Nicholas Bloom estimates that 10%-20% of service support jobs could be outsourced in the next decade.

Advances in remote work and collaboration tools further ease the process, making it possible for companies to tap into a growing pool of global talent. The World Economic Forum projects that digital jobs capable of being performed remotely will rise from 73 million in 2024 to 92 million by 2030.

The Reality Check

However, hiring internationally isn’t always smooth sailing. ADP’s survey highlights a gap between what companies expect and the challenges they actually face.

For large companies, anticipated issues include:

- Navigating cultural differences (44%)

- Ensuring compensation equality (34%)

- Retaining employees (32%)

- Managing performance reviews (32%)

But once these companies begin hiring abroad, they report different challenges, such as:

- Compensation equality (34%)

- Recruiting and talent acquisition (27%)

- Aligning global systems (27%)

- Managing region-specific HR policies (27%)

Setting Your Strategy for Success

Delserro emphasizes two key areas where companies often stumble: cultural understanding and local compliance. “Companies often underestimate the level of customization required,” he explains.

To prepare for international hiring:

- Budget Wisely: Labor costs can vary significantly by country.

- Establish Infrastructure: Build your systems before launch. “Don’t fill the plane with gas mid-flight,” Delserro warns.

- Adapt Employer Branding: Your domestic branding may not resonate abroad. Tailor your message to local cultures.

- Partner with Experts: Consider leveraging a recruiting process outsourcing (RPO) provider with local expertise to navigate complex regulations.

“Having a partner on the ground who understands local legislation and culture can make all the difference,” Delserro notes.

Ready to Go Global?

International hiring is a significant step, but with careful planning and the right partners, your company can avoid turbulence and soar to new heights.