Thinking of hiring beyond borders? You’re not alone.
Expanding into new markets is an exciting milestone. So, whether you're launching operations in a new country or simply looking to fill talent gaps, it’s a major step forward that drives growth and sparks innovation.
But let’s be honest: international hiring isn’t always smooth sailing. Adding someone to the team who’s based in another country isn’t just about posting a job and scheduling interviews.
Every country has its own playbook — from local laws, employment regulations, payroll requirements, and cultural nuances — that can quickly turn into costly surprises if you’re not prepared.
That’s where we come in. In this article, we’ll break down the biggest challenges companies face when hiring international talent and, more importantly, how to overcome them.
With the right approach (and the right partner), you can build a global team that drives your business forward without getting lost in the legal fine print.
International Hiring Challenges You Might Face (and How to Actually Solve Them)
Whether you're hiring globally for the first time or knee deep in time zones and tax codes, these common challenges can derail even the best hiring plans.
The good news? Most of them are totally manageable with the right strategies — and a bit of help from people who’ve been there.
Okay, let’s dig in!
1. Talent Shortages in Key Industries
Let’s start with the elephant in the (virtual) room — finding the right people.
In high-demand fields like tech, AI, healthcare, and renewable energy, the talent war is very real. According to McKinsey, 87% of companies are either experiencing talent gaps now or expect to in the near future.
Why? Technology is moving faster than traditional education and training systems.
AI roles, for example, often require a unicorn-like combo of deep technical skill and specific domain knowledge. Not exactly easy to find.
How to Solve It:
- Grow your own talent: Upskilling and reskilling programs aren’t just buzzwords; they’re essential. Internal training pipelines help you nurture high-potential employees into hard-to-fill roles.
- Think global: Why limit yourself to one country? Hiring across borders dramatically expands your talent pool and opportunities to find exactly who you need.
- Drop outdated requirements: Not every great developer has a four-year CS degree. Remove unnecessary barriers to widen your funnel.
- Get smart with sourcing: Platforms like HireVue or Eightfold use AI to match you with candidates you might otherwise overlook.
2. Knowledge Gaps Around International Hiring
Let’s be honest: hiring abroad can feel like alphabet soup — EOR, PEO, GDPR, A1 forms, anyone? Many HR leaders and companies often don’t know where to begin.
Confusion around digital nomad visas, cost-effective hiring markets, or where your next great backend engineer lives is common. Especially when you're choosing between hiring in Portugal for tax benefits or Vietnam for tech talent.
How to Solve It:
- Partner with experts: Legal advisors and international HR consultants can help you avoid global landmines (and lawsuits).
- Invest in smart HR tech: Look for tools with built-in compliance alerts, contract templates, and location-specific guidance.
- Train your team: Recruiters don’t need to be lawyers, but they do need to know the basics of country-specific labor laws if global hiring is a priority.
- Work with an Employer of Record (EOR): EORs like RemoFirst take the guesswork out of hiring across borders. We handle compliance, payroll, and benefits so you can focus on growth.
3. Compliance & Legal Clarity
GDPR. Local labor laws. Intellectual property rights. If your legal team is sweating, you’re not alone. A survey from ADP found that 43% of global employers cite compliance as their top concern when expanding internationally.
And let’s not forget the confusion and misconceptions around owned entities vs. local partners. Fortunately, there is plenty of information and services available to alleviate these challenges.
How to Solve It:
- Use GDPR- and CCPA-compliant tools: Make sure your HR software protects data across all jurisdictions.
- Schedule regular audits: Review vendors and processes annually to stay ahead of changing regulations.
- Set internal guardrails: Train staff on data handling, use role-based permissions, and have clear escalation protocols.
- Again, work with an Employer of Record provider: These services help you navigate everything compliantly at an affordable rate. Not every company can afford to open local entities or have access to resources to pursue it on their own.
4. Remote Work Complexities
Remote work is no longer just a perk — it’s a powerful and enticing way to attract top talent. At the very least, offering flexible work options has become a priority for employers seeking to stand out from the competition.
However, managing remote teams across different countries can be tricky. Payroll, benefits, equipment, taxes — every country has its own rules.
For example, hiring someone in Germany requires a more thorough process as the country has strict labor laws. And this can cause most startups or scaling businesses to avoid hiring in this country because it is so intimidating, even though Germany is a great location for startups.
How to Solve It:
- Use an EOR or global employment platform: This lets you legally hire in other countries without setting up a local entity and can help you navigate countries with challenging laws or taxes.
- Create remote work playbooks: Include guidelines on hours, communication, and performance expectations across time zones. Clear and accessible handbooks ensure smoother onboarding of distributed teams.
- Support productivity: Offer home office stipends, asynchronous workflows, and culturally sensitive onboarding.
5. Political and Economic Instability
Unfortunately, some countries are volatile.
Geopolitical conflict, hyperinflation, or sudden policy changes can quickly make a previously promising hiring market a no-go zone.
We’ve seen companies exit Russia in the wake of sanctions while others struggle with the economic situation in places like Argentina, where inflation topped 200% back in 2023.
How to Solve It:
- Do your homework: Conduct risk assessments before entering new markets.
- Don’t put all your eggs in one basket: Diversify your hiring strategy across regions to minimize exposure.
- Have a Plan B: Build contingency plans for relocating employees or transitioning to remote work if needed.
6. Employer Branding in Global Markets
You may have a killer employer brand in the U.S., but that doesn’t mean it’ll land the same way in Europe, Asia, or Latin America. Global candidates care about different things: some prioritize stability, others value flexibility or local perks.
Localization isn’t just about translation; it’s about relevance.
How to Solve It:
- Localize your careers page and job posts: Tailor them to regional expectations, including local salary norms and benefits.
- Show your face: Highlight employees from different regions in your employer branding. It shows authenticity and builds trust.
- Use local platforms: Post jobs on region-specific boards and engage on country-specific social media channels (e.g., WeChat, Xing, etc.).
7. Cost Concerns & Pricing Transparency
When it comes to global employment, you have to talk about money.
Opening a local entity can cost USD 20K-150K in setup costs and up to USD 50K+ in annual expenses and other maintenance fees. Plus, the approval process can take three to 12 months (!) — delaying your ability to legally hire in those countries.
That’s why Employer of Record providers have become so popular. They offer significant cost savings and allow you to onboard global talent quickly and compliantly.
But EOR pricing can vary a lot. Some providers charge thousands just to offboard a single employee. Others hide fees in service tiers or currency conversions.
According to G2 reviews, onboarding fees with some EORs (like Deel) can run as high as USD 5,000, and offboarding is no picnic either. That kind of unpredictability makes it hard for HR and CFOs to budget for global hiring.
How to Solve It:
- Demand transparency: Ask for a full breakdown of fees before signing a contract with any EOR. We put together an article about the hidden fees of EORs to help you know what to expect and look out for.
- Compare apples to apples: In addition to the headline price, you’ll also need to factor in items like benefits management, legal compliance, and customer support.
- Choose an EOR with straightforward pricing: Look for providers that offer flat monthly rates with no surprise fees — which helps you forecast and scale more easily. That’s how we operate here at RemoFirst. You’ll always know what your costs are before signing any contracts with us.
You Don’t Have to Navigate Global HR Alone
Navigating local employment laws in multiple countries can be a significant hurdle for a company's international expansion, but with the right partner, it doesn't have to be.
An Employer of Record like RemoFirst makes it simple to stay compliant, no matter where your team is based. With our all-in-one platform, you can hire employees in 185+ countries and manage and pay contractors in 150+, all without setting up a local entity.
We handle everything from global payroll management to statutory benefits with rates as low as $199 per employee per month (depending on location).
Ready to hire internationally without the legal complexity? Schedule a demo to see how easy global compliance can be with RemoFirst.
.png)
.png)
