You've found the perfect developer in Berlin, a brilliant marketer in Mexico City, and a customer success superstar in Manila. But here's the problem: you don't have an HR team to manage the complexities of international hiring.
For startups and small businesses without HR infrastructure, the global hiring process can feel overwhelming. Employment contracts, payroll systems, compliance requirements, and employee benefits administration all vary by country — and mistakes can be costly.
So, how do you access global talent without first building an entire HR department?
The answer: strategic HR partnerships and a well-designed process.
Key takeaways:
- Assessing your current and future needs can help you choose between HR consultants, outsourced HR providers, and Employer of Record services based on your hiring footprint, timeline, and tolerance for potential compliance risks.
- Every company hiring internationally needs a Day-1 compliance foundation that covers employment contracts, payroll registration, right-to-work verification, statutory benefits, and data protection, regardless of the chosen partner model.
- Companies don’t have to commit to a single method for hiring international employees; in many cases, a hybrid approach to managing HR needs is the most effective.
Understanding the Core Challenges of Global Hiring
Employment laws differ dramatically in different countries, creating a compliance maze which can be challenging for businesses, but especially those without dedicated HR teams. What's mandatory in one location might be optional — or even prohibited — in another.
Consider paid time off: there is no federal requirement for paid vacation days in the United States, while workers in the United Kingdom are legally entitled to at least 5.6 weeks of statutory paid holiday annually.
Mandatory compensation elements add another layer of complexity. For example, the Netherlands requires employers to pay a holiday allowance of at least 8% of gross annual salary, while the Philippines mandates 13th-month pay for full-time employees.
Additionally, legislative reforms can lead to changes in existing laws that companies must adapt to. For example, Mexico’s 2022 labor reform increased the minimum annual vacation days from six to 12. Companies that didn’t update their policies quickly found themselves out of compliance.
Overtime rules vary just as widely. In Ontario, Canada, employees earn overtime pay at 1.5 times their regular rate for any hours worked beyond 44 in a week. Other jurisdictions may use daily thresholds, weekly caps, or sector-specific rules to regulate overtime pay. Getting it wrong means underpaying employees and potentially facing penalties from labor authorities.
Even something as simple as a probation period can have country-specific rules. Under Germany’s Civil Code, employers and employees can terminate employment with two weeks’ notice during a probation period of up to six months. In other countries, probation may be prohibited or require specific contract language to make it enforceable, depending on local laws.
Beyond statutory requirements, global employment requires companies to navigate the nuances of:
- Payroll taxes and social contributions that can range from 15% to over 30% of gross wages, depending on the country
- Independent contractor versus employee classification tests that determine worker status (and misclassification can trigger significant back-taxes and penalties)
- Visa and work authorization requirements for foreign employees who aren't citizens or permanent residents in the country where they live
- Benefits administration expertise for health insurance, retirement plans, and location-specific programs
- Data protection compliance with regulations like GDPR that govern the collection and storage of employee information
The administrative burden alone can overwhelm small teams. Without HR support, founders and managers often find themselves navigating foreign-language government websites, deciphering complex tax codes, and scrambling to meet filing deadlines they were unaware of.
However, some solutions don't require hiring an entire HR department.
Option 1: Hire an HR Consultant
Independent HR consultants bring country-specific expertise. These professionals can guide you through drafting compliant employment contracts, establishing relationships with payroll vendors, and designing policies that meet local regulatory requirements. For startups or smaller teams expanding into one or two markets, this approach offers flexibility without the cost of full-time hires.
Consultants are especially helpful when you need someone who understands local employment laws and can turn complex regulations into clear, actionable policies. They can also guide you through cultural differences in benefits, pay structures, and communication styles across markets. Many will work closely with your other partners — such as payroll providers, benefits brokers, and legal teams — to keep everyone on the same page.
However, responsibility for compliance remains with your company. You’ll also probably need to manage separate vendors for payroll and benefits. Working with an HR consultant is most effective when hiring at a steady pace in a few markets, rather than scaling quickly across multiple countries.
Option 2: Work With a Global HR Service Provider
Global HR outsourcing firms offer comprehensive solutions that handle everything from recruiting and onboarding to global payroll, benefits administration, and ongoing employee relations. These providers essentially become your outsourced HR department, operating across multiple countries with consistent processes and technology platforms.
This approach makes sense when you want a hands-off solution and aren't planning to build internal HR capabilities in the near term. You'll get a single partner managing all HR functions, which reduces the complexity of coordinating multiple vendors across different time zones and languages.
Most providers include technology platforms that provide visibility into payroll, benefits, performance management, and compliance across your entire global team, making it easier to identify patterns and make informed strategic decisions.
The investment is typically higher than working with consultants or single-point solutions, and you may have less flexibility if you want to keep specific HR processes in-house. Providers vary significantly in their service levels, pricing models, and regional expertise; therefore, conducting thorough research is essential.
You'll also want to understand how their platforms integrate with your existing tools, such as accounting software, HRIS systems, and applicant tracking platforms. Some integrations are seamless; others require custom development or manual workarounds that can slow you down.
Option 3: Partner With an Employer of Record (EOR)
An Employer of Record becomes the legal employer of employees based in countries where you don't have a legal entity (which often takes months to establish and costs tens of thousands in setup fees). The EOR handles employment contracts, payroll processing, tax filings, statutory benefits, and terminations while you manage your team members' day-to-day work and performance.
EOR services are particularly powerful when you're hiring in multiple countries, need to move quickly, or want to test a new market before committing to a permanent presence. The onboarding process can be as short as a few days compared to the months required to establish a legal entity.
You are protected from risks involving legal compliance and misclassification because the EOR is recognized as the legal employer by local authorities. They handle everything from drafting compliant contracts to paying the correct taxes and social contributions. The EOR also ensures employees are enrolled in mandatory benefits and that any terminations comply with local labor laws.
You'll direct the employee’s work, set goals, and manage performance just as you would with any team member. The EOR handles the employment paperwork and administrative burden. This flexibility allows you to scale up or down without the fixed costs and exit complications associated with owning local entities.
How These Solutions Can Work Together
Many successful companies combine these approaches to strike a balance between cost, control, and compliance. Here are the most common hybrid models:
- HR Consultant + EOR: The consultant handles people strategy, policy design, and recruiting processes, while the EOR manages the legal employer responsibilities, such as payroll, benefits, and compliance. This gives you strategic HR support without the burden of managing multiple country-specific vendors.
- EOR + Specialized Service Providers: Use an EOR as your compliance and payroll backbone in countries where you lack entities, then add specialized providers for recruiting (RPO), benefits optimization, or local legal counsel for complex matters.
- Phased Approach (EOR → Entity): Start with an EOR to test a new market and hire your first team members. Once you reach a certain headcount threshold (often 10-20 employees in one foreign country), evaluate whether establishing your own legal entity makes financial sense. The EOR can help you transition when the time comes.
Most importantly, all of these options are flexible. You don't need to choose a single path for your company to stick with forever. Your approach can evolve as your team grows and your understanding of each market deepens.
Tools & Tips for Managing Global Hiring Without HR
Even with strong HR partners, managing a global workforce requires the right internal systems and processes to keep everything running smoothly. The following steps can help you stay organized and compliant as you grow:
- Stay on top of legal changes: Subscribe to government labor ministry updates, tax authority newsletters, and immigration policy alerts for each country where you employ people. Changes to the minimum wage, statutory leave, or social contributions can significantly impact your costs and obligations with little notice.
- Automate onboarding documentation: Use digital tools to collect employee identification, right-to-work verification, bank details, tax forms, and policy acknowledgments for new hires. Create country-specific checklists to ensure you capture everything required in each jurisdiction.
- Centralize your payroll calendar: Track pay dates, tax filing deadlines, and benefit enrollment periods for every country you operate in. Time zone differences and local bank holidays can shift when money actually reaches employees. Build in buffers to avoid late payments.
- Document country-specific requirements: Keep a running log of mandatory elements in the countries where you hire, such as the Netherlands' holiday allowance, the deadline for 13th-month pay in the Philippines, and overtime thresholds in Ontario to build a quick-reference guide.
- Build feedback loops: Check in regularly with your international team to discuss what’s working and what’s not in your onboarding, payroll, and benefits processes. They can surface gaps or cultural nuances you might miss from headquarters.
Hire and Manage Your Global Team With RemoFirst
You don't need a large HR department to build a world-class international team. The right partnerships enable you to access global talent while ensuring full compliance and providing your employees with a seamless experience from day one.
RemoFirst helps companies employ talent in 185+ countries without establishing local entities. We handle the complex backend HR details, so you can focus on what matters: building great products, serving customers, and growing your business.
Our platform ensures that your team members receive accurate, on-time payments, compliant benefits, and professional support — regardless of their location.
Starting at just $199 per employee per month, RemoFirst also enables companies to hire, manage, and pay contractors in 150+ countries through our global contractor management platform.
Whether you're making your first international hire or scaling to dozens of countries, we provide the infrastructure you need to succeed.
Ready to build your global team without the HR headcount? Book a demo to see how RemoFirst can simplify international hiring for your company.
