Victor Anaya is the CEO and cofounder of Serviap Global, a provider of global hiring solutions with particular focus on emerging markets.
When it comes to the promotion of diversity, equity and inclusion (DEI) within businesses, I’ve noticed a lot of the focus is based on avoiding harm or legal wrangles. Less appreciation is given to the very positive aspects of having a multicultural and international team of employees.
However, a well-executed DEI program offers an exceptional way of enriching the working environment and enhancing both efficiency and productivity for organizations. One great way of promoting DEI is through the increasingly popular choice of hiring international employees. As the CEO of an employer of record (EOR), I’ve helped many companies get started with this, as well as experienced the benefits of international employees in my own company.
Performance Improvement
Cultural differences provide companies with different ways of working and thinking. Some leaders tend to get trapped in a comfort zone of routine and assume that the way they are used to working is the only way to achieve their targets. According to Harvard Business Review, multicultural teams allow for a greater degree of accuracy and different modes of working. Even better, the synergy that can develop as the cultures interact with one another heightens the effect further.
The more diverse your team is, the more ways you will have to view both challenges and opportunities for your business. While something may be new in your world, it may well be old hat to people from a different background.
I have experienced the benefit of diversity in my business, as we have people based around the world. This means that we are not just tuned into the latest thinking from North America but also from Europe, Asia and South America.
By the same token, we can also stay up to speed with the latest developments in the various countries we operate in, as well as many that fall within the cultural orbit of our workforce. This means we are less likely to be caught unaware by changes in law or customs.
Dealing With The Outside World
Every successful business is good at dealing with its home market, but when expanding outside its home territory, things can take a different turn. A diverse and multicultural team can help companies navigate new markets, offering local knowledge that can even help you identify new commercial opportunities.
In the modern business world, it’s almost inevitable that client-facing businesses will be dealing with people from many different parts of the world. Having employees that reflect the diversity of your client base can be a great facilitator.
Language also plays a role in dealing with clients. English is generally the standard language for communication, but having employees who speak a range of languages is an invaluable tool for us. Even if a main negotiation is conducted in English, being able to break the ice or offer ongoing support in another language is a useful way of building a good relationship.
Considerations And Tips For Hiring International Employees
When hiring employees from new countries, you will have a few additional things to think about as well as your usual hiring protocol.
That may start with checking someone’s language level and considering cultural issues that could arise and how you will manage them. Then there are working hours to consider—not just the time zone but also holiday dates and regulations over leave, for example.
You will also need to think about the countries you’re looking to target—a decision that will be influenced by your budget, with emerging markets often more cost-effective, among other advantages they offer.
There are a few ways to find and onboard professionals in a new country. One way is through an EOR. (Disclosure: My company helps with this.) EORs will guarantee that local laws are upheld and take on most of the compliance risk. On top of that, their experience and understanding of those markets can be invaluable.
Hiring independent contractors is another way to avoid those issues. If you choose this option, you’ll need to be careful to avoid misclassification problems, which a growing number of countries are cracking down upon.
Of course, you can also set up your own business entity within the country and hire people directly. This route can be more expensive and slower, so consider your resources. If you want to hire in several countries, that could add further complications to this option.
Managing Multiculturalism For Best Results
Of course, it’s important to note that there can still be challenges with teams spread across the globe. When we have large meetings, we must think about how to manage time zones—North America’s morning is China’s evening, of course, and everyone else must be considered as well.
There is also a linguistic issue, as the most widely spoken native language within my company is Spanish, but not all team members outside Latin America speak the language proficiently.
There can be some cultural issues, especially when people are using their second, third or even fourth language. Words don’t always have the same precise meanings and nuances across borders, even with a common tongue, and so we all must be understanding and tolerant. So, it is always important to think, reflect and question before assuming something.
However, I’ve found these sorts of challenges are easy to manage with careful planning and understanding, combined with plenty of awareness on all sides. The key thing to bear in mind is that we must place ourselves in each other’s shoes and consider whether a cultural difference could be behind any sort of communication that doesn’t land well. We must also set aside our prejudices and biases and remember that other people may see things differently than us.
In my experience, there are certainly far more positive elements to our multicultural workforce than downsides, which is why we put so much effort into both building our team internationally and also encouraging business leaders to consider the significant advantages of hiring globally. It is important to view DEI not as an obligation but as a way to better business performance.
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