What Are The Advantages and Disadvantages of Recruiting Expatriate Staff Over Local Staff?

Most of the time, to achieve our business objectives and boost our company’s performance, international recruitment is a must. But before we rush into sourcing global talent, weighing the pros and cons should be a must as well. We have to understand the advantages and disadvantages of hiring expatriates. 

The Advantages

i. International Practice

Depending on what types of job they are seeking, an expatriate may have a set of professional skills such as problem-solving ability that can contribute to the overall, successful completion of execution of business plans. 

ii. Better Recruitment Opportunities

If you are trying to start your business in an unknown market abroad, you may find the hard skills you are looking for are likely to be very limited in the country in which you are operating. So, you need to change your recruit plan for the right candidate within your geographical area, and opening your boundaries to global talent gives you more chances to find the better employees to do the job you are offering.

iii. Higher Motivation

Expatriates are very likely to be self-motivated people, who look at the bigger picture since not everyone can be as courageous to work far away from their comfort zone. After all, expatriates have left home for their reasons, mostly is personal development.

iv. Relevant Expertise

Suppose an entrepreneur who is doing something pioneering in a country such as Tesla or SpaceX that has no previous experience, it will be very obstinate to achieve without some international employees who have worked in a similar field before. So, not only to execute your plan but also to bring new ideas in, hiring expatriates can be a wise choice.

The Disadvantages

Of course, expatriates are not the only and perfect choice. After discussing the advantages, now, let's talk about the disadvantages.

i. Higher Costs

All business owners tend to lower their cost of operations as possible. However, due to transport allowances, international health insurance, or visa management, expatriates employees will come at higher prices.

ii. Immigrating Regulations

Although different countries have different regulations for hiring expatriates, the duration of the visa may be changing over time. It is necessary to consult the immigration office in the country of business before you actually hiring any expatriates.

iii. Moral Requirements

Expatriate life can be very challenging at times. For instance, loneliness, culture shock, and homesickness can affect one's daily performance. Even if workers immigrate with their families, they still need to adapt to the new country. 

iv. The Law and Regulations

Most countries have their own national employment laws and regulations such as minimum wages, taxes, and pension. Moreover, dealing with the local authorities can be a costly process.

Reference

About Maria Iotova I'm a freelance journalist and editor for the travel. (2018, April 11). The advantages and disadvantages of hiring an expat. https://www.expat.com/. https://www.expat.com/en/expat-mag/1973-the-advantages-and-disadvantages-of-hiring-an-expat.html.