5 Hidden Benefits of Hiring International Employees

Hiring international employees has become a necessity in today’s globalized world, writes Kristina Martic, Director of Marketing and Employer Branding at TalentLyft, as she shares her views on the hidden benefits of hiring globally.

Many companies hire international employees out of necessity. In the last few years, unemployment rates in the United States of America (USA) are lower than ever, which means there is not enough talent to go around. Being unable to find qualified candidates in their local job market, companies have started to look for them on a global scale.

There are also some additional, obvious benefits of hiring international employees. International hires can help companies to serve clients, partners, investors, and suppliers from around the world. They are also very valuable because they can open doors to new markets.

This is why smart companies have started hiring international employees. Large, multinational companies are leading this trend. Despite being relatively few in numbers, mega multinationals are estimated to generate more than two-thirds of the total number of expatriate and other corporate assignees employed by multinationals.

This trend is expected to grow rapidly in the years to come. A recent study by Finaccord found that there is an increasing trend for global mobility. This study reveals that the number of employees who are classed as expatriate or corporate assignees will exceed one million by 2021. Soon, hiring international employees will become a standard for small and medium-sized businesses around the world as well.

Besides the obvious, already mentioned benefits of hiring international employees, there are also certain overlooked advantages. These are related to diversity. Hiring people from abroad or sending employees to work in a foreign country result in a diverse workforce. Working with people of different cultures and nationalities hold many benefits — which often aren’t obvious at first sight.

What are the 5 Hidden Benefits of Hiring International Employees?

  1. Improved Employer Brand
    Building a diverse workplace will help companies to improve their reputation and become an employer of choice. Companies dedicated to diversity are perceived as more human and socially responsible organizations and overall as a great place to work. A recent survey conducted by Glassdoor found that 67% of candidates said a diverse workforce is important when considering job offers. This means that candidates are evaluating diversity when they research companies and during the interview process.

  2. Better Financial Performance
    McKinsey & Company has been examining diversity in the workplace for several years. Their latest report, Diversity Matters, makes it clear that companies that have a more diverse workforce perform better financially. Their new research study has found that companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.

  3. Better Customer Support
    Companies with a diverse workforce can quickly adapt to changing customer needs. Research from Deloitte indicate an increase of 31% in customer support at companies that hire diverse employees. Deloitte’s Diversity, Inclusion and Business Performance survey also found that when employees think their organization is committed to and supportive of diversity, and they feel included, employees report better business performance in terms of responsiveness to changing customer needs.

  4. Higher Innovation Rate
    Companies that have a diverse workforce are more adaptive to the market and they report a higher rate of innovation. Bersin by Deloitte did an extensive High-Impact Talent Management research which made this evident. Over a two-year period they surveyed and interviewed more than 450 global companies (including a significant number in Asia, Europe, as well as the USA) and found that companies with diverse employees are 1.8 times more likely to be change-ready and 1.7 times more likely to be innovative leaders in their market.

  5. Higher Employee Productivity
    Another reason why workplace diversity is a strength for any organization is because it leads to higher employee productivity. Employees in racially and culturally diverse companies are more engaged and productive. A paper that critically analyzes workforce diversity and its impact on productivity of an organization has been published recently. After examining the literature and various research papers, the authors concluded that workforce diversity can significantly increase productivity.

Hiring international employees clearly has many benefits related to creating a melting pot of diverse employees. A workforce consisting of employees with different cultural backgrounds, nationalities, and languages can help improve a company’s bottom line.

Given the higher returns that diversity brings, it is better for employers to invest now, since winners will move further ahead and laggards will fall further behind. Employers should take action now and learn to support international hires. In doing so, they will reap all the benefits of employing these individuals.

Kristina Martic_TalentLyftAbout the Author:  Kristina Martic is a Director of Marketing and Employer Branding at TalentLyft, an online recruiting software company that offers recruitment marketing and applicant tracking system solutions. She is an experienced digital marketer and a certified recruitment marketer who is passionate about the latest marketing and recruiting trends.