Why, When, and How to Outsource Recruitment When Expanding Globally

Taking a company global requires so much more than a good idea and a great strategy to realize it. The truth is that so much more depends on the caliber of the people working towards that mission than most would think. With recruitment being such a critical aspect of successful global expansion, it is not surprising that company executives and hiring managers are looking for ideas to improve their approach to recruitment. Surprising as it may be, perhaps one of the best practices in relation to international recruitment is not to do it at all. Indeed, for most companies, it makes much more sense to outsource recruitment than it does to try to do it in-house.  

Recruitment is one of those business activities that sounds relatively straightforward in theory but proves itself to be much more complex in practice. Those complexities end up costing the company time, money, and other resources – and ultimately the burden of the recruitment weighs heavily on executive shoulders. For that reason alone, it may be worth outsourcing recruitment to an agency, but several others exist:

1. When there is a need to hire large teams. Certain companies will be seeking to hit the ground running in their new country of choice, and in doing so they are likely to need to place several – perhaps many – candidates simultaneously. Creating a whole new team in a brand new country may sound daunting, but with the help of a recruitment agency it can be a relatively easy task. If the numbers seem too burdensome, hand over responsibility to a recruitment agency.
2. When there is a lack of familiarity with the local laws and expectations. Most companies entering new markets will not be familiar with that country’s laws, customs, societal expectations, and culture. Even extensive and detailed research will not reveal the same knowledge as a local presence will, as the awareness of such issues usually develops over time from being in the midst of it all. Outsourcing hiring to a recruitment agency is one way to ensure that the search and recruitment process is as compliant and compatible as possible with local requirements.
3. When there is little to no recruitment expertise within the company. It stands to reason that a company should bring in external expertise when it lacks it itself, but many business owners and executives – especially in the early stages – do not consider recruitment to be one such area of expertise. The reality is that planning and executing a search to recruit the right candidates for the position demands a form of expertise that takes years to garner. The vast majority of companies will find that in-house recruitment expertise cannot compete with that of specialist recruitment firms, especially when that recruitment needs to happen internationally.

There are a number of other reasons to outsource recruitment, and it should come as no surprise that recruitment firms are recommended in leading business circles. 

When to outsource recruitment

The exact point at which it will make sense to outsource recruiting varies considerably between companies, and executives should be aware that there is no blueprint for that decision. Instead, it is usually the case that certain events or stages of expansion will prompt the outsourcing of recruitment. Examples include:

1. When there is a need to hire large teams. Certain companies will be seeking to hit the ground running in their new country of choice, and in doing so they are likely to need to place several – perhaps many – candidates simultaneously. Creating a whole new team in a brand new country may sound daunting, but with the help of a recruitment agency it can be a relatively easy task. If the numbers seem too burdensome, hand over responsibility to a recruitment agency.
2. When there is a lack of familiarity with the local laws and expectations. Most companies entering new markets will not be familiar with that country’s laws, customs, societal expectations, and culture. Even extensive and detailed research will not reveal the same knowledge as a local presence will, as the awareness of such issues usually develops over time from being in the midst of it all. Outsourcing hiring to a recruitment agency is one way to ensure that the search and recruitment process is as compliant and compatible as possible with local requirements.
3. When there is little to no recruitment expertise within the company. It stands to reason that a company should bring in external expertise when it lacks it itself, but many business owners and executives – especially in the early stages – do not consider recruitment to be one such area of expertise. The reality is that planning and executing a search to recruit the right candidates for the position demands a form of expertise that takes years to garner. The vast majority of companies will find that in-house recruitment expertise cannot compete with that of specialist recruitment firms, especially when that recruitment needs to happen internationally.

How to find the right recruitment agency

Clearly, then, for most companies looking to expand globally, it will make sense to outsource recruitment. The exact method of doing so will vary depending on the specific market entry strategy and the needs of the company (in that regard and others), but one piece of advice for starting the search for such an agency is this: define the type of relationship desired with the agency before beginning the search. Recruitment agencies vary considerably, from those that post basic searches to those that offer a full suite of recruitment and Employer of Record (EOR) services. The best approach is to consider carefully what the company’s needs are before approaching any firm and being sold on their individual benefits.