International Hiring 101: Best Practices for Globally Expanding Companies

Perhaps you run a company and are trying to hire someone great—really great. You’ve posted the job, held interviews, and waited. Nothing. And it’s not just you.

Three-quarters of employers are struggling to fill positions locally. The talent shortage has become so severe that unfilled roles could cost the global economy $8.5 trillion in unrealized revenue by 2030. That’s trillion, with a T. So companies of all sizes are looking elsewhere—across borders and time zones. Not because it sounds exciting on paper, but because that’s where the talent actually is.

The catch? Every country has its own labor laws, tax codes, and compliance requirements. The things you probably didn’t start a business intending to think about. Misclassification can trigger penalties. Payroll mistakes can create trust issues with new hires. And without a legal entity in the country where you are hiring, even basic tasks like writing a compliant contract or setting up benefits can feel impossible.

But it doesn’t have to be this way. There are tools, there are systems, and there are ways to make global hiring not only doable, but smart. Because when it works, you get diverse perspectives, specialized skills, and round-the-clock capacity to your organization. This guide walks through the best practices for hiring internationally with confidence.

10 International hiring best practices for scaling globally

These practices represent the foundation of successful international hiring. Some protect you from legal risk. Others help you attract and keep the right people. All of them matter if you want to scale globally without constant firefighting.

1. Understand local labor laws and compliance requirements

Every country has its own rules about how you can hire someone, pay them, give them time off, and eventually part ways. What counts as a full-time employee in Brazil might look totally different in Japan. Mandatory benefits in France are not the same as what you need to offer in South Africa.

Getting this wrong is expensive. Countries like Germany and Australia have strict termination procedures where skipping required notice periods or severance payments can lead to lawsuits. Compliance covers employment contracts, payroll taxes, benefits mandates, working hours, data privacy laws like the General Data Protection Regulation (GDPR), and termination rules. The stakes are too high to guess your way through.​

2. Get employee classification right

The difference between an employee and a contractor is not about what you call someone in a contract. It is about the actual working relationship. Does your company control their work hours, provide the tools they use, and determine how tasks get done? That usually means they’re an employee. Can they work for multiple clients, set their own schedule, and operate independently? That points to them being a contractor.

Misclassification triggers serious consequences. You could face back taxes, penalties, legal disputes, and, in some countries, criminal charges for repeat violations. Each country applies its own assessment for classification. The U.K. relies on IR35 regulation from its tax authority. Germany uses labor courts to evaluate the relationship. What passes as a contractor relationship in one country might be considered employment somewhere else.

3. Create compliant employment contracts

A standard contract template does not work across borders. Each country has specific requirements for what must be included in an employment agreement. Wage laws, working hours, probation periods, notice requirements, termination clauses, and benefits mandates all vary by jurisdiction.

In many countries, labor law automatically applies certain protections even if your contract does not mention them. That means you cannot just copy a contract from your home country and hope it holds up. Contracts need to be written in the local language, follow local formatting standards, and explicitly address country-specific legal requirements. Using local legal counsel or a local employment expert to draft compliant contracts protects both you and your employees.

4. Build a strategic compensation and benefits framework

Paying everyone the same salary regardless of location might feel fair, but it creates problems. You will overpay in some markets and lose talent in others where your offer cannot compete. Compensation needs to reflect local market rates while maintaining internal equity and transparency.

Benefits matter just as much as salary. Statutory benefits like health insurance, pension contributions, and parental leave vary wildly by country. In some places, employees expect private health coverage even when public systems exist. In others, additional vacation days beyond the legal minimum make a bigger impact. Your benefits package should meet or exceed local expectations if you want to attract top talent and keep them engaged.

5. Design effective onboarding and offboarding processes

Onboarding an international employee involves more than sending a welcome email and a laptop. You need to handle work permits, verify background checks that meet local standards, collect tax documentation, and ensure employees understand their benefits and employment terms. Each country has different requirements for what documents you must collect and how long you need to keep them.

Offboarding matters just as much. Termination procedures vary significantly across countries. Some require weeks or months of notice. Others mandate severance payments based on tenure. Skipping required steps during termination can lead to wrongful dismissal claims and financial penalties. Having clear, compliant processes for both onboarding and offboarding protects your organization and creates better experiences for employees.

6. Foster cross-cultural communication and inclusion

Managing a global workforce means navigating time zones, communication styles, and cultural expectations that differ from what you are used to. A direct communication style that works in one culture might come across as rude in another. Scheduling meetings at convenient times for headquarters but inconvenient for remote team members signals that those employees matter less.

Inclusion requires intentional effort. That means rotating meeting times so everyone shares the burden of odd hours. It means creating documentation and async communication practices so people in different time zones can stay informed. It also means recognizing that motivation, feedback preferences, and work styles vary across cultures. Building genuine belonging across distance and difference takes work, but it directly impacts retention and performance.

7. Implement compliance technology and regular audits

Tracking compliance requirements across multiple countries manually is a recipe for mistakes. HRIS systems with built-in compliance features can automate reminders for contract renewals, track required documentation, flag classification risks, and ensure you meet local reporting deadlines. Technology does not replace human judgment, but it catches things that fall through the cracks.

Regular internal audits help you spot problems before they become legal issues. Review employment contracts, worker classifications, payroll records, and benefits administration at least annually. When regulations change or your team grows, audit more frequently. Catching a misclassification issue internally costs far less than waiting for a government agency or lawsuit to find it.

8. Build a retention-focused culture from day one

Hiring someone internationally is just the starting point. Keeping them engaged when they are thousands of miles away, in a different time zone, and navigating cultural differences takes intentional effort. Retention starts with competitive compensation that reflects local market rates and benefits that matter in that region. But it also means offering clear paths for professional development, opportunities to contribute meaningfully to company goals, and genuine inclusion in team culture despite the distance.

Regular check-ins, transparency about career progression, and being thoughtful about meeting times across time zones all matter. So does recognizing that what motivates someone in one culture might look different somewhere else. The companies that retain international talent treat retention as a strategic priority from the moment they extend an offer.

9. Establish data security and privacy protocols

Hiring internationally means collecting and storing personal data across borders. That triggers data privacy laws like GDPR in Europe, the California Consumer Privacy Act (CCPA) in California, and similar regulations in countries worldwide. These laws dictate what data you can collect, how you must store it, who can access it, and how long you can keep it.

Non-compliance with data privacy regulations leads to massive fines. GDPR violations can cost up to 4% of global annual revenue. You need clear protocols for data collection, secure storage systems, employee training on privacy requirements, and processes for handling data requests and breaches. As your team expands into new countries, each region might add new data protection obligations.

10. Partner with an employer of record or local experts

You do not need a legal entity in every country where you want to hire. That is what an employer of record (EOR) is for. An EOR becomes the legal employer on paper, handling employment contracts, payroll, tax filings, benefits administration, and compliance so you can focus on managing the actual work.

EORs make the most sense when you are hiring in a new market, testing demand before committing to a local entity, or bringing on a small number of employees where setting up infrastructure is not worth the cost. If you are scaling rapidly or planning to hire dozens of people in one country, establishing a local subsidiary might make financial sense. You can also work with local legal counsel and HR consultants who understand the nuances of labor law and cultural norms in specific markets.

International hiring is a key component of global expansion. Whether companies are bringing foreign nationals into a new market or hiring local talent, it is important to develop a plan that incorporates best practices and uses a strategic approach. This will help companies stay compliant as they discover their growth potential overseas.

Actualize your international hiring strategy

International hiring sounds daunting—new laws, taxes, and rules for every country. For a lot of companies, that’s where they stop. But there’s an alternative, and it can change everything.

The difference between companies that succeed globally and those that struggle often comes down to having the right systems, the right support. When you get compliance right, build thoughtful processes, and prioritize employee experience, you unlock access to talent that can transform your business. It becomes less of a gamble and starts to feel more like your standard day-to-day.

At Pebl, our global Employer of Record (EOR) service enables companies to hire, pay, and manage talent across more than 185 countries without setting up local entities. We handle the complicated parts—compliance, payroll, benefits, contracts, immigration support, and local legal requirements. You get to focus on what you dreamed of from the beginning—building and managing your team.

With experienced support from local experts worldwide, our global talent sourcing solutions enable onboarding in days, not months. Contact us to learn more.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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