Imagine being able to hire anyone, anywhere, in less than a week. 20 years ago you may have said, “that’s impossible”, and you may have been right. However, today this has become the norm. Remote work, and the rise of borderless hiring has come through a number of different factors. Many employees desire flexibility in their schedule and location so they can work from wherever they want, whenever they want. In fact nearly 60% of workers are working from home now according to the Pew Research Center. Employers are now trying to figure out how to manage all these digital nomads, especially after the COVID-19 pandemic accelerated this phenomenon.
What is borderless hiring?
Borderless hiring is the ability for a company to hire any worker they need regardless of the country they live in, and without having to worry about setting up an entity in that country, state, or even city. This is something that is mostly made possible by global employer of record (EOR) providers like FoxHire. Those EORs serve as the legal employer of workers on behalf of clients covering payroll, onboarding, insurance, and compliance needs. This allows their clients to hire anyone, anywhere, and fast. This is essentially eliminating borders for companies that want the best talent, especially in the technology space where technology workers can be found in all corners of the globe.
Why is borderless hiring the future?
Although 50% of companies want workers back in office 5 days a week, brick and mortar offices are going away. Instead, digital careers will continue to grow, and there will be expectations for companies to be able to hire in any country if they want the top talent. Top talent will be so used to being able to work from anywhere in the world, that companies will need to offer this capability if they want to compete. This will be especially true for midsize organizations and start-ups that are trying to compete with the biggest players in their industry, without the same level of infrastructure. The good news is that they will most likely have a lower rent bill, as office vacancies will continue to climb. The office vacancy rate hit an all time high in late 2021, reaching 17.2%.
What are the benefits?
Enabling your organization to hire globally brings a number of obvious benefits, but also some that are less clear. Many of the benefits below may apply to your organization, and can be key drivers in making the decision to work with an employer of record, or set up entities globally.
- Don’t miss out on top talent abroad
- Expand into countries without having an entity
- Reduce employee turnover by allowing them to move anywhere and retain their job
- Reduce your employment risk by deferring that to an EOR
- Enable your payroll, contractor payments, and analytics to be in one EOR dashboard
- Ensure compliance with local and federal laws
- Scale up and down quickly without the upfront time and money investments
What can my company do to prepare for borderless hiring?
One simple thing you can do in order to prepare for borderless hiring is to establish a relationship with an Employer of Record (EOR). That will allow you to leverage their support if and when you want to hire, or retain, an employee outside of your home country. If you already have employees outside of your home country and you are managing them through a number of disconnected vendors, you could further prepare for this future by evaluating if an EOR model would fit your organization better. However, by simply knowing this model is coming, you’ve enabled yourself to react better. The future of work is here, so how will you employ the world?
