As the only free trade port in China, the Hainan Free Trade Port (Hainan FTP) is designated as a national-level str...
With the acceleration of economic globalization and the trend toward remote work, cross-border recruitment is no longer just a talent strategy option for multinational corporations. An increasing number of small and medium-sized enterprises (SMEs) are extending their talent acquisition strategies beyond national borders. Cross-border recruitment has gradually become a critical means for businesses to build core competitiveness. However, differences in legal systems, labor policies, cultural values, and talent market structures across countries increase challenges for cross-border recruitment. (1) Legal and Compliance Risks In the process of cross-border recruitment, employers must comply with the legal and regulatory requirements of the target country, including labor laws, tax laws, social security laws, and etc. For example, minimum wage standards vary across different regions in China, and adjustment cycles are irregular. Employers need to have a thorough understanding of local policies to deal with the high uncertainty and compliance costs. (2) Differences in C&B Systems In cross-border recruitment, compensation strategies involve multiple factors, such as salary levels in different industries, social security rates, and employee expectations in the target country. Due to information asymmetry, employers may struggle to accurately assess candidates' expectations and market conditions, leading to inefficiencies in recruitment, talent attrition, or additional labor costs. (3) Cultural and Communication Barriers Different cultural backgrounds significantly influence organizational management and communication manners. Language barriers, value conflicts, and differences in communication methods can result in the failure of cross-border recruitment efforts. (4) Limited Access to Resources When entering a foreign market, many companies often find themselves overwhelmed by the sheer volume of information sources. It would be difficult for them to verify authenticity and accuracy. Knowledge shortage in local mainstream recruitment platforms, campus resources, and headhunting networks can significantly increase the cost of talent deployment. (5) Time Management Challenges Cross-border recruitment typically involves cross-time zone coordination. Legal reviews and other complex processes result in longer cycles and higher time costs for hiring. Given the above mentioned challenges in cross-border recruitment, companies can effectively mitigate the high risks and investments of directly establishing entities by adopting an Employer of Record (EOR) model during the initial stages of building a multinational human resource framework. Leveraging the local expertise of domestic EOR service providers enables businesses to quickly launch talent strategies in the target country, facilitate effective communication, reduce risks, and operate efficiently. This approach helps companies build a global employer brand characterized by internationalized employment practices and cultural diversity.
As the only free trade port in China, the Hainan Free Trade Port (Hainan FTP) is designated as a national-level str...
China has become the world’s second-largest healthcare market. Yet for overseas pharmaceutical and medical device compan...
