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International Hiring for Startups: Building a Global Team

How to hire internationally as a startup, including legal considerations, compensation, and team integration.

R

Roles Team

Talent Advisors · December 20, 2024

# International Hiring for Startups: Building a Global Team

Access to global talent is one of the biggest advantages modern startups have. But international hiring comes with complexity. Here's how to navigate it.

Why Hire Internationally

### Talent Access - Reach candidates not available locally - Tap into strong talent markets (e.g., Eastern Europe, Latin America) - Find specialists in niche areas - Build follow-the-sun coverage

### Cost Considerations - Competitive rates in many markets - Reduce office overhead - Flexible compensation structures

### Diversity Benefits - Different perspectives and approaches - Global market understanding - 24/7 productivity potential

How to Hire Internationally

### Employment Options

**Employer of Record (EOR)** Services like Deel, Remote, and Oyster employ workers on your behalf - Pros: Fast, compliant, handles payroll and benefits - Cons: Cost (typically 15-20% on top of salary), less control

**Set Up a Local Entity** Establish a subsidiary in the target country - Pros: Full control, can scale team in that country - Cons: Expensive, slow, requires ongoing maintenance

**Contractor Arrangements** Engage workers as independent contractors - Pros: Flexible, simple, cost-effective - Cons: Misclassification risk, less commitment, may be illegal in some contexts

### Compliance Considerations - Employment law varies dramatically by country - Misclassification penalties can be severe - Tax implications for both parties - Data privacy requirements (GDPR, etc.)

Best Markets for Startup Hiring

### Engineering - Poland and Eastern Europe - Argentina and Latin America - India (experienced developers) - Portugal and Spain

### Operations - Philippines - South Africa - Mexico (nearshore) - Colombia

### Design - Portugal - Brazil - Poland - Ukraine

Making It Work

### Time Zone Management - Define core overlap hours - Use async communication as default - Record important meetings - Be thoughtful about scheduling

### Cultural Integration - Learn about cultural differences - Create inclusive meeting practices - Celebrate global holidays - Build relationships beyond work

### Compensation Philosophy - Local market rates vs. global rates - Cost of living adjustments - Equity treatment - Benefits parity

The Bottom Line

International hiring unlocks tremendous talent potential, but requires investment in compliance, culture, and communication. Do it right, and you'll build a stronger, more diverse team than purely local hiring would allow.