Why Hiring Within A 30-Mile Radius Is “So Yesterday”


July 09, 2021

By Deel, the first automated payroll platform for remote teams that connects localized compliance and payments in one record system.

It’s no longer fruitful to insist on hiring only within a 30-mile radius. That’s because hiring only local talent is (to put it bluntly) so yesterday.

Don’t get us wrong – hiring locally can be beneficial. However, the people you’ll likely get won’t fulfill every type of profile, experience, and skill set your business needs. That’s because the local talent pool is limited by various economic, social, and cultural factors. 

So, you’ll probably find good or even great people. But it’s highly unlikely that you’ll find the best. And there’s no reason you should have to settle for anything less than the best. 

That’s where international hiring comes into play. When you tap into a much larger talent pool, you get way more benefits than just a new teammate. Here are the top four:  

1. Stop hiring “culture fits” (it’s outdated)

How many times have you heard someone say: “We only hire (local) culture fits. That is crucial for the success of the company and for the overall employee experience we offer.”

Having a new hire fit the company culture can be a huge deal to most companies.

Well, you can thank MIT’s Edgar Schein for that. In the 1950s, he defined organizational culture as: 

“A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”

Still, it took decades before most companies started caring about their culture. When it finally happened, the shift was monumental. And it shaped how companies hired as well as operated. Because hiring a “culture fit” was considered the only acceptable practice for companies who wanted to be innovative, leading the charge, and be remembered.

But that was all before globalization, the internet, and corporate social responsibility. Since then, we’ve learned that working with people because they are like us is one of the worst things you can do for your company. Because teaching your team how to “perceive, think, and feel” about the problems your company faces (or worse, only hiring people who already align with these notions) keeps your company static. And ultimately, gets you nowhere. 

Here’s the thing, though: When you look locally for talent, you’re more likely to find and hire a “culture fit.” Even if it’s unintentional. That’s because your local proximity gives you shared experiences that shape, well, how you “perceive, think, and feel” about things. 

2. Drive more innovation with diverse talent

Have you ever worked in an environment where people come from different educational backgrounds? Have vastly different work experiences? Or grew up in separate parts of the world? 

If you have, you know that the input you get makes every brainstorming session a goldmine of ideas. A diverse bunch can bounce ideas off of each other, compliment them in unexpected ways, and nurture a more problem-solving attitude.

Meanwhile, teams with similar backgrounds and experiences tend to spin in circles, waiting for the inspiration to hit. In some cases, this can be enough to generate concrete and useful next steps. But in most cases, it soon leaves the team fresh out of ideas. 

Don't let your team run out of ideas because they're all alike!

As a result, diverse teams out-innovate teams with similar backgrounds and experiences. They’re 45% more likely to grow their market share over the previous year. And they’re 70% more likely to capture a new share of the market.

3. Hiring international employees is way cheaper

Enter remote work! Many SMBs refuse to even entertain the thought of international hiring because it’s expensive once you add up the time spent deciphering regulations and onboarding an international hire. 

But you need to consider the return on this investment. International employees can earn much, much more for your business than what they cost. That’s because remote employees are 47% more productive. Meaning, even if you pay an international employee the same as a local employee, you’re going to get more out of them. 

Plus, remote workers (like international contractors) churn 50% less compared to their in-person counterparts. This adds up quickly. Because every time an employee turns over, you spend over $4k and 42 days to find their replacement. 

There are three main ways you can go about international hiring:

  1. You can open a subsidiary (or a daughter company) if you are focused on a single location. This will cost more, but it will give you the most control over the hiring process and the employees’ work. 
  2. You can partner up with an outsourcing firm or record service to navigate the hiring process. This is much easier and less risky, but you lose some of the control you’d have by hiring in-house. 
  3. You can hire independent contractors worldwide yourself (not just one location) and work with them directly. This is the more cost-effective option while still having complete control over who you hire and how you work together. 

And at the end of the day, all three options can help increase your bottom line.

4. It’s super easy to hire remote teammates

Remote work started with people traveling for work. They were moved by the desire to explore other parts of the world, work for the best companies, and challenge themselves in different environments.

Then, technology got better. And along came the internet and a new generation of digital nomads. Some of the best, most creative talents were free to work from anywhere and for anyone. 

These were the people companies wanted to work with. And tech companies focused on making remote work easier started popping up. So, it became easy to get those people on your team – without sacrificing productivity. 

Companies be like when they see how awesome remote work is

And today, international payroll companies like Deel remove the red tape that comes with hiring remote employees (no matter where they call home). That way, you can hire the best candidates you can find in mere clicks. 

Instead, once you find the person you want to hire, Deel takes care of all the administrative tasks required. That includes drafting contracts per local laws, setting up payroll systems that handle multiple currencies, and double-checking compliance.   

That way, nothing is stopping you from hiring the best of the best. Not the headaches from all the red tape. Not your team working overtime, trying to figure out foreign laws. And definitely not the risks or hefty fines that used to come from hiring outside your 30-mile radius.

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