2023 has had a rocky start and the economic picture continues to look uncertain. To fuel concerns, businesses continue to grapple with the talent shortage, whilst having to pay very close attention to their bottom line, making meeting increased salary demands a tall order. An already established, yet growing model, to deal with this dilemma is the use of contingent workers, those off-payroll workers who can come in on a contract or ad-hoc basis. More than 200,000 workers in the UK have become contingent since 2020, allowing firms to plan and manage their workforce in a more flexible and dynamic way, ensuring they can source the talent they need in their businesses whilst remaining fiscally robust.

However, with inflation remaining high, and talent shortages persisting, firms continue to be faced with the prospect of not being able to attract the right talent, at the right cost, in their native markets, contingent or otherwise.

This is leading many firms to widen the net when searching for talent and look for opportunities further afield, especially across borders. By tapping into markets across Europe, or perhaps even further, firms can hire highly skilled workers that aren’t necessarily demanding the same rates we are seeing in countries such as the UK. For example, countries in Eastern Europe, like Poland, have a large pool of highly skilled workers that can be tapped into. Poland has an excess in supply of over 60,000 IT workers that could be hired to work remotely, taking advantage of the post-pandemic shifts in the working world*.

As the labour market continues to deal with phenomena such as the great resignation, skills shortages, and increased mobility, hiring across borders is a trend we see continuing to increase in popularity. However, with the adoption of this model and its potential for cost savings, comes an increase in complexity. Firms will have to take several things into account when they look to hire, retain, manage, and engage these workers. Only by focusing on these aspects can businesses fully take advantage of this hiring model and thrive in the difficult times that lie ahead.

Employee experience
Employee experience is a crucial aspect of retaining talent, no matter the circumstance. This is especially relevant to much of the younger generation who, particularly in a post-pandemic world, value things like work-life balance, flexibility and values just as much, if not more, than simply numbers on a paycheck. However, if firms are to hire across borders, this becomes even more pertinent. Working remotely, for a firm with different norms and cultures, can be daunting but also does not necessarily lend itself to creating loyalty and a mutual bond between employer and employee. Therefore, there needs to be a real effort from firms, often involving embracing various forms of technology, to ensure that these workers feel valued, connected and part of the team.

Management strategies
Management is hard, particularly for large, diverse and multi-dimensional teams. Changes in working culture in the past few years have only made this harder. Already managers are having to contend with the complexities of managing full time workers, those in the office, those who work from home, and contingent workers. By adding a further group of workers that could be based hundreds, if not thousands, of miles away with different native languages and cultural norms, has the potential to complicate things still further.

However, there has never been a better time, with as many tools at our disposal, to deal with these complexities. This is where effective management strategies, and fully utilising technology will be crucial. An increased use of integrated platforms that can gather and harness data, allowing managers to develop a full understanding of their teams and implement effective processes, will make all the difference.

Legal and compliance
Finally, the implications of hiring across geographies from a legal and compliance point of view, needs to be carefully considered.  Ensuring that you are adhering to laws and regulations is a huge undertaking in any market – for example, the introduction of IR35 in the UK and other similar laws across Europe, have wreaked havoc on recruitment departments since their inception. With many countries’ laws to adhere to, firms must ensure that they have the correct procedures in place to not fall foul of legislation and face penalties.

This is where having an integrated management platform that can provide information and help coordinate all employees within the workforce will be pivotal. Also, firms should look to seek expert, local, third-party help to ensure they have a full understanding of the markets they are dealing with.

The work landscape is constantly changing and this, coupled with the difficult economic times ahead, mean firms will have to think and act boldly if they are to retain top talent, manage costs and continue to function efficiently. The benefits of hiring based on talent as opposed to location are immense. This creates huge incentives for firms to think strategically and fully embrace this model, allowing them to effectively manage and retain the vast array of talent that is available across the globe, provided they have the correct technology and management systems in place.

*According to Magnit data