As economies reopen after prolonged lockdowns, employers in developed countries like the U.S. and U.K. aren’t having a lot of luck filling vacancies with local talent.
An increasing number of them are casting a wider net as a result, but what they are quickly realizing is that hiring and managing a global workforce doesn’t come easy.
As Frederick Crosby, chief revenue officer at global money movement platform Nium, put it, “[Recruiting can] take months when you’re in your own city or your own country. Imagine trying to go out there and do this internationally and still find the right talent.”
Having to pay workers around the world in multiple currencies adds another layer of complexity to the hiring internationally, Crosby said, while comparing the once simple process of sending a check in the mail to what firms must deal with today.
In addition to juggling multiple currencies, there are also the myriad ways workers want to be paid. “Not everyone wants their money in a bank account. Some want it in a card form or in the digital wallet that they have in their country,” he told PYMNTS in an interview.
Related: As Remote Work Goes Global, Paying Workers Gets Complex
And then there’s the expectation of real-time payments. In fact, just because workers are based in another country doesn’t mean they are willing to wait days or weeks to get paid, let alone tolerate delays tied to incorrect paychecks.
“You have to suddenly be able to host a wide variety of people in different places, using different currencies, and still get that money to them almost instantaneously as if it was in their own town — otherwise, they’ll just move on to the next gig,” Crosby said.
Private Agencies to the Rescue
The bottom line is that companies need help to pull this off, and many are turning to contracted firms such as private agencies to handle the recruitment and management of their international workers.
Data from a recent study by PYMNTS and Nium revealed that 64% of all U.S. and British firms surveyed said they used private agencies to recruit international workers in 2021, while 38% said agencies were their most important channel.
Get the study: Meeting the Demand for Cross-Border Hiring: The Role of Private Agencies
Crosby is of a similar view: “The high percentages really reflect the growth of a nascent industry. [Private agencies] didn’t exist at the scale they do today, but these agencies can help do a number of things.”
Key among them is taking the international recruitment burden off companies, getting money to workers in real time and providing expertise to ensure that clients comply with local laws and tax regulations.
Read more: Data Brief: 64% of All Firms Use Private Agencies to Hire From Worldwide Talent Pool
But “it takes a village,” Crosby noted. That’s where companies like Nium come into play, he said, pointing to the firm’s ability to pay out to 190-plus countries easily, quickly, and securely while helping clients settle funds in real time via local bank transfers, cards and wallets.
He also touched on the discrepancy between larger and smaller firms, with the latter being the most likely to use private agencies for recruiting and management. While smaller players tend to assume that it’s a lack of finances and resources holding them back from making the move, Crosby said there are other factors at play.
“I don’t think there’s any kind of physical or financial limitation. Some of it is just [lack of] awareness. Another part might just be getting over the little anxiety they feel about doing something like this,” he explained, adding that they could risk falling behind the global race for talent if they don’t act soon.
Instant Payments, the New Normal
For Crosby, offering real-time payments is “the only way” to go because people no longer want to wait for their money. It’s a shift in consumer preferences seen in the worldwide growth of the on-demand payment trend.
Learn more: 45% of Independent Contractors Want to Be Paid Daily or on Demand
“The whole world has kind of flown into this monthly or weekly payroll [trend, but] what’s so special about two weeks? Why not get paid when you want it, as you want, [and] as long as you’ve earned it?” he argued.
See also: How DailyPay Works To Address On-Demand Payroll Expectations
This makes real-time payments even more crucial as workers increasingly embrace the idea of accessing their earned wages at any point in time during the payroll cycle.
“You don’t want to tell them, ‘Wait three days for the wire to settle out there,’” Crosby said. “[It should rather be], ‘I’ll get it to you in 15 minutes.’ That’s what they want, [and] that’s what companies like Nium can help deliver.”
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