How Expats Strengthen Global Teams & How to Hire Legally

Thinking of expanding globally? New markets, new goals, and new customers all mean serious company growth. But growth brings new challenges—and one of the biggest is making sure you’ve got the right people in the right places.

You’re likely wondering whether hiring international talent could be the solution, but how do you do it, and more importantly, how do you do it compliantly?

The legal side of relocation is complex. From work visas and tax liabilities to employment contracts and cultural integration, there’s a lot to consider.

That’s where Deel comes in. We’ve helped many companies hire and manage global talent across 150+ countries, making sure every detail is covered, from compliant contracts to visa support and more.

In this guide, we’ll discuss why and how to hire expats with ease, and how Deel makes it easier than ever to do so.

What is an expat employee?

In the traditional sense, an expat employee is sent by their company to a foreign country to work on a project or gain skills and local knowledge during international business expansion.

In light of global mobility and remote work (and thanks to digital transformation), more and more professionals from different fields have a chance to travel and relocate more often. There’s a new kind of expat coming from a variety of backgrounds, with different assignments and considerations. Expats are now viewed as digital nomads rather than expatriates living as outsiders in local culture.

In 2020, the employment rate for EU citizens residing in another EU country was higher than for EU citizens living in their home country. This could mean that companies started rethinking expatriate employees to match talent supply to business demand, despite the common belief that relocating workers may cost more than hiring from the local talent pool.

Expats vs. immigrants: what’s the difference?

Both expats and immigrants come to live in a foreign country to live there for an extended time.

However, immigrants typically plan to stay in a new country indefinitely and are more likely to apply for citizenship when they meet the conditions.

Expats don’t always know how long they will stay in a new country and may decide to relocate after a while to another country. They keep their citizenship in their home country.

So, what does this mean for employers? Employers can expect to need to support multiple moves for expats, possibly with digital nomad visas. Whereas for immigrants, they may need to consider longer-term visa solutions and the localization of their contracts.

How expatriate employees benefit global teams

Today, 78% of expats can work remotely, which means you can relocate your employees virtually anywhere. But why should you, if you can hire locally?

Here’s how your organization can leverage expats’ skills and experience when entering a new market.

1. Vast international experience

Unlike local employees, expats usually have international experience from living and working in at least one foreign country. Thanks to this experience, expats can:

• Understand your expansion plans and provide global, diverse insights you wouldn’t have otherwise
• Contribute with the best business practices from around the world
• Continually relocate and support future company expansion efforts of your company

2. A solution to the talent shortage

72% of businesses rank leader and key employee talent shortage as their top challenge, a Global Leadership Monitor Survey by Russell Reynolds Associates found.

Hiring expatriate employees increases the pool of suitable candidates for their international assignments.

Amid the global war on talent, it becomes much easier to simply relocate your talent where you need instead of spending months (and likely hundreds of thousands of dollars) searching for skills that aren’t available locally.

3. Support with international expansion on-site

Local compliance and integration into a new culture are some of the most delicate challenges to resolve when entering a new market. You’re likely to collaborate with external, local experts who can help you set up in the host country, but it’s not the same as having a trusted internal team member supporting you on the ground.

A person living on-site can bring invaluable local knowledge and firsthand experience to your business. Also, if you’re only testing the new market and haven’t opened a local entity (yet), an expat can contribute to your credibility and enhance your company’s presence locally.

4. Ensure multilingual coverage for your team, clients, and partners

The expat’s knowledge of local culture and language is one less obstacle for a multinational company in terms of internal and external communication.

While setting up in the host country, you can count on the expats’ help to overcome language barriers as they will likely learn the local language. That means an expat employee can help several processes run smoothly:

• Recruiting and onboarding local candidates in the host country
• Resolving all legal and compliance matters
• Effective communication with local partners and clients

5. Contribute to team diversity and inclusion

With more and more companies implementing DEI policies, it’s clear that diversity and inclusion have become a top priority for Human Resources departments. Data shows why it should be: companies investing in cultural and ethnic diversity in their teams are generally more profitable than businesses with less diverse staff.

Expats on your team contribute to your company by building a diverse workforce and enhancing the overall employee experience. Your team members will develop a stronger sense of belonging in a diverse team. Such DEI initiatives can result in increased employee performance and lower turnover.

6. Save your company time and money during expansion

Providing a suitable local candidate with the necessary company know-how and cultural training to hit the ground running takes a lot of time and money. On the other hand, relocating a high-performing employee you already trust significantly speeds up your expansion process.

An employee who already knows your business inside out and is familiar with your business operations can help you set up the new office quickly, with no expenses associated with onboarding a new hire.

Also, recruitment and training can sometimes take months, while relocating an employee can happen in a few weeks, depending on the worker and the new location.

Deel Immigration helps you obtain the necessary visa to relocate the expatriate employee to the new location easily.

Should they need to stay there longer term, Deel can hire the employee through its local Employer of Record (EOR) service and sponsor the employee's visa on your behalf, so you avoid entity set up.

7. Give you a competitive edge

With an increasing number of workers looking to become digital nomads, expat assignments could make you a desirable employer. While your competitors may struggle to find talent, highly skilled candidates may naturally come to you as you offer relocation opportunities and assist in the process.

Such an offer can sound tempting to applicants, especially if they want to move closer to family members or a partner, or experience living in a new location.

Read more: Global Mobility for Organizations: Benefits, Challenges, and Solutions

The challenges of relocating employees

Relocating employees doesn’t come without risks and challenges.

No matter how ready a worker is to move to a new location, this type of change can be physically and emotionally exhausting, leading to burnout. Burnout can cause dips in productivity and negatively impact the employee’s performance. This challenge isn’t impossible to resolve; it just needs careful planning and consideration beforehand.

On the other hand, as an employer, you will have to deal with additional expenses: visa applications, relocation costs, transportation, and more. You will also need to comply with the new country’s labor laws and ensure your expat has the required healthcare, social security, and other benefits. Failing to obtain a license of any kind can result in financial penalties and even being banned from doing business in that country.

How to hire expats legally

To legally hire expatriate employees, you’ll need to manage work permits, tax obligations, employment contracts, and compensation packages (all of which vary by country). Let’s break down these key compliance areas:

Immigration and work permits

Before relocating an employee internationally, it’s absolutely crucial to ensure they have the legal right to work in the destination country. This typically involves:

• Work visas: Most countries require specific work permits for foreign nationals. These can vary in terms of eligibility requirements, and some take longer to process than others. There are also varying levels of cost
• Visa sponsorship: As the employer, you’ll often need to sponsor your employee’s visa application, which may involve proving why you need to hire an expatriate rather than a local. It also usually involves having a local entity.
• Qualification validation: Some countries require foreign qualifications to be validated or recognized by local authorities

Deel Immigration streamlines this process by providing expert support and guidance on visa requirements for over 50+ countries and assists with application preparation to significantly reduce visa approval times. It's an end-to-end visa and immigration solution. We help with selecting visas, confirming eligibility, applications, sponsorship through our EOR model if you don't have a local entity, relocation service discounts, visas renewals, and support for dependents.

Tax considerations for expatriate employees

Tax implications for both your company and your expat employees can be complex. You’ll need to consider:

Double taxation avoidance

Many countries have treaties to prevent expatriates from being taxed twice on the same income. For example, the US-UK tax treaty ensures American employees working in Britain (or British employees working in America) aren’t taxed in both countries on the same earnings.

Tax equalization policies

Tax equalization policies ensure that employees don’t suffer financially due to higher tax rates in the host country. With tax equalization, companies calculate what the employee would pay in their home country and then cover any additional tax burden in the host location.

For example, an employee moving from Singapore (with a top tax rate of 22%) to Germany (with rates up to 45%) would receive compensation to offset this significant difference, maintaining their take-home pay and eliminating a major relocation disincentive.

Social security obligations

Different countries have different pension and social security contribution requirements. Many countries have "totalization agreements” that prevent expats from having to contribute to two different social security systems at the same time. Without these agreements, expats would face double contributions, which in some cases would be as high as 30-40% of their salary.

Deel's global mobility experts can help you determine whether your employees should remain in their home country’s system or transition to the host country’s program. Working with Deel also means you gain access to our global network of tax experts who can help you design tax-efficient compensation packages while ensuring full compliance.

Employment contracts and local labor laws

Different countries have different labor laws regarding:

• Employment contracts: Many countries require specific clauses and translations
• Working hours and overtime: Regulations vary from country to country
• Termination rules: Notice periods and severance requirements differ between countries
• Mandatory benefits: Different jurisdictions have different non-negotiable benefits, like paid leave

With Deel, we ensure that your contracts are 100% compliant with local regulations while protecting your organization’s interests.

See also: Free Expat Contract Localization Policy Template

Compensation and benefits packages

To create suitable compensation packages for expats, you’ll need to consider:

• Cost of living adjustments: Ensuring employees maintain their standard of living
• Housing allowances: Particularly important in high-cost cities
• Education support: Often necessary for employees relocating with children
• Healthcare coverage: Ensuring comprehensive coverage in the new location

Deel's global mobility specialists can help you design competitive, compliant benefits packages that attract and retain top talent while controlling costs. Find out more about Deel Benefits and Deel Compensation.

See also: Global Benefits Tool

Ensure a successful expatriate experience

Ensuring a successful expatriate experience requires thorough preparation and ongoing support from onboarding to offboarding and everything in between.

Pre-departure preparation

• Cultural training to help employees adapt to new environments
• Language courses to facilitate integration
• Logistical support with housing, banking, and relocation

Ongoing support

• Regular check-ins to address challenges
• Mentorship programs pairing expats with local employees
• Clear repatriation plans for when assignments end

Deel's global mobility team provides end-to-end support for relocating employees, from initial visa applications through to settling in and ongoing compliance monitoring.

Strengthen your global team with Deel

While the benefits of hiring expats are undeniable, the challenges we tackled may seem overwhelming at a glance.

The good news is that partnering with Deel Immigration can help you overcome these obstacles and build a future-fit global team hassle-free.

You can quickly identify the adequate work visa program, find the proper documentation to fill out, and apply for the visa, all while having direct support from our in-house global mobility experts.

So, are you ready to grow your company internationally? Take the first step and book a demo with Deel today.