How Small Businesses Can Boost ROI by Hiring Internationally

Small businesses face fierce competition for skilled workers. In fact, 77% of employers report difficulty filling roles—a 17-year high. Against this backdrop, hiring international talent can be a game-changer.

Remote work and global hiring platforms like Deel make it easier and more affordable to source talent. As of 2024, 82% of new hires on Deel’s platform are remote. As a result, small companies can reduce costs, fill skill gaps, and even enter new markets faster.

This article explains why expanding your hiring abroad matters, how it drives ROI, what obstacles to expect, and how to calculate and achieve measurable returns from international hiring.

Can hiring internationally boost ROI?

For many small businesses, the answer is increasingly yes.

Domestic talent pools are tight. In the US, for example, job openings outnumber average hires, pushing salaries higher. Globally, the picture is similar—ManpowerGroup’s 2023 survey found that 77% of employers struggle to fill open positions, the highest level in 17 years.

At the same time, remote work has surged. Deel reports that over 80% of hires on its platform are for remote roles, giving small businesses unprecedented access to applicants worldwide.

Some assume global hiring is only for large corporations. In reality, modern solutions like Employer of Record (EOR) hiring, global payroll, and HR platforms make it simple for SMBs to compliantly hire and manage diverse, qualified candidates abroad.

Expanding overseas is no longer a far-off dream. It’s a strategic lever small businesses are already using to overcome talent shortages, lower costs, and ultimately boost ROI.

See also: How to Overcome Labor Shortages: A Guide for Employers

Key ROI levers

Hiring internationally can affect ROI across several dimensions. Below are the five main ROI levers – each one can increase your returns when executed well:

1. Lower labor and operating costs

Hiring internationally often unlocks significant cost savings. Salaries, employer taxes, and benefits obligations vary widely across regions, and in many cases, the total cost of employment abroad can be 20–50% lower than in more expensive markets.

For instance, a software engineer in Western Europe may cost half of what the same role would command in the UK, while a finance analyst in Latin America might come at a fraction of the cost compared to Australia. These differences allow companies to access high-quality talent while keeping payroll more efficient.

Cost advantages don’t stop at compensation. Remote-first hires also reduce overhead—fewer expenses on office space, equipment, or relocation—which compounds the overall savings.

Discover how EasyBroker became 100% remote, and saved over 50% in fees and time with Deel.

2. Access to skills and specialized expertise

By going global, SMBs vastly broaden the candidate pool. If local recruiters are cycling through the same candidates and roles stay open too long, hiring internationally can tap into in-demand expertise unavailable at home.

Tech startups often find niche developers, marketers, or multilingual support staff abroad when domestic talent is scarce. For instance, 75% of US companies struggle to find specialized talent, so looking overseas can be the difference between meeting product deadlines or stalling.

For example, discover how Legora, an AI-powered workspace designed for law firms and legal professionals, sourced talent with deep local knowledge and networks to introduce its product to customers on the ground in new markets.

See also: A Guide to Finding Global Talent

3. Faster market growth with on-the-ground talent

International hires aren’t just cost cutters – they can accelerate growth. Hiring a local expert in a new market means instant language skills, cultural insights, and customer understanding.

In fact, diverse teams are proven to perform better: Harvard Business Review notes that companies with diverse teams are significantly more likely to capture new markets.

Discover how Kyoto Fusioneering, a startup company focused on commercializing fusion energy, accelerated market entry with Deel.

See also: What’s the Fastest Way to Enter Markets and Hire Globally?

4. Workforce agility and flexibility

Hiring globally adds flexibility to your workforce strategy. With an Employer of Record like Deel, you can scale headcount up or down without the delay and cost of setting up a legal entity. You can also quickly hire and manage contractors abroad to staff projects or meet seasonal demand.

Discover how the Fintech business, Clara, quickly expanded its business without increasing expenses with Deel.

See also: What Is an Employer of Record (EOR)? A Complete Guide

5. Retention and engagement

Building a global workforce can strengthen both retention and productivity. Employees gain broader career paths when collaborating across markets or taking on international projects—opportunities that increase engagement and loyalty. Many also appreciate the flexibility of contributing to a global company from their home country, which supports long-term satisfaction.

Distributed teams bring another advantage: 24/7 coverage. With colleagues across time zones, support and development can continue around the clock, easing pressure on any single group and reducing the risk of burnout. A more balanced workload often translates into healthier, more committed teams.

Discover how Bowtie Life Insurance attracts and retains global talent with Deel.

See also: 8 Employee Retention Strategies for Global Businesses

Common international hiring misconceptions

A common misconception is that hiring abroad is too complicated or risky. The reality is, while there are new considerations (compliance, payroll, culture, etc.), solutions now exist. Below are common concerns and how to tackle them:

“New markets = new headaches”

There are structured approaches to staying compliant. You can hire through the Employer of Record model, which manages compliance on your behalf, or establish your own entity and rely on compliance tools to ensure contracts are tailored to each jurisdiction—keeping your workforce compliant as it grows and evolves.

An EOR like Deel acts as the legal employer in the host country, managing contracts, worker classifications, and local filings. This shields you from risks such as permanent establishment or misclassification penalties.

For longer-term expansion, providers like Deel can also support you in setting up and managing a local entity. In both scenarios, Deel ensures your employment contracts are watertight—covering IP, data protection, and termination terms—so you can scale globally with confidence.

Discover how Cake saves +$3k per hire in compliance costs with Deel.

See also: Compliance Challenges Companies Face When Growing Globally

“Paying someone abroad will be a nightmare”

Managing payroll across borders is complex, but platforms like Deel make it seamless. Deel automates multi-currency payroll, tax withholding, and local benefits compliance—calculating and remitting payroll taxes, providing mandated benefits (e.g., social security, healthcare), and consolidating everything into a single USD invoice.

Whether you hire through an Employer of Record or operate your own entity, Deel ensures local compliance. With Deel Payroll, you can run payroll in 130+ countries from one centralized platform. The result: fewer errors, reduced admin burden, and a finance team free to focus on strategy instead of fragmented pay cycles.

Discover how Senders saves up to 60% on hiring costs with Deel.

See also: The ROI of Centralized Payroll Systems

“How will a global team even collaborate?”

Successful remote collaboration doesn’t happen by accident—it requires intentional culture-building. Start with distributed-team best practices: embrace asynchronous communication instead of expecting everyone to be online at the same time, encourage clear written documentation, and focus on accountability and outcomes rather than hours logged or perceived visibility.

The right tools make distance feel smaller. Use chat platforms and project boards to keep work transparent, and during onboarding, host virtual “meet-and-greets” or pair new hires with mentors to help them integrate quickly.

Most importantly, set expectations early. By establishing clear communication norms, time zones become an advantage—enabling near 24/7 productivity—instead of a collaboration challenge.

Discover how Planhat hired more than 50 employees in 14+ different countries through Deel.

See also: 2025 Guide on Hiring and Managing Remote Workers

“Will offshore talent meet our standards?”

Concerns about quality can be addressed with the right hiring process. Structured, multi-stage interviews, skills assessments, and even short paid projects provide clear evidence of a candidate’s abilities. Local recruiting partners can also help source pre-vetted talent, reducing risk and speeding up the process.

In fact, many of the best candidates actively seek remote opportunities, giving you access to top talent worldwide. And with video interviews and remote assessments now standard practice, you can confidently uphold your quality bar—no matter where your team is based.

How to calculate the ROI of global hiring

Quantifying the ROI of international hiring helps ensure every global hire is a sound business decision. A simple formula is:

ROI = (Total Benefits – Total Costs) / Total Costs

Potential benefits include:

• Salary savings and lower benefits/tax costs
• Faster time-to-hire (and time-to-productivity)
• Higher output from specialized talent
• Reduced turnover and avoided replacement costs

Typical costs include:

• Foreign salary and mandatory contributions (taxes, social security, benefits)
• EOR or payroll provider fees
• Recruitment or relocation costs (if applicable)
• Travel, onboarding, or integration expenses
• Currency conversion or FX transaction fees
• Management overhead (extra time, tools, or software)

Key inputs to consider:

• Compensation differential: Salary and benefits comparison across countries
• Hiring speed: Faster hires reduce downtime and revenue loss
• Productivity: Differences in skills, ramp-up, and availability
• Turnover: Cost avoidance from reduced churn
• Recruiting costs: Agency fees, referral bonuses, or relocation avoided
• Provider fees: Annual costs of using an EOR or global payroll partner
• FX & admin: Currency fluctuations and transaction fees

Sample calculation scenario:

A US-based SMB needs to hire a mid-level software engineer. The table below compares the full cost of hiring domestically in the US versus internationally in India—showing the difference between setting up your own entity and hiring through an EOR like Deel.

As you can see, when a US company hires internationally in India, it unlocks substantial labor cost savings compared to domestic hires; and by leveraging an EOR, it captures even greater value by avoiding costly entity setup and management while accelerating time-to-hire—delivering both financial and strategic ROI.

Discover how Data Talks accelerated global hiring with Deel.

Boost your ROI and hire international talent with Deel

For small businesses, international hiring isn’t just achievable—it can be a major ROI driver when executed strategically. By tapping into global talent, you reduce costs, access specialized skills, and accelerate market entry.

The challenges of compliance, payroll, and culture don’t have to stand in the way. With Deel—the leading global people platform—you can de-risk international hiring and guarantee ROI from every new global hire.

Use the framework above to model your returns and compare the trade-offs of global versus local hiring. With the right partner, even small companies can expand worldwide and make every hire a clear business win.

Book a demo with Deel today to see how we can help you maximize ROI through global hiring.