Nowhere is this more evident than the UK, where Brexit has triggered a considerable decline in net migration among EU residents. At the same time, various industries (including the automotive and hospitality sectors) have made initial moves to reduce their activity or relocate factories overseas, impacting negatively on job creation and the prospects for recruiters in the process.
Additionally, firms and recruiters in specific nations must contend with the universal barriers that prevent them from hiring top international talent, creating a complex and arduous process that can be difficult to complete. But what are the main challenges associated with attracting international talent, and how can they be overcome?
Tax and Investment – How they Impact on the Recruitment of Overseas Talent
Auditing and consultancy experts RSM Global recently explored this topic as part of a global survey, which canvassed the opinion of more than 1,000 professional in 20 different countries.
The findings were intriguing, with a couple of prominent and universal issues emerging across the board. The first of these (perhaps unsurprising) was tax, with countries through the EU, Asia and the Pacific boasting variable rates of taxation and a variety of alternative structures.
Seven of the 20 nations features suggested that this was the single biggest challenge of recruiting talent from overseas, including Australia, France, India, Italy, Japan, the Netherlands and South Korea. Interestingly, three of this countries are members of the single market, and this highlights the type of tax variation that the EU has looked to minimise by encouraging deeper economic integration and open borders.
The second most prevalent problem was the cost of investment in appropriate technology, with this issue largely present in developing economies including Brazil, China and Turkey. Spanish companies also had the same challenge, however, with prohibitive investment costs preventing these countries from diversifying their economies and tapping into highly evolved growth markets.
This is an especially big challenge in China, where 30% of respondents cited this as their most pressing concern in respect of hiring top, international talent. More specifically, if companies and government bodies cannot invest in the necessary technology to drive successful growth industries, job creation will stagnate and skilled candidates will choose to pursue their career goals elsewhere.
The Last Word – How can Firms and Recruiters Address these Challenges?
Ultimately, neither companies nor third-party recruiters can take direct action to solve these issues, as they exist largely outside of their means. The base income tax levy is set by the presiding government, for example, while securing domestic and international investment is usually subject to a unique set of criteria and regulations.
In the case of the latter, however, businesses can at least focus on refining their value proposition and raising funds through accessible methods such as crowdfunding and peer-to-peer lending. By investing in their own technology and creating innovative products under the umbrella of their brand, they can appeal to overseas candidates on an individual level.
Beyond this, companies need to ensure that they create attractive packages of employment, which focus heavily on reducing the cost of living and negating any prohibitive tax rates. It’s then down to recruiters to sell these packages to candidates, using their wealth of knowledge and industry expertise.