Important Things Your Company Should Know Before Bringing an Employee to Work in the US
Here are 8 factors that your company's HR should know when planning to hire an employee from outside the US.
#1. The US Minimum Wage
According to the US Department of Labor, the federal minimum wage is $7.25 per hour. However, different states have their own specific minimum wages.
So, when employing a foreigner, you should be prepared to pay them about $10 per hour. And if you intend to hire them full-time, you’re looking to pay $18+ per hour.
#2. The Cost of Living in the US
Before you make the final resolve to help your new employee move to the US, you must consider the US cost of living.
The cost of living in the US is far lower than that of many other countries. And because human capital is typically the largest expense that a company incurs, it is wise to consider hiring employees from outside of the United States. This will help the company to save money.
A company that hires employees who live overseas can find workers who don't require as much pay. This is usually because their cost of living is lower than that of the US.
#3. Work Ethic of your Employee's Home Country
Companies in America are fortunate because, besides having a great economy, America has fair taxes and ample natural resources. But despite all these, what really matters in the American business world are the people.
This is because there is an amazing work ethic in America. People know that if they want to get good pay and make something of their lives, they must work hard. This mindset is extremely valuable to any business.
People from other countries may not have this same mentality. And having employees who have bad work ethics can be frustrating. You don't want that to be a part of your company. So before hiring an employee from overseas, you need to make sure they’re the right fit.
#4. Communication Barriers
The employee may be able to carry out the necessary tasks. But can they communicate effectively?
Communication is key to implementing the goals and visions of any company. Good HR managers know that effective communication is something that you look out for in an employee long before you consider their skills.
So if communication will be a clog in the wheel of your employment relationship, you may want to reconsider your decision to employ the expatriate.
Cultural differences may also make communication very frustrating. And frustration will only lead to loss of productivity.
#5. Tax Implications
The US government views foreign employees differently. And that can lead to some complications in your company's tax situation.
You should confer with your state tax office to understand how hiring a foreigner will impact your company's taxes. It's not too big a deal if you're hiring a freelancer. But where it is an employee that your company intends to bring into the US, you must understand the tax situation before you take the daring step.
#6. Global Mobility and Relocation costs
Many companies go overboard with global mobility and relocation costs. More often than not, this is an indication of poor management of the global relocation process.
Your company must resolve to keep costs down and spend money only on the most necessary tasks. With proper planning, your HR department should know what projects to begin and identify what relocation tasks to carry out. They may enlist the help of third-party services for things like accommodation and shipping.
In doing so, they should make attempts to streamline the mobility process. Bring all your outsourced tasks together under one roof so that you can have the benefit of major cost reductions. This is better than paying a number of different companies to perform separate tasks.
And the easiest way to do all these is to contact a US relocation agency and take advantage of their relocation services. At Expat US, we can take care of the entire relocation process and make it easier. Let us take the relocation burden off your hands.
#7. Immigration Policies
Before you think of bringing in your employee from overseas, you must make sure your HR is conversant with the US immigration policies. Rules regarding Visas and Work Permits must be looked at carefully.
Strict immigration policies are an effort by countries to preserve job opportunities for their own citizens. That is why some countries have placed quotas on work permits or limits on the number or percentage of foreign workers that a company can hire.
#8. Work Authorization
If your company is actively considering hiring foreign workers, the US government sees you as a prospective employer of foreign workers. And as such, there are certain US immigration laws to follow.
US employers are required to confirm the work authorization of each new hire at the time of hire. They are also to keep records to show their compliance with this rule.
If a prospective employee does not have Work Authorization, your company may need to be able to help them get it.
Your company may be able to help a prospective employee in applying for lawful permanent residence in the US (a "green card"). This depends on a number of factors:
● the requirements of the job that the prospective employee is to do,
● the qualifications of the worker that you are trying to hire, and
● the amount of time, money, and effort that your company is willing to expend.
Let Expat US help you
It seems like there are many downsides to consider if you're hiring an employee from overseas. However, it can also be a fantastic opportunity to reach out to employees from other countries. You can find qualified employees who will work for a lower wage than you can get within the country.
And with Expat US, the relocation process can be smooth, quick, and easy. We provide an efficient, secure, and smooth relocation experience to individuals and professionals.
So is your company looking to relocate an employee? Are you planning to hire an employee from outside the US? Do you want to know how to help these expatriates secure their move into the country and settle down?
Let us help you with the details of global mobility.Contact us today.