Hi Reader

Have you ever considered hiring overseas talent?

Whether you have or haven’t, you’re going to want to read today’s issue.

I’ve teamed up with my friends at Vintti, one of the top up-and-coming recruiting agencies that helps US-based business recruit talent from South America.

I’m very picky about my partnerships - which is why I’m thrilled to partner with Vintti. I recently used their services to hire a paralegal from Argentina. My experience - both the timeframe and the results, were nothing short of first rate.

In today’s article, Agustín Morrone, co-founder of Vintti, will be sharing some insider tips on how to get the best results when hiring overseas including tips about pricing, preparing for a successful recruitment process, and how to work with agencies.

Make sure to read to the end too. I’ve negotiated a special offer exclusively for readers of Freedom Through Acquisition that will save you some serious money if you hire Vinnti to help you with your overseas recruitment.

Enjoy!

Recruiting International Talent: A Game-changing Strategy After Acquisition

For businesses operating within the ETA model, effectively managing talent is crucial for driving growth in the newly formed entity. Acquisitions, of any kind, typically involve a complex period of transition where the focus shifts from merely retaining existing talent to strategically recruiting new personnel to meet evolving business needs. HR teams, CEOs and hiring managers play a critical role in this phase of managing relationships with both existing and new employees.

ETA presents unique challenges in terms of integrating and expanding the workforce within budgetary constraints and financial sense. There are many options to optimize budget use. Here we want to go deeper into the one leveraging international remote talent, particularly from South America, as a strategic solution to these challenges.

Recruitment Dynamics During an Acquisition

Addressing Talent Gaps and New Headcount Needs

After an acquisition, it's essential to assess the new organizational structure and identify talent gaps that need to be filled. This involves understanding the specific skills and roles required to achieve the strategic objectives of the newly formed entity.

The Financial Impact of Recruitment and Compliance

Recruiting new employees can be a significant financial burden, with costs often ranging from three to four times the position's salary. These expenses include direct costs such as job advertising and onboarding and indirect costs such as the time spent by managers and HR teams in the hiring process, especially in acquisitions where the new CEO tends to lead the recruitment efforts. This can lead to several hours per week dedicated to recruiting talent.

Additionally, compliance with HR laws and regulations adds another layer of complexity and cost burden when the investment group is not fully aware of the industry. Compliance costs, such as workers' compensation, unemployment insurance, payroll processing, and healthcare benefits, must be factored into the overall recruitment budget. For example, the compliance cost for an employee earning $70,000 annually can amount to approximately $7,600 per year. These costs underscore the importance of efficient talent acquisition strategies that balance financial constraints and compliance requirements.

International Remote Talent from South America

To address the high costs and complexities of recruitment, many ETA CEOs are turning to outsourcing. Professional Employer Organizations (PEOs) and Employer of Record (EOR) services offer comprehensive HR solutions, including recruitment, compliance, payroll management, and benefits administration. For ETA CEOs, hiring international remote talent from places like Asia or South America presents a strategic advantage.

1. Cost-Effective Talent Acquisition

Hiring offshore talent provides access to a market with a lower cost of living compared to US-based talent which can range from 40% to 60% of savings in salaries. This allows businesses not only to save on headcount costs but also to offer more competitive salaries that are attractive locally enhancing retention efforts.

2. Access to High-Quality Talent

Places like South America boast a vast pool of highly skilled professionals across various fields such as technology, engineering, marketing, sales, and finance. Countries like Argentina and Colombia are leading the ranks in global hiring contractors according to the 2023 Deel "State of Global Hiring" report which has ranked the highest in sectors like education, financial services, and real estate.

3. Time Zone Alignment

One significant consideration when hiring internationally is time zones. This is a common concern for ETA CEOs when building a remote team in a different country. This is where South America presents the biggest advantage compared to Asian options. The minimal time zone difference between South America and the US facilitates real-time collaboration and communication, the maximum time difference being 4 hours, and most contractors only need to adjust their schedules by one or two hours to fully align with on-site staff, maintaining productivity and efficiency. Especially for ETAs, this real-time interaction is vital for swift decision-making and problem-solving.

4. Cultural Compatibility and Language Skill

Fortunately, English proficiency doesn’t present a difficulty when building an offshore team. Candidates and contractors offering their knowledge and expertise for the US market tend to have a proven record of experience in English-speaking environments.

Cultural compatibility is a different story. In general, Asian countries are considered to have more differences in terms of working culture compared to Europe and South America. However, the quality of the candidate and the agency that handles the recruitment are the most critical factors. For ETA CEOs, it is important not only to carefully choose the hiring partner but also to set up a vetting process to thoroughly understand the candidates' working methods before hiring.

5. Scalability and Flexibility

Remote work offers unparalleled flexibility, allowing businesses to scale their workforce up or down based on demand. This adaptability is particularly beneficial for ETA and Search Funds, where agility and responsiveness are essential for seizing new opportunities. Whether ramping up operations after an acquisition or scaling down during restructuring, a flexible remote workforce is definitely a strategic advantage.

6. Innovation and Diverse Perspectives

International talent makes teams more diverse, and diversity sparks innovation and creative problem-solving. Businesses of all kinds can benefit from new ideas and approaches, driving competitive advantage. For ETA ventures, which face a rapid process of growth, fostering a culture of innovation is essential for staying ahead in a competitive market and achieving long-term growth.

7. Global Reach and Market Expansion

While not all companies seek international growth, for those that do, building a team that includes international professionals helps businesses establish a presence in new markets. This global reach not only enhances the company’s brand with a more diverse perspective but also paves the way for future expansion opportunities. For ETA CEOs, an international perspective can provide valuable insights into new market trends and customer preferences, facilitating strategic planning and growth.

Partnering with Local Agencies for an Effective Recruitment Strategy

To harness the benefits of international remote talent, ETA businesses must implement a strategic recruitment approach. Collaborating with local recruitment agencies, PEOs, EORs, and the emerging model called Employee as a Service, offers opportunities to widen their talent pool and ensure compliance with local labor laws.

Before reaching out to potential partners, ensure your ideas are well-organized:

● Build a job description and define the intended profile for your candidates.

● Determine the level of responsibility required.

● Assess if client-facing talent is necessary.

● Decide if a skills test is needed before hiring.

● Define Standard Operating Procedures (SOPs) for remote roles.

● Checklist for Partnering with a Local Agency.

To ensure a smooth process, consider the following checklist before partnering with a local recruitment agency:

Checklist for Partnering with a Local Agency

● Ask about the security measures for document sharing.

● Confirm if materials and equipment are covered.

● Check for termination and pre-notice clauses.

● Understand the fee structure and ask about a Buyout clause.

● Ensure transparency in the fee structure. Is important to know exactly how much the employee will receive.

● Are salaries competitive? Above or under the market?

● Understand how benefits, bonuses, and raises are managed.

● Ask for client referrals, always.

Outsourcing: A Solution to Recruitment Challenges

Effectively managing talent recruitment post acquisition is crucial for the success of the business. By leveraging international remote talent, particularly from South America, you can achieve cost-effective access to high-quality professionals, and save up to 60% in total headcount costs while still maintaining operational efficiency in your time zone.

Investing in international remote talent is not just a cost-saving measure; it is a forward-thinking strategy that unlocks new possibilities and can drive sustainable growth. Embracing this approach can be a game-changer, providing the competitive edge needed to thrive in the dynamic world of entrepreneurship through acquisition.

This has been a special guest post from my friend Agustín Morrone, co-Founder of Vintti. Vintti is an Employee as a Service company empowering SMBs through top talent from South America.

As promised, here’s a special offer for you loyal readers.

Use this special landing page link to access a special exclusive discount just for Freedom Through Acquisition readers.

Here’s the link again: https://vintti.com/freedomthroughacquisition/​

Disclaimers:

Today’s issue was written by Vintti, a content partner of FTA Resources, LLC. While FTA Resources, LLC exercises basic editorial review control over its contents, FTA Resources, LLC is not responsible for its contents and does not officially endorse any viewpoints contained therein.

This newsletter is owned and operated by FTA Resources, LLC.

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