Hiring Internationally? Avoid This Costly Common Mistake!

Here’s why you should avoid budgeting in USD if you’re getting ready to onboard a team member from a different country (trust us on this one!)

Imagine this: You're getting ready to onboard a new team member in a different country, and you’re excited about the fresh energy and talent that this new worker will bring to your team.

You’ve carefully planned your budget based on an offer amount in USD, and you think you’re ready to move forward. Suddenly, the exchange rate shifts, and your budget is thrown completely off.

This predicament, though frustrating, is a common challenge when extending job offers across international borders. Currency fluctuations can be difficult to keep track of – particularly if you are working with more than one country – and they can cause a major headache for both employers and workers.

Avoid Currency Conversion Challenges

One of the best ways to avoid the challenges associated with currency fluctuations is to consider offering compensation in the local currency of the employee. This approach provides several advantages for both the employer and the prospective team member.

For the employer, it stabilizes budget planning by removing the risk of currency value shifts impacting the cost of employment. Workers also benefit by receiving their pay in a currency they use daily, which eliminates their need to worry about exchange rates affecting their income.

Here are a Few More Benefits of Offering Payroll in Local Currencies:

1. Cost Certainty: Making offers and discussing salaries in the local currency of your employee clears up any confusion and ensures they know exactly how much they'll earn. This way, there's no worry about how changes in currency value could affect their pay.

2. Less Risk from Exchange Rates: Planning your budget with the local currency in mind helps you manage your finances more effectively. It means you won't be caught off guard by sudden changes in how much things cost due to shifts in exchange rates.
   
   
3. Easier Transactions: Using the local currency for salaries makes the whole payment process smoother and simpler. Employees expect to be paid in their own currency, so you can skip the hassle of converting money. Plus, this approach means employees won't feel shortchanged if exchange rates dip, making them happier in the long run.
   
   

Explore Rates for International Hiring

If you're venturing into the realm of international employment or transactions, keeping a close eye on currency conversion rates is crucial. A fantastic resource for this purpose is https://www.xe.com/, a website dedicated to providing up-to-the-minute exchange rates across a wide array of currencies.

Do you want to move toward smoother international transactions? TCWGlobal is here to help. Just fill out our International Quote Request form, and we'll be happy to provide you with a comprehensive quote that breaks down all the costs for you.