08.05.2024

Why UK businesses need to be better equipped to meet global hiring compliance nuances

Overseas business expansion requires organisations to be fully equipped with managing new employment compliance requirements on a global scale. That’s according to employment screening and identity verification expert, Sterling.

With a report from Santander revealing that 28% of UK companies are looking at international expansion in the next two years — the highest level in two years of the survey — Sterling has warned employers not to get into a predicament around nuanced compliance requirements across borders.

As Steve Smith, President, International at Sterling, explained, replicating existing processes in other countries will expose firms to significant risks:

“International markets are clearly rife for businesses at the moment, however, moving across borders and employing people in other countries is a complex process. Business leaders need to be mindful that just because they have a screening process in the UK that helps to enable compliance, doesn’t mean that it can be replicated in other countries. In fact, doing so could expose a company to significant risks.

“A prime example is how and when it is appropriate to carry out a criminal record check. It may be part of current hiring processes for UK teams, but in Spain, for example, employers need to have a legal requirement — not just a legitimate interest — to process this data. How information such as this is transferred from one country into the UK can also be complex, and employers could inadvertently be falling foul of international laws by implementing processes across borders without the right due diligence.

“There’s no doubt that international markets provide a buoyant source of opportunities for UK firms, but they need to be prepared to redesign their employment compliance practices before they take this leap – and that can take time to implement.

"One way employers may look to gain peace of mind when it comes to global complexity, is to partner with vendors that have worldwide reach and local expertise, from account managers familiar with regional markets to dedicated compliance teams able to support with international regulatory requirements. By working with a third party screening provider, such as Sterling, businesses can benefit from enhanced efficiency, automated processes, objective reporting, and working with people who truly understand your global needs and requirements."

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