ASSIGNMENT No.

2
Course: Entrepreneurship (8503)
Semester: Autumn, 2021
Submitted to: MAAM Sameen jawaid
Contents
Introduction ............................................................................................................................................................. 4
Hiring Employees for Your Small Business: ...................................................................................................... 4
Important sub-topics ............................................................................................................................................... 4
Identifying Taxable Workers .............................................................................................................................. 4
Behavioral Test ................................................................................................................................................... 4
Financial Test ...................................................................................................................................................... 5
Relationship Test ................................................................................................................................................ 5
Determining Taxable Wages............................................................................................................................... 5
Calculating Withholding ..................................................................................................................................... 5
Federal Taxes ...................................................................................................................................................... 5
State Taxes .......................................................................................................................................................... 5
FICA ................................................................................................................................................................... 6
The Employee's Host Country's Compliance...................................................................................................... 6
Employees working in the United States may nevertheless owe taxes in the United States. ......................... 6
The right international path forward ................................................................................................................... 6
Corporate Tax ................................................................................................................................................. 7
Employer Tax.................................................................................................................................................. 7
Employee Tax ................................................................................................................................................. 7
strategies for attracting and hiring new talent ..................................................................................................... 7
A corporation from the United States registers in another country. ............................................................... 7
Hire the individual into the local company ..................................................................................................... 7
The new hire takes on the compliance obligations ......................................................................................... 7
Obligation defaults to employee ..................................................................................................................... 8
Employee required to meet compliance obligations ....................................................................................... 8
Instead of hiring an employee, hire a contractor............................................................................................. 8
Make use of a reputable job agency. ............................................................................................................... 8
Embracing "digital nomads" or not ................................................................................................................. 9
Don't do anything ............................................................................................................................................ 9
Embroidering conformity using a needle ........................................................................................................ 9
Practical aspects of legal and tax issues .............................................................................................................. 9
Review of theoretical and practical situations ...................................................................................................... 10
Review .............................................................................................................................................................. 10
Merits, demerits, deficiencies or strengths of the organization with respect to my topic..................................... 11
For small firms, hiring an employee has both positive and bad consequences. ............................................... 11
Pro: More work equals more money. ............................................................................................................ 11
Cons: Finding good employees can be difficult. .......................................................................................... 11
Pro: New hires can bring new skills and ideas to the table. .......................................................................... 11
 Cons: Managing employees takes a lot of time. ........................................................................................... 11
Pro: You Can Take a Vacation ..................................................................................................................... 11
Con: Employees Are a Commitment ............................................................................................................ 11
Advantages to hiring foreign employees .......................................................................................................... 11
International talent is available: .................................................................................................................... 12
Costs of employability are reduced: ............................................................................................................. 12
Flexibility in the job description: .................................................................................................................. 12
Increased ability to solve problems: ............................................................................................................. 12
Developing new markets: ............................................................................................................................. 12
Disadvantages of hiring foreign employees:..................................................................................................... 12
Registration of a local entity: ........................................................................................................................ 13
Global Salary Structure: ................................................................................................................................ 13
Managing contractors and international workers:......................................................................................... 13
Employment prospects that are skewed: ....................................................................................................... 13
Communication Gaps: .................................................................................................................................. 13
Inconsistency and a lack of commitment: ..................................................................................................... 13
A Strengths and Weaknesses Analysis Process for Employees .................................................................... 14
Employee Appreciation and Input ................................................................................................................ 14
Gamification, Competition, and Incentives .................................................................................................. 14
Social Media and Intranet ............................................................................................................................. 14
Analyze the Strengths, Weaknesses. ............................................................................................................. 14
Examine all employee performance evaluations. ......................................................................................... 14
Managers can supply the D-Low. ................................................................................................................. 15
Compare and contrast your findings ............................................................................................................. 15
It's time to consider your options. ................................................................................................................. 15
Align Opportunities with Threats and Weaknesses ...................................................................................... 15
Training ......................................................................................................................................................... 15
Verdict........................................................................................................................................................... 15
Hire Employees in Pakistan .................................................................................................................................. 15
Pakistan Employment Laws .............................................................................................................................. 15
In Pakistan, onboarding takes place. ................................................................................................................. 16
Conclusion ............................................................................................................................................................ 16
Introduction
Regulatory compliance refers to a company's adherence to the
rules, regulations, and guidelines that apply to its operations. For all
businesses, it is a cornerstone of good governance.
Embracing the spirit of legal compliance is at the heart of regulatory
compliance management. Companies must ensure that all aspects
of their operations are compliant with local and international laws.
You'll already be doing this for your entire company, considering
problems like business law, data protection, and tax.

In terms of international employment, this entails being familiar with local labor laws in all countries where you plan to
hire and how they apply to you. Noncompliance, whether deliberate or not, may wreak havoc on your company's
operations, ability to generate capital, and employee retention. Targeted regulatory and compliance procedures can help
you anticipate and reduce the risks and costs of noncompliance. (omnipresent, n.d.)
Through the use of business travelers, overseas assignments, or permanent transfers, new technology and improved
communications have made it easier than ever for enterprises to engage in the global economy. Tax compliance for
overseas employees, on the other hand, might provide unforeseen obstacles for both the individual and the employer.
Working at a different location for even a single day might result in individual tax filings as well as tax reporting and
withholding requirements for the firm in the Home and/or Host location. Failure to meet these duties can result in
unexpected tax bills, increased audit expenses, financial penalties, as well as legal and reputational issues for both your
firm and the employee.
Hiring Employees for Your Small Business:
In many cases, recruiting staff for your small business after you've started out as a solo entrepreneur becomes a
requirement. Business owners frequently hire their first employee because they are overwhelmed and need assistance
with administrative tasks.
Following that simple decision, comes the grunt work: the employer's unexpected and sometimes frightening financial
and legal obligations, including the needs for a legitimate recruiting procedure.
But don't lose heart; if you plan ahead, take things one step at a time, and seek solid guidance, you'll be OK. When hiring
personnel for the first time for your small business, keep the following points in mind.

Important sub-topics
Identifying Taxable Workers
Employees and independent contractors are two types of workers. Employees are considered taxable workers who must
pay payroll taxes, whereas independent contractors must pay their own taxes. Workers are usually considered employees
if you have the authority to guide and control how they conduct their work rather than just the end result.
The distinction between independent contractors and employees, on the other hand, is not always clear. The Internal
Revenue Service (IRS) provides common law rules that encompass behavioral, financial, and relational tests to assist
business owners in determining which workers are taxable employees:

Behavioral Test
When an employer has the authority to direct and
control a worker, the worker is considered an employee.
Although the employer is not required to direct or
control the employee, he or she has the option to do so.
(workingna, 2020)
Financial Test
This exam assesses an employer's level of control over the financial aspects of the job. Having extensive control over work
supplies might help a worker maintain his or her status as an independent contractor in several professions.
The availability of services is one clear method to identify an independent contractor from an employee. An employee
cannot market services unless they are working outside the firm as an independent contractor; an employee cannot
advertise services unless they are working outside the company as an independent contractor.

Relationship Test
This test examines how the employer and employee view their relationship. The worker is an independent contractor if
the relationship between the employer and the employee is expected to remain until the end of a project or for a set
period of time. The worker, on the other hand, is a taxable employee if the relationship has no or few restrictions.

Determining Taxable Wages

Salary, bonuses, and gifts are all examples of taxable pay for services
rendered. Some forms of compensation, such as travel or food
reimbursements for business, are not considered taxable wages.
Employees must validate spending through receipts or expense reports in
order for them to be nontaxable. They must also be required, reasonable,
and relevant to the business. (usatoday, 2018)

Calculating Withholding
After you've determined which employees are taxable and which wages
are taxable, you'll need to figure out how much you need to withhold for
federal, state, and local taxes, as well as FICA and FUTA. (filer.pk, 2020)

Federal Taxes
For the applicable period, federal income taxes must be deducted from every paycheck. Employers can compute
withholding amounts using two sets of tax tables provided by the IRS: wage bracket tables and percentage tables.
Five different payroll periods are represented in the wage bracket tables (daily, weekly, bi-weekly, semi-monthly, and
monthly). Employers select the applicable pay period and wage bracket for employees, then scroll across the table to the
column that shows the filing status to determine withholding amounts.
The percentage tables are broken down by filing status and are accessible for five payroll periods (daily, weekly, bi-weekly,
semi-monthly, and monthly). Employers begin by decreasing salaries by the amount of requested exemptions. They next
look for the withholding amount depending on the wage bracket in the table corresponding to the employee's filing
status.

State Taxes
Most states employ tables that are identical to federal tax tables, which you may obtain by visiting your state's website's
tax section or calling the Small Business Administration. In states where there are no state income taxes, such as Alaska,
Florida, Texas, Wyoming, and Washington, you do not need to withhold state taxes. Other outliers include states like
Arizona, where personal income taxes are a fixed percentage of federal taxes, and Pennsylvania, where state taxes are a
fixed percentage of gross wages.
FICA
The Federal Insurance Contributions Act (FICA) is a federal legislation that mandates that companies deduct Social
Security and Medicare taxes from employee pay. It also mandates that both the employer and the employee pay half of
the FICA tax. (investopedia, 2021)

The Employee's Host Country's Compliance

Employers with international employees must be aware of the local and national tax rules in the employee's host country.
Most countries, like the United States, have their own income tax and social security tax systems, which normally require
employee withholding/tax payments and tax return filings. Failure to comply with a country's reporting and withholding
responsibilities can be costly.
Unfortunately, there is no one-size-fits-all solution for taxes imposed in jurisdictions other than the United States. Filing
and withholding obligations differ by jurisdiction, and each presents its own set of obstacles for international employees.
To overcome these issues, organization’s wishing to engage an overseas workforce should either hire an in-house mobility
tax specialist or hire a firm that specializes in mobility taxes to comply with the employee's Host country's filing and
withholding regulations.
Employees working in the United States may nevertheless owe taxes in the United States.
A cross-border employee may pose additional tax complications in the Home country, in addition to the obligations of the
Host country. Employees who stay in their home place as a tax resident may face double taxation. Allowances or other
benefits, such as housing or moving expenditure reimbursements, may result in additional reporting and tax
responsibilities, complicating the payroll in the Home country.
Companies that deploy US personnel to work in other countries face these types of home country tax issues in particular.
The United States is one of the few countries in the world that requires citizens and resident aliens to record their
worldwide income, even if they are not working in the country. To avoid double income taxation, it is vital that US
employees take use of available exclusions and credits on their US tax returns. If the US and the Host country have a social
security agreement, it may be feasible to agree to continue paying social security in the US while receiving a complete or
partial exemption from social security in the Host country. These strategies to avoid double taxation can save you and
your employee a lot of money in taxes.
It's worth noting that US taxpayers living abroad may be subject to additional reporting obligations relating to foreign
assets and/or financial reports. The Overseas Account Tax Compliance Act (FATCA), for example, mandates the disclosure
of foreign assets for taxpayers with foreign assets exceeding certain thresholds, regardless of their filing status or
residency. A single US resident alien living in the United States, for example, would be required to file FATCA if their
specified foreign assets exceeded $50,000 on the last day of the tax year or $75,000 at any point throughout the year. For
US taxpayers with foreign financial accounts totaling more than $10,000 at any time throughout the calendar year, a
Report of Foreign Bank and Financial Accounts (FBAR) may be needed. Failure to comply with FATCA or FBAR reporting
requirements can result in severe financial and legal consequences.
More than 60 countries have income tax treaties with the United States. If certain circumstances are met, business
travelers travelling between the United States and these nations may be eligible for an exemption from the host country's
income tax. These criteria frequently include requirements that the employer in the Host nation not deduct the
corresponding pay expense and that the employee does not exceed a set physical presence threshold in the Host country
(often 183 days during a specified time period). Even if a treaty exemption applies, there may still be reporting and
withholding duties on the part of the firm, as well as employee tax filing requirements.
The rules for obtaining a treaty exemption can be complicated and differ depending on the region, project, and employee.
Companies should conduct thorough reviews and preparation ahead of time to ensure that the laws are understood and
that mechanisms are in place to assure compliance. (Global Tax Network, 2019)

The right international path forward

Employers have the issue of addressing the range of complications, expenses, and hazards that these scenarios can
provide, such as immigration, employment law, and taxes, as their workforces become more international with the
addition of new recruits from other countries. Understanding the responsibilities and obligations that both employers and
employees assume with these agreements is critical to international hiring's long-term efficacy, competitiveness, and
success.
Employers must manage a variety of tax issues when hiring a new U.S. employee who lives and works outside the country:
Corporate Tax
Whether or not the company has a local corporate entity, a new U.S. hire working remotely in another country could
create a corporate taxable presence (or a "permanent establishment" – PE – in countries with which the United States has
signed a double tax treaty), bringing with it corporate income tax and compliance obligations.

Employer Tax
These could include having to register with the tax authorities, run a payroll, and calculate and transmit taxes in the
foreign country where the new employee lives. Furthermore, exposure to foreign employment taxes and social security
contributions may develop.

Employee Tax
The tax arrangements of an individual who works for a U.S. company rather than a local company in their home country
may differ, resulting in unexpected or costly additional liabilities.

strategies for attracting and hiring new talent

We'll go over seven strategies for attracting and hiring new talent from outside the United States.

A corporation from the United States registers in another country.

With a worldwide talent market to tap into, U.S. firms may be able to discover qualified people in countries where they do
not have a presence, and their global footprint will expand as hiring extends internationally.
When considering the tax consequences of such arrangements, the first step should be to evaluate if the new hire's
remote working arrangements will result in the company having a taxable presence in the United States. This has the
potential to subject U.S. profits to taxation in the foreign jurisdiction where the employee works, if registration and filing
of tax returns are required. This can result in tax repercussions and compliance duties in the United States. Alternatively,
the U.S. employer could incorporate and register a new business company in the foreign country, triggering equivalent
local compliance and reporting duties, depending on criteria such as the amount of new hires in the country.
Local regulations are likely to require payroll to be run when appropriate, taxes to be withheld, and local employer and
employee social contributions to be paid in any case. The cost of these contributions, which can reach 50% of income in
some European countries, should be measured. Statutory benefits, as well as benefits that are commonly supplied in the
local market, will need to be understood.
A local presence provides the platform for greater recruiting and the capacity to play toe-to-toe in the local labour market
with essential employee expectations surrounding benefits and payroll compliance, despite the tax complexity that comes
with establishing a presence in a new nation.

Hire the individual into the local company

It may be possible to hire new employees into the US company if it is registered as an employer in the other country.
When an individual is hired as a local employee, they will have employment arrangements that are comparable to the rest
of the market, such as access to local benefit plans, payroll tax withholding, and payment paid in local currency. Because
of the convenience, ease of administration, and competitive terms, this may be a viable option for an employer.
If the new hire is working for a U.S. firm, there is a danger of establishing a taxable corporate presence. Although each
new hire case should be evaluated on its own merits, the following scenarios may pose concerns depending on how local
tax authorities handle the matter. The employee has the authority to negotiate and/or sign contracts on behalf of the U.S.
corporation, and he or she does so.
On behalf of the American corporation, the employee is involved in business development in the local market.
Their actual working arrangements, such as possessing an office, might be considered a "permanent place of business" for
the American corporation. Their work is essential to the company's main operations in the United States.

The new hire takes on the compliance obligations

There may be nations where a U.S. employer's corporate and PE risk is low, and there is no requirement to register and
manage a local payroll. There may be variances in how the lack of payroll duties arises, and it's vital to understand the
impact on the employee and the administrative load the employee may have to shoulder in comparison to a regular
employee of a local company in this situation:

Obligation defaults to employee

Payroll registration may be voluntary for a US corporation, and in the event that no action is done, reporting, calculation,
and remittance of taxes may fall to the employee. In some countries, such as Hungary, the employee may be liable for the
employer's social security duties, raising their tax burden.

Employee required to meet compliance obligations

Local tax regulations, on the other hand, may compel the employee to follow a specific payroll or compliance regime in
order to make timely tax payments. Where there is no local employer, the PAYE direct payment method in the United
Kingdom, for example, requires the employee to administer a payroll programme, which includes adhering to tight
reporting deadlines (known as Real Time Information).
Employers may choose to provide tax assistance to employees in order to aid them in meeting local tax laws. However, if
the duty arises, the employee may be subjected to additional charges or taxes that other local employees may not be
subjected to.

Instead of hiring an employee, hire a contractor

It may be attractive to engage as an independent contractor rather than an employee if a company does not have a
presence in the area where a new employee lives or if the local corporation will not recruit them. There is a common
misconception that an independent contractor does not expose a U.S. corporation to the same tax compliance and
expense exposure as if they were employed as an employee.
The nature of the engagement is critical in deciding whether a contractor arrangement is suitable or whether the
individual is engaged in what is effectively an employment relationship. Many countries use similar criteria and tests to
the IRS's 20-factor test for assessing job status, weighing subjective elements to decide if a considered employment exists.
The degree of integration into the business (e.g., do they have a company email or phone number? ), the degree of
integration into the business (e.g., do they have a company email or phone number? ), and the degree of integration into
the business (e.g., do they have a Are they effectively integrated into the firm as an employee? ), who leads and "controls"
the job they do, if they have financial risk for the services they provide, and how they are compensated (fixed fee or in
effect, salary, as well as provision of employee benefits).
If a U.S. corporation hires contractors in another country, there's a chance that foreign tax or labour authorities will
conduct an audit and determine that the contractors should be treated as employees. In some countries, an employee
may also file a legal claim to be treated as an employee. For failing to operate payroll withholding, the company risks
corporate and PE exposure, employment taxes, penalties and interest, as well as potential employee tax liabilities. While
many arrangements are appropriate, overseas employment requires careful analysis and assessment.

Make use of a reputable job agency.

An employer may choose to hire an employee through a third-party professional employment organization (PEO). For a
charge, the employee is then leased back to the corporation. This agreement permits the PEO to assume the legal, tax,
and payroll compliance responsibilities on behalf of the US company. PEOs may provide temporary or even long-term
hiring solutions in nations where the company has a low headcount of new workers and does not wish to start a new
corporation or register a PE, providing a rapid, albeit potentially more expensive, alternative.
Though it is a more streamlined strategy for the employer, it is important to evaluate both the potential tax risk to the
company and the employee experience when employing a PEO. A third-party corporation acting as the employer in place
of the U.S. company may not be able to ring fence corporate tax risk. To determine whether a U.S. company has created a
taxable presence, countries such as the Netherlands and China will look at subjective factors such as
1) the employee's role and responsibilities,
2) where they report into,
3) if their work is directed from the United States, and
4) where economic benefit is derived.
Employees who work through a PEO may not be eligible for employer benefit and incentive plans. Many companies in the
United States will examine these cultural and monetary concerns when assessing if such an arrangement is appropriate.
Embracing "digital nomads" or not
With the advent of "digital nomad" visas, countries like Costa Rica, Romania, and Greece are embracing the opportunity
to work from anywhere. These visas allow people to stay in the nation for an extended amount of time without having to
worry about visa sponsorship. While appealing to both workers and self-employed individuals, these arrangements
frequently lack features that exclude an individual from paying income and social taxes. Similarly, the employing firm may
have no safeguards, which means that new hire employees operating overseas under such an arrangement may be
subject to corporation and employer taxes, as well as reporting and other compliance duties.
"With several global destinations legislating in the area of digital nomads and creating work and residence authorizations
for these alternative employment arrangements, there's no doubt the number of people working remotely outside their
home country will continue to rise," said Dan Morris, director and counsel at Newland Chase. It is important to
understand each country's programme and determine whether it is tax-viable.

Don't do anything
Employers could, as a last resort, choose to take no action, acknowledging that there is inherent risk in failing to measure
or comprehend potential exposure. When asked who is responsible for managing taxes in a foreign nation, the answer is
frequently that both the company and the person are exposed to and have obligations. If employees fulfil their
responsibilities, file returns, and pay taxes, the U.S. employer who chooses to take no action in the foreign jurisdiction
may become visible to the foreign country's tax authorities, posing a risk and exposure to a local entity or future
operations if they have not yet established themselves there.
Importantly, this may lead to unanticipated and costly mistakes. New York's "convenience of the employer" criterion, for
example, may subject a new recruit whose office and principal place of business is there to state income tax, even if they
are hired overseas and prefer to stay there.

Embroidering conformity using a needle

Companies must know that there are many options and that there is rarely a "correct answer" when it comes to hiring
people from other countries. Rather, concessions may be made to meet tax and regulatory duties, provide a competitive
salary and benefits package, and balance the burdens and expenses that this can impose on both a U.S. corporation and
an employee. Employers can get a competitive edge in a competitive market by going worldwide in their quest for people,
regardless of which approach they adopt. (grant thornton, 2022)

Practical aspects of legal and tax issues

With over 9,600 locations in 28 countries, Wal-Mart Stores is the world's largest retailer.
Sam Walton, an Arkansas businessman, launched the corporation in 1962. With a 48 percent interest in the corporation,
the Walton family remains one of the world's wealthiest families.
From 1.8 million employees in 2005 to 2.1 million in 2010, Wal-employment Mart's increased by about 17%. The company
has been able to create significant revenues and profits per
employee over that time. In comparison to 2005, annual
revenue per employee has increased by about $27,000, while
profit per employee has increased by $900.
About 1.4 million of the company's 2.1 million workers work
in the United States. Wal-Mart is the largest private employer
in Mexico and one of the largest in Canada outside of the
United States. For the same time period, international
revenues totaled $109 billion.
Wal-Mart, which employs more people than any other private
firm on the planet, has come under fire from labor unions. It
has been chastised for its anti-union stance. Employees are
paid between $10 and $12 per hour on average each year,
according to the company. Local lawmakers and community
activists, on the other hand, have objected to the establishment of new Wal-Mart stores, claiming that it lowers salaries
and harms other businesses. (walmart, n.d.)

 *Part-time employees are included.

 Employees: 2.1 million*
 Revenue per employee: $199,500
 Profit per employee: $7,100
(cnbc, 2011) (findlaw., 2021)

Review of theoretical and practical situations

Review
Hiring the proper employees is a critical component of your company's success. Even before the actual recruitment, if
you're thinking about hiring staff for your company, you'll be faced with a number of questions and events. The hiring
choice includes considerations such as the type of salary, working hours, and job responsibilities. You are also liable for
withholding taxes from the new hire's payment if she is a regular employee.
For many business owners, getting to the correct level is enough to keep them awake at night. Every business must decide
whether or not to hire a new employee. There are concerns about whether the person is a good fit for the job, his
remuneration, and his role within the organization. A company's ability to succeed can be harmed by insufficient staffing.
Having too many personnel, on the other hand, reduces profitability. According to the law of economics, any new hire
should create more than your marginal cost.
Hiring and compliance with employment laws in Pakistan are critical parts of any expansion in the region. You must
guarantee that every person you recruit and hire complies with Pakistan employment laws. Then you have to onboard
them, draught all of their employment documentation, and keep running your business. From the beginning,
Globalization Partners will make a difference in the recruiting and hiring processes. We'll hire employees on your behalf,
put them on a legal payroll, and make sure they satisfy all of your requirements.
In order to hire Pakistani employees, you must first build a personal relationship, which is crucial in the country.
Negotiating is an art form in Pakistan, and it usually takes place between senior members, so be prepared for lengthy
discussions about business and hiring terms. Despite the fact that Urdu is the official language, barely 8% of the
population speaks it, with the rest speaking over 80 languages. If your organization does not have someone who is
proficient in all of these languages, it is critical to acquire a team member or translator who can collaborate with
employees.

 Every time a company with 20 or more employees hires someone, they must establish a formal employment
contract. These agreements should be written in the local language and include all compensation, benefit, and
termination clauses. Instead of foreign money, all compensation and other salary amounts must be in Pakistani
Rupee.
 Pakistani labor rules establish the standard workweek for all employees. Full-time employees work an average of
48 hours per week, or eight hours each day. They cannot work more than nine hours per day or 48 hours per
week without receiving overtime pay.
 If you hire employees in Pakistan, they must give you with a Form IT-3, which is an income tax return form.
Companies must also register with the Federal Board of Revenue (FBR) by submitting a TRF01 taxpayer
registration form or registering online.
Merits, demerits, deficiencies or strengths of the
organization with respect to my topic
For small firms, hiring an employee has both positive
and bad consequences.

Small business owners and even freelancers frequently consider

employing personnel in order to increase their workload. This may
appear to be a terrific plan at first - their business will grow, they will make more money, and they will have more staff.
Unfortunately, there are advantages and disadvantages to hiring personnel, which we will cover here:

Pro: More work equals more money.

When you work alone, you are limited to the number of hours you can work in a single day. There are more working hours
accessible to your firm when you have people to assist you. This means you'll be able to take on more work, earn more
money, and expand your company to new heights. If you want to grow your business, hiring more people may be the only
option to do so.

Cons: Finding good employees can be difficult.

Hiring good staff may be difficult, costly, and time consuming unless you have prior recruitment experience. You'll have to
invest time and money in advertising translation jobs and interviewing people, and the finest ones might cost more than
your small firm can afford. If you're thinking of increasing your workforce, make sure you consider the recruitment
requirements.

Pro: New hires can bring new skills and ideas to the table.
New people bring with them new perspectives, skills, knowledge, experiences, attitudes, and personal characteristics. A
new employee should be able to provide value to your company and assist you in expanding it in new ways. For example,
a new employee who speaks multiple languages could be in charge of translating your website's content. They may be
able to translate your social media posts, blogs, and any incoming e-mails that you are unable to handle yourself.

Cons: Managing employees takes a lot of time.

While hiring an employee to boost your productivity is a good idea, keep in mind that you'll need to invest time managing
and training them. Any employee who isn't highly skilled will need constant assistance and may even make mistakes. This
will require you to devote your own time to their development, so consider whether the entire process is worthwhile.

Pro: You Can Take a Vacation

You will suddenly feel more confident about taking a vacation when you have someone to cover your work for you or
simply reply to consumer inquiries while you are away. Many small business owners never take a break because they
believe that if they do, their company would fail. Hiring an employee can provide you more free time and give you the
peace of mind that your business will be taken care of in the event of illness or annual leave.

Con: Employees Are a Commitment

Because the business environment is always evolving, hiring a permanent employee may not be the best option. While
you may have enough of employment right now, that may not be the case in a few months or years. Outsourcing your
assignments to a freelance specialist may be a better option than hiring an employee. (Blend, 2020)

Advantages to hiring foreign employees

In many countries around the world, foreign workers make up a significant portion of the workforce. It is common
knowledge that employing international personnel is more difficult than hiring people from your home country. However,
considering the enormous benefits linked with it, this may be well worth the effort.
Hiring staff from outside your own nation might provide your company with numerous advantages. Hiring international
workers, for example, diversifies your workplace by bringing in people from diverse places. Aside from that, the
recruitment procedure shows the candidates' diverse expertise and experiences.
This helps to your company's increased production and growth. The following are some of the most notable benefits of
hiring foreign talent:

International talent is available:

The main purpose for hiring foreign labor is to bring in people with a wide range of skills to the company. It's always
possible that the local labor will be lacking in particular skill sets. When this happens, you should broaden your search
radius to include international candidates. This will assist you in discovering the greatest candidates for any corresponding
employment profile.
Hiring and managing an international employee may appear to be a daunting task. However, with the correct assistance,
this process may be relatively painless. Multiplier can relieve you of the burden of handling all of your overseas staff after
you've hired them. Aside from that, we assist them with payroll processing and meeting their employment demands.

Costs of employability are reduced:

Another significant advantage of recruiting international workers is the profit margin. This is bolstered even more by the
rise in work efficiency. This is a significant benefit when hiring international workers from developing countries because it
allows you to save money. This means that these workers would be paid in their own currency. It would be much lower
than any modern country's typical wage scale.
Productivity Improvements:
Due to the difference in time zones, engaging an international workforce essentially entails setting up an office that
operates 24 hours a day. This aids in the development of your company's credibility among clients. It also reduces any
delays created by projects with short turnaround times due to a shortage of resources.

Flexibility in the job description:

In general, foreign workers would feel at ease taking on tough employment role. They'd also be willing to work from any
place and on a variety of shift schedules. Local personnel, on the other hand, would be unable to adjust to such demands.
In addition, when compared to international workers, they demand larger perks.

Increased ability to solve problems:

Hiring international staff brings together people with a variety of backgrounds and experiences. As a result, depending on
their history or experience, these personnel would use a variety of techniques to tackle a problem.
This creates a flexible environment for the company to develop noteworthy problem-solving strategies. Aside from that,
having a diverse set of perspectives will help to smooth out the bumps in the workplace. It would also aid in instilling in
the entire team the ability to think strategically and come up with novel
ideas.

Developing new markets:

Extending employment offers to overseas personnel would allow the organization to expand into new areas throughout
the world. This is a really close-knit move, and if it isn't made at the correct time, the company's reputation may suffer. As
a result, enlisting the assistance of people from other nations to assist you in becoming familiar with local consumer
requirements or etiquette could be really valuable.
Additionally, overseas workers can assist in bridging the linguistic divide. As a result, hiring overseas workers allows you to
blend in with the local population while yet promoting your company's products and services.

Disadvantages of hiring foreign employees:

Although hiring international workers could be a smart and cost-effective strategy. The process of broadening your
business and putting it into the worldwide market is not without its drawbacks. The disadvantages of hiring foreign
workers include the following:
Registration of a local entity:
There are two types of hiring international staff. To begin, hire an employee from outside the country to report in person
to your corporate headquarters. This includes relocation packages and settlement help, which may result in a significant
increase in your company's recruitment or employability costs.
The second kind, in which workers work remotely from their home nations, is preferred by the majority of businesses.
This is especially true of the pandemic's most recent tendency. We discovered that 65 percent of respondents wished to
work as remote employee’s post-pandemic in a recent study performed by one of the job portals. A hybrid remote work
environment was chosen by 31% of respondents. This results in a cumulative score of 96 percent of workers preferring
remote working to traditional working because of the freedom it provides.
Hiring a remote employee from another country, on the other hand, necessitates the establishment of a local
organization in that country. While attempting to comply with each country's federal and state rules, the companies run
into possible roadblocks.
Multiplier promises to act as your company's local organization in any given country to make this process easier. We can
also handle general compliance and other perks for your worldwide staff, allowing you to tap into foreign experience
without the need for a registered business.

Global Salary Structure:

Every country may have a distinct pay scale for any job type, so if your international employees are working remotely, it's
critical to pay them in their own currency according to local regulations. Multiplier has made this procedure easier for
you. Our in-house professionals are capable of handling complicated foreign payroll and other tax payments. You may also
use our platform to keep track of all payroll payments made by your firm to your international employees and make
changes as needed. As a result, Multiplier provides a one-click option for promptly paying all of your overseas employees.

Managing contractors and international workers:

It is a smart idea to hire both contractors and employees, depending on the company's growth and economy. This would
shift the company's focus to international markets. Managing the various employment benefits for both contractors and
full-time employees from different nations, on the other hand, could be a time-consuming operation.
Multiplier can once again step in and assist you with onboarding and supervising your overseas contractors. We also have
a full suite of services to meet all of your overseas employees' needs. As a result, using a single platform, you can easily
manage the benefits supplied to your contractors and workers.

Employment prospects that are skewed:

Companies favor foreign labor over locals because of the financial and professional benefits of recruiting them. This leads
to a shortage of jobs and unemployment among a country's citizens, which consequently impacts the country's whole
economy.
Long-term unemployment also leads to a considerable increase in crime rates, posing a new threat to the different
countries.

Communication Gaps:
Hiring foreign talent has the unintended consequence of fostering a distant working environment. Such a configuration
could result in technological issues such as a shaky internet connection, difficulties using communication apps, or a lack of
office supplies.
Furthermore, the majority of internal contacts are conducted via video conferencing or email, which may result in
miscommunication or project delays.

Inconsistency and a lack of commitment:

Finding an international employee who meets your requirements is relatively simple. However, you may need to train
them to follow company procedures and get familiar with other process-based requirements. Furthermore, international
employees appear to have fewer interpersonal interactions with the organization than in-house or local employees. This
could result in a financial loss for the company.
As an example, if staff opt to leave after a specific amount of time, the money spent on training may be wasted. This could
be due to the employee's lack of physical connection, as the entire procedure was based solely on online communication
with management. These encounters may not be sufficient to form long-term bonds with international workers. As a
result, when it comes to foreign employment, there is always the risk of losing staff. (Multiplier, n.d.)

A Strengths and Weaknesses Analysis Process for Employees

Employee strengths and weaknesses can be a major predictor of their job success as well as your company's success.
It's easy to have trust concerns as an employer when it comes to your employees' talents and limitations, especially with
potential employees. It's difficult to tell which content is authentic and which is hearsay, given the abundance of content
out there describing the ideal talents and weaknesses to impress employers. Furthermore, a made-up list of strengths and
shortcomings declared in an interview or appraisal does not equal a real person, with all of their intricacies.
There's also the issue of personality types: introverted people are often eclipsed by more extroverted employees for
reasons other than talent, making it difficult for employees to recognize the strengths of less competitive or confident
employees.

Fear not; there are several methods for determining your team's true strengths and shortcomings, which we
detail below:

Employee Appreciation and Input

Users can offer comments or send appreciation to a colleague using the People Goal programme, which you can follow
from your end to see how your staff are performing. You can figure out what kind of strengths and shortcomings each
employee has (or doesn't have) based on the feedback they receive. What others have to say about a person's character
and skill set is frequently more telling than what they have to say themselves.

Gamification, Competition, and Incentives

Every team will include competitive and non-competitive members, which will differ dramatically by industry.
Competitions and gamification of HR, on the other hand, can help you uncover your employees' strengths and
weaknesses by improving engagement and adding a fun element to work processes.
Competitions, on the other hand, are a major issue. As previously said, there are competitive people and non-competitive
people, and this fact might cloud the reality of your talent pool.

Social Media and Intranet

Employees can use enterprise social intranets to showcase their greatest qualities, accomplishments, feedback,
experience, and areas of interest. Employee user activity on work platforms, or, failing that, their social media profiles,
can reveal a lot about their strengths and flaws.
LinkedIn is an excellent place to look into the backgrounds of your staff. People's profiles are normally open to the public,
and if they aren't, it's the type of social media site that encourages employers to add their staff. You can check what
former employers, bosses, and coworkers have said about them and which skills they have validated using the
recommendations and endorsements function. You can even draw conclusions based on the manner in which they
publish or the frequency with which they do so. Do they frequently seek assistance in their positions? Do they have a
powerful vocal tone or written communication?
"Employees' networks and relationships, as well as their views toward work, can be gleaned from social
intranets."

Analyze the Strengths, Weaknesses.

The Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis evaluates a person's Strengths, Weaknesses,
Opportunities, and Threats. Individual SWOT analyses for each of your employees will help you better understand their
strengths and weaknesses, as well as their training and development needs.

Examine all employee performance evaluations.

Gather all employee performance assessments and identify skills gaps and ongoing training plans to gain a complete
picture of your talent pool.
Managers can supply the D-Low.
Collect information on their subordinates from all department supervisors and managers.

Compare and contrast your findings

When you combine the feedback you've received with the performance evaluations you've received for each employee,
you'll be able to determine whose performance isn't up to par and what strengths and limitations they each have.

It's time to consider your options.

You may now assess which flaws are frequent and how they affect your firm, as well as which ones are worth addressing
and which ones aren't. Is there a learning curve here? Is it possible to provide training? What is the current state of the
job market?

Align Opportunities with Threats and Weaknesses

Examine the possibilities and match them to the weaknesses and dangers. Consider contacting the employees who will be
affected if a competitor is planning a layoff. Consider whether new training or software tools are available that can help
the organization operate better. It might be the ideal moment to conduct some employment enhancement or enrichment
if it would be advantageous.

Training
Now it's time to match your graph to your training plan. When you need to assign work to individual employees or teams,
the strengths area is useful, while the weaknesses area identifies relevant areas for training. What training investments
would be suboptimal for company should be identified based on opportunities and threats (you want to be proactive,
rather than reactive.

Verdict
When judging strengths and weaknesses in any circumstance, you must take it with a grain of salt. It's human nature for
people to exaggerate their strengths while downplaying their flaws. This just underscores the significance of open
communication, knowledge sharing with your entire team, and conducting realistic surveys and assessments. (Peoplegoal,
2019)

Hire Employees in Pakistan

In order to hire Pakistani personnel, you must first build a personal relationship, which is crucial in the country.
Negotiating is an art form in Pakistan, and it usually takes place between senior members, so be prepared for lengthy
discussions about business and hiring terms. Despite the fact that Urdu is the official language, barely 8% of the
population speaks it, with the rest speaking over 80 languages. If your organization does not have someone who is
proficient in all of these languages, it is critical to find a team member or translator who can communicate with
employees.
Every time a company with 20 or more employees hires someone, they must establish a formal employment contract.
These agreements should be written in the local language and include all compensation, benefit, and termination clauses.
Instead of foreign money, all compensation and other salary amounts must be in Pakistani Rupee.

Pakistan Employment Laws

The normal workweek for all employees in Pakistan is dictated by employment compliance rules. Full-time employees
work an average of 48 hours per week, or eight hours each day. They cannot work more than nine hours per day or 48
hours per week without receiving overtime pay.
Once you engage employees in Pakistan, they must furnish you with a Form IT-3, which is an income tax return form.
Companies must also register with the Federal Board of Revenue (FBR) by submitting a TRF01 taxpayer registration form
or registering online.
In Pakistan, onboarding takes place.
After you've figured out how to hire Pakistani workers, you'll need to figure out how to onboard them in a way that makes
them feel at ease. While there is no legal need for onboarding employees, you can take measures to familiarize them with
your business. Begin by going over the employment contract, as well as any other necessary paperwork such as a
corporate code of conduct. You can also choose to onboard numerous employees at once in order to foster camaraderie
and foster a sense of community among coworkers.

Conclusion
We obtain much better results in our recruitment process if we promote particular criteria that are relevant to the job.
We also get much better results in our recruitment process if we advertise specific criteria that are relevant to the job.
Include a list of required skills as well as a list of desired skills that aren't required but would improve the candidate's
prospects. If we don't do so, we may end up with a low-quality pool of candidates and fewer options for filling the open
post. We will find the best fit for the position if we choose a candidate based on the qualifications exhibited in the
résumé, interview, employment history, and background check.
Rather than gut instincts, we base our decisions regarding a certain candidate on concrete evidence. We will have more
productivity and quality in our products or services if we hire people who can do the job rather than people we just like.
During the recruitment and selection process, we search for someone who not only has the expertise and ability to
accomplish the job we're looking to fill, but also shares and endorses our company's basic values. The candidate must be a
good fit for our company's culture. Our company's screening and recruitment procedure should result in an employee
who is adaptable and works well with others in our industry. High turnover can be caused by a failure to recruit and select
for the long term.
Furthermore, the selecting procedure allows us to focus on what prospects can provide to our organization. It is critical to
choose wisely, either using our own judgement or soliciting the assistance of managers we trust. The interviewer must
understand the work and what will be required of a new hire in order for them to succeed. We can also explain our
company's vision, goals, and needs during the interview process. Last but not least, it is critical that the interviewee gets
replies from candidates that may be compared to our job expectations. We can end up with turnover, confusion, and
angry employees if we don't use the interview to successfully remove individuals who don't fit into the business culture.
(Course Hero, 2017)
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