Compliance gaps threaten cross‑border hiring as Canadian firms go global: report

HR professionals in Canada and across North America involved in international hiring face fragmented employment and payroll rules, according to a recent report.

North America has become the most sought‑after region for global hiring, with Canada and the United States topping employers’ target lists even as compliance risks mount, Multiplier’s Global Hiring Gap report shows.

The study finds that among companies hiring in North and Latin America, Canada (35%) and the United States (28%) are the most popular destinations for international recruitment, ahead of Mexico and Brazil. Employers are not only looking to the region for engineering and IT talent, but also for commercial roles that support growth.

According to the Multiplier report, the most in‑demand roles in North America include customer success manager, software engineer and account executive, reflecting a blend of technical and client‑facing needs as companies expand in the market.

At the same time, North America is one of the most complex regions for compliant employment. Multiplier describes it as running on “overlapping rules that vary across states and provinces,” with professional employer organisation rules and worker‑classification laws that can turn “small missteps” into costly problems.

This puts pressure on HR to reconcile national policies with province‑ or state‑specific standards on issues such as overtime, statutory holidays, terminations and employee benefits.

Few are confident they are fully compliant

Against this North American backdrop, Multiplier’s global data point to a widening gap between hiring ambition and operational readiness.

Based on a survey of 500 senior business decision‑makers in the United States, Singapore, the United Kingdom and Australia, the company found that only 8% of organisations believe they are fully compliant with international tax and labour laws when hiring abroad. The remaining 92% admit they are either managing compliance reactively, meeting only most requirements or frequently struggling to remain compliant.

For HR leaders, compliance demands are expanding rapidly while governance and technology investments lag behind, according to a previous report.

Yet nearly all respondents to the Multiplier study are pressing ahead with cross‑border recruitment. Multiplier reports that 95% of companies are building, or planning to build, more global teams, and 98% say international hiring will be a key growth strategy. Nearly all (96%) also believe global hiring improves talent quality.

“While the global economy is more interconnected than ever, the regulatory landscape for hiring remains extremely fragmented,” said Sagar Khatri, co‑founder and CEO of Multiplier. “91% of companies are able to hire faster when they look abroad, so the desire to hire from anywhere is there. Simplifying compliance is the key to making the next era of hiring truly borderless.”

Compliance failures blocking onboarding

Compliance issues are already undermining hiring outcomes. Multiplier found that 46% of companies have failed to onboard international employees because of compliance problems, such as misclassification, incomplete right‑to‑work checks or misaligned contracts.

The report warns that when candidates have already resigned from previous roles, failed onboarding can expose employers to claims for lost wages as well as reputational damage.

“Failure to onboard may result in losing sought‑after talent to a competitor,” said Shalini Sugumaran, head of legal and compliance at Multiplier. “And if a candidate has already left their previous role but cannot be onboarded, the company may also need to compensate them for lost wages.”

AI skills and immigration

The study highlights how artificial intelligence is reshaping global hiring. Nearly half (46%) of respondents said they are recruiting internationally to access AI skills they cannot find in their home markets. Multiplier’s broader analysis points to strong demand for digital transformation, finance automation, HR technology and compliance capabilities.

At the same time, 33% of survey participants cited immigration and visa restrictions as a major challenge, prompting employers to combine targeted relocations for highly specialised roles with remote hiring and employer‑of‑record models for others.

This forces HR to coordinate immigration advice, remote‑work policy and local employment standards across multiple jurisdictions, often with tight timelines.

Where does fragmentation show first?

Payroll emerges as a key operational pressure point as companies expand globally. Multiplier’s research shows that 53% of organisations struggle with international tax compliance, 51% with managing multiple payroll vendors, 47% with currency fluctuations, 43% with answering employees’ payroll questions and 42% with navigating local payroll regulations.

“Payroll is where fragmentation becomes most visible,” the report notes, as every new country typically adds another provider, ruleset and reporting workflow.

For HR leaders in Canada and North America, these issues translate into a higher risk of late or incorrect payments to remote employees, with direct consequences for trust, engagement and potential legal exposure.

Automated payroll tech can solve this problem, according to a previous report.

Why should you hire global talent?

Hiring global talent for your remote workforce brings a lot of upside for employers. According to Remote Recruit, the benefits include:

1. Access to a larger talent pool – When you focus on hiring global talent, you gain access to a broader range of skills and expertise that may not be readily available in your local market. This diversity can help you fill specialised roles with the best candidates from around the world, enhancing your team’s overall capabilities.

2. Cost‑effectiveness – Hiring global talent allows you to attract top professionals from regions where the cost of living is lower, enabling you to offer competitive salaries while reducing overall payroll expenses. This cost‑effectiveness can be a significant advantage in maintaining your budget while still securing high‑quality talent.

3. Increased flexibility – When you have a global workforce spread across different time zones, your business can operate around the clock. This continuous operation can improve customer service, reduce response times and allow for faster project completion, giving your company a competitive edge.

4. Enhanced productivity – Remote workers often report higher job satisfaction, which translates to increased motivation and productivity. Hiring global talent can lead to a more engaged and productive workforce, as employees enjoy the flexibility and autonomy that remote work offers.

5. Cultural enrichment – Hiring global talent provides your organisation with insights into different markets and consumer behaviours. Employees from various regions can offer valuable perspectives that help your company better understand and serve a global customer base.

6. Innovation and creativity – A diverse workforce brings together individuals with varied experiences and backgrounds, leading to unique ideas and creative problem‑solving. Hiring global talent encourages the cross‑pollination of concepts, fostering innovation within your organisation.

“Embracing a global talent pool not only expands your workforce but also brings a wealth of benefits that can drive innovation, productivity and success,” says Remote Recruit in the article. “By hiring remote workers from different parts of the world, you position your organisation for growth and adaptability in an ever‑changing business landscape.”