If you're dipping your toes into the U.S. hiring pool, you've got to check out this gem of an article by Michaela Jefferson from Sifted ''I made so many mistakes': 10 things not to do when hiring a team in the US'. Thomas Holl, the managing director of Babbel, spills the tea on it. It's packed with real-world advice and highlights some sneaky pitfalls you'll want to dodge when building your team across the pond.
In the article, Michaela also interviews different leaders who have hiring experience in the US making this an interesting and thorough piece with real insights. We also find insights from the Arielle Kilroy, cofounder and CEO of Berlin-based HR automation business Dado or Joaquín Cuenca Abela, from Freepik Company.
Non-Compete Agreements: A Double-Edged Sword
Thomas highlights the use of non-compete agreements. These agreements can be beneficial for protecting your business but can become a tricky path to tread if you're not careful. In some states, non-compete clauses are not enforceable, or their enforcement is severely limited. For instance, California law generally considers non-compete agreements void, as they see it as a limitation on an individual's ability to earn a livelihood in their field.
This issue isn't a minor thing; it's led to court battles and legal headaches. A report from the Economic Policy Institute indicates that approximately 27.8% to 46.5% of private-sector workers are subject to some form of non-compete Economic Policy Institute. That means you could potentially be affecting almost half of your workforce if you don't approach this aspect carefully.
The Probation Period Illusion
Another great point is the "probation period" misunderstanding. Many European companies believe that it's okay to let people go without much hassle during this period. But that's not how it works in the US. The "at-will" employment clause means either party can terminate the employment relationship at any time, with some limitations.
Wage Discussions: A Delicate Matter
Discussing previous wages during the interview process is also a tricky area. Some states like California, Massachusetts, and Delaware have made it illegal to ask about a candidate's previous salary. The idea is to make the hiring process more equitable, and it seems to be working. Arielle highlights that “there are so many more variables and costs that occur in the US that when you start looking at total compensation per employee, it’s really different.”
Why This Matters for Global Teams
So, why should you care if your team is scattered around the globe? Well, because hiring in the US is a different beast altogether, and you'll need to tailor your approach if you want to build an efficient and happy team there. Failing to do so might not just cost you a ton of money but could also bring legal woes you hadn't even thought of.
That's where services like Teamed come into play. We make global employment easy by taking care of the nitty-gritty details like local laws, payments, and employee well-being. It lets you focus on what you're good at: growing your business and nurturing your team's talent, no matter where they're based.
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