The move toward a truly borderless workforce has unlocked talent in a massive way. With more than a quarter of the global workforce currently working remotely, geography is no longer the limiting force it once was. Companies now have unprecedented access to an ever-growing talent pool.
But with this expanded reach comes an often-overlooked reality: greater exposure to compliance and accuracy risks. For HR and compliance leaders, the challenge isn’t just identifying great talent across markets—it’s making sure that candidates are exactly who they claim to be. Organisations must conduct thorough background checks without tripping over the complexities of international labour laws, verification standards, and data-privacy regulations.
The high stakes of global hiring: Why compliance and accuracy matter
The cost of a bad hire is steep—about 30% of the employee’s first-year salary in direct costs, and potentially hundreds of thousands more in indirect costs. And it is not just the financial impact either. A dishonest hire can harm team morale and productivity, and severely damage internal and external stakeholder trust.
In a local context, a bad hire is expensive. In a global context, it can be catastrophic. And with 44% of job applicants admitting to lying during the hiring process, the risks have never been higher.
More than red tape, compliance is a strategic advantage
Market leaders know that compliance isn’t merely a regulatory obligation or cost centre—it’s a strategic advantage and a driver of growth, trust, and resilience. HR and compliance leaders at their best aren’t just saying “no” to the wrong candidates; they’re saying “yes” to the right candidates with confidence.
With accurate vetting to ensure the right candidate is hired, leading organisations are reducing the risk of exposing themselves to unqualified hires, security breaches, and potential fraud.
Navigating the maze of global compliance: Key challenges for HR
Worker misclassification—a costly mistake
The line between an “independent contractor” and a “full-time employee” is thinner than many employers realise—and it shifts from country to country. Regulators know this, which is why misclassification remains one of their biggest enforcement priorities. In Singapore alone, the Ministry of Manpower (MOM) recorded more than 300 suspected cases of employee misclassification in recent years, with over half of candidates confirmed as misclassified upon investigation.
What is the risk of misclassifying a contractor? Significant fines, payment of back taxes and benefits, and potential legal action. Regulators look at the reality of the working relationship, not just the contract label. If you control how a contractor works, provide their equipment, or integrate them into core business functions, you may be liable for certain taxes and benefits applicable for full-time employees.
Verifying international credentials and employment history
Verifying a degree from a local university is straightforward. Verifying a diploma from a university in a country where you don’t speak the language—and where “degree mills” may be prevalent—is a different story. The rise of sophisticated “fake reference services” and AI-generated resumes has made it easier than ever for candidates to fabricate qualifications and entire careers.
How, then, do you verify education if the university is in a foreign language? This is where specialised partners add real value. By leveraging on-the-ground teams and accredited global databases, specialists like RMI can confirm the authenticity of degrees, certificates, and past employment, giving you confidence that the candidate’s history is real.
The patchwork of global Data Privacy and Labour laws
Data privacy is no longer just about GDPR. Across APAC, countries are rapidly tightening their regulations. More detail below:
● China: The Personal Information Protection Law (PIPL) imposes stringent constraints on cross-border data transfer.
● Singapore: The Personal Data Protection Act (PDPA) now includes mandatory breach notifications and higher fines.
● South Korea & Japan: Both have strengthened their respective acts (PIPA and APPI) to increase penalties for mishandling employee data.
● Hong Kong: The Personal Data Privacy Ordinance (PDPO) requires strict adherence to notification and consent procedures. Failure to do so can result in immediate investigations.
Criminal background checks add another layer of complexity to the hiring process. In markets like Singapore and Hong Kong, employers typically can’t request these checks directly; candidates must obtain and provide their own Certificate of No Criminal Conviction.
Taken together, these differences mean one thing: a uniform background check process for all global candidates simply won’t work. Regulations governing criminal records, credit checks, and even social media screening vary dramatically across jurisdictions.
A one-size-fits-all approach doesn’t just risk inefficiency—it risks non-compliance.
Partnering for success: The role of a specialist Verification Provider
From differing legal frameworks, to language barriers, to ever-evolving privacy laws, global hiring can be complex and risky. Delays, inaccuracies, or regulatory missteps grow with every new country added to the organisation’s talent strategy. For this reason, HR leaders ultimately find that managing international background checks in-house is neither cost-effective nor fully compliant.
This is the point where outsourcing background checks becomes not just helpful, but strategic. A specialised verification partner can close the gaps that internal teams simply aren’t designed to handle, and the right provider doesn’t just process checks; they can even extend your compliance infrastructure.
If you’re hiring across multiple jurisdictions, working with documents in unfamiliar languages, or trying to shorten time-to-hire without compromising on due diligence, outsourcing to a specialist Verification Provider like RMI can be the key to hiring globally with confidence.
Manage compliance risks as you fuel your international expansion with the right global talent. Contact RMI today for a consultation on your global hiring strategy to ensure your next hire is the right hire.