The Real ROI of Building Global Teams (With Numbers)

Admin Team August 30, 2024

How Hiring Across Borders Translates Into Tangible Business Gains. In today’s hyper-competitive talent landscape, building global teams isn’t just a buzzword — it’s a smart business strategy. But beyond cost savings and access to talent, what’s the real return on investment (ROI) when companies hire internationally?

Let’s break down the hard numbers, benefits, and strategic advantages that global teams deliver — so you can see exactly why expanding your workforce across borders is one of the smartest moves your business can make in 2025.

🌍 Why Global Teams? The Strategic Context

U.S. companies, especially in tech and knowledge work, face multiple challenges today:

Record labor shortages
Rising payroll costs
The need for 24/7 operations
Demand for specialized skills not always available domestically

Global teams help solve these by unlocking:

Lower labor costs
Expanded talent pools
Around-the-clock productivity
Increased innovation from diverse perspectives

💸 The Cost Savings You Can’t Ignore

1. Payroll Savings: Up to 70% Lower Labor Costs

Hiring a mid-level software engineer in the U.S. typically costs $120,000 to $160,000 per year (base salary + benefits).

Compare that to:

Vietnam: $30,000 to $45,000
Philippines: $25,000 to $40,000
Eastern Europe: $40,000 to $60,000

Example: If you hire 5 engineers in Vietnam instead of the U.S., you could save over $500,000 annually—money that can be reinvested in growth or R&D.

2. Recruitment Cost Reduction: 30–50% Less Time & Expense

Global hiring opens access to larger, highly qualified talent pools, meaning:

Faster time-to-hire (weeks instead of months)
Lower agency and recruiter fees
Reduced churn due to higher employee loyalty in some regions

This reduces your total cost of hire by up to 50%, a significant boost to your bottom line.

3. Operational Efficiency: 24/7 Productivity Gains

By building teams across time zones, companies can move projects forward around the clock. For example, U.S. and Vietnam time zones complement each other with minimal overlap, allowing seamless handoffs. This can increase development velocity by up to 40%, effectively accelerating product launches and iterations.

📊 The Hard Numbers Behind ROI: A Simplified Model

Metric	U.S. Hiring (per employee)	Vietnam Hiring (per employee)	% Savings
Base Salary + Benefits	$140,000	$37,000	73.6%
Recruitment Costs	$20,000	$10,000	50%
Time to Productivity (months)	3	2	33% faster
Estimated Annual Productivity Gain	Baseline	+40%	—
Total Annual Cost (Salary + Recruitment)	$160,000	$47,000	70.6%

Note: Productivity gain is a qualitative boost from 24/7 operations, not directly quantified in cost.

💡 Other Tangible ROI Benefits of Global Teams

Innovation & Creativity

According to McKinsey, culturally diverse teams are 35% more likely to outperform competitors. Diverse perspectives lead to better problem-solving and product innovation.

Risk Mitigation

Diversifying your workforce geographically reduces dependency on any one labor market or region, shielding you from:

Economic downturns
Political instability
Natural disasters

Employee Retention & Satisfaction

Remote work options and international opportunities improve job satisfaction, lowering turnover rates by up to 25% in some companies.

🚀 How to Maximize Your Global Team ROI

Use an Employer of Record (EOR): Avoid costly entity setup and compliance risks by partnering with an EOR like VietAssist, which handles legal employment contracts, payroll and benefits administration, and tax and labor law compliance.
Invest in Onboarding & Culture: A smooth onboarding process and strong cross-cultural training improve productivity and reduce early attrition.
Leverage Async & Collaboration Tools: Use Slack, Notion, Loom, and others to bridge time zones and build efficient workflows.

📈 Real-World Example: Startup Success Story

A U.S.-based SaaS startup hired 8 engineers and 3 designers in Vietnam via an EOR. They:

Reduced hiring costs by 65%
Accelerated time-to-market by 30%
Expanded product features faster than competitors
Maintained over 90% retention after 1 year

The financial savings alone allowed them to secure a Series A round 6 months earlier than planned.

🔚 Final Thoughts: The ROI Is Clear—and Growing

Building global teams isn’t just about cheaper labor. It’s about faster hiring, greater productivity, innovation through diversity, risk mitigation, and business agility. In 2025 and beyond, companies that embrace a borderless workforce will unlock real, measurable ROI that fuels growth and innovation.