1. Mr. Fisher made a number of mistakes, the first being his trying to set up and run a company in the American way. He did not investigate the local laws and cultures to see what, if any differences there would be in areas of sales and employment. He did not consider local taxing rules where foreigners have to have special visas and taxes are paid to maintain and keep those visas. He obviously does not understand that the cultural attitudes toward work are not the same as in the United States. The "walk about" person is not unusual and should not be dismissed out of hand. The laws in Germany are very different and very clear, so not educating himself on these issues was a bad move.
2. He should have gone through local agencies to receive guidance on the laws of employment and the hiring of employees. By turning over the hiring job, with his final approval, to professionals in the local market, he may have attracted more viable candidates. Additionally, in many areas, finding a job in the paper is not the way professionals work. Using expatriates is good, but only if you are aware of local laws concerning them and use them in the appropriate manner. Even an expatriate may have had better luck in the hiring process. Also, being out of country is difficult at best and not compensating for time and needs is one way to lose valuable employees. Situations of rental property, differences in pricing and exchange rates, issues such as family and insurance and health care are all part of having expatriates. The company HR must be prepared to deal with these issues and concerns before the person is sent overseas, preferably with some training in local cultures and needs of the community they are going to work in.
3. At this point, he should contact the best local employment firms and tell them the problems he has had, what the needs of the company and the employees are, and seek their guidance in correcting the problems that have been created.