By Emily LevinApril 2019
Reading Time: 3 minutes
Compliance with legal, HR, tax and regulatory requirements were cited as top concerns
Boston—April 9, 2019—Globalization Partners Inc, a company that helps other companies engage global teams without establishing overseas subsidiaries, today announced results from a 2019 survey in conjunction with CFO Research that revealed the challenges senior finance executives find most pressing when developing international expansion plans.
Data from the survey conducted in February found 51 percent of senior finance executives reported that legal, HR, or tax compliance challenges are a substantial barrier. In addition, 45 percent of CFOs said that some of their biggest challenges relating to overseas expansion revolve around human capital and talent availability. On top of that, 32 percent felt that political stability is a definite factor when expanding operations in a new country.
“Hiring even one foreign employee can require setting up a subsidiary or regional presence and that can take months,” said Nicole Sahin, CEO of Globalization Partners. “As a global employer of record, we can hire employees in as few as 10-15 days without ever having to set up an in-country entity. We are also 100 percent responsible for making the social security and tax filings and following all labor laws in-country for our clients which reduces the burden of senior finance executives looking to expand internationally.”
Additional key findings from the survey include:
- Legal and compliance are a big concern. About half of CFOs are uneasy about compliance with labor laws (53 percent) and compliance with tax laws (55 percent).
- Understanding local labor laws and talent management are problematic. When senior finance executives were asked about the most important thing a global employer of record can do, over half (59 percent) said that it is managing talent. They also said sourcing talent (53 percent) and onboarding talent (53 percent) are critical. Also cited was the need for local knowledge — particularly local laws and culture (40 percent) — to help sidestep potentially costly mistakes.
- Other top risks to overseas expansion were identified. CFOs noted other risks of concern include the ability to exit once entered (15 percent), sufficiency of market demand (23 percent) and stability of currency (19 percent).
Expanding into another country, whether that means hiring a lone sales representative or building out a large distribution or manufacturing facility, presents numerous challenges for employers. Globalization Partners brings unmatched expertise to companies looking to expand internationally. By assuming employer responsibilities and eliminating the need to set up foreign business entities, Globalization Partners can cut the cost of international expansion by as much as 94 percent, reducing time to onboard a new employee from months to days and turning international payroll and HR management into a fast and easy process.
About the Survey
In collaboration with Globalization Partners, CFO Research conducted an online survey of U.S.-based senior finance executives from organizations with more than $100 million in annual revenues. The 53 survey respondents all represent firms whose long-term strategy includes potential (or ongoing) expansion into countries where they do not currently operate. Respondents came from a wide variety of industries, with the largest numbers representing the financial services, wholesale/retail trade, and industrial/manufacturing industries.
About Globalization Partners
Globalization Partners is renowned for pioneering the Global Employer of Record model and helps companies expand internationally into more than 170 countries without the hassle of setting up overseas branch offices and subsidiaries. Through our Global Expansion Platform, companies can quickly and easily hire employees overseas without having to navigate complex international legal, tax and HR issues. We take the burden—and risk—off our clients’ shoulders and place it onto ours. Whether it’s to test a new market or to expand the talent pool, Globalization Partners is the most trustworthy global workforce management solution in the market. With dual headquarters in Boston and San Diego, regional hub offices worldwide include Berlin, Dubai, Indore, Sao Paolo, Mexico City, Singapore, and Bristol, UK.