Nancy Cremins

How to Decide When to Outsource Your Global Workforce Expansion

by Nancy Cremins
November 2017
Reading Time: 2 minutes

A third-party can help you focus on your company’s expansion freeing you up to focus on your strengths.

So far, I’ve written about how you can avoid penalties and headaches when it comes to managing an international workforce. I’ve written that, in many cases, it all starts with the employment contract, but there are a variety of nuances for in-house counsel to understand when it comes to expanding a business globally. (Here are four of them).

But, how do you know when it’s time to outsource the extensive work for global expansion?

The answer is undoubtedly different for every company. But watch for these three indicators as you examine your organization’s needs when it comes to global workforce expansion.

Your Bandwidth and Budget

Decide if outsourcing is right for your company: After doing some research and speaking with local service providers, you may decide that the best use of your time and budget is to outsource your global hiring to experts. Outsourcing to a professional services business, such as an international professional employer organization (PEO), removes the substantial burden from in-house legal and HR teams who would otherwise have to use significant bandwidth to learn and comply with employment laws outside of the U.S.

You Want A Faster Path to Entity

In addition, outsourcing may provide a faster and more streamlined path to entry into a new country, as such firms already have a global infrastructure to bring on new talent in country. Your outsourcing partner can also help you navigate critical employment details such as severance, commission, contingencies, employment licenses, etc., which will decrease your risk for non-compliance.

Your (Relative) Knowledge of Local Laws

If you are considering employment outsourcing, make sure that you do your homework. In a number of countries, such as in Germany, Switzerland, and Ireland to name a few, licenses are required for employee secondment or labor leasing. In one instance, a company who used employment outsourcing saved hundreds of thousands of dollars in severance payments by working with its international PEO team who guided them through a complex termination process in Mexico.

Employment laws, both in the U.S. and globally, are constantly changing. In-house lawyers must be continuously learning to keep up with the shifting landscape and keep their companies in compliance.

Although international employment can appear daunting, companies miss out on huge opportunities for growth and new customers if they fail to go global. With sufficient preparation, open communications between HR and legal, and trusted partners who understand the complexities of your business and local requirements, you can guide your company through its international expansion to achieve optimal success and growth.

Global Employment Law: How to Avoid Penalties

Managing a global workforce comes with unique challenges. Laws are different country-to-country. Download Nancy Cremins’ full Point of View to learn how to avoid penalties (and headaches) associated with global workforce management.

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Nancy Cremins

Nancy Cremins

Chief Administrative Officer & General Counsel, Globalization Partners

Nancy Cremins, Chief Administrative Officer and Gerenal Counsel, joined Globalization Partners in April 2016. Nancy is known as one of Boston’s top lawyers for startups and entrepreneurial ventures, having been named as a Top 50 Women in Law, one of Boston’s “40 Under 40,” and “Fifty on Fire.” Prior to joining Globalization Partners, Nancy got extensive experience in the areas of employment law and conflict resolution over the past 10 years at notable firms such as Gesmer Updegrove LLP and Robinson & Cole LLP.

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