By Nancy CreminsNovember 2017
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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.