The following is excerpted from “Meeting the Challenges of International Expansion: CFO Best Practices for Managing Risk While Supporting Global Growth,” Globalization Partners’ latest whitepaper in collaboration with CFO Research.
Carving out new business territory is never easy, especially when it involves navigating economic, regulatory, and political environments in unfamiliar parts of the world. Companies must balance the rewards of greater profits and increased market presence with the challenges of building and managing a team in a new country.
While the complexity of employing staff in a new country is not a new phenomenon, it must be addressed by firms seeking to grow.
A recent survey of 64 senior finance executives from companies that are actively planning to expand abroad, conducted by Globalization Partners in conjunction with CFO Research, found that a clear majority (57%) of senior finance executives viewed the legal/HR/tax challenge bundle as a barrier to global growth. This is understandable, as the challenges of staying abreast with international tax and accounting regulations and labor standards are daunting even for companies with an established global presence.
In addition, staffing-up in a new country can consume considerable resources, and the quality of talent has a direct impact on an organization’s ability to succeed in an untested market.
Globalization Partners is a Global Employer of Record. We put our client companies employees on our payroll through our established business entities in countries around the world and assign their work 100% back to the client company. If your organization is one of that views international legal, HR, or tax as an issue get in touch with us today.