Dealing with the rigors of the international marketplace means being able to adapt to different trends, as well as keep a steady stream of talent so you can compete. In order to handle this issue, you also need to be ready to hire talent from different areas, as well as deploy them over the course of international expansion. However, working across different countries when hiring talent or utilizing existing members of your teams comes with inherent risks. Here’s how to tackle them.

Benefits of Cross-Border Hiring

As a start, it’s essential that we talk about some of the benefits of cross-border hiring. After all, it’s difficult to discuss risk without reward. Here are some of the key benefits for putting together cross-border ventures:

• The ability to increase revenue by expanding operations and your audience.
• Diversifying the portfolio for your clients. For example, if one region had economic issues, profits from other areas could make it easier to weather the market shift.
• Upscaling products. Having a larger international market makes it easier for you to spread your offerings to different areas. In addition, you have a larger talent pool to work from if you need to ramp up operations to take advantage of a surge in business.

So, with this in mind, say that you’re looking to break into a particular area. One key thing to do is find a strategy for your market entry. A few of the options include:

• Direct export
• Licensing
• Franchising
• Partnering
• Joint Ventures
• Buying an existing company

Each of these comes with its own set of pros and cons. For example, moving into an existing company means that you have an existing infrastructure, but also existing expectations you need to adhere to.

As a side note, it’s essential when planning a market entry strategy, that you pay proper attention to HR. Whether your focus is diversification, concentration, or going international, you need to power your plans with talent. A refined global HR method, using services like Professional Employer Organization or a Global Employer of Record (GEOR) is key here.

Cross-Border Employment Pressure Points

With that covered, we can begin to talk about some of the risks of cross-border operations.

Compliance: Compliance is a far-reaching category, but certain areas are more likely to give your company trouble. Tax risks are one key area of discussion. For example, you need to make sure that you are properly paying your tax responsibilities for each country you do business in, while keeping your business structure in mind. In addition, if you’re transferring current employees to work as expatriates, you need to be mindful of immigration law.

Employee misclassifications: Many people perceive independent contractors as an easy way to fill global teams. However, opting for this route, and giving the wrong classification, can end up causing problems like financial penalties and the early termination of projects.

Employee retention: This is a concern for any business, but can be especially troublesome for cross-border operations. Benefits and other expectations may be different from one country to the other.

Culture barriers: This is mainly an issue when employing expats. It may be difficult to work with local professionals or partners at first. Discrimination may even become an issue.

Time issues: If there is a large time zone difference between the country and your base of operations, it may impact the ability of your teams to contact each other or deliver projects properly.

Systemic risk: Economic developments in the country you’re doing business in may impact your operations. These include market problems in the local economy or even political unrest.

Legal risks: In some cases, a legal change may occur in your country of business that has an instant impact on your business. This can include the law being applied in a way you wouldn’t expect, or international sanctions on the entire country.

The Art Of Managing Global Assignment Risks

With all these potential pitfalls, it’s important to make sure that you know exactly how to manage issues when it comes to cross-border employment. Generally, this orbits around two main points. The first is making sure that you’re confident on how to maintain the processes of hiring and assigning international talent. This means making sure that you’re able to find clarity and transparency, potentially across multiple countries.

The second stage of this is understanding that you won’t be able to manage all of this alone. Even the most diligent companies and HR departments may not be cognizant of the different regulations and aspects of employment law for each company in which they do business. Considering how these can change or be extremely complex, it’s best to have reliable business partners in this area.

If you’re interested in finding professional support when it comes to your cross-border employment and secondment, your ideal first option is working with Acumen International. When it comes to helping your company grow, we offer a variety of key benefits. These include:

• Global coverage, with support in over 190 countries.
• The ability to help with employment compliance in each country we serve, no matter the specific regulations.
• Complete confidence that your employees will be classified properly, and employee benefits repayment will be handled correctly.
• 24/7 support in case you have any issues.
• Flexibility in service, as well as a clear termination procedure that still leaves you in control.

Acumen International is your ideal partner when it comes to all of these different methods. We look forward to working with you for all your cross-border hiring needs.

Reach out to us today for more information.

International expansion has a wide variety of benefits for just about any company, from being able to reach out to new customers to insulating themselves from market issues in their original country. However, like any business proposition, there’s going to be an element of risk. International expansion going wrong has damaged or even sank some companies, and it’s largely due to some of the following reasons:

• Misreading the new audience
• Neglecting your original client base
• Failing to follow regulations in your new market

The final issue can be particularly damaging due to not only dealing with fines but the fallout that comes with having broken tax or hiring laws abroad. A PEO solution is one of your best options to avoid this problem.

What Is A Global PEO Solution?

At the core, a global PEO (a Professional Employer Organization) is a company designed to serve as an outsourcing firm for companies looking to do business abroad. What this essentially entails is that rather than hiring individuals directly and dispersing them to international locations, the PEO will take care of a lot of these elements. These can range from:

• Insurance/benefits
• Payroll
• Hiring
• Retirement
• Regulatory compliance
• Training/development

Note, the PEO will still follow the instructions of the company that enlists them, and ultimately, those that use the PEO will have final say over decisions like employee termination. A global PEO solution simply serves as an intermediary that acts locally on the client’s behalf. This solution is widely used by international companies to onboard and payroll a remote workforce – highly skilled talent or local sales managers.

How is this the case? In order to do business in another country, most international regulations require you to either incorporate or establish a legal entity. These processes can be long, expensive, and in some cases, difficult to obtain. By using a PEO service, you can bypass this step while still remaining compliant with local laws and regulations.

PEO solutions are generally used by companies that have already decided to expand internationally through a local team, or perhaps a local team headed by an expat worker. Hand-in-hand with this is figuring out a way to deploy these team members, as well as how to properly arrange/manage them.

Risks And Concerns Of Hiring A Remote Workforce

As mentioned earlier, any business decision comes with risk, and the same applies to a remote workforce. Some potential risks include:

• Misclassifying full-time workers as independent contractors
• Failing to adhere to labor laws in terms of benefits/tax responsibility
• IP accidentally being attributed to a single worker versus your company
• Trade secrets being spread by your international team

With a lot of these issues, your ignorance of law serves as a little excuse. It’s essential for you to have a means to regulate the employment relationship, even if they are in a different country from you. This is why a full global HR infrastructure needs to be in place before you start hiring. In essence, a PEO employment service is insulated against a lot of the problems with a workforce. Using this business model not only keeps you from problems like misclassification but also avoids you losing a client base by having such mistakes/penalties going public. In addition, it allows companies to start back-bone operations in a new market with a small headcount and ‘test’ the market before incorporating in the country.

What You Get With A Global PEO Service

So, with this in mind, what exactly are some of the benefits that you get in terms of using a global PEO service? The most obvious one, as we covered before, is the fact that it mitigates a lot of the existing risks with a remote workforce. Having a service as a partner that specializes in tackling international compliance and hiring regulations means less stress and work for you. Along with this, being able to quickly adapt to different regulations makes it far more feasible to expand to multiple markets at once. This applies whether you’re looking to move to multiple countries in a single region or across several regions.

There are other benefits that shouldn’t be ignored, either. For example, using a PEO service helps you upscale your product line at a quicker rate, since you don’t have to go through as much red tape. In turn, this lets you add more clients to your portfolio, which supports the bottom line. Along with this, being able to develop quickly internationally and avoid any penalties or sanctions helps preserve the international image of your business.

When looking for the ideal global PEO program to take advantage of all these benefits, you’d be hard-pressed to find a better match than Acumen International. Our services can support your international business expansion in over 190 major global markets. We’re ready to help you develop your workforce and image in the new markets.

Reach out to us today for more information.

More and more companies are seeing the value in expanding their business internationally, whether they are planning to enter new markets, expand their market share, or diversify their customer base. In order to do this, companies need to be able to recruit international talent and to relocate some of the team members to foreign countries. By doing this, companies can get a strong foothold in the new markets or tap into unique skills, regardless of where they are based. For this reason, the notion of workforce mobility is becoming more and more important.

Workforce Mobility Trends

First, let’s talk about some of the key trends that are driving global mobility across the board. One thing that’s making the prospect more attractive is the idea of developing the employee experience. For example, say you are a company planning for some major international expansion soon and have an employee quickly rising onto a management track. It would just make proper sense in this situation to try and invest in business travel for them to create a more well-rounded prospect.

Many companies are dealing with a skilled talent shortage, especially in certain markets and niches. Hiring on skills versus geography is a great way to get around this, but you also need to have the means to deploy international talent when it is needed.

Finally, having an international workforce inherently benefits your international expansion. From globalizing your methods to helping develop your networking, being able to lean on the expertise of your international workers is great for helping you make headway in an environment, where the customer base and business norms may be different.

Elements Of Global Talent Mobility

So, if you find that corporate mobility is for you, what are some of the ways that you can go about doing it? There are three main methods up for discussion, and sometimes, a combination of these is the best option.

Foreign employment: Sometimes, you want to work from the outside in and augment your in-house team with a pool of contingent workers in the target country you’re looking to do business in. Just make sure you onboard them in full compliance with employment legislation of the host country.

International assignment or secondment: Another option here is taking employees from within your company and assigning them elsewhere for a limited period of time Such employees are seconded employees. They continue to contribute to the home country for social security while working for the employer company overseas.

Expats sent overseas – By using your existing team and deploying them as expat workers, you can have the exact talent you want leading your new branch or company overseas. Just note that this can take a long time and a lot of expenses to manage.

International expansion to new markets: In some cases, you may want to take a more formal approach, like setting up a new branch, to get into a new market. This allows you to build the organizational structure to get a proper presence.

Best Practices For Corporate Transfer and Relocation

So, with all these elements kept in mind, what are some of the best practices that companies can put in place for managing their corporate relocation?

First of all, it’s essential to have contingency plans on top of contingency plans when it comes to addressing common relocation concerns. Here are a few of the common examples that tend to arise.

• Immigration complexity: Every country has its own unique immigration regulations, and oftentimes, they can be in flux. As a result, you need to make sure you are fully aware of the laws on the books, but also how future laws may be trending to build your team.
• Uncertainty: As mentioned before, especially in recent years, immigration and immigration policy have been a hot-button issue in many countries. You want to make sure your business is ready to adapt accordingly.
• Visa delays: Many companies building international teams will want to have a few members of their core teams sent over in order to both teach others and ensure a universal standard. Visa delays can end up negatively impacting the timeline if not accounted for.
• Demographic challenges: In some cases, it may be difficult to find prospects in the right demographics that you want for a certain position in a certain country.

Immigration compliance hangs over all of these points as a greater issue. Failing to comply with a country’s immigration regulations not only means potential sanctions and risk of visa rejection but a severe hindrance of you doing business in a given country in the future.

Finally, it’s essential for companies serious about workforce mobility solutions to have a partner in place to help facilitate the process. As our other examples show, there are a lot of bureaucratic and logistical roadblocks to relocating your top talent across international settings. Looking into countries that help with relocation is a good way to ensure you’re staying in compliance and minimizing the risks of some of the most common concerns.

If you’re looking for a global mobility consultant to further your goals, using a work permits for expats program, like what Acumen International offers, is the perfect match. Our global mobility consultants can provide work permit and immigration support for over 190 countries. Be able to smoothly move around talent to further your international expansion with our support.

Those in the manufacturing industries are familiar with the basic principles of a successful supply chain. This is essentially managing connections with multiple suppliers to make sure you have all the raw materials you need to create a successful product. While the materials may be different, the basic concept is becoming more and more versatile across the board. In a world where global business is the norm, a new paradigm is coming into place when it comes to managing your international workforce. As it turns out, these supply chain principles work well when adapted for talent.

How Optimizing A Contingent Workforce Became Essential

To see an example of the need for talent strategy optimization, we should look at the major IBM layoffs in the early 2000s. IBM had long built its niche not necessarily in bleeding-edge tech, but being able to provide solutions more efficiently and quickly than its competitors. As the company began to expand its operations globally around this time, issues in the “talent supply chain” became more and more apparent.

To make this a bit clearer, the talent pool at that time generally consisted of three main sources: contractors, full-time employees, and applicants. The issue here was that hiring and managing these three main sources of talent was mainly done independently. As a result, there would be a lot of redundant hires or talent basically waiting for assignments. For a company that had the market advantage of efficiency, this was not acceptable and eventually resulted in massive layoffs as operations were consolidated.

How do businesses today avoid history repeating itself? Now, it’s the advent of a contingent workforce, a more unified, flexible system of talent that allows different professionals to swap from project to project within a company. You can still use the same three differing sources, but there’s a lot less separation, leading to a true talent ecosystem versus smaller teams with tunnel vision. Being able to manage talent in this way was a key part of growing the “world of work” as we know it.

In perspective, competing with startups and other emerging contenders for attracting dynamic young workforce, major established companies are now putting forward an environment of collaborating and partnering with talent. “Open-source talent” is a term that’s often used, and it’s not far off from the truth.

Managing A Talent Supply Chain

So, with this said, how does connecting to a global pool of talent for contingent workers help your company? There are a few key benefits to talk about. For example, being able to take on projects for multiple companies rather than being locked into a single role is a great benefit for talent growth and development. Having multiple tasks to take on helps expand their knowledge, which ultimately lets them be a better asset for the companies they work with. In addition, a pool of better-educated, versatile talent is good for the entire industry.

There are also practical benefits as well. For example, rather than having multiple sets of full-time employees locked in, the ability to take on contingent workers as needed makes it a lot easier to budget for individual projects, as well as universal needs. Finally, it’s more practical to manage multiple workers across different countries this way. By using a talent pool in multiple markets, it can be easier than spreading domestic workers too thin by relocating them. However, to do this compliantly, you may need Global PEO services.

Global PEO and Talent Supply Chain Solutions

It’s important to note that PEO isn’t the only approach to the contingent workforce employment. While looking at this path, you may find businesses that use outsourcing agencies, the self-employed or other tactics. However, when it comes to building an international image, you want to focus on the best practices. This is where PEO stands above. For example, it’s far easier to establish confidentiality and business connections with your talent using PEO. In addition, Global PEO services are naturally designed to be more agile and adaptable to meet client needs.

Because an effective talent strategy has become more and more of a necessary practice for businesses, any sort of support in this area is key for success. However, as businesses expand internationally into new markets, managing these regulations becomes even more difficult.

For instance, opening your own entity in each new market to handle foreign integration is a slow and bloated way to tackle this issue, which is where PEO (professional employment services) from a managed service provider like Acumen International comes in.

Global PEO services come with a unique feature called dedicated management that allows companies to manage a global workforce deployment all through one single contract. This applies to a single key piece of talent or multiple teams across multiple countries. In addition, we also provide key benefits like medical insurance, social contribution, payroll, and bonuses, which are essential for drawing and retaining your top talent. Be ready to tackle the new world of work today with Acumen International, the global employment provider.

Reach out to us today for more information.

As the business world shifts and evolves, smart executives and founders are thinking of ways to both drive up profits and minimize expenses. International expansion has been a gateway to both. Entering new markets allows you to use a different labor market to your benefit, while also expanding your product or service to a new audience. Mexico, in particular, has become a new hub in terms of North American business. However, it’s important to understand the pros and cons, as well as the recent USMCA (United States – Mexico – Canada Agreement), to take advantage of these opportunities.

Pros and Cons Of Opening A Business In Mexico

As a start, if you’re interested in self-mastering a business strategy in Mexico, you want to build around the major benefits. They run as follows:
Geolocation: Mexico is located in proximity to both the United States/Canada as well as Central America. As a result, it’s easy to reach both of these markets with Mexico as a central hub. Of course, if you have ambitions to work in other areas besides, this may be more of a con.
Labor Market: Labor is inherently cheaper in Mexico than in other countries, and this is one of it’s largest draws as a market. In addition, as the currency and economic conditions improve, things will only get better.
Social Development: This government branch is specifically designed to help build up impoverished and rural areas of Mexico, creating a possible opportunity.
However, like any country, there are particular cons you need to consider if you want to start a business in Mexico. Here are some of the major hurdles:
Creating a Legal Entity: Compliance is essential when it comes to hiring international employees. Many companies try to make this easier by establishing a legal entity in Mexico. However, one needs to follow Mexico’s specific rules and understand that this can be a time-consuming process.
Bureaucracy: Complicating this is navigating another country’s bureaucratic processes. Various regulations and delays may cause you to miss your window of opportunity to expand.
Uncertainty: One of Mexico’s largest trade partners, the US, is in a period of uncertainty in terms of relations. However, as we will explain in a moment, the trade environment may become clearer soon.

Understanding a USMCA Comparison

One major factor that everyone needs to consider when it comes to doing business in Mexico is the USMCA. Known as T-MEC in Mexico, this is a free trade agreement designed to supersede NAFTA and is signed, but not ratified, at the time of this writing. However, many political figures are confident that this will reach a positive conclusion, so adapting to USMCA may be more of a when, as opposed to an if.

The goal of the current administration is to try and modernize NAFTA with this new agreement, and there are indeed some opportunities for people looking to do business in Mexico. Here are some of the key elements to consider.

Digital Products: New provisions of the agreement allow data to be transferred cross-border, and cutting down limits on where data can be stored and processed. The terms of copyright have also been extended from 50 to 70 years.
Import/Export: Automobiles must have up to 75% manufactured in either the US, Mexico, or Canada to avoid tariffs. This may impact what type of industries want to do business in Mexico, based on what they specialize in. Thus, the agreement will help small businesses access the markets of potential trading partners, creating a stakeholder platform that provides entrepreneurs the chance to offer regular feedback on improving USMCA and market access for small firms. Along with this, USMCA eliminates a “local presence” requirement for cross-border service providers. This creates a massive lowering of costs. With this rule in place, small businesses no longer need a foreign office to do business.
Employment: 40% to 45% of all automobile parts need to be made by workers who earn at least $16 an hour by 2023. Mexico recently passed tougher labor laws to protect workers. While you can still reap the benefits of cheaper labor in Mexico, this makes compliance more important. The agreement, if enforced, would strengthen labor standards and rights, especially those related to collective bargaining in Mexico. This will help support better wages and labor conditions across the board.

Improving Your Organization Via Global PEO Best Practices

As alluded to before, even with USMCA potentially opening up a sea of business opportunities, the conventional methods of opening up a business in Mexico are far from flawed. Hiring on your own staff to lead these new teams requires lots of bureaucratic red tape to navigate, which could throw off your planned expansion timeline. The same applies to opening your own entity to engage more control. With this said, there is a way to go about opening your own business in Mexico without a legal entity.

This is using solutions like Acumen International’s Global PEO system. Our team will handle complex aspects like onboarding and payroll, whereas you still remain in control of your employees, all while not having to worry about compliance issues. If you want to promote your brand without needing a local presence, we can help make that happen. If you do want to fully set up in Mexico, our solutions allow you to take advantage of workplace diversity and be able to recruit the top talent.

It’s important to remember that a total of 80% of business respondents believe that their talent acquisition is more about total value creation for the company than achieving cost savings. This means that it’s essential that you think of the top quality options when it comes to starting a business in Mexico without incorporation. The USMCA differences that we have profiled, show new opportunities in this area, but also new regulations you need to remain compliant too.

At Acumen International, our services, like Global PEO, designed to help you navigate this balance. Foreigners can open a business in Mexico, building up their team the way they want while being confident that they are in compliance with all regulations. On top of this, it’s done at a fraction of the speed of foreign incorporation. There is barely a better way to enhance value creation for your company than that.

Reach out to us today for more information.

Employment without borders is rather a necessity than a preconditioned option. In terms of economic relationship, “global mobility” appears as a dawn of the upcoming technological revolution.

In the days of post-industrialization, companies of all sizes and niches are seeing the benefits of expanding internationally. The global transformation of the world economy is inevitable, ergo, multinational corporations are the major consumers of these changes. Mainly driven by the cross-border movement of goods, services, and labor, “global mobility” arises as the looming globalization force.

Starting from the late 1970s, international labor pool constantly evolving to interconnected workforce network, changing the way modern employment is perceived. In this light, the Social Security administration becomes crucial for proper relationship development between business representatives, trade unions, and governments.

People matters much like business

It comes without saying that consolidation of global networking requires a proper regulation, mainly provided by centralized legal authority. One of the organizations, responsible for adherence to social obligations is the International Labor Organization (ILO). In many cases, ILO appears as a pledge and a final resort for labor rights. Human trafficking and modern slavery, same as child labor become an issue in developing countries, that is why international corporations endorse ILO as a global workforce regulator.

Perhaps, one of the most high-profile labor related cases is a case against multinational corporation Coca Cola, initiated by the International Labor Rights Fund and the International Steel Union on behalf of a Colombian trade union in the beginning of 2000s. The authorities sued the beverage manufacturer for murder, torture and kidnap of Colombian trade union members, who tried to protect the civil rights of the bottle plant staff, opposing subcontracting of thousands of workers apparently engaged by Coca Cola in order to reduce labor costs.

As we see from the above example, not just understanding of international core labor standards but compliance and implementation of Social Security Standards are crucial for establishing an effective, standardized, and ethic driven networking.

Hiring employees in foreign countries is exercised under common standards and regulations

From New York to Tokyo, from London to Johannesburg, multinational corporations around the globe continuously exercise the immense amount of business operations. Taking into account the fact that all of these transactions require appropriate regulation and maintenance, millions of participants all over the world take care of global network functionality. Every day, new contenders become a part of this web.

Regardless of the country or region of the designated market, the primary responsibility is always related to ethical and compliant performance. Putting a strategy into action requires professional assistance, including the incorporation of a talented workforce; therefore, businesses need to understand the ongoing procedures that include:

• Legal fees and government registration fees payout;
• Establishing inhouse bank accounts (must be completed in person);
• Preservation accounting records locally in the market;
• Designating a country manager, paid in the country;
• Breaking down entity/terminate the operations under corporate law;
• Sourcing and continuously managing multiple vendors for booking and HR operations.

In addition, companies establishing their presence abroad should adhere to a certain ethical context:

• Freedom of association;
• Right to organize/collective bargaining;
• Restrictions on child labor;
• Restrictions on forced labor;
• Restrictions on discrimination;
• Equal remuneration.

Innovation-driven approach is a key to access

Considering the possible risks and hurdles related to hiring employees in foreign countries, it is quite reasonable for companies to handover this due diligence to professional employment organizations (PEO). Global PEOs are advanced employers of record, who commit 100% compliant ethical, financial, and operational performance regardless of the destination point. Addressing a Global Employer of Record is a right way for multinationals to adhere to international labor standards, provide their services, sell goods, and keep the global networking system functioning smoothly and flawlessly.

Social Security Administration reflects the humane and mutually beneficial relationship despite the role of participants. Moreover, the relevant adherence to social standards leads to succession and appears as a leverage point of global integration. On the other hand, neglect of basic moral principles and core labor standards denotes failure to take advantage of that great opportunity.

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We live in a time where the world is more connected than ever in terms of business. International expansion is proving not just to be a potential option, but a key facet in businesses developing their audience, reach, and workforce.

However, there is a right and a wrong way to take advantage of this trend. Plotting to expand internationally without a true HR strategy is not only expensive, but opens up your company to legal risk due to non-compliance. So, with this in mind, here are some of the key elements of consideration for your international HR management strategy.

Why You Need A Global HR Strategy

Ultimately, when it comes to expansion, you have two main purposes in mind:

• Broadening the scope of business operations in terms of groups served
• Broadening the amount of services your company offers

Expanding internationally strikes both of these points. Not only are you opening your company up to a whole new audience, but you’re also needing to take the country’s needs into account. For example, a telecommunications company based in the United States, trying to branch into Nigeria, is going to need a very different approach due to the different infrastructures there. However, success here means they have two huge audiences to profit from.

However, international expansion is about staffing strategy as well as planning. For example, in order to facilitate that Nigerian expansion, the American company would want:

• Employees who are able to communicate in local languages to facilitate partnerships.
• Employees who are familiar with the local telecommunications structure.
• Employees who know the American strategy and work mode to ensure this new project maintains the original standards.

This often requires a combination of expat and international hiring to manage. Your HR management strategy for globalization can take three major forms, which are as follows.

Expansion Through Diversification: This basically entails when a business expands via changing what they offer. Using our telecommunications example, the American company that focuses on landlines may make a stronger push into mobile to appeal to the Nigerian market. By taking this step, they are better insulated against economic downturns.

Diversification can take two forms, concentric and conglomerate. Concentric is expanding into areas similar to or adjacent to the current area of business, while conglomerate is going into new areas.

Expansion Through Concentration: This covers when a business doubles down on some of their existing strategy, rather than implementing a new product or service. For example, bringing existing telecommunications services to a new country, in and of itself, fits this description. However, introducing a new product into your existing market fits as well. The benefit here is that there’s less of a learning curve, but shifts in your niche can affect your business more drastically.

International Marketing: When it comes to developing international marketing, you have a variety of different options you can go with. These range from direct/indirect exports to global web businesses to joint ventures with local companies in the field of choice. However, all of these share one major hurdle for your human resources team.

Refining Your International HR Strategy

Whether you want to build a global web empire or set up an office in a new country, each country you’re looking at has its own set of rules regarding hiring. These hurdles for hiring the team members you want can slow your international expansion plans. There is one way to compliantly tackle the issue, though: a Global Employer of Record (GEOR) solution.

Global Employer of Record programs as the heart of your expansion strategy offer two key benefits:

• The ability to hire qualified talent to help fit your new market, meaning you always have the best workforce behind your expansion.
• Ease of use when it comes to the hiring process, including risk mitigation and compliance with any local regulations.

But how do you make this work in your business?

Implementing a GEOR Solution For Your Global Human Resources Strategy

Creating an HR strategy for global expansion is important not just for compliance, but also for helping to expand the sales reach and overall effectiveness of your company. However, to increase the return on investment for your efforts, you need advanced HR strategy solutions, like a Global Employer of Record program.

If you find yourself in the market for these human resources services, Acumen International is a standout option. We offer an express advantage to all of your international hiring needs. Whether your plans include hiring only a few temporary employees or a large expat workforce, we make it easy to work inside the hiring laws where you live, facilitating smoother international expansion. We also provide speed, helping you to onboard employees within 72 hours.

Reach out to us today for more information.

One of the major factors that all companies should have in mind, even if they are doing well, is ways to increase their sales. From expensive training to tech integration, many companies have dozens of different practices they use to try and raise their sales, however, many are missing out on international expansion as an opportunity. Not only is it more feasible than ever, but the benefits are quite clear. Examples include:

• Exposing your product to a new audience.
• Handling the ebb and flow of business success.
• Being able to implement something that is no longer exclusive to big businesses.

However, what are some of the best potential options to choose from? Here’s what’s worth considering.

The Most Attractive International Markets For Expansion

Depending on your industry of choice, there may be dozens of different countries out there that can pose a potential opportunity. In addition, there are some countries that were formerly havens for international expansion, that may no longer be as appealing. The U.K in the wake of Brexit is a perfect example.

With that in mind, here are 5 countries that are currently looking like the strongest options when it comes to international expansion, specifically with sales growth in mind.

#1. Germany

The uncertainty that Brexit is causing in the U.K’s business world has set Germany as the EU’s new economic stronghold. The German government also understands the amount of international interest that will soon be coming to their borders, and has begun making sizable changes to their immigration laws. The goal here is to make it easier for foreign companies to establish themselves and onboard teams of their choosing. Over 2.7 million foreign employees are doing business in Germany, and that number is only set to grow as the country becomes more and more prominent. Cities like Berlin and Frankfurt are set to become hubs of international commerce for the region.

However, there are some pain points we should talk about when trying to establish a German branch of operations. For one thing, those same laws that we were mentioning mainly target German-speaking vocational workers, as opposed to white-collar international workers. The primary alternative, setting up a German entity, is also time-consuming. In addition, if you’re an English-speaking country looking to relocate past the U.K., you have to deal with a language barrier to start.

#2. The Netherlands

The Netherlands is also a country that is set to expand in growth in the wake of Brexit, and one of the main reasons why is that while Dutch is the native language, over 90% of Dutch people in the Netherlands speak English. In addition to easy integration and a strong economy, the Netherlands also has some unique tax benefits when it comes to people who are interested in expanding. Some key examples include housing benefits and tax deductions for spouses.

When it comes to the process of establishing a business, the Netherlands is relatively efficient compared to some other countries on that list, but relatively efficient isn’t the same thing as easy. For example, while foreign enterprises only require a residence permit, you still do need to go through other steps, like getting a Citizen Service Number from your local city hall. The main issue with starting a business in the Netherlands is that you have to take a few of these smaller steps, which can be easy to miss and potentially put your business at legal risk.

#3. Canada

Changing economic situations and regulations in the U.S. may make it not an appealing place to expand into at the moment, but Canada poses a great alternative for businesses wanting to reach that lucrative North American market. In fact, in many international rankings, Canada actually beats out its neighbor to the south in terms of places to do business. Factors like trade freedom, investor protection, and lower corporate tax rates are often cited.

However, the major barrier to doing business in Canada is the fact that rules for hiring and firing expat employees often change by individual province, though there are a set of national labor laws as well. This can pose a major headache if you plan on expanding to multiple areas across the country at the same time. Examples like Target’s failed Canadian expansion show while the area is rife with opportunity, it doesn’t mean that this is automatically guaranteed to succeed. In addition, if you plan on doing business in the French-speaking area of Quebec, you may encounter a language barrier both while establishing an entity or just doing day-to-day business.

#4. Ireland

Ireland has a lot going for in terms of international expansion to increase sales. For one thing, major corporations have been flocking to its shores for years to take advantage of the generous corporate tax rate, 12.5 percent to be exact. Compared to other major countries in the E.U., this is quite low. In addition, Ireland boasts one of the youngest average populations in the E.U., meaning it may be a great place to expand if that is your target audience. Notably, with labor costs in Ireland expected to grow, it makes it that much more appealing to look for expat hires.

However, while many people instantly see the tax rate and think that Ireland is a perfect place to do business, there are fundamental differences. For example, in the U.S., indefinite employment contracts are a common thing, but they are against the laws in Ireland. Companies looking to do business here need to fundamentally understand the different regulations or use a solution that lets them outsource that work.

#5. Japan

For many businesspeople, Japan is seen as the “gateway” into the greater Asian market, and a naturally strong place to do business. From a sales perspective, Japan has one of the largest consumer markets in the world, serving as a potentially lucrative hub, while having more of an established business infrastructure than a lot of the other major countries that may still be developing. In addition, when it comes to forging local partnerships, the reputation of the Japanese workforce as being highly-educated and dedicated is near-legendary.

However, despite the appeal, Japan has perhaps the least amount of foreign investment considering its industrial development. Why is this the case? It all boils down to the fact that Japan is also a notoriously bureaucratic country. On top of typical processes for things like establishing residency or creating a new entity, there are also a wide network of offices and procedures for things that many U.K. or U.S.-based companies may not even think about needing to have approved. In addition, despite being well-educated, most Japanese professionals do not speak English.

Handling the Pros and Cons of Expanding

Every country has a different approach when it comes to doing business, but there are a few things that universally apply.

• All countries have laws when it comes to international expansion and hiring that you absolutely must follow.
• Setting up a new entity in the country of choice is a way to circumvent this issue, but is also prohibitively expensive and sometimes complex.

As a result, it’s important for businesses to have a way to emphasize the benefits while mitigating the cons of international expansion. One key way to do this is by using a Global Employer of Record (GEOR) service. When you work with a GEOR service, they become the registered legal employer for the worker, essential outsourcing the logistical work of local hiring and payroll compliance. However, you still control all the day-to-day aspects of the employee’s job.

In terms of a Global Employer of Record solution, Acumen International is the ideal option, whether you are looking for a bridge option while establishing an entity in a new country or a permanent option to support your international expansion. With the ability to onboard expat employees within 72 hours, we can help you quickly and efficiently set up your team in these exciting new business markets.

Reach out to us today for more information.

Recent news shows that while the extension to figure out a Brexit deal may be welcomed by some, this isn’t the case for the business world. The UK’s services sector has seen a slump, and the ongoing uncertainty on what exact form Brexit will take is largely to blame. However, in business, it pays to be proactive. Here are some of the things that business with UK operations can do in the wake of a looming Brexit.

How to React

How exactly companies choose to react to Brexit is largely based on their relationship with the UK. Here are examples of some of the main categories of professionals and what they need to focus on.

EU Nationals working in the UK: This will largely depend on whether we see a “Deal” or “No Deal” Brexit. In the event of a “No Deal,” which seems more likely, given recent events, residents before Exit Day will have the right to work, but must be settled or pre-settled by December of 2020. For those who arrive after Exit Day, they will have a temporary right to work. A “Deal” will result in a flat right to work until December 2020, and these people need to be settled or pre-settled by June 2021.

Businesses in the EU: Many businesses in the EU need to adapt for the sudden loss that they will experience when Brexit occurs. For example, statistics show that Brexit is going to cost Germany 10 billion euros per year. Brexit could mean losing customers/clients, so businesses need to have a backup plan now. In addition, for UK businesses, British entities have been allowed in the UK up to this point. That may change now.

US Businesses: The UK made for a great entry point into the EU due to common languages and similar regulatory systems. However, with Brexit taking this off the table, American businesses may need to think about an alternative country, or whether business in the EU makes sense at all.

There are a few common steps that all companies should take with Brexit on the horizon as well. Some of these include:

• Prioritizing staff to move and secure immigration status for
• Looking at mobility provisions in current staff contracts
• Preparing for a temporary service gap
• Looking for changes in immigration law across the EU

Moving Operations

For various reasons, one of the most difficult tasks that may accompany Brexit for a lot of businesses is the decision to be proactive and leave the UK altogether. Statistics show that one out of eight German firms is planning to leave the UK, with Brexit as a primary reason.

However, for some companies, the decisions may not be as easy. There’s the potential risk of a language barrier, as well as the compliance barriers that make it long and difficult to hire expats across the EU. Some companies get around this by setting up an entity, but for companies trying to relocate post-Brexit, this isn’t a time-efficient option.

The ideal alternative in this regard is using a Global Employer of Record (GEOR) to facilitate your relocation or reorganization. No matter what EU country you decide to move operations to, you can skip a lot of the bureaucracy and move all your top employees to your new location. To make this happen, the GEOR serves as the registered legal employer for the worker. This means that they take on the responsibility of

• Immigration requirements/compliance
• Payroll
• Maintaining foreign employment, in any country

However, your company maintains control in the most essential areas, including:

• Compensation
• Performance
• Assigned Duties
• Termination

In the wake of Brexit, many companies are scrambling to find a more stable place to do business. A Global Employer of Record solution is the best way to accomplish this, and Acumen International is the best GEOR on the market. Whether you want to relocate as a bridge option while you continue to plan, or have permanent plans to establish roots in Germany, the Netherlands, or other countries, we can help. Don’t let visa/immigration processes hinder the scaling of your business.

Since Brexit developments are happening day by day, we know speed is important. Because of this, we make it possible to onboard expats in the EU as fast as 72 hours after submitting your initial request. This means:

• Lower employment risk
• Quicker speed for projects
• An emergency employment option-in any country

Brexit has created an environment of uncertainty when it comes to companies that have their European operations based in the UK. A recent extension of the deadline has given UK leaders extra time to decide how to approach the split, but this is of little comfort for many international businesses. The UK’s combination of a common language and favourable environment made it a common starting point for many international businesses, but now, there’s a question of what can fill that void, especially in a no-deal scenario.

There are a few EU countries that stand out as the strongest candidate.

The Ideal Countries of Choice

Germany: With the UK potentially going off on its own, Germany is now poised to be the economic center of the EU. Roughly 20,000-30,000 new jobs are poised to be brought to Frankfurt and other major German cities, meaning there will be many positions to fill. On top of this, Germany is currently making major changes to its immigration laws to make it easier for foreign countries to set up shop and bring on their own expat employees. The fact that Germany has an unemployment rate of below 5%, one of the lowest in the EU, makes expat hiring even more attractive.This puts Germany at the top of the list when it comes to UK alternatives for post-Brexit business. However, easier doesn’t mean ideal. The new laws are designed more for German speakers with vocational skills. This means that other companies will want to either set up a German entity or use a GEOR solution. In addition, English speaking companies will need to navigate a language barrier to start.

The Netherlands: As mentioned before, one of the biggest reasons that the UK was so popular with American companies is the lack of a language barrier. The Netherlands is similar to Germany in that it is centrally located in Europe (making for a good central base for EU operations), and has a strong economy. However, one major difference is that the language barrier is minimal. Over 90% of Dutch people in the Netherlands speak English, which makes onboarding and general operations far easier. In addition, there are even tax incentives for some skilled international workers. However, you will need a residence and work permit, which can take time your business doesn’t have when it comes to expat hires.

For example, you need to have a Citizen Service Number for tax and employment purposes in order to work. This is something you get at city hall upon entering the country, but can be an annoying logistical step if you need your expat workers to get started right away.

France: France is a viable option to do business in, compared to other EU countries, but it’s not as easy to onboard expatriate employees as it is in Germany, nor do you enjoy the lack of language barrier that you see in the Netherlands. In addition, as far as setting up an entity in the EU goes, France is one of the more difficult countries to get things off the ground in. The main reasoning for this is there is a lot of bureaucracy involved in terms of creating an entity. While France has implemented a “talent passport” program to try and speed things up, qualifications are very specific.

Expanding Your Operations To Other EU Countries

Brexit means that a variety of EU companies and companies with EU operations are beginning to consider relocation now, rather than waiting to see how things pan out. Whether you plan on doing business in Germany, the Netherlands, France or another part of the EU, there’s always going to be some sort of compliance hurdle that you need to overcome.

Larger companies may set up an entity in the EU to navigate this, but for many other businesses, this isn’t feasible in terms of their time or resources.

The alternative here is using a Global Employer of Record (GEOR). This combines speed and efficiency to allow companies to bring on the employees they want in the EU and elsewhere, without having to set up their own entity. To accomplish this, the GEOR becomes as the registered legal employer for the worker.

In terms of a Global Employer of Record solution, Acumen International is the strongest option available. Whether you are looking for a long-term solution to keep your expat hires in compliance with in-country laws, or just looking for an interim solution while establishing an entity in the country of your choice, we have you covered.

To give you an idea of the efficiency, we can help you onboard your expats fast as 72 hours after the initial request. This puts less risk on your company, and makes it possible to tackle emergency projects faster.

In addition, if you’re still in the planning stage when it comes to global operations, we offer handy online tools like our Global Payroll Calculator to see what type of expenses you may need to account for. See how your company can be proactive with Brexit, rather than reacting to an uncertain situation.

Reach out to us today for more information.

So what is the field in your CRM which is almost never used or even does not exist in some CRMs?

It’s your customer “native language” field.

• If you don’t have this field – add it immediately.
• If you have the field but don’t have the data – have your sales force collect it.
• If you are already collecting that data – use it to your full advantage.

Sort your customers and prospects by the “native language” field and put a sales manager with the same native language in charge of them. If you don’t have this language in your company and you see a significant group of customers and prospects in your CRM – hire a sales manager with that native language.

If you want to expand to some global markets or work there already – hire a person in-house, or have a light footprint used by many multinationals nowadays. It’s when you hire a local person to work with your clients in that country, but you don’t open your own legal entity.

Use that strategy to make a one on one connection with your customers, and see your sales grow.

Foreign Employees Benefits and Compensatione | Express Global Employment

If you fear diversity, you will fail in today’s global marketplace.

Nick Ganzha, the Founder and CEO of Acumen International, talks about three main reasons why you do fear diversity:

1. You do not understand foreign mentality and culture, and it’s human nature to fear what you don’t understand, what you feel is foreign to you.

2. You do not know how you can manage and control the unknown since diversity is an unknown field for you.

3. You believe that diversity can ruin your company’s culture.

If you do business globally, then diversity is vital for you to succeed.

Why? Learn more from the video.

At Acumen International we help employers like you become successful in global markets by attracting and retaining global talent in more than 190 countries.