At the beginning of 2020, the UK officially voted to exit the European Union (EU) in a controversial move coined “Brexit.” While the decision has been made and set in stone, the full repercussions of Brexit have yet to take hold, leaving the future of global commerce, employment and immigration policies adrift in a sea of uncertainty.

December 31, 2020 marks the end of Brexit’s months-long transition period, designed to give both UK and EU businesses and employees time to regroup. But the spotlight on Brexit was severely eclipsed by the Coronavirus and ensuing UK lockdowns, leaving businesses scrambling in the final days of 2020 to salvage their business interests in the EU.

If your business is caught in the crosshairs of Brexit uncertainty, a global PEO solution can help you make a smooth transition to a post-Brexit European landscape.

Business Challenges in a Post-Brexit Europe

Prior to the UK’s Brexit vote, UK businesses and citizens had open access to EU member countries, and to Iceland, Liechtenstein and Norway, member countries of the European economic area (EEA), for the purposes of both commerce and tourism. Having EU member status made it possible for UK business entities to expand unfettered into other EU markets, with the ability to relocate key expat employees and easily hire local workers. During the 2020 transition period, UK businesses and employees have been allowed to retain the privileges granted to EU members, but that is about to change.
Following are some of the greatest future challenges anticipated by UK international businesses:

• Challenges of recruiting global talent. After the transition period, the UK will face new obstacles in recruiting international talent. It will be more difficult for EU and EEA citizens to immigrate to the UK, and more challenging for UK enterprises to hire and pay a global workforce.
• Potential changes in tariffs and export fees. Until new trade agreements are negotiated between the UK and EU, companies remain in the dark about how future fees and tariffs will impact their ability to remain competitive in EU and EEA markets.
• Compulsory changes to payroll processes. As EU members, UK companies have been able to leverage the single euro payments area (SEPA), a system created by the EU that allows for standardized financial transactions among EU and EEA members. As of January 2021, SEPA architecture will no longer apply to UK international payroll processes, and UK businesses may be unable to pay global employees from a UK bank account.
• Maintaining communication with clients. The rift between the UK and the EU may have unforetold repercussions for business relationships across European borders. Many UK businesses are concerned that the free labor movement limitations and travel restrictions will make it difficult to service European clients.
• Compliance with foreign laws and regulations. Being no longer EU members, UK international companies will have to be ready to navigate newly imposed international employment laws and regulations for conducting business in the EU, hiring and paying a global workforce – locals as well as expats.
• Management of employee immigration. With new restrictions in place beginning January 2021, UK businesses with EU employees face the threat of losing their global workforce while scrambling to meet immigration criteria, both at home and abroad.

Things to Consider for UK Global Employers

If your UK-based business employs foreign workers in and from the EU, legal experts Crowell and Moring LLP outline certain changes to immigration regulations that you should begin to prepare for now.

• Any employees or self-employed individuals who have been continuous legal residents in the UK for 5+ years are eligible to apply for permanent residence.
• Employees and their families who have resided in the UK for less than five years who wish to remain in the UK after June, 2021 can apply to continue living in the UK through the EU Settlement Scheme.
• Companies that are planning to hire non-UK citizens on their own business entities in 2021 should apply for a sponsorship license.
• If your business already has a sponsorship license, you should verify that it is up to date and valid, and that you are still allowed to engage non-UK citizens in 2021.
• If your company intends to employ non-EU workers within an EU member state, the EU Single Permit Directive provides for a single application procedure that covers both work and residency permits, which you will need to obtain.
• To hire a high-profile non-European employee in Europe or Belgium, other single permit options may apply.

Alternatively, you may want to look at the solutions that can help you skip hiring directly and having to stay in the loop of these and other post-Brexit changes in 2021.
A Global PEO solution is an alternative option to direct hiring. It takes the hassle of dealing with all the above nuances off your shoulders as well as deprives your business of having to maintain costly own legal entities.

As international businesses move forward in 2021, many more unforeseen changes and regulations may emerge. And this will impact how companies like yours recruit, hire and compensate global workers. Partnering with a global PEO during this uncertain transition period offers a plausible solution for businesses who want to experience minimal disruptions to established business processes.

How a Global PEO Solution can Help UK Businesses Transition Post-Brexit

The uncertainties brought about by Brexit and the Coronavirus have disrupted trade across the globe and left UK businesses in limbo. But every problem has infinite solutions, and Acumen Global PEO offers a convenient, compliant and time-tested solution for companies undergoing global expansion in uncertain times.

When you partner with Acumen Global PEO, you will be able to:

• Continue your global projects without disruption and loss of talent.
• Meet compliance requirements for hiring and payroll in EU and EEA countries.
• Pursue your business goals for global expansion with minimal loss of momentum.
• Deftly relocate or reconfigure your business interests in EU and EEA countries without fear of fines or penalties.

With Acumen Global PEO solution, you can move ahead with confidence, knowing your business interests in the EU and EEA will be protected from post-Brexit backlash, no matter what changes it brings.

Acumen International, Your Global PEO Provider

Time is running out for UK businesses to resolve their international employment challenges before Brexit restrictions set in. Whether you need global employment solutions for hiring and paying your global workforce or an expat hiring solution, Acumen International Global PEO can help.

As an experienced and well-established leader in the global employment industry, Acumen has the tools and connections to ease your transition to post-Brexit business expansion. By leveraging Acumen and our global infrastructure covering 190 countries, you can forge ahead with your business goals, despite the uncertainties brought on by Brexit. Get Acumen’s Express Quote now, and be ready to face whatever changes the future presents in 2021 and beyond.

It is universally agreed that small and medium enterprises (SMEs) are the backbones of local economies. But being small doesn’t have to limit your market outreach. Thanks to innovations in technology and the support systems that evolved with them, businesses of any size can have a slice of the global pie. If you are ready to spread your wings and soar into the international marketplace, there are solutions available to help you succeed abroad.

Challenges of Establishing a Legal Entity Abroad

Just as there are rules of incorporation in the US that vary from state to state, when you open a company overseas, you have to comply with local regulations and standards. Entity formation in a foreign country can entail a mire of forms to be filled out, questions to be answered, and bureaucratic red tape to navigate. For some companies, overcoming the obstacles of local compliance can be a deterrent for international expansion.

In addition, international employment poses its own problems. Finding local qualified staff can be challenging, especially if there is a language barrier. Foreign governments often have rigid guidelines for employing locals, and even stiffer guidelines for sending your own staff members to work in a foreign country. Many SMEs lack the financial and human resources to overcome the challenges of setting up shop in another country.

Options for SMEs to break into the international market include:

• Operating in foreign markets from your home country. You may be able to sell your goods and services abroad without leaving home, but doing so has its challenges. You will still need to find local employees to represent your interests, and managing, communicating and paying them will be difficult from a remote distance.
• Going through established dealers or distributors to market your products. Identifying reliable business partners who are willing to handle your goods is another option. Just keep in mind that if you do find distributors you can depend on, you will still have to negotiate terms of doing business, manage shipping and inventory, and follow up on a daily basis to ensure your goods are reaching your target audience.
• Establishing a foreign branch of your existing business, or setting up a local office. This option gives you more control, and ensures your interests are being represented and protected. However, be prepared to deal with local tax laws, legal red tape and obscure regulations for hiring local workers.

Fortunately, your SME does not have to be a trailblazer when embarking on foreign frontiers. Entities already exist to help you navigate the complexities of compliance, recruiting and staffing of your business entity in foreign lands.

Advantages of Working with a Global PEO

A Global professional employer organization (PEO) bridges the human resources gap for businesses who want to expand globally. Partnering your SME with a Global PEO gives you the tools to effectively manage risk and meet compliance requirements without having to form a legal entity in a foreign country. It allows you some wiggle room to explore your options and get established without draining your limited resources.

An International PEO can benefit your company in four key areas:

• Hiring: A PEO can help you recruit and hire the best full-time sales talent without having to establish a legal entity. As a global employer of record, a PEO saves you from having to rely on temporary contractors with dispersed loyalties, and lets you form stable employer-employee relationships that breed loyalty and benefit your company in the long run.
• Local compliance: The language, culture, customs and legal requirements of foreign countries can be overwhelming, making it a challenge to get your business up and running. A PEO already has systems in place in dozens of foreign countries to help you set up commerce with a minimum of hassles and red tape.
• Cost: Getting established abroad can be costly, especially if you don’t know the language or the lay of the land. Fees and taxes for establishing a business entity can be prohibitive, and you are likely to make costly mistakes that delay your progress and result in unnecessary fees, fines and expenditures. A PEO can save you money by eliminating confusion and slashing through red tape.
• Time: Establishing an office in a foreign country can be a long drawn out process wrought with paperwork and delays. A PEO can get you set up quickly with local sales representatives to work in your target markets without waiting for in-country incorporation formalities. A PEO can help you recruit and hire a reliable local sales force to represent your business in a relatively short amount of time.

Acumen International: Your SME Business Partner Abroad

If you are ready to test the waters of international commerce but hesitate due to limited resources and knowledge, Acumen International can help. We help SMEs operate in over 190 global markets by solving issues of staffing and compliance. Save money, time and headaches while you establish your brand and gain a local presence in foreign markets. Contact Acumen today, and learn how we can help your SME go global.

Contact us today or Request a Quote here.

It is a well-known fact that certain US business sectors have more job vacancies than they can fill with domestic talent, forcing companies to cast their recruiting nets farther abroad. But H1B visa abuse by some tech companies has caused the current administration to freeze the H1B, at least through the end of 2020.

The freeze could have serious repercussions for businesses relying on filling critical vacancies with foreign workers. But there are ways to get around the freeze and hire foreign workers, despite the changing laws and regulations.

H1B Visa Requirements

The H1B is a specialty visa granted on a temporary basis to workers with exceptional skills, abilities, or merits. It is not intended for long-term immigrants, although many H1B holders use their status to put down roots in the US and later apply for a green card.

To qualify for the H1B, foreign workers must meet certain requirements:

• The job must demand highly specialized skills and knowledge
• The employer must require job candidates to hold a bachelor’s degree or higher
• The applicant must have the equivalent of a US bachelor’s degree or higher in the specific occupational specialty

Ironically, fashion models also fall under the umbrella of the H1B visa. To meet eligibility requirements, the model must possess “distinguished merit and ability.”

Why the Trump Administration Targeted H1B Visas

It is no secret that President Trump has conservative views on immigration. His campaign slogan, “Make America Great Again,” highlights his America-first philosophy. And after decades of outsourcing by US companies who sent hundreds of thousands of American jobs overseas to exploit low-paid foreign labor, many Americans support Trump’s position.

In particular, a disproportionate number of H-1B visas are granted to tech workers from India who are willing to work for much less than their American counterparts. In 2019, 225,000 H1B applicants competed with US workers for a mere 85,000 jobs.

Silicon Valley tech companies are especially guilty of prioritizing foreign tech workers over domestic employees. And as recently as June of this year, just days before the freeze went into effect, a Facebook employee leaked an internal HR document that exposed FB’s policy of prioritizing H1B workers over US citizens.

On June 22, 2020, the White House released its proclamation suspending H1B visas until the end of the year, citing high unemployment in the US. In an election year, US jobs are always a political talking point, so it is no surprise that the H1B visa news is being used by the Trump campaign to garner political support from disgruntled voters.

Covid-19 and H1B

Massive job losses in the US due to Covid-19 lockdowns give additional impetus to the President’s immigration policies. With American businesses taking a hard hit and Wall Street facing record lows, it seems counterintuitive to open US borders to foreign workers when so many American workers are unemployed.

Moreover, travel restrictions have been put in place to prevent the spread of the virus. Allowing foreign workers to enter the US heightens the threat of Covid-19 to a nation that has already registered widespread infections and suffered thousands of deaths.

How the H1B Freeze Affects US Businesses

The freeze, which also covers H1A visas and J1 short-term visas, is projected to impact as many as 525,000 foreign applicants, including 170,000 permanent resident green card applicants. In addition to highly skilled tech workers, the freeze applies to non-agricultural seasonal labor, nannies and au pairs, and high-level business executives.

Many American businesses are already hiring more US citizens to offset the freeze on H1B visas. Because the halt is temporary, most companies see it as a short-term inconvenience whose impact will be minimal in the long run. Nevertheless, certain businesses will feel the pinch more than others, and some will look for ways to circumvent the new regulations imposed by the Trump administration.

Employment sectors that are most likely to be affected by the H1B visa restrictions include:

• The medical sector, that predicts a potential shortage of nearly 140,000 doctors over the next decade.
• The IT industry that typically relies on foreign employees to fill the qualification gap in skilled US tech jobs.
• Companies with key US employees located abroad, that may experience retaliation from foreign governments.
• Companies that currently employ H1B workers whose families are banned from joining them in the US due to the visa freeze.
• Research ventures, including the US Department of Defense (DOD), that collaborate with foreign scientists and researchers.

Getting Around the H1B Freeze

When it comes to getting a visa, H1B is attractive to educated foreign workers, but even more so to businesses, enabled to hire savvy experts from outside the country.

For businesses, H1B applicants provide a motivated pool of skilled and educated workers. Not to say they become unavailable after the events of 22nd June, 2020, when the Trump administration blocked work visas, five of them altogether. This is the case when a global PEO provider comes into play, letting businesses keep their pace and avoid losing momentum by hiring the same talent overseas.

If hiring globally was an option in the past, it is a business imperative today. One of the most effective solutions for getting around the H1B freeze is to partner with an international employer of record (EOR) like Acumen International. While the visa block shuts down your access to highly skilled talent, an international PEO solution opens a new opportunity window for you in the form of limitless access to a vast variety of global expert talent.

A global PEO solution enables your company to support and employ skilled remote professionals without the limitation of proximity or geography. Retain employees that were denied the H1B visa, whether it is their home country or any other of the 190 countries we support.

We simply draw a tax and law-compliant employment contract that allows your worker of choice to continue operating as usual. We deal with related benefits, payroll, tax, and accounting issues accordingly. Once your employees get the H1B visa again, in the future, we will transfer them off our service and you’ll hire them directly.

Acumen International, Your Global HR Partner

In addition to H1B visa restrictions limiting entry to the USA for foreigners, the ever-evolving and changing laws, regulations and requirements in multiple countries pose enormous challenges for international employers. Acumen International is a global employment service provider in over 190 countries. We manage legal issues, payroll, benefits, taxes, and other HR challenges faced by businesses with a growing global workforce.

Partnering with Acumen ensures your company remains compliant with the multitude of regulations and requirements that affect businesses, so you can confidently continue to facilitate your business and hire the very best talent to meet your needs.

Nothing is more exciting than growing and expanding your business into new markets, especially when you’re ready to go global. Venturing into new frontiers holds infinite prospects for growth and profits. But no matter how eager you are to join the global business community, there remains the challenge of international hiring and compensating your foreign workforce.

Getting Ready to Go Global

Before you hang out your shingle in foreign lands and begin recruiting local talent, you should take adequate time to set yourself up for success. For each new market, you need to identify your target audience, conduct research on local employment regulations and compliance with tax laws, and understand the complexities of payroll processing and employee benefits provision.

If you plan on establishing a company representative to sell company products in a foreign country you should also take into account the red tape of arranging payroll for local citizens or obtaining work permits and visas for expats. In some countries, the application and decision-making processes can take several weeks, but more often – months.

Simply put, the international hiring process cannot be rushed, but more often than not – it has to be. Even though doing it on your own, using your company’s resources can seem like a wiser way to go, it will not save you time, money and headaches down the road. Only when you fully understand the ins and outs of hiring a local citizen in a foreign country should you actually begin the recruitment process. Unless you’re a staffing agency, you probably will lack expertise in local legislation procedures, tax regulations as well as other local employment practices (severance pay, 13th salary, etc.).

The Challenges of Foreign Employee Benefits Provision

An important part of attracting top talent (and retaining too) is offering an enticing benefits package. It is crucial for your local staff and even more so with regard to your global talent. In competitive markets, benefits sweeten the pot, and for a highly skilled prospect, a well-thought-out benefits package can be the deciding factor making them choose your company over your competitors.

Foreign employee benefit provisions fall under one of two categories:
Statutory benefits, also called statutory entitlements, are mandated by local governments. Providing them is not optional when you are hiring a local citizen in a foreign country.

Depending on the country, statutory benefits may include:

• Paid vacation time
• Medical leave
• Maternity and/or paternity leave (partially or fully paid)
• Health insurance
• Severance in case of termination

Statutory benefits can vary widely from one country to the next. If you are expanding into multiple regions, juggling the nuances of local statutes can be a nightmare for human resources. Not only will your HR team need to learn the mandates of each country, but they will have to keep current with changes in local laws. The inequity imposed by statutory benefits can also be a source of contention among home employees, who may feel their foreign counterparts are given unfair advantages. This can create morale issues that poison your corporate culture and undermine productivity.

Voluntary benefits are those you offer in addition to statutory benefits. They are the icing on the cake that can make your offer of employment more attractive to potential candidates. They may also be a key element for employee retention, saving you from the high cost of turnover. You may choose to award voluntary benefits on a case-by-case basis, or offer them to all employees across the board.

Voluntary benefits may include bonuses like:

• Housing
• Discounts on goods and services
• Equipment provision and maintenance
• Education expenses for family members
• Travel expenses
• Retirement plans
• Income tax equalization.

It is important to note that even though these benefits are “voluntary,” if other companies in your niche routinely provide them to foreign employees, it is in your best interest to offer them as well.

Solutions for International Hiring and Payroll Services

Clearly, the process of international hiring is more complicated than hiring employees close to home. Rather than overtaxing their human resources departments, many companies turn to third parties to manage their international employees and operations on their behalf.

Third party companies that serve as intermediaries fall under one of three categories:

• EOR (employer of record): An EOR takes on the legal and regulatory requirements concerning foreign employees, like benefits, taxes and payroll. It can be an enormous help in recruiting, but it does not make company decisions concerning the employee’s work duties; the (f)actual employer does. An EOR company however arranges employee payroll and termination. The global EOR serves as the employee’s registered employer, but has no managerial responsibilities.
• FSaaS (foreign subsidiary as a service): This entity is set up by a larger company whose headquarters are located in another country. A foreign subsidiary is incorporated according to the laws of the country where it is located, and conducts business according to local laws.
• PEO (professional employer organization): A global PEO manages payroll services and benefits provision to your foreign workforce, along with other responsibilities like tax administration and regulatory compliance. A PEO lets you establish your business much faster than if you set up a foreign subsidiary, which can take several months.

Advantages of Using an International PEO/EOR Solution

There are numerous advantages to entrusting your overseas HR management responsibilities to a third party entity:

• Ensure you are legally compliant with the laws of different countries.
• Pay your employees in local currency without worrying about exchange rates.
• Accurately distribute statutory and voluntary benefits to employees in different countries.
• Make sure local taxes are paid accurately and on time.
• Stay up to date with changes in local laws.

Establishing your business in a foreign country can pose many challenges that your HR department is not equipped to handle. By using a third-party entity like Acumen International as your global PEO/EOR, you can get your overseas operations up and running quickly, with minimal stress about local laws and customs.

Acumen International Your Global PEO
If you are ready to expand overseas, Acumen International can help you hire and compensate your foreign workers in over 190 countries. Save money upfront and shave months off your setup time as Acumen helps you navigate the nuances of labor legislation of each country.

Partner with Acumen a global PEO provider for that. Ask Acumen International a question today to get answers.

We are in the midst of a time of significant growth for the global employment services market worldwide. The market is projected to grow by approximately $269.5 billion, powered by a compounded growth of 5.1%. A major factor behind this is the fact that as the economy globalized, companies suddenly had the ability to take advantage of talents based anywhere in the world. Fast forward to today, and we are facing another global change.

With the gig economy being reshaped, the same multinational companies need to rethink their working practices. This includes areas like:

• Hiring/managing a contingent workforce
• Creating new remote work practices
• Putting together globally distributed teams.

Here’s a closer look at the pain points this is creating, and how your company can tackle them.

The Evolution Of International Employment

The advent of the gig economy provided a new opportunity for global workers. They could provide their talents to all types of companies all over the world. However, COVID-19 has altered this significantly. Suddenly, companies that are engaging remote global workforce have opened themselves up to a whole new level of employment changes and ensuing tax liabilities. This has added up to a variety of other compliance and misclassification risks that were in place in various countries even before the pandemic.

The gig economy, which a lot of companies used to power their international teams, has been turned upside down due to the advent of COVID-19. Now, it’s a far more preferable choice to look into proper employees that you can invest in for the long-term. However, with that shift come additional considerations. If you have teams in multiple countries, you need to make sure you are compliant with each country’s set of labor rules to avoid being penalized.

Compounding this is the restructuring of the global workspace due to the advent of COVID-19. Suddenly, remote/contingent workforces are the only option since there is no other way to work. Even for traditional businesses that prefer conventional operations, this is the only option possible. For example, an international sales professional that goes to different countries to pitch offerings is now limited due to existing travel bans/limits.

How Companies With A Global Presence Can Reevaluate

Your company has already likely made adjustments due to COVID-19. You should be equally attentive to other new practices as well. Every company is likely to have its own contingent workforce, especially as the global market grows. It’s best that you get ahead of the curve, not just in having global teams, but the mechanisms to manage them.

When we talk about the ideal way to deploy your global workforce 100% compliantly, many companies were only pondering working with a Global Employer of Record/Global PEO service. In a post-COVID business world, though, that’s becoming more of a necessity than a luxury.

If you’re looking for an ideal partner in this endeavor, look no further than Acumen International. Our International PEO and Payroll service lets you hire, manage, and payroll all your foreign teams, without needing to set up your own legal entity abroad.

Without a Global PEO, you need a legal entity to stay in regulatory compliance. However, there are a lot of barriers to actually creating one, especially the rapidly shifting in-country labor laws.

At Acumen, we service over 190 countries and can help provide key services like hiring, onboarding, as well as managing taxes and benefits. We help you provide complete confidence for your foreign teams in any country. We also guarantee:

• Cost-efficiency
• Full tax and law compliance
• One agent taking care of your every task
• Global access by a single point of entry provider
• Quick task accomplishment

The entire world is reimagining how they put together their working practices, and new options are beginning to come to the forefront. In this critical time, any multinational company needs to look into using an established and experienced Global PEO provider as a trusted partner.

Acumen International already has a global network as well as hyper-localized expertise to help you as the world changes. Global PEO becomes the mediator between the worker and the client company. It comes with an arranged network as well as the expertise to execute complete conformity to all the local laws and tax regulations in over 190 countries worldwide. This includes services like:

• A bilingual employment contract
• Onboarding
• Registration with all regulatory bodies
• Salary calculation and payout
• Compliant tax filing
• Handling employee requests

We’ve already built the global infrastructure in 190+ countries you need to be a successful company abroad. Work with us and start reaping the benefits.

Reach out to us today for more information.

Right now, international travel is at a crossroads regarding the current COVID-19 pandemic. We are starting to see business restrictions lift in some of the areas that were previously most affected by the disease. However, international travel is probably one of the last areas where restrictions will remain. Even then, the future isn’t certain regarding when or if travel will resume as normal.

While this may be seen as a net benefit for public health, it puts multinational businesses in a bind. Many of them may have had plans to set up expats to head their foreign teams, but this is now impossible. However, this doesn’t mean that work processes should stop. Instead, remote training and experience transfer are going to be key. Here’s how your company can get it running at this time.

How Travel Bans Restrict Multinational Companies

Now, let’s discuss in more detail how a multinational company can be impacted by existing travel bans. We mentioned how sending over ex-pats has become much more difficult or even impossible, but that’s not the only example.

• Training: In many cases, it would be common for teams looking to go international to send over someone to onboard the local talent and possibly manage them. However, due to travel bans, any training would need to be done remotely for safety reasons.
• Client base: In some cases, your client base may be international travellers or businesses, especially in the B2B segment. Travel bans could be cutting substantially into your potential profits. The same applies to companies in sectors like hospitality.
• Networking: Major events like conferences are often great opportunities for businesses to expand their network. However, we may never see these events in the same style again due to health concerns.
• Remote onboarding: Many companies are trying to turn to remote communication instead of international travel. While this can be a substitute, productivity’s still lost as teams learn to use these new platforms. This takes on a new level of concern internationally, where Internet access and quality may not be uniform across the board.

One thing that a lot of international companies are or should be quick to turn to in these circumstances is a Global PEO service. Global PEO helps simplify the process of hiring international talent, and many see it as a stopgap option until travel bans are lifted. However, you don’t want to take a short-sighted look at things. A PEO service brings several long-term benefits to a company, and here are some major examples.

• Compliance: The pandemic has led to some of the largest changes in labour law that we’ve ever seen internationally. This isn’t likely to change during the fallout, either. Many countries will have to deal with workforces demanding new benefits and work structures, and it falls on international businesses to comply. With a Global PEO service, you never have to worry about missing a regulation change and being at legal risk.
• Classification: The debate on whether workers can be classified as independent contractors or employees has been a major one, and in many cases, it’s unclear for even companies trying to comply. A Global PEO service can help make a difference.
• Outsourcing. For small to medium-sized businesses wanting to go international, HR and payroll tasks can take a lot of added manpower. Global PEO services allow for spreading the workload.
• Speed. Perhaps the speed involved is the most important thing about an international PEO service compared to setting up a foreign subsidiary in a country of your choice. Travel bans or not, this is the fastest way for you to create a team for taking advantage of opportunities or responding to emergencies.

Leveraging Global Employer of Record Services

So, with that in mind, all multinational companies should be plotting towards a Global PEO service/Global Employer of record. But what’s the best option in this area? Acumen International can help make your regular operations possible, even with travel constraints. For example, using an International PEO or EOR solution greatly simplifies the process of hiring a local worker, letting your business continue operating in a foreign market even if travel bans are left in place for a longer period.

To give you an idea, here’s how a company would approach this issue with or without a Global PEO service.

To hire a foreign employee compliantly, a foreign subsidiary in the country would be needed. This is an expensive and time-consuming process, and many countries have temporarily shut down the offices that handle these transactions due to the pandemic.

The Global PEO/EOR partner takes on the responsibility of compliance with hiring and classification for your new foreign employee. You still maintain control of key decisions like salary and termination.

With a Global Employer of Record, you can access a local workforce in any market, as well as potential clients, lockdowns, or not. Since you already speak the same language as your PEO provider, why not let a company like Acumen be your hands and eyes on-site?

Having The Right Team On-Site For Your Global Expansion

With the support of Acumen International, even in the current climate, it’s possible for you to go about employing foreign workers on-site. While the global business may change, that doesn’t mean you need to halt operations. It’s all a matter of adapting and having the professional support you need, like a Global PEO partner.

The COVID-19 pandemic is still raging on. And even as we see a few signs of reopening, by and large, the global economy has changed, possibly forever. Many industries may be unable to function as normal until the wide distribution of a vaccine, and the massive job losses are indirectly impacting a lot of industries. For example, major tourist hotspots being shut down means that all the local businesses dependent on that influx are also dead in the water.

One other trend that is going on is countries radically changing their employment, tax, and payroll laws. In some cases, it’s done to protect employees, while in others, it’s to protect the economy. In some cases, it’s a bit of both. But what are some of these exact changes, and how do they impact companies with the plans to go global?

What Are The Latest Global COVID-19 Updates For Employment Law?

In our past coverage, we shared some of the updates that major international business hubs are making to their employment law in the wake of the COVID-19 pandemic. With this said, whether they are at the epicenter of the pandemic or more implicitly affected, every company needs to adapt. As a result, here’s a look at 10 different countries, and the changes to taxes, labor, migration, and payroll that they are making as a part of their COVID-19 response.

• Australia: In early April, it was declared that for the following six months, qualifying employers could claim a Jobkeeper payment of $1,500 each fortnight for every eligible employee. Qualification was generally reserved for employers that anticipated a turnover reduction of 30% or more in a given year. The purpose of the program is to try and minimize laying off employees. Note that there is also an hourly rate guarantee, and even hours reduction can not impact that rate. Employees can also be directed to change duties, work at different locations, or take annual leave. More details …
• France: Employees that are considered high risk and need to quarantine themselves can provide their employers with work cessation through their regional healthcare authority. For certain industries declared essential for economic and social life by decree, maximum working time can be extended to 12 hours a day and 60 hours a week. Companies also have the right to enact partial unemployment in the event that they need to suspend or reduce work activity. This works retroactively. More details …
• Japan: Japan suggested that employers reduce the amount of employees coming in by 20-30%, but there will not be sanctions for companies that do not comply. Employees unable to come in due to being high risk can be directed to use sick leave. More details …
• China: China phased in a reduction in pension, unemployment, and work injury insurance. Small, medium, and micro-sized businesses are not included in this order. If a company’s income has been impacted, they also have the ability to apply to defer social contribution payments. This generally applies to companies that have seen a 50% or more decrease in income since Q4 2019. More details …
• Spain: Tourism-based companies that are able to operate from now until June will be able to apply for a 50% reduction in social security contributions. The right for unemployment benefits will also be extended to all workers even if they do not meet the minimum contribution period. More details …
• Malaysia: Malaysia has extended its movement control order, shutting down all non-essential businesses to curb the spread of COVID-19. Any businesses that are allowed to operate need to keep their workforce to a minimum of 50% at least. Providing employees with letters to explain their movement to authorities is also recommended. As a major note, all employers are required to pay their employees in full during this time. If the employee does not have a fixed daily wage, it cannot fall below the Minimum Wages Order 2020. More details …
• Poland: Retail sales tax will be suspended until the end of the year. There will also be subsidies for social security contributions and employee remuneration for qualifying companies. More details …
• Algeria: Algeria’s government has reduced the reserve rate for banks, and delayed the deadline for filing tax returns. Employers should also proceed with social security contributions at all levels, without having to physically go to their reporting agencies. 50% of all employees in the private and public sectors should be put on paid leave for a given period. More details …
• India: India put an order in place holding employee layoffs and salary cuts until measures were eased. Deadlines were also extended for the Unified Annual Return and Employees’ State Insurance Corporation. Certain employers will also get government contributions towards their Employees Provident Fund Organization through June. More details …
• Philippines: The Philippines has begun to move forward with some reopening measures, but extreme sanitization and attendance limitation measures will be in place. Some employers adversely affected by the pandemic will also have the ability to apply for government aid through the CAMP program. This program will also connect out of work employees with job opportunities. More details …

Adapting Global Expansion Plans

As we can see, labor laws as we know them are rapidly changing to account for COVID 19. Granted, just because it’s more difficult to expand doesn’t mean it’s impossible. What you need to do is have a partner that will ensure that you keep the ball rolling without any concerns about compliance. The ideal option here is using a global PEO service like Acumen International. By being the formal (legal) employer of your international teams, you as a company reap a variety of benefits, including:

• Support for payroll and benefits programs for your employees. This not only covers benefits changes during the pandemic, but will make sure you can draw in top talent when the workforce is open again.
• Compliance protection. We guarantee compliance with all tax and employment regulations in over 190 countries for your selected workers. The COVID-19 regulation changes make it more difficult to manage on your own.
• No need to incorporate. Bureaucracy made it hard enough to incorporate a new branch in different countries before. It’s close to impossible these days, so you want an option that lets you leapfrog it.
• Hiring and paying your foreign sales teams. Immigration rules are likely to be in flux for a while, but we can help you with essential payroll support.

The Next Step

With all these changes in mind it’s important to realize that it’s still possible to enter a new market, even with the world in an upside down position. It’s just likely to be a bit more difficult. So, whether you’re looking to use an overseas sales team or plan to expand without incorporation, options are still on the table. What you need, though, is a global employer of record and global PEO solution to facilitate the transition. Make sure that you follow our blog for future COVID-19 updates.

Reach out to us today for more information.

Whether it’s healthcare, paid maternity/paternity leave, or simple workplace perks, every company has some type of compensation/benefits provided. This can get a bit more complicated for international companies, since standards of what workers are entitled to differ from country to country. Generally, businesses base their company benefits on local legislation, adding additional benefits on top to attract and retain top talent. However, with the COVID-19 pandemic, we are seeing attitudes shift across the board. Here’s what you need to know.

Starting Points on Benefits

Let’s start by comparing typical employee benefits in the U.S. vs. internationally. In the U.S., by law, all benefits schemes for full-time employees include:

• Health insurance
• Worker’s compensation
• Unemployment insurance
• Family and medical leave.

Note, that these do not apply to part-time workers or independent contractors. This is the approach favored over by many companies: build their workforce employing independent workers.

While international workers get most of the benefits provided by the law, they can also expect additional benefits like:

• Housing allowances
• Foreign service premiums
• Cost of living adjustments based on where you live
• Tax payment support
• Spousal employment support
• Traveling allowance (assuming they are working abroad).

It’s worth pointing out, benefits are not always necessary. For instance: health insurance in a country with universal healthcare. If a company is looking to employ globally distributed personnel, it’s important to keep workers’ expectations in mind. What will their benefits package look like based on their past work experience?

Generally, there are two main reasons why companies provide benefits:

• Complying with local labor legislation
• Trying to retain top global talent via compensation schemes.

These are crucial aspects for companies that are striving for global expansion and staff their international teams, serve clients overseas, provide tech support, or bring their sales to international markets. For the sales teams, there’s an added point that deserves mentioning here. As opposed to commission-based compensation, going with a proper employment benefits package means more security for the employee. It also provides less risk of losing the corporate client base for the company if the local agent ends up leaving. Providing benefits may mean a steeper upfront cost, but at the end of the day, it’s a win-win for both, employee and employer. You get employee loyalty, fewer compliance risks, and a better chance of retaining top talent.

Benefits In The Age of COVID-19

So, how does the COVID-19 pandemic impact healthcare benefits for global teams? Part of it depends on the industry. For example, medical companies have a growing need to hire doctors/scientists to meet major needs in certain countries. Pharmacological businesses are recruiting sales managers to present new lines of products.

This labor market shift requires a specific fix like Global PEO/EOR solution. It is now possible to stay compliant while urgently deploying people to meet pandemic-related demands and provide benefits, whether it’s a matter of law or is voluntary. This also allows you to handle international workforce onboarding and benefits provision all at once.

In quiet times, companies were able to prepare for international growth, but things turned a lot more urgent these days. The globally distributed teams are also facing challenges operating remotely, as the base country may be changing rules rapidly when it comes to employee payments and benefits. Acumen’s Express Global Employment solution helps you adjust to rapidly changing in-country regulations, with the various shifts of employee pay and benefits that emerge today.

For example, perks like the ability to use a workout program in the workplace or a travel package don’t really provide many benefits in the current climate. However, an expanded health insurance program may be more appealing, if not imperative.

How are some companies going about this? In the U.S., student loan debt is a major burden on the finances of young professionals. The government has recently issued additional perks for companies that offer support to their employees in debt payment. With this said, because the student loan crisis is a uniquely American phenomenon, this may not be a perk that matters much if you are recruiting mostly international talent.

Even companies that are suffering financially are trying to extend benefits to protect their teams. This can mean providing healthcare benefits for global teams that have been recently furloughed or providing larger final paychecks. Expect to see perks like performance pay or bonuses to be revised as time goes on.

Ultimately, while companies are trying to employ their own approaches to tackle this issue, the safest way to protect your interests, finances, and overseas employees is having a single partner with global expertise. When you’re looking for a company to provide your remote teams with the benefits and perks they need, at any time, Acumen International is the way you want to take.

As a registered legal employer for your international employees, our Global PEO company provides benefits to them in any of your target countries out of over 190 ones we cover. This leaves time for you as an original employer to handle all performance management issues, maintain substantive work relationships and make informed decisions on your current compensation and benefits programs and their revision.

Reach out to us today for more information.

Expanding your company’s international reach can become a priority for a variety of different reasons. Some of the most common ones include:

• Having your own overseas clients and needing to better support them. A good example of this is international tech support.
• Looking to acquire global talent like skilled foreign professionals distributed globally.
• Sales growth. Many companies want to expand to enter new markets and see potential trading activity.

However, many companies end up trying to go too far, too fast, with poor results. Here’s how to avoid that fate.

Setting The Stage For Incremental International Expansion

Incremental expansion is key when trying to build up your company “the right way” in new markets. In fact, if you’re on a limited budget, it may be the only want to balance efficiency and effectiveness. For the most part, companies that want to get into a new global market, especially smaller firms, begin with independent sales agents. Each of these agents will work with local customers, with a list of clients on-site. From there, they are ready to promote and offer your product/services.

Your average independent agent works on commission, just like an independent contractor may bid for a job. As a result, the company ends up only paying based on the volume of sales that the agent makes. This is a positive, but the major drawback is the risk that comes with your reliance on an independent professional. If the said agent decides to leave the country or not to work with you anymore, you lose all the headway with those clients. You can’t even pick up where they left off with a new agent, because they have the client list, data, and connections.

The Need For A Global EOR Service Provider

So, what’s the best fit for a company with those needs? Some may recommend starting your own local subsidiary, but this is expensive and time-consuming. A global employment company/EOR service is the perfect match, allowing companies to get started, while keeping things small. The unique solution that Acumen offers allows you to onboard and payroll a global sales force in 190 different countries, as employees, versus independent sales agents/contractors. As a result, you don’t have to worry about factors like legal compliance or losing client data/intellectual property. A proper PEO company keeps you safe, with a lighter footprint. Using a third-party foreign employment, incorporating in the countries with the highest growth potential. In addition, this service allows you to legally bring on a new team without having to actually own any companies abroad.

As a result, if you’re looking to grow international business slowly, business process outsourcing (BPO), is a great asset. For example, say that you were breaking into a new market, but only needed 15 sales agents as employees to start. An EOR in this initial stage will allow you to stay compliant while you begin to make a headway and amass clients. After that, if you’re happy with your progress, you can begin to open up your own entity. Another advantage of note here is that if you’re not happy with progression, it’s a lot easier to withdraw, with minimum commitment. In essence, employee leasing allows you to test out a market before deciding to incorporate.

Say that companies understand that they will eventually need to incorporate. It still may pay to wait. Different countries have their own idiosyncrasies when it comes to labor regulations and other laws. An EOR allows you to walk that balance between starting operations and engaging your sales force on-site while still learning how business in the new country really works. Many companies fail due to not understanding the local business culture. However, a good EOR service already knows how this works, and can be an invaluable resource during this initial period. In theory, you could have a flexible yet compliant way to set up internationally overnight.

Overall, an employment outsourcing solution is going to be your best option to start building in overseas markets without the additional expense and headache of a new company branch. For the ideal option here, be sure to use Acumen International is your ideal choice. We service 190 different countries, allowing you to stay compliant without the added need to open a business entity. We also serve as a one-stop-shop for services when you do get established through hiring and paying foreign people, from office rent, housing, car and mobile phone provision to training support.

Reach out to us today for more information.

Some of the largest and most successful teams in business today, especially the tech world, are global teams. These include names like:

• Zapier
• Stripe
• Buffer
• Github
• Stack Overflow

Opting for a globally distributed workforce over your conventional on-site teams provides a variety of benefits. These include:

Being able to quickly augment your in-house teams. If you need a specific skill-set for a project, simply hire the best fit rather than being limited geographically.

Speed. Because you have a larger selection to work from, and can do the onboarding process remotely, you spend less time hiring and more time reaping the benefits of your new hire.

Diversity. The ability to recruit from across the world allows for new perspectives and backgrounds to enhance your knowledge.

More expertise. Remote work is a perk that many employees are willing to make concessions for. If you can provide it, you have the ability to draw in top skilled talent at a fraction of the conventional cost.

More efficiency. Remote workers have been proven to be up to 20% more productive when they have the ability to handle creative projects on their own. This isn’t just a matter of perception, but proven facts. The global workforce has evolved, with more workers not being at their desks than they are actually at the desk while working.

However, despite all these benefits, there is a logistical roadblock that can keep employers from getting the most out of their remote teams. Here’s a way to further efficiency, without any compliance risks.

Issues In Global Team Management

When we look at the biggest issues regarding globally distributed teams, remote management and communication are generally at the top. After all, you don’t have the liberty of paging someone in the same building or even walking over to their office. However, there’s a bevy of online tools available, such as Zoom and Skype, that help further communication across the board in these settings. Along with these, you can take advantage of advanced HR software to help in terms of quick reporting, task-setting and management, no matter where anyone is based.

If you are looking to add an international team, perhaps as a part of incremental development as a startup, a global EOR solution may be the ideal fit for you. Business process outsourcing is something that becomes more common as companies grow and enter new markets. However, an EOR solution lets you take advantage of employee leasing without the costs of opening a new branch in your new market.

Equally important is having a way to hire and pay offshore teams. Failing to properly categorize your employees when handling payroll and tax comes with heavy fines, and potentially blocking you out of the international market in the future. You need a partner with the global expertise and knowledge to provide compliance and addressing issues that do arise.

Getting Support

Because of how difficult the above factors can be to juggle, when you need to augment in-house teams with skilled offshore workforce without costly subsidiaries, it’s best to do this all through a third party. By working with a global employer of record (EOR), you can stay fully compliant when setting up your remote team. Combine the saved costs on brick-and-mortar offices with the higher efficiency of most remote workers, and you get a great ROI with these third parties.

If you happen to inherit a globally distributed team, or create your own, working with a global PEO company is a major asset. By being a factual employer, you have someone to handle onboarding and cut down on legal/HR liability for your globally distributed personnel. If you are looking for an option here, Acumen is your ideal choice. We can help you keep compliant while working to build a globally distributed team, servicing 190 different countries. Along with this, we are able to provide a one-stop-shop solution to help with your infrastructure on remote sites, including:

• Office rent
• Internet provision
• Laptops
• Mobile phones
• Training support

Reach out to us today for more information.

When it comes to finding a way to legally engage an international workforce, it’s essential to have a concrete and organized plan in place. The stakes in terms of fines and tarnishing a public image can be huge when it comes to not properly classifying and servicing your employees. However, on the other end of the equation, setting up a local entity can take a heavy toll in terms of expense and time, making it a non-feasible option for everyone.

The two options that generally come up as an intermediate solution are a global PEO (professional employment organization) service provider or global employer of record (EOR). While they may sound similar, they are not interchangeable. Here’s a closer look at the differences, and what may be best for which situation.

The Fundamentals On PEO

In the U.S., your average PEO service functions as a co-employment arrangement form. Essentially, this allows smaller or medium-sized businesses to provide benefits at the same level as larger organizations. This manifests as:

• Better rates on health insurance
• Worker’s compensation
• State unemployment

Your PEO partner in this case, would also have shared employer risk with you. As an example, PEOs can ensure that when you terminate an employee, you are on safe legal ground when doing so. They can also help provide added legal protection if a business is dealing with employee lawsuits.

Global PEOs were invented as an expansion of this concept to apply to an international workforce. The scope is also wider regarding function, as it can also cover on-site employment as well as the provision of employee benefits.

So, with that in mind, what separates a PEO service from a global PEO solution? For one, PEOs become a co-employer of a company’s given workforce, meaning that the factual employer ultimately has partial legal liability for employer responsibilities, like reporting unemployment claims. However, for a global PEO, the employer doesn’t share a legal bond with the employees hired. Instead, the third party PEO provider acts as a legal employer on behalf of the factual employer. However, that same employer (the client) has full control over their global workforce.

However, in both cases, there are some issues that may arise when using a PEO service. Major drawbacks include:

• Losing control due to the terms of the co-employment arrangement
• Risks regarding cash flow. As a client, you would be reliant on how the PEO provider handles pricing, and have no say in the matter. You may have to end up suddenly paying more to maintain your work team
• All PEOs have their own sets of policies and benefits. This means you need to rigorously research a provider before committing

EOR Services As A PEO Alternative

Because of those drawbacks we mentioned earlier, there may be companies that need some support with international employment but don’t want to enter co-employment arrangements. Global EOR companies serve as the ideal fit here.

How do EOR companies work? These become the full legal employer of your business’s payrolled workers, rather than entering a co-employment relationship. As a result, the global EOR company is completely responsible for items including:

• Payroll
• Taxes
• Payroll compliance
• Administration of benefits
• Reporting unemployment claims

It’s important that you understand the different terminology that you may see while looking for these services. A global PEO and a global EOR service are terms that can be used interchangeably. These describe the same processes in terms of international workforce onboarding, compensation, and termination if needed. An EOR service can take place both internationally and domestically. If the employer has no legal ties to the employees, it counts.

With this in mind, what are some of the ideal fits for a global EOR? These are ideal for growing companies, specifically:

• Companies expanding globally and looking specifically for skilled talent, as opposed to immigration services that only use unskilled talent.
• Teams looking to enter new markets for extra revenue/taking advantage of global business trends.
• Companies working to deploy an overseas workforce/send expat teams abroad to give tech support for their international clients.

How Should You Outsource A Global Workforce Management Function?

A global EOR service can be a key for powering and facilitating your international expansion and operations. However, this only happens if you find a strong partner to do so. In terms of a global EOR solution, Acumen International is your ideal choice. We’re the fastest on the market when it comes to international employee onboarding, handling both expats and locals in 190+ of our covered countries.

Counter to other global EOR solutions, we offer great flexibility regarding the number of employees able to handle even the smallest jobs (1 employee for a 1-month project duration). Combined with this flexibility, we also offer a wide range of employee benefits, including:

• Rental cars
• Office rentals
• Housing
• Relocation for dependents
• Internet provision on-site
• Medical insurance and others

These factors combine to help ensure independent contractor compliance and payroll, as well as creating a benefits package that will help you entice the top international talent internationally.

Reach out to us today for more information.