Acumen International was shortlisted for two prestigious categories of the Global Payroll Association Awards 2022: Employer of Record Organization of the Year 2022 Payroll Innovation Award 2022 The Global Payroll Association (GPA), the leading professional organization for businesses that manage global payroll and international HR, annually recognizes some of the best global payroll and HR… Read more Acumen International Shortlisted for GPA Global Payroll Awards 2022
The Global Payroll Association (GPA), the leading professional organization for businesses that manage global payroll and international HR, annually recognizes some of the best global payroll and HR service providers worldwide at their GPA Summit. This year’s GPA will host the Summit in Dublin, Ireland, on September 22nd, 2022. The Summit provides an opportunity to discuss global employment and payroll industry trends, challenges, and perspectives.
Each year, the GPA recognizes and awards the most prominent individuals, teams, and business entities for excellence in the global HR and payroll space, in 13 distinct categories. To be eligible for the GPA Awards 2022, each company must show excellence across all aspects of its business through various criteria. These include superior performance in the global employment arena, deep global payroll management and compliance expertise, knowledge of local legislation, and a solid commitment to meeting clients’ needs for payroll technology.
It is not the first time that Acumen has earned the recognition of our industry peers for outstanding performance on the HR international, global employment, and payroll stages. The GPA previously recognized Acumen International as a Global PEO of the Year in 2020, but the company has not been content to rest on its laurels. The GPA Award 2022 nominations mark Acumen’s commitment to staying ahead of industry trends and providing comprehensive and innovative solutions for the global employment industry.
To be in the running for both awards is a huge achievement. However, this year the competition is stiffer than ever, with Acumen International up against global giants like Google and Experian. In particular, Acumen’s Global Payroll Calculator (GPC) has caught the attention of industry colleagues as an innovative solution for businesses operating on a global scale.
Global Payroll Innovation Award 2022
Acumen International’s Global Payroll Calculator was selected as a nominee for Payroll Innovation Award 2022 because it represents a fundamental shift in how global payroll information is processed. Through its intuitive interface, combined with advanced data-wrangling capabilities, GPC streamlines and simplifies global payroll calculations from every corner of the globe.
Global payroll administration can be complex and ever-changing, with various rules and regulations that employers must follow to ensure compliance. Determining employment cost and tax liability across multiple jurisdictions requires significant time and effort to calculate and data-wrangle. Different legal entities and filing groups add to the complexity.
Such key variables can include everything from tax apportionment and modifications to employee benefits and compensation provisioning to tax adjustments and paid time off that affect tax filing. Managing all of these elements simultaneously can be a challenge, but it is necessary to maintain a compliant payroll and make sure that everything is accounted for correctly.
Global Payroll Calculator
The GPC considers local taxes, payroll, benefits, hiring practices, compliance requirements, and other labor-related issues, empowering businesses to make well-informed and confident global hiring decisions and accelerate operations.
The Global Payroll Calculator (GPC) by Acumen International, an integral part of the Express Global Employment Platform, is a powerful and easy-to-use SaaS solution that helps international employers instantly and accurately estimate the total employment costs for a local and foreign workforce in 190 countries.
Global Employment Innovations 2022
As the world continues to globalize, businesses must change how they operate to stay ahead of the competition. The C-suite leaders are expected to take a more strategic approach to global expansion and employment.
Acumen International’s team invested significant time, resources, and intellectual capacity into reimagining each step of the global employment journey, including entity setup options, third-party employment models, total employment cost calculations, multi-jurisdiction hiring, and compliant processes.
Acumen’s experts focused heavily on inserting technology tools to supplement human effort, replacing manual input with automation, and allowing global employment professionals to spend their time on high-value areas.
As a result, Acumen International has developed the Express Global Employment (EGE) Platform — a more efficient, cost-effective, and compliant global employment solution for its clients and network partners.
The regulatory employment law landscape is continuously changing and becoming more complex, making it difficult for multinational companies to ensure compliance. The EGE Platform aims to help C-level executives and international employment professionals navigate the complexities of the global expansion journey, make informed decisions, and avoid risks such as tax, non-compliance, employee misclassification, and permanent establishment risks across multiple jurisdictions.
The Express Global Employment Platform is intended to provide expert advice, guidelines, and summaries of the employment laws and compliance regulations for hiring and dismissing employees, managing independent contractors, and immigration rules in 190 countries. The Global Employment Platform eliminates the need for pesky details while ensuring accuracy and employment compliance!
Express Global Employment Platform allows streamlining of global payroll processing, benefits, and tax administration, making it easy to manage employee and contractor information in one place.
Nick Ganzha, CEO and Founder of Acumen International, says:
It is an honor to be shortlisted for the third time for the GPA Awards 2022. No company can be successful without a great team behind it. At Acumen International, we believe that our people are our most valuable asset. We work hard to support, empower and motivate them so they can keep growing. This commitment sets us apart and drives us to achieve more. Acumen International is on a fast track to success.
Our Express Global Employment Platform is a massive leap forward, putting us at the forefront of the global employment industry. We have a robust roadmap for 2022-2023 full of innovations to enhance our current solutions portfolio while working toward new product launches through the end of the year.As a leading Global Employer of Record Service Provider, we continuously extend our product offering to meet the evolving clients’ needs. Our Global Employment Platform is a suite of innovative tools helping companies take their business international. This offering is part of our global strategy: we are now a partner that can offer more than just traditional Employer of Record Services.
About Acumen International
Headquartered in the UK, Acumen International is a leading provider of EOR (Employer of Record) and PEO (Professional Employment Organisation) solutions with a global reach in 190 countries.
Acumen International offers innovative SaaS solutions to multinational companies expanding in today’s volatile global market. The company helps clients solve their most complex challenges, streamline global employment, reduce costs, and mitigate compliance risks, providing the peace of mind needed to focus on achieving their strategic objectives.
About Global Payroll Association (GPA)
The Global Payroll Association (GPA) is the leading professional organization for businesses that manage global payroll and international HR. The GPA is an organization that promotes the advancement of human resource management through educational resources, industry news, and networking opportunities. GPA is dedicated to helping its members find productivity, effectiveness, and professionalism. It has more than 6,000 members in over 80 countries.
Global employment today is a puzzle. Some pieces are missing, some are swapped around, and some are even upside down or inside out. Whether you are a multinational corporation, an international non-profit, or just a business that operates in more than one country, you have probably had the experience of running into some of the… Read more Global Employment Challenges and Solutions
Global employment today is a puzzle. Some pieces are missing, some are swapped around, and some are even upside down or inside out. Whether you are a multinational corporation, an international non-profit, or just a business that operates in more than one country, you have probably had the experience of running into some of the same challenges with global employment.
When hiring a staff to work overseas, some challenges come far beyond the nuts and bolts of finding and vetting candidates. Companies often overlook these challenges when they think only of locally-hired employees, which can have extreme consequences for businesses that employ a workforce internationally.
The employment laws, compliance regulations, legal requirements, and tax implications can be complicated. The laws vary widely by country, making it challenging to structure payroll and employee benefit plans around international operations.
Why is this? Because if you are not careful, you might find yourself unwittingly breaking one employment law regulation or another in your new country. This could lead to fines, other legal issues, and harmful public exposure for your brand. It is not just about being bad for your business, though; it is also about being bad for the people who work in your company.
A global Employer of Record helps solve the global employment puzzle. That’s why companies turn to a global EOR that has experience operating in many countries and can provide expert advice on compliance issues.
1. Local Incorporation Cost and Risk
Different businesses have different strategies for entering and exiting countries. However, ad-hoc strategies are more likely to lead to miscommunication and problems. Businesses must have a fully implemented strategy before entering or exiting countries. By doing more planning and preparation, the process will be more straightforward.
3 Options for Multi-location International Employment
Businesses establishing a global presence face the challenge of managing and scaling an employee base with no common borders or language. To successfully expand abroad, companies have several options for enabling hiring in international markets.
There are six key things to consider when choosing an employment method for your company’s global expansion:
Budget and time frame
Tax implications
Compliance
Employment liability
IP protection
Asset acquisition.
3 Most Common ways of Local Entity Establishment
Overseas Permanent Establishment (a representative office, a branch, a subsidiary, and other foreign legal entity types )
Selecting independent contractors to handle tasks remotely.
Work with a global EOR (Employer of Record) and GEO (Global Professional Employer Organisation) Partner.
You’re expanding your business into new territories with many new challenges. You’re revising your business models to better suit overseas markets, setting up foreign entities to make local hires, and dealing with the tax implications.
Incorporation and payroll registration at the local level are essential. However, the associated costs and time investment required for skilled accounting and legal support can be prohibitive. A Global Employer of Record is the solution that helps you skip the costly and time-consuming tasks of local incorporation and registration. A global EOR ensures compliance without sacrificing flexibility or control of your foreign workforce.
Engaging the services of a global EOR (employer of Record) lets you offload compliance-related concerns and skip the hassle of incorporation.
Skip the paperwork, and skip the hassle. Stop worrying about complex tax rules and legal issues your business faces. Let us help you enter foreign markets with just one payment and a single contract.
The world is becoming increasingly connected, with people and businesses moving across borders to take advantage of opportunities. However, employment and tax legislation have not kept up with this trend, making it difficult for companies to stay compliant.
Employment taxes can be a significant burden for businesses, especially those that hire internationally.
There are many different types of taxes that businesses have to pay, but employment taxes are one of the most important and ever-evolving. These taxes can vary significantly from country to country and can be a large portion of a monthly salary. Not only are the rates different in each country and state, but the tax filing methods can be highly complicated. So it can be challenging to figure out how much you need to withhold from your employees and how much you owe in taxes.
The problem with international employment taxes is they are often much more complicated than domestic ones and can vary even within one country. For example, there are different laws in the US depending on where you live and if you work for the federal government or a private company. In other countries, the applicable taxes may depend on which industry you work for.
3. In-country Employee Registration
Managing payroll in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and other laws must be followed. This can make it very hard to keep track of everything and ensure everything is done correctly. However, it is critical to ensure that employees are appropriately registered with the local authorities before they start work. Failing to do so can result in penalties for both the employee and the employer.
In many countries, payroll calculations vary significantly. For example, employees in some countries may receive a 13th and 14th-month salary halfway through the year or at Christmas as standard. Thus, it’s essential to be aware of the payroll practices in your country of employment.
Understanding how payroll calculations work in your new country is important to avoid surprises. Some countries have different rules when it comes to employment contracts. In some cases, you may be responsible for paying your employees for the entire employment contract duration even if they are not performing as expected or you want to end their employment early. This can be a financial shock to foreign employers who are not used to this practice.
For this reason, it is vital to ensure that you review and understand the terms of the employee’s contract before hiring them so you know what to expect.
However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.
The financial year for many countries ends in March, and companies with a presence in more than one country need to produce financial reports for each country and send them to the relevant government bodies. With the end of the financial year approaching, accountants are busy preparing reports, some of which can be complex and difficult to navigate as they may be on foreign websites with little or no English language support. You must get these reports lodged on time, as it could result in late payment penalties.
Many of these reports need to be completed in the local language, so it is recommended that you use an accountant specializing in the country you are based in to ensure compliance before lodgement deadlines.
If your company plans to do business in multiple countries, clearly understanding each jurisdiction’s employment and tax laws is essential. Compliance with these laws can be complex and time-consuming, so many businesses outsource payroll management and other HR functions to a global Professional Employer Organisation (PEO). A reputable Global PEO will have experts on staff who are familiar with the specific requirements in each country where you plan to operate.
6. Local Employment Contracts Compliance
As an employer, you need to have local employment contracts that comply with the law of the jurisdiction where your employees work. These contracts should be provided in both English and the local language. Do not simply copy and paste your existing contract template from your home country – this could result in non-compliance and serious legal consequences.
When recruiting employees for your business, it is critical to ensure their employment contract is appropriate for the country where they will be working. A UK employment contract may not be valid in the United States because they are both English-speaking countries.
The language of the employment contract is a crucial detail to keep in mind during the recruitment process, as non-compliance to target country employment laws or any mistakes with the paperwork could cost you money, time, and potentially your business.
The employment termination process can be just as necessary as the hiring process. This part of employment should not be taken lightly as it can have many implications and consequences, both for the employer and the employee. Therefore, it is essential to consider all aspects of the situation before deciding.
The start of termination process begins when the employee signs the employment contract. If the termination guidelines are clear and precise from the outset, then terminating an employee will be much smoother.
When setting out the terms of employment, you must be clear about the notice period (making sure it’s compliant with the country-specific regulations) and what is expected in terms of returning company equipment, knowledge transfer, and a credit card or cash float balance. Non-compete clauses protecting your intellectual property are also important considerations. Doing so will help avoid misunderstandings and potential legal problems down the road.
If an employer does not have clear procedures for the termination of their employment contract, they may face litigation. Employees who feel mistreated may become disgruntled and legally contest the termination. This can be costly and challenging, especially if the dispute is in another country with a different time zone and language.
Employ to Expand: How to Put Together a Hard Puzzle with Acumen International Employer of Record
Many things can go wrong when you try to find employment overseas. Acumen International can help you navigate these challenges. Still, it is essential to know the potential obstacles you may face because if candidates are unhappy at any stage, the whole arrangement can fail.
As a Global Employer of Record, Acumen International enables organizations to quickly and compliantly hire employees in any country. We take care of all the employment-related details so our clients can focus on their business goals.
When deciding to move abroad for work, your selected candidates consider several factors. The visa and work permit process complexities, currency fluctuations, lifestyle choices, and family considerations can all impact their final decision.
As a global PEO and EOR, we understand that you must put your employees first when expanding your business globally. Considering this move’s impact on their lives, it is crucial to think outside the box and ensure they are comfortable and supported at every step.
It has become critical for organizations to understand applicable laws and regulations concerning issues such as minimum wages and benefits, employment standards, immigration, and labor relations in each location. A Global PEO and EOR can play an essential role in helping organizations navigate this complex global employment landscape by offering reliable and country-specific solutions and expert advice on compliance-related matters.
Global Employer of Record Services by Acumen International
Global payroll management;
Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
Handling compliant employment contracts:
Background, education, and other checks;
Compliant onboarding and termination processes, as well as employee compensation;
Arranging visas and work permits for employees;
Ensuring the working process is organized under local labor laws;
Processing workers’ insurance and other benefits (day-offs, bonuses, and more);
Global employment process maps, employment guides, and other documentation.
A Comprehensive Global Employment Solution & a Single Point of Contact
Managing the employment side of your business can be a full-time job in and of itself. There are many options to consider when it comes to finding help, from payroll companies and tax and immigration advisors to employee benefits brokers to human resource consultants.
One alternative to working with numerous vendors is partnering with a Global Employer of Record. A Global EOR can manage all aspects of your business HR resources, from benefits and payroll to unemployment management and safety training. This can free up your time to focus on running your business.
A global Employer of Record can provide a full suite of services to help you replace the following multiple vendors.
Global Payroll Calculator: Instant and Accurate Global Employment Cost Estimation
When hiring employees and contractors across the globe, you may not choose the most cost-effective and business-friendly country.
Do you know which country is the most cost-effective place to hire employees?
What are the costs of entity establishment and legal representation?
What are the payroll costs and management fees?
What are your ongoing annual tax compliance costs?
Are you fully aware of banking implications?
Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business?
Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
If you are a business with a global footprint, you probably need help to keep up with the intricacies and uncertainties of managing a globally distributed hybrid workforce. This is because countries have different labor laws, compliance, and tax regulations. You need guidance on tax and compliance. You must understand how foreign employment taxes impact your company and its global employees. Most organizations with a worldwide footprint struggle to calculate employment tax because they fear uncertainty and may need access to up-to-date intelligence.
What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?
Global Payroll Calculator: Tax and Compliance Intelligence at Your Fingertips
That’s where we come in. Acumen International is an innovative global employment solutions provider that has created solutions that help businesses like yours navigate the complexities of calculating employment taxes while optimizing their hire cost and avoiding the costs and risks associated with not doing so.
Acumen International offers the Global Payroll Calculator to help businesses understand the tax rates and compliance requirements for hiring a local and foreign workforce. Acumen’s expert team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator: A Wealth of Capabilities for Payroll 2023 Budgeting
We have automated routine processes so that you can speed up data collection, gain valuable insights into the global talent market, make informed decisions about talent acquisition, get the complete picture of the latest tax benchmarks, labor market trends, compliance trends—and much more!
With us, you will be able to plan global mobility programs; explore pay practices in the global marketplace; gain guidance on what to pay your top talent while maintaining a diverse workforce; simplify & streamline payroll planning, and attract and retain talent in a competitive marketplace.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
Global EOR (Employer of Record) Services: Save Up to 75% of New Market Expansion Cost
Acumen International Employ to Expand Program is the perfect opportunity for you if you are trying to reach new markets, expand your workforce, and grow your business.
Want to reach emerging markets? Hire a high-performing team focused on productivity and profitability. We make hiring, onboarding, and payrolling your hybrid workforce easy. You get the support you need to manage, reward, and your global workforce with one accountable Global Employer of Record partner across 190 countries.
Our Tiered Pricing Model provides flexible options for international growth with lightweight investment.
Our Global Payroll Calculator automates employer and employee tax calculations worldwide.
The indisputable advantages of partnering with Acumen Global Employer of Record are demonstrated below:
Average Cost & Time
Our Solution *
Time to Market
10+ weeks
72 hours
Legal Advisors Fees
$ 10 000 +
………….
Official Employment & Benefits
$ 20 000 +
………….
Incorporation & Liquidation Costs
$ 11 000 +
………….
Bank Account Setup
$ 2 000 +
………….
Maintenance costs, in-house staff to manage the foreign entity, payroll, taxes, and benefits administration.
$ 25 000+
………….
The approximate total cost of new market entry**
$ 74 000 +
$ 15 000
* Per one Employee ** Costs vary from country to country
Acumen Global Employer of Record can help you solve the complex puzzle of global employment. As a Global EOR partner, we help businesses meet all their HR needs while handling compliance issues in the international arena. By offering comprehensive global employment solutions and reality checks about the compliance aspects of employing staff across the globe, we can be an essential resource for your in-house HR and Management teams.
Contact us to discuss your quick and compliant global employment journey.
Hiring a Global Sales Team vs. Hiring Independent Sales Reps and Self-Employed Agents in Foreign Countries Hiring a Global Sales or IT Team in Foreign Countries: What You Need to Know Need Some Tips on Compliantly Firing a Foreign Sales Rep? Top Benefits of Full-Time Employee vs. Independent Sales Rep Global PEO and EOR Solution… Read more Hiring International Sales and IT Teams in Foreign Countries
Expanding operations into foreign markets is an excellent way to generate revenue by tapping into different monetary resources. In such a case, hiring local salespeople to represent your company in its target market is the best idea.
Successful global expansion is rooted in the efforts of a talented, remote sales force that help you break into the local market, communicate more efficiently with your clients, and consequentially generate maximum revenue.
Hiring a Global Sales Team vs. Hiring Independent Sales Reps and Self-Employed Agents in Foreign Countries
The Difference between International Salesforce Types
Foreign Independent Sales Reps
Direct In-House Sales Forces
Cheapest and free of legal hassles. High risk of employee misclassification with costly penalties for that.
Expensive and only companies with large budgets can afford it. Setting up the company’s legal entity in a foreign country is required.
Reduced team spirit, less engagement with the product, independence of sales reps that will be less likely to work as a team and be productive in the long-term.
High team spirit, product engagement, and high productivity by retaining the best team members long-term.
Hiring a Global Sales or IT Team in Foreign Countries: What You Need to Know
Depending on the needs of your business, you may want to hire an IT team to streamline your software development project or a bunch of salespeople to represent your company in the foreign market, which requires you to keep the following considerations in mind.
How a PEO Can Help Mitigate HR Compliance Risks and Exposures when Hiring International Teams
Activities for your global sales force or IT teams can differ based on your overall strategy, the product your company offers, the specific geography you’re trying to target, and how much involvement you want from your international sales staff. Many employment solutions can only help with a single issue, such as paying salaries to your global sales or IT teams. However, these solutions often do not assist you with the scope of activities specific to these teams. This can be a problem if you need help managing all aspects of your team’s activities.
These include paid travel, car allowances, and mobile phone provisions. In some cases, families may even be relocated to another country if an employee is sent abroad for business development.
Once you have engaged remote salespeople or IT teams and software developers in a legally correct manner to mitigate compliance risks and exposures, it is just as important to decide how you will stop cooperation with them. Whether due to changes in your company or theirs, it is essential to have a plan to end the relationship to protect yourself from any legal issues that could arise.
Need Some Tips on Compliantly Firing a Foreign Sales Rep?
As an employer company, it is often necessary to ‘divorce’ yourself from a salesperson or IT developer whose services are no longer needed. However, it is also essential to protect yourself from any unexpected resignations from your IT team or other staff members. Unexpected resignations can often lead to substantial financial losses for many companies.
As your business grows, you’ll need to evaluate which type of salesforce or IT team members will be the best fit at different stages. Self-employed foreign reps or IT developers can be a good option during the startup phase. However, if you’re looking to serve strategic partners, you’ll likely need fully committed international sales or IT professionals.
There are several reasons why an employer may not be able to fire an employee legally. These include immigration status, retaliation, or refusal of lie detector testing. It is essential to be aware of these before taking any action.
If you have an employee leaving your company, pay them all outstanding wages for work done. This includes any final payments, no matter how poor the quality of the work may have been. If the employee is required to sign any nondisclosure agreements, make sure they do so before leaving.
Top Benefits of Full-Time Employee vs. Independent Sales Rep
Global PEO and EOR Solution for Hiring International Sales and IT Teams
A neutral body that takes over the whole scope of foreign-sales-teams activities on your behalf, regardless of the number of salespeople and countries where you want to hire them, can be the best way to go. Companies of this kind are primarily known as Global Professional Employer Organizations (PEOs). Companies of this type are very broad in character and scope.
Global PEO company is your single partner with international experience and standardized employment reporting procedures.
Acumen International is a Global Professional Employer Organization and Global Employer of Record. Its global network is set up in different countries with established jurisdictions in all matters about HR, taxes, accounting, payrolls, compliance, labor, and employment. It provides an excellent solution that is equally compliant across 190 countries.
At Acumen International, we take on all the legal, financial, and contractual responsibilities for employers and foreign workers. This way, employers only have to sign a single service agreement, and employees only have to sign an employment agreement. We make the whole process simpler and more accessible for everyone involved.
Third-party Global Employment Solutions: Be as Agile as Possible with a Global PEO and EOR Partner
Before thinking about hiring employees, you’ll need to set up your business entity and jump through all the associated hoops. This can include paying taxes, setting up a compliant payroll system, and sometimes applying for a social security number from the tax authorities. These additional steps can take anywhere from a few weeks to several months.
As your business expands globally, it is important to be agile to make the best decisions for your company. Markets and consumer demand are constantly changing, so it is vital to be as flexible as possible. The more agile you are, the easier it will be to make the right choices for your business.
Outsourcing can be an excellent way for organizations to save money and increase efficiency. By carefully selecting which global employment functions to outsource and working with a trusted partner, businesses can reap the benefits of outsourcing without putting themselves at risk. Outsourced standard functions include payroll, benefits, and absence management, but the decision of which functions to outsource should be made case-by-case. With careful planning and execution, outsourcing can help your organization run more smoothly and save money in the long run.
When expanding your business into new countries, there are many benefits to using a global PEO (Professional Employment Organization) or EOR (Employer of Record). A Global PEO and EOR Partners can handle all the immigration, hiring, payroll, tax, and HR compliance for you, freeing up your time to focus on other aspects of running your business. And if you ever need to leave the country, you can do so without being tied down by any long-term commitments.
Benefits of Building an International Sales Team or IT Team with a Global PEO Partner
Quickly and Easily Enter International Markets with PEO: No Entity Setup Needed
Starting a business is costly, whether you use a PEO or set up your legal entity. However, working with a PEO can save you money compared to the latter option. With a PEO, you benefit from their years of experience and knowledge of best practices, which can help reduce costs. In contrast, setting up your legal entity takes up valuable resources and staff time, not to mention the added cost of complying with various regulations. Therefore, working with a PEO is the way to go if you’re looking to cut costs and streamline your operations.
There are many benefits to using a global EOR (Employer of Record) or PEO, including cost savings in entity setup fees. By partnering with an experienced and reputable company, you can leverage existing legal entities in other countries, which can help you save money and time.
When considering the benefits of using a global employer of record, companies can expect to save money when entering or exiting international markets and hire top talent quickly. Additionally, this method allows companies to draft and maintain compliant employment contracts, manage all payroll and tax withholdings, and ensure a quick entry or exit from international markets.
Quick Time to Market and Ability to Hire Top Talent Faster
Global expansion is a complex and time-consuming process with many potential pitfalls. A professional employer organization (PEO) can help you navigate the process and establish a presence in your chosen country quickly and efficiently. By tapping into the global talent pool, you can expand your reach into new markets with a sales force or IT developers that speak the local language and understands the nuances of doing business in that country.
A PEO can help you establish a presence in your chosen country quickly and effectively. Setting up a legal entity can be lengthy, sometimes taking up to 12 months. This can lead to delays and setbacks in your global expansion plans.
This is where a professional employer organization (PEO) can be extremely helpful. Compared to the time and effort required to set up a legal entity, using a PEO is much quicker and easier. This can be crucial when maintaining momentum during your expansion and avoiding the loss of potential candidates, clients, or other opportunities.
Full HR Compliance and Streamlined Employment Processes
No question starting up a legal entity takes significant time and effort. Not to mention, there are always added costs associated with compliance and other red tape issues. However, using a PEO can help alleviate many of these concerns.
A PEO can help ensure HR compliance during your business expansion. On the other hand, setting up a legal entity exposes you to compliance risks that could impede your ability to reach your target market. Countries have different employment laws, which can change suddenly and without warning. This leaves your team scrambling to catch up and adapt business practices, a process that can lead to non-compliance. A PEO, however, has extensive knowledge of employment regulations around the world and can advise on a variety of employment legislation, including:
Compliant employment contracts
PTO (sick pay, holiday pays, etc.)
Parental leaves
Holiday entitlement
Hiring and firing practices (termination, notice period, etc.)
Global PEO Can Protect You from Sales Rep Employment Risks
An employment agreement usually includes a 2-week notice period, which can help companies avoid sudden resignations of employees that might lead to decreases in sales and, subsequently, profit loss.
Many companies have expanded internationally and have found that using a global PEO solution is very beneficial. This is because it allows them to get employees who are fully committed to the company and similar to the sales teams they already have in-house. In addition, it allows them to keep these employees for an extended period, which protects the company from any employment risks. Acumen International is a legal employer and therefore takes on all employment risks. This can save the company a lot of money that would otherwise be spent on setting up expensive business entities overseas.
Global PEO Is a Cost-Effective Global Employment Solution
Compared with traditional direct sales force hiring on own entities, employment using the Global PEO solution is much cheaper, flexible, and risk-free for the employer.
An international workforce that you employ using our Global PEO solution is a kind of hybrid of independent and direct salesforce. Here are the advantages of Sales Rep employees:
Hired compliantly
Dedicated and fully engaged with company product
As the parent company’s employees, they are obliged to fulfill global strategy and advocate the brand, not simply make sales and earn a commission like in case with independent sales reps
Lower expansion cost
Flexibility, lean approach: companies can enter more markets, test the markets before they decide to get established there, and quickly withdraw from unattractive countries.
A substantial benefit of long-term staff is that it gives your company the ability to build strong brand equity and make the company and your product recognizable in the foreign market. With short-term sales reps, you risk losing everything if the person decides to leave. In the long run, strong brand equity allows you to reduce overhead costs so that you invest less in the promotion of your products in the foreign market over time while enjoying the same sales volumes and revenues.
Global Payroll Made Easy and Affordable
One of the most challenging aspects of business management is keeping up with payroll. Maintaining an accurate and up-to-date payroll is vital for any business, large or small. But for businesses with sales or IT employees in multiple countries, keeping track of different payroll laws and regulations can be daunting. This can be even more difficult when you have employees in different countries, each with its unique payroll laws.
When managing payroll for international employees, businesses must be mindful of each country’s different tax, payroll, and employment laws. This can be daunting and time-consuming, with stiff penalties for non-compliance. Acumen International payroll services can help you navigate international payroll and employment laws and take care of all the details, so you can focus on running your business.
Global Employment Cost Assessment
In today’s business world, it’s more important than ever to be mindful of costs when expanding your company internationally. Hiring talent in different countries can be expensive, so you must know each country’s compliance, tax, labor, and immigration requirements. One way to save money when hiring employees or independent contractors is to choose the most cost-effective and business-friendly country. This can help you reduce expenses by up to 50%.
Different countries have different labor laws and benefits, so it’s essential to do your research before making a decision. So why not take advantage of our Global Payroll Calculator — the advanced country-by-country employment cost comparison tool? With just a few clicks, you can compare the payroll costs, benefits, employer and employee taxes, and mandatory benefits for 190 countries. The Global Payroll Calculator can make it much easier to find cost-effective locations for your next global expansion move.
The tool considers local taxes, payroll regulations, benefits, compliance requirements, and other labor-related factors that can impact an employer’s budget. By tracking developments in 190 countries worldwide, the research team behind the calculator strives to keep the data up-to-date so businesses can make informed decisions about expanding their operations internationally.
Get Ready To Conquer The World: How A PEO Can Help You Dominate Any Industry
There are many benefits to using a PEO, including saving on compliance risks and time-consuming set-up processes associated with setting up a new legal entity. PEOs are also cost-effective and quick, making them a great option for businesses looking to start the market quickly and efficiently.
If you’re looking to hire and expand on a global scale, you need a partner that can manage payroll, HR, work visas, and employee benefits compliantly and smoothly. Acumen International is that partner. We have the expertise and experience to navigate the complex international employment laws and visa requirements so you can focus on exploring new business markets. Let us help you realize your global expansion goals.
