Following 2020’s historic economic downturn, companies seek new ways to increase revenue, compete for top talent, and diversify market shares. That’s why firms set their sights on global expansion for 2021.
To ensure their companies remain compliant in new markets, HR professionals must stay ahead of 2021 employment law changes. These legal updates impact how, when, and whom companies hire overseas.
Ben Bowden, Global Director of Employee Experience at Velocity Global, partnered with SHRM (Society for Human Resources Management) to lead a webinar covering employment law updates in ten key international markets. The webinar identifies crucial legal changes that HR professionals should prepare for, along with insight into why firms continue to prioritize global expansion.
Why Companies Expand Internationally—and Where They Go
Bowden set the stage for international employment law updates by reviewing expansion trends from Velocity Global’s 2020 State of Global Expansion™: Tech Industry report.
The report surveys 1,000 leaders at United States and United Kingdom tech companies to identify why their companies expand internationally, what challenges they encounter overseas, and which markets they most consistently target.
The report reveals that companies most often expand to accomplish the following three initiatives:
- Grow their customer base
- Increase their scale and efficiencies
- Access talent
Bowden then identified ten top international markets, noting that despite 2020’s drastic economic changes, Velocity Global sees promising hiring trends in these countries:
Key Changes in Leading International markets
To help HR leaders ensure compliance in 2021, Bowden reviewed legislative updates in ten global markets. Select highlights include:
- In the UK, Brexit poses significant obstacles to companies looking to hire workers from the EU. New hiring and employment hurdles will come into effect after the Brexit transition period ends on December 31, 2020. Bowden reviewed how these changes, including a skills-based immigration system and higher application fees for EU workers, will affect companies’ ability to hire foreign employees.
- In India, the government recently proposed the most significant legislative employment updates in decades. Bowden went into detail about the sweeping changes that HR professionals need to be aware of, including increased employer responsibilities for providing workers with social security, vacation time, health and disability benefits, and more.
- In Germany, lawmakers extended the Kurzarbeit, or short-time work benefit, until the end of 2021. Bowden explained how this policy provides critical relief for companies seeking to reduce costs without terminating employees during the recession.
Velocity Global Helps Companies Stay Up-to-Date with Legislative Changes
After going into further detail about updates in all ten markets, Bowden fielded questions from the webinar audience and discussed how Velocity Global’s Employer of Record solution helps HR professionals manage global teams. Bowden explained that an Employer of Record enables companies to quickly and compliantly hire, onboard, and pay international supported employees.
Velocity Global’s international employment experts also help companies stay up-to-date on legislative changes. This ongoing support ensures companies remain in compliance regardless of evolving employment laws.
If you could not attend the webinar, click here to watch it in full. If you’d like to learn more about how Velocity Global’s experts help HR teams simplify every aspect of international employment, contact us today.