HR outsourcing is a hot topic for businesses that are trying to grow rapidly. Traditionally there were not as many HR outsourcing options and services for companies looking to expanding internationally, but today there are various types. All of these service types can help companies stay Agile and ahead of the problems many companies face when trying to face global expansion alone.
Here are three of the big HR outsourcing options for international businesses:
Outsourcing payroll is the most common form of outsourced HR both internationally and domestically. There are plenty of providers in the space, it is likely you will find a provider for your target country. Considering all the variations in employee contributions, including things like 13th month in some countries, outsourcing your international payroll can greatly increase your chance of success in the country. The implication of having a payroll or withholding error in your target country can be huge. Do yourself a favor and don’t reinvent the wheel, let an expert company handle your international payroll.
Let us know if you need any help finding a good international payroll provider for your target country.
International HR Consulting
Sometimes all you really need to keep your momentum moving forward is the right information. Most companies do not have the resources to have an expert on hand for every target country.
Many of the forward-thinking companies we talk to have international consultants on a monthly retainer who can advise on mission-critical decisions. If your company already has decent size in-house HR, finance, and legal resources for domestic operations then adding an international consultant can help confirm or deny your international plans or current situation. Companies willing to engage in this type of on-demand consulting resource tend to make far fewer mistakes and keep themselves from slamming into speed bumps that an expert would know was coming up.
International PEO // FSaaS
The most encompassing form of HR outsourcing is International PEO – also known as employer of record – or FSaaS. In this relationship, companies do not even set up a foreign company in their target country. Instead, the company has a third party, like Velocity Global. Velocity Global will hire their employees in their target country and serve as the employer of record.
The third party manages all the HR functions for those employees including contract creation, benefits, payroll, terminations, etc. In Velocity Global’s case, there are never any fixed-term contracts, it is truly a service-oriented structure.
Many companies are looking for this option to stay agiler. Typically the most daunting and least flexible part of the international expansion is creating, maintaining, or closing the foreign subsidiary company.
If you want to learn more about any of these options please reach out!