The glue holding many organizations together is a firm’s human resources department; this adhesive quality rings true even more for businesses expanding overseas, which is why international HR management is the key to success for your team’s global operations. We want nothing more than for your business to outperform your expectations, so we’ve pulled together pieces of advice to help you get international HR right, right now.
Balancing International HR Compliance with Flexibility
When you startup operations in a new country, there are regulations that are typically placed under the HR hat. These requirements include:
- Benefits withholdings
- Tax withholdings
- Termination periods
- Holidays and paid time off
- 13th Month pay and other bonuses
After talking with our clients about the stressors associated with managing labor law compliance, we realize that it’s best for small to midsize firms to use a service to help manage HR responsibilities.
International PEO, also known as Global Employer of Record, takes the guesswork out of international HR management by getting companies fully operational in its target country quickly and efficiently. When you use a service like this, you do not have to go through the constraints associated with setting up a subsidiary, which saves your company time and money.
Plus, international employee regulations are managed by an experienced team giving you the freedom and flexibility to focus on your company’s strategy and continued growth.
Consider Cultural Differences
You will obviously encounter cultural differences in your new country, but these go behind the meaning of a handshake and how to eat your pasta. Cultural differences can trickly in international HR management.
For example, in some countries, annual reviews are not necessary. Although, it may still be customary to give raises and bonuses. In addition, many countries require that you create an employment contract in English and the country’s language.
Develop Solid Employment Contracts
Similar to the US, employment contracts are critical for a successful experience with an international team. We suggest touching base with a local attorney who has direct experience with labor law compliance in your target country.
You will also need to pay attention to risks, which include termination requirements, tax withholdings, and employment status. For more information on global employment risks, read our post on how to avoid compliance traps.
Once you understand the risks and worked with local counsel, develop a template for future employment contracts. This is a great time saver and can help your international HR team onboard new team members much faster.
Finally, remember to translate the contract into the local language to keep the contract valid in case any conflicts arise.
Resources for Learning International HR Management Regulations
To further understand the international HR management requirements in your target country, do your research. Here are a few resources to help:
- Regulations vary from country to country. Learn more about specific labor law requirements.
- Understand the benefits and compliance requirements for your specific country.
- Start to learn the standards for employing team members overseas.
If you would like to discuss your international operations with one of our consultants, give us a call anytime! +1 (303) 309-2894