Whether you’re preparing for international expansion or you’re already a seasoned pro, you need to have plans in place for international human resource management. Managing compliance traps, employee benefits, payroll, and international hiring are just a few of the tasks that a solid HR team helps you with. Let’s help you prepare for the complexities of global operations before diving into a new country.
If you don’t want to manage HR in-house, it’s becoming increasingly common for businesses to outsource international human resource management because of the requirements mentioned above. Nearly 38% of businesses, especially small to midsize firms, outsource HR responsibilities, and this may be the best option for you to efficiently and effectively manage global employment.
As you expand, a global HR consultant may be increasingly appealing because with growth, comes more risks. Prepare your team for the common hurdles associated operating internationally before expanding into a new country. Determine how you plan to handle these risks, whether internally or externally through a global consultant.
Following the tips we describe below solidifies your international human resource management plan and simplifies the process for your in-house or outsourced team to start or continue running a smooth global operation.
Finalize a Global Code of Conduct – Right Now
If you’re thinking about expanding overseas, make sure you include a global code of conduct in your completed international strategy. This GCC goes beyond the typical handbook items like dress code, and is a broader explanation of expectations for the company, especially in regards to its global presence.
This code addresses issues that apply to the entire company, across all of its locations. It’s a fantastic way to develop and maintain a strong company culture that abides by the same values, principles, policies, and responsibilities across all entities. An effective GCC includes the following factors:
- Personalization for your company’s industry and brand.
- Formatted in all languages needed for your team’s current places of operation.
- Defines customs that are specific to each country.
- Drafted by the entire executive team, including any partners in your foreign countries.
Determine How to Manage Labor Laws and Requirements
Every country has its own set of employment laws that are complex and ever-changing. For this reason, many businesses outsource international human resources management because it’s too big of a task to manage in-house. One of the most complex tasks is payroll administration. We definitely suggest outsourcing this responsibility in order to remain compliant.
Another benefit of using an outsourced HR team is ridding yourself of the hiring and firing responsibilities. These tasks are not only daunting but also incredibly complex in other countries. A team of international experts can help you with in-country recruiting, difficult terminations and the creation of employee contracts that meet all of the necessary standards and requirements inside your new country.
Develop an Understanding of the Country’s Traditions & Culture
We could spend an entire day talking about all the legalities, restrictions and risks associated with international employment, and though vast, it’s not the only important aspect of expanding internationally. Successful international human resource management includes a strong understanding of the culture and traditions associated with the new country.
Your HR team is going to be a direct liaison between you and your in-country employees. So, they need to know these customs. This is another area where outsourcing HR can be a huge benefit to your company. They can be a huge resource for you and your team in order to start understanding the culture and bring you greater success.
If you’re going to use your in-house HR team for international operations, make sure they’re patient, flexible and open-minded. These are necessary personality characteristics needed for a smooth transition into working with new employees in a foreign country.
Tackling the complexities international human resource management is tricky, but there are options to easily manage these tasks. Velocity Global’s team of international consultants can help you with operations in over 185 countries. Give us a call today for free advice.