The pandemic has accelerated the adoption of work from home practices and changed the way we work and how we access talent. Now, incorporating a global workforce is the new norm.
If you’ve considered hiring international employees but had second thoughts because of the pandemic, it’s time to revisit it. You can now hire candidates from all over the world, without the lengthy legal process or hefty price tags.
Find out more about putting together an international team!
1. Importance of compliance in the workplace
International employment laws are complex and ever-changing. Companies who lack the knowledge and fail to comply with local regulations such as payroll and taxes face harsh audits, fines, bad press and even the loss of prestige and credibility.
Elimination of HR legislature problems.
Increased operational efficiency and safety.
Improved employee engagement and retention.
Enhanced reputation and trust among customers.
This is where a PEO steps in. They have a pre-established legal presence around the word and exist to help companies cost-effectively navigate the complicated international business environment. This includes contract administration, hiring, compensating according to local laws and regulations, ensuring proper employee tax withholdings, etc. among many other core HR functions.
2. Reasons to hire through a PEO
A PEO like TG is a 3rd party HR outsourcing firm that handles all your risk mitigation, compliance, payroll, and benefits concerning your employees while you maintain daily operations control. Companies hire a PEO for several reasons.
Cost and time savings when entering new markets
Utilising a PEO is more cost effective than setting up and maintaining a foreign entity. Companies can begin operating in weeks as compared to 3 to 4 months with the help of a PEO.
TG ensures compliance with local HR regulations for your global workforce amid the ever-changing labour regulations across countries.
Flexibility and scalability of operations
With TG as your PEO, you can expand or withdraw your operations in various countries, with no lingering costs or liabilities upon early exit.
Despite the benefits a PEO can bring, there are some perceived disadvantages of PEOs:
Relinquishing control of your business
Outsourcing to a PEO transfers specific administrative and compliance tasks such as hiring, payroll processing and tax remittance. There is no direct interference with the daily operations of a client’s workforce. Also, PEOs will only take disciplinary action on employees after a consultation with the client company.
Employee preference against PEOs
Employees prefer contracting with the client company rather than a PEO as it gives them the peace of mind of job security. However, PEOs are payroll and compliance specialists with a dedicated team of support staff who will ensure prompt conflict resolution and staff pay-outs.
How do you know if engaging a PEO’s services is right for you?
Are you certain of business potential and returns of the foreign market?
Are you familiar with the local labour regulations?
Can you delay hiring for several months?
Can your current HR team manage the additional team in the foreign market?
Do you have an extensive global expansion budget?
If your answer is “No” or if you are unsure of any of your answers to these questions, our recommendation for you, is to utilize the services of a PEO. Alternatively, you can always connect with us, and our expert staff can provide you with relevant advice to any of your doubts.
3. Strategies to promote cultural diversity in the workplace.
Diversity is a crucial element of who we are as a society, but even now, many businesses are struggling to manage this concept within their workforce. At TG, we understand that it is a prevalent issue and here are 3 strategies that we adopt to help our teams understand and respect cultural differences.
Evaluate bias before employing them
Looking out for signs of racial bias and discriminatory behaviour during the employment interview process will limit potential issues.
Celebrating diversity in the workplace
Recognise employees who demonstrate acceptable and appropriate behaviour. This increases the awareness of diversity in the company culture and incentivises employees to make the shift.
Make diversity and inclusion a core value
Create a set of actionable habits and follow through with consequences when employees display unacceptable behaviour. Drawing clear boundaries sets teams up for success by creating a culture of safety and trust.
4. Why are policies and procedures essential?
The purpose of these policies and procedures is to bring uniformity and standardise corporate operations, reducing the risks of unwanted events. It organises employees and enables the business to achieve its business objectives more efficiently. Other benefits associated with setting stringent policies and procedures include:
Setting clear expectations.
Ensuring compliance within the organisation.
Provides company with defences against employee claims.
Keeps the management accountable.
Let employees know where to turn to for help.
5. Effective management of teams operating across time zones.
Keeping employees engaged, organised, and united across multiple time zones is no easy feat. However, here are some best practices on how you can do so:
Embrace virtual project management and collaborative tools .
CRM Tools allow teammates to update their status on a task. As such, project managers will not need to keep checking on each member’s progress individually.
Schedule less urgent emails to be sent at times where international teammates are active.
Communicate clear time zone boundaries and set reasonable deadlines.
Test out split shifts or workdays that cater to different time zones . For example, working half a day in the office and working remotely from home at night or in the early morning.
Coordinate shared calendars and embrace asynchronous communication. Get all members to key their work commitments in and with a little compromise, you’ll be able to find a time to get everyone on the same page.
TG has global infrastructure and locally compliant employment contracts readily prepared to hire your employees and become their legal Employer of Record. We provide companies with a global employment solution without the burden of establishing a foreign legal entity, so you can maintain cost-effectiveness and focus on running your business.
If you are looking to expand overseas and looking for a reliable and scalable HR solution, our PEO team is always available to take on your questions. How does TG ensure the compliance of workers provided? What are some of the costs companies need to consider when hiring from a PEO like TG? Find out more about TG’s PEO services or drop us your queries here.