What does it take to achieve successful global growth?
For many organizations, a key ingredient to meeting business objectives is finding a reputable partner to help guide international expansion activities and navigate foreign markets. These partnerships help growing companies find hidden opportunities within international markets and create additional revenue streams.
A global business expansion partner should have expertise in regions around the world, as well as flexibility to provide your organization with a customized approach to fit your specific needs. We’ve put together the main questions you should ask about when vetting a global growth partner. After you've done some market research and identified potential customer bases around the world, here are the next steps to consider.
1. Can they support your compliance needs?
Legal complexities can create a significant burden when you expand internationally. Local labor laws vary greatly between countries and staying compliant requires expertise and experience. For instance, many countries can’t leverage “at will” employment arrangements, which complicates both hiring and termination procedures.
Companies preparing for global business expansion will need to navigate complicated laws. This includes regulations around severance payments, time off requirements, notice periods and more. Finding the right global growth partner can lift these burdens and allow business leaders to focus on other priorities.
More compliance questions to ask include:
- Is the vendor compliant with local regulations?
- Do they have data privacy measures in place for clients and employees?
- Are they ISO certified?
- Do they understand IP protection, especially in countries like China?
2. What is their experience with global HR and payroll?
Managing international hiring and ongoing employment is often a challenge. Surprising hidden expenses and significant penalties associated with noncompliance can make even the slightest mistake very costly.
A growth partner should provide guidance on the statutory terms of employment. Additionally, they should keep you aware of common HR and payroll pitfalls, and draft documents to help manage risk.
Executing accurate and timely payroll is critical for every organization. Businesses need to manage their entire domestic and international payroll processes and ensure all employees get paid accurately and on time. All while maintaining compliance with all local, national and international regulations.
Consider:
- Can they manage complex employee salary requirements in multiple countries (e.g., commission structures, bonuses, incentive programs and profit sharing)?
- Do they have expertise with various payroll technologies in multiple countries?
- Do they understand payroll tax requirements in each country of operation?
- Do they offer staffing support, from recruitment to retirement (e.g., onboarding, ongoing management and workforce reduction)?
3. Can they provide financial stability and transparency?
Financial stability is at the core of successful global operations. Many countries have rigorous requirements and hold companies to high professional standards. The right global growth partner should have experienced accountants with an in-depth understanding of local financial regulations. This adds immediate value, while ensuring robust governance and compliance with your policies and vendor contracts.
Ask potential partners:
- Can they help with procure to pay?
- Do they have processes proven to reduce Days Sales Outstanding (DSO) and credit risk exposure?
- Do they provide accurate cash flow forecasting?
4. Do they know how to set up a business in any country?
Establishing a legal presence in the country of operation is a must during international expansion. Businesses will need to follow local employment laws and abide by local policies to ensure proper compliance. Companies can choose to set up their own legal entity, or if they need to hire before their entity is established, they can outsource hiring and onboarding to an employer of record (EOR) provider.
Depending on the business, a global growth partner can help you determine which option is right for you. Creating your own legal entity can take more time to set up. When going this route, the more countries you operate in, the more complicated the management process becomes.
As regulations vary from country to country, it will be critical to have a firm grasp of local employment laws. his is a good solution if you want full control and have long-term plans in a country.
On the other hand, using an EOR solution like allows you to bypass the incorporation process. The EOR has already created in-country entities, so it’s able to hire and onboard workers on your behalf. An employer of record can help mitigate the compliance risk of international hiring, while still allowing your business to manage business strategy. If you're looking to hire quickly and avoid the typical headaches of entity setup, this may be the best solution for your needs.
Some additional questions to ask a potential global expansion partner include:
- Do they provide incorporation and registration globally?
- Do they have systems in place to support you post-incorporation (e.g., payroll setup and local bank account setup)?
- Do they help with corporate annual compliance?
- Do they have an EOR option if you need to hire fast or want to test new markets?
- Will they help you with your intellectual property overseas?
- Can they help with all types of products or services in any industry?
5. Can they help you find top-tier talent anywhere in the world?
Expanding your business internationally requires talented workers. But are you prepared to navigate different time zones and languages as you start the recruitment process? Working with a partner that has access to local expertise and pre-qualified candidates can save you time and money.
No matter how difficult the position, a recruitment partner should be able to help you fill the roles.
In addition to great candidates, your partner should provide various hiring options to meet your needs. This includes direct hires, interim hires or recruitment process outsourcing (RPO). The ideal partnerships enable you to focus on important business initiatives, while they find the perfect workers to fill vacancies. However, you should always maintain complete control, without the burden and stress of recruiting on your own.
Ask providers:
- Do they have knowledge of the local customs and hiring best practices?
- Can they hire and onboard candidates after they have been approved?
- Do they have experience filling highly technical or hard-to-fill roles?
Supporting your global business expansion
Companies today are spending disproportionate amounts of time and resources on compliance and keeping pace with day-to-day human resources, payroll, accounting, tax and legal challenges. We want to help you develop the perfect global expansion strategy for your business.
Our suite of global expansion services can help you meet your growth objectives in 170+ countries. If you would like to speak with a global solutions advisor learn more about our expansion services, contact us today.
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