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Global Expansion Considerations for International Market Success

Formulating Your Global Expansion Strategy

Are you looking to take your organization to global markets? Do you want to make sure that

you do so in an efficient and cost-effective manner? If so, we’re here to help you get started.

Your global expansion journey should start with creating a strategy that empowers you to

build an efficient and compliant global team.

Before you start building your global expansions strategy, answer the following questions:

What are our main objectives for expanding into new markets?

Does the executive team agree upon and buy-in to these objectives?

Which country/countries we are expanding into?

o For multiple countries, what is the order of these countries in which we will expand?

How do we plan to manage market entry and exit?

o Will we establish a foreign subsidiary?

o Will we engage international contractors?

o Will we employ using a PEO?

o What is our exit strategy?

What is the expected period of commitment to each market?

What is the time frame for entering each market?

o Is there an immediate opportunity to cash in on?

o Is there a candidate ready to be hired?

o Is the time frame flexible?

Have we already assessed our company’s potential in the market?

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o If so, are we ready to setup a foreign entity?

o If not, have we considered using a global PEO service to assess the market first?

How will we stay compliant considering the frequently changing local labor laws and

regulations?

Conducting Market Research

Each country has specific labor laws that call for unique requirements for conducting business.

Before penetrating a new market, ask yourself the following:

How will expanding to this market help us achieve our global expansion objectives?

How will cultural differences affect our business practices?

o Do cultural differences affect how managers interact with their workers?

o Should we be aware of any cultural expectations that can affect our success in the

market?

Do we understand the local labor regulations thoroughly?

o What are the employment contract, visa, compensation, and termination

requirements?

o What are the statutory medical benefits?

o How do we ensure compliance?

o How will we handle non-compliance issues when discovered?

What are the common compliance challenges and how do we overcome them?

Are there any hurdles that could complicate carrying out business activities?

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Engaging with Global Talent

Building a global team helps your organization bolster its global footprint and provides access

to a skilled workforce. Before you onboard employees, prepare a hiring strategy that

addresses the following:

What is the best way to hire global talent? Are we hiring talent internally or using a global

PEO service?

Will we hire local workers or expatriates?

What are the relevant immigration requirements?

Will we hire part-time or full-time employees?

How soon do we need to onboard new employees?

Should new workers have a probationary period or non-compete agreement?

If we are not establishing a foreign subsidiary, how should we onboard new employees?

o As independent contractors or a global PEO service?

If we plan to hire employees as independent contractors, have we considered the

following?

o How will we ensure compliance with this employment option and avoid the risk of

contractor misclassification and the associated fines and penalties?

o Will the contractor provide services to multiple clients or work full time for our

organization?

Does my employment offer comply with local labor regulations?

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Providing the Required Employee Benefits

Offering a competitive benefits package can go a long way in attracting the best available

talent while also ensuring compliance with labor regulations. When finalizing the benefits

package for your foreign workers, be sure to consider the following:

How do we manage compliance when paying employees?

How do we manage social insurance enrollment with tax remittance?

What are the compulsory and customary supplemental benefits that we need to provide?

How do we calculate annual leave?

Is a 13th and/or 14th-month salary payable/applicable?

How do we execute pension and retirement planning?

What are the insurance plans that provide my employees with the required benefits that

fit into my budget?

Does the local government provide health care?

o If it does, can we compensate for the gaps in the coverage with our insurance

offerings?

o If not, how do we ensure the required coverage for employees is in place?

Which available insurance plans fit my budget and still provide my employees with the

benefits required by law?

o Health insurance?

o Vision and dental insurance?

o Life insurance and accidental death and dismemberment (AD&D)?

How do we plan for pension and retirement planning?

Am I required to offer my employees pay and/or time off for the following?

o Maternity or paternity leave?

o Paid time off?

o Sick leave?

o Vacation?

o Public holidays?

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o Overtime pay?

How do we go about calculating this annual leave?

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Ensuring Employee Satisfaction

Keeping all your employees engaged and productive is a top priority for companies expanding

globally. You need to consider the answers to the following questions in order to foster and

promote a company culture that maintains global employee satisfaction:

How will you overcome any language barriers that exist in the workforce?

What communication platforms can be used to effectively communicate expectations

with my global workforce?

How can I ensure that my global employees feel integrated into the team?

o How will they be included in company updates?

o Will they receive the same attention and support as local employees?

o Are they receiving comparable perks as their local counterparts, such as

business cards, company car, company credit card, etc.?

How do we go about keeping our global employees motivated daily, weekly, and monthly?

o Do we have a plan for constant communication?

o Do they have a method to voice ideas and concerns?

How do we ensure that we get all employees excited about and bought-in to the

company’s vision?

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Meeting Compliance When Managing Employee Termination

It’s important to be particularly careful about compliance when managing or processing

terminations. Be sure to consider the following questions when drafting termination clauses

in your employment contracts:

What termination requirements apply locally?

What factors must we take into consideration when terminating a foreign employee?

o Has the employee accrued statutory or severance accruals?

If yes, then what is the amount?

o Do I need to make the employee consider a release of claims?

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o Is it a case of mutual termination or employer-driven termination?

o If the employee resigned or it is a case of mutual termination, what evidence do I

have in place to avoid severance payment?

o Do I need employees to sign a non-compete clause? If so, what is the time frame

for it?

What is the mandatory termination notice for employees?

o Do specific job titles or lengths of tenure have an impact on the termination

notice?

Is the employment contract’s termination clause locally-compliant?

How will we go about building a case for termination when required?

Can I claim a proper cause for terminating an employee while staying compliant?

Conclusion

Staying compliant to local laws and regulations with your global employment can be

challenging for even the most capable HR departments. When your organization goes global,

be sure to use this checklist to ensure compliance while successfully expanding your business

into the global marketplace.

HR professionals can streamline their hiring process by partnering with Global PEO Services®.

Our International PEO solutions help manage recruiting, employee onboarding, payroll,

benefits, and withholdings while improving employee satisfaction and ensuring compliance.

International PEOs decrease time to hire by up to 90%, freeing up time to adopt a robust

approach towards your growth goals.

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