From tax compliance to payroll and even employee experience, there are several considerations to take into account during periods of international expansion.
In a globalised world, if businesses are going to succeed, they must work seamlessly across borders. In fact, 68% of organisations agree that a mobile workforce is an enabler of business and talent strategies.
So, how can you maximise the efficiency of your international operations and ensure your expansion into new markets is a success? By having a successful mobility strategy in place to ensure the seamless operation of your international workforce.
With that in mind, read on to discover five steps to a successful global mobility programme…
5 steps to a successful global mobility programme
1. Compliance is key
When expanding into new locations, first and foremost, it is essential that you remain compliant and keep up to date with the rules and regulations of each territory. Employment and labour laws are constantly changing, and staying on top of these regulations is essential if your business is going to minimise risk, remain compliant, and ultimately deliver a successful global mobility programme.
If you are undergoing a period of rapid expansion, it can be easy to let the ball drop when it comes to compliance. However, non-compliance can result in fines and even a possible lawsuit, so it’s pertinent that you comply with the regulations in all the countries your business operates in. Regulators will also expect you to implement any new laws immediately too, so be sure to keep up with changing regulations.
Essentially, if your organisation is going to remain compliant, you need to be as proactive and reactive as possible so you can stay ahead of the game. But with so much going on at any one time, how can ensure you stay one step ahead? Enlisting the help of a global mobility partner like activpayroll enables you to remain compliant at all times and whilst also abiding by the different employment laws and legislations in each location.
2. Keep up with local laws
Contracts, holiday entitlement, and maternity policies are just some of the local employment laws you will need to consider for each location you expand into.
Each country will have its own statutory requirements - often detailed in the local language - so in addition to keeping up to speed with changing laws and regulations, you also need to have a firm grasp of the existing labour laws in each country, too.
With so many different laws and regulations to keep on top of at any one time, the benefits of finding global mobility services with specialist knowledge in each location is immeasurable.
3. Think about tax
One of the biggest considerations when expanding internationally is the issue of tax compliance. From tax returns to deadlines and income tax to social security registration, each location will also have its own tax laws to comply with, too.
For your global mobility programme to be successful, you not only need to adhere to the necessary tax laws, but you should also be careful to maximise the opportunities to minimise income tax liabilities for internationally mobile employees by utilising the global double tax treaty and social security reciprocal agreement networks.
These are all things that a global mobility provider will be able to assist with to ensure your expansion is as smooth as possible.
4. Have a payroll plan
Managing payroll should be among the most important considerations when expanding internationally. However, international payroll management can be incredibly complicated, especially when factoring in all the regulations in different countries.
There is also a wealth of information that companies need to collect and record to remain compliant, such as business tax rates, currency exchange rates, social security obligations, and more.
Some businesses opt for global payroll solutions using established, country-specific processes, but this approach can be disjointed. It can often overlook critical compliance issues and could ultimately have a negative effect on your organisation’s profitability.
By outsourcing to a global payroll service provider, you can avoid these expansion pitfalls and develop a more efficient, more compliant payroll system for both your domestic and international needs.
5. Focus on employee experience
Well-being is more than a buzzword - it’s a trend that has skyrocketed in importance over the last couple of years, and it’s essential to a successful global mobility programme, too.
Moving to a new country can be incredibly stressful, so it’s vital to incorporate employee experience and well-being into your global mobility programme. To achieve mobility, you need to take care of your people first.
Organisations must work together with their people to boost morale, encourage positive mindsets, and enhance the employee experience if they are going to reap the benefits of strengthened performance.
In fact, McKinsey found that organisations with a positive employee experience are 1.3 times more likely to report organisation outperformance. So, from remuneration packages to frequent communication, it’s essential to invest time and resources into employee experience and well-being if your global mobility programme is going to deliver the results you need.
How activpayroll can assist with your global mobility programme
From our global HR services and global mobility knowledge to years of experience in global payroll, if you want to deliver a successful global mobility programme, there’s no one better placed to help you than activpayroll.
So, if you’d like to find out more about how our global mobility services can help you to expand internationally and realise your global potential, contact us today to learn more about our range of services.