The world is more interconnected than ever before, which has influenced many companies to implement international expansion strategies to broaden their reach to new markets. While a successful international expansion will be affected by the country to which you expand, industry-specific factors, and your market entry strategy, there are three key components that will always affect the success of your strategy to expand internationally.
Finding the Right People
Many international companies have realized the significant benefits of expanding internationally, which include having access to greater opportunities for market growth, diversifying your product and service offerings, and developing sustainable income opportunities.
One survey found that 87% of U.S. firms believe that international expansion is necessary to secure long-term growth. Any good business leader knows that to have a strong and stable company, it is necessary to find the right people to cover important roles.
In today’s increasingly global world, companies do not have to limit themselves to local talent when filling these roles.
By partnering with an international recruitment company, you gain access to a worldwide pool of candidates. It is through assessing both local candidates and foreign candidates that companies can find the most suitable candidates who will support growth in the new market.
Indeed, tapping into an international team can provide your company with significant advantages, including:
- Improved innovation output
- Increased productivity
- Diverse educational and cultural backgrounds
- Advanced language skills
- Enhanced local knowledge to help access new markets
Your recruits can fill important roles within your company, such as:
- launching a new product series or service
- helping you restructure your organization
- launching your international expansion
- leveraging your reputation to create new relationships with local partners.
Any good recruitment provider will customize a recruitment project to match your company needs , enabling you to target candidates that have the right education, experience, and background to advance company goals and integrate well into your existing staff.
Hiring Staff Quickly and Compliantly
Many companies that implement an international expansion strategy decide to expand globally when they have brand recognition and have received positive publicity about their innovation, superior services, or insight into their customers’ needs.
Taking advantage of being first to market can often provide a strong foundation for later growth. Therefore, companies need to be prepared to deploy staff quickly in a compliant manner to take advantage of their new opportunities.
Global staffing solutions – often a Professional Employer Organization (PEO) or an Employer of Record (EOR) – are the solution for deploying staff quickly and compliantly, often within a matter of days.
In today’s fast-paced world, you cannot afford to wait until after a new opportunity emerges. A PEO enables you to onboard staff in various countries throughout Asia and other markets so that you can establish a compliant presence without the burden of establishing a company.
PEO services allow you to eliminate the need to manage administrative functions so that you can focus solely on your international expansion and core competencies while delegating tedious oversight tasks to a trusted expert.
You also gain the advantage of being able to compete with larger businesses while scaling your business in a quick and compliant manner.
Good PEO and staffing solutions services should include:
- Compliant employment agreements – Many countries have a complex web of laws, rules and regulations that can be difficult for foreigners to understand. A good PEO will draft compliant contracts that incorporate best practices into them. They will also make appropriate statutory declarations with local authorities and register the employee at local labor bureaus to comply with local and national regulations in the country of expansion.
- Onboarding – The PEO should have a local team that will ensure that all immigration requirements, mandatory insurances, in-country tax registrations, and other key declarations are in place to ensure compliance.
- Payroll processing – The PEO should set up a compliant payroll system for your business and make proper calculations for individual income tax, insurance payments, social security contributions, and other allowances. It should also manage employee expenses and reimbursements, preferably without charging you extra every time you need to process an expense. A good PEO makes payroll easy; your company should simply receive a monthly statement and invoice without all the additional hassles.
- Ongoing support – A PEO must take on all employer of record responsibilities, which includes handling termination and severance arrangements, employee renewals, and compliance matters related to the employment relationship.
Engaging the services of a good PEO allows your company to:
- Access new markets rapidly
- Reduce your risks by delegating employer responsibilities
- Establish compliant back-office operations
- Scale your business up or down in a flexible manner
- Avoid or delay the expense of setting up a separate entity
- Rely on the PEO’s HR experts, tax specialists, and legal specialists instead of having to pay third parties
- Delegate time-consuming administrative functions to a local expert
Establishing the Right Structure for Long-Term Growth
To achieve the greatest amount of flexibility and to plan for long-term growth, many businesses will want to establish a legal presence in the countries where they expand.
Long-term growth demands careful planning of how to use resources, conducting market research, and establishing checkpoints for the company’s expansion.
Again, a good company incorporation service provider will assist you with all of the following:
- Set up a subsidiary or separate legal presence
- Incorporate your business
- Open a corporate bank account
- Register with tax authorities
- Obtain necessary certifications
- Maintain necessary corporate records and filings
Where to Get Help with Your International Expansion Strategy
New Horizons Global Partners can assist with all aspects of your international expansion, whether you want to find the right talent, hire staff quickly and compliantly, and/or set up a company in a foreign country. Contact us today to find out more about our services and how we can help make your expansion a success.