Did you know there are about 60,000 multinational corporations globally?
You’ve achieved a remarkable feat to build your business into a global corporation. Operating in multiple foreign markets is an effective way to expand your market base and grow your sales.
Behind the operations of every global business is a dedicated workforce spread around the world. However, managing a global workforce isn’t easy, which is why many companies turn to HR outsourcing companies.
If you’re considering taking the same path, you’re on the right path. There are many benefits of outsourcing HR, especially for global companies.
Read on to learn more!
- Overcome Legal Hurdles and Red Tape
Every country has its own labor laws and regulations. When you’re running a global business, you have to adhere to these laws. As you can imagine, keeping tabs on every country’s laws and adjusting your policies and practices to ensure compliance can be a nightmare.
International HR outsourcing gets the compliance responsibility out of your hands. These companies are already familiar with the local labor laws and regulations. They will take over most of your company’s HR management duties and ensure your practices are compliant.
If you’d like to engage independent contractors, for example, you won’t have to worry about the specific laws you’ll have to comply with. Check out this page on contractor management services to learn how an outsourcing partner will help.
With this task out of your hands, you’ll free up your time and spend it on other critical business functions.
- Fast Recruitment
You’ve just set up a local entity in a new country. The first order of business is to build a team of employees.
In a foreign country, recruiting local talent isn’t a walk in the park. Besides the legal requirements, you’re not familiar with the country’s labor market. This will make it difficult to find the best talent and design competitive compensation packages.
With a global HR outsourcing firm working for you, rest assured that your company will find the best local talent on short notice. These companies already have talent databases. All they need to do is dig in there and find workers who meet your requirements.
- No Need to Establish a Local Entity
Setting up a local entity is one way to break into a foreign market. It has great benefits, but it’s also costly. If you’re on a tight budget, there are more cost-effective global expansion methods.
When you outsource HR, you don’t necessarily need to establish a local entity. Some outsourcing companies offer EOR (employer of record) services. They will supply you with the talent you need, all while remaining the workers’ employer for purposes of payment, tax withholding, and other HR services.
Reap the Benefits of Outsourcing HR
A global company has so many moving parts. HR is arguably the most critical. But it’s always one of the easiest to manage. Just delegate the function to an HR outsourcing partner.
And now that you know the benefits of outsourcing HR, making that decision shouldn’t be hard.
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