Hiring employees in foreign countries Benchmark

Employment without borders is rather a necessity than a preconditioned option. In terms of economic relationship, “global mobility” appears as a dawn of the upcoming technological revolution.

In the days of post-industrialization, companies of all sizes and niches are seeing the benefits of expanding internationally. The global transformation of the world economy is inevitable, ergo, multinational corporations are the major consumers of these changes. Mainly driven by the cross-border movement of goods, services, and labor, “global mobility” arises as the looming globalization force.

Starting from the late 1970s, international labor pool constantly evolving to interconnected workforce network, changing the way modern employment is perceived. In this light, the Social Security administration becomes crucial for proper relationship development between business representatives, trade unions, and governments.

People matters much like business

It comes without saying that consolidation of global networking requires a proper regulation, mainly provided by centralized legal authority. One of the organizations, responsible for adherence to social obligations is the International Labor Organization (ILO). In many cases, ILO appears as a pledge and a final resort for labor rights. Human trafficking and modern slavery, same as child labor become an issue in developing countries, that is why international corporations endorse ILO as a global workforce regulator.

Perhaps, one of the most high-profile labor related cases is a case against multinational corporation Coca Cola, initiated by the International Labor Rights Fund and the International Steel Union on behalf of a Colombian trade union in the beginning of 2000s. The authorities sued the beverage manufacturer for murder, torture and kidnap of Colombian trade union members, who tried to protect the civil rights of the bottle plant staff, opposing subcontracting of thousands of workers apparently engaged by Coca Cola in order to reduce labor costs.

As we see from the above example, not just understanding of international core labor standards but compliance and implementation of Social Security Standards are crucial for establishing an effective, standardized, and ethic driven networking.

Hiring employees in foreign countries is exercised under common standards and regulations

From New York to Tokyo, from London to Johannesburg, multinational corporations around the globe continuously exercise the immense amount of business operations. Taking into account the fact that all of these transactions require appropriate regulation and maintenance, millions of participants all over the world take care of global network functionality. Every day, new contenders become a part of this web.

Regardless of the country or region of the designated market, the primary responsibility is always related to ethical and compliant performance. Putting a strategy into action requires professional assistance, including the incorporation of a talented workforce; therefore, businesses need to understand the ongoing procedures that include:

  • Legal fees and government registration fees payout;
  • Establishing inhouse bank accounts (must be completed in person);
  • Preservation accounting records locally in the market;
  • Designating a country manager, paid in the country;
  • Breaking down entity/terminate the operations under corporate law;
  • Sourcing and continuously managing multiple vendors for booking and HR operations.

In addition, companies establishing their presence abroad should adhere to a certain ethical context:

  • Freedom of association;
  • Right to organize/collective bargaining;
  • Restrictions on child labor;
  • Restrictions on forced labor;
  • Restrictions on discrimination;
  • Equal remuneration.

Innovation-driven approach is a key to access

Considering the possible risks and hurdles related to hiring employees in foreign countries, it is quite reasonable for companies to handover this due diligence to professional employment organizations (PEO). Global PEOs are advanced employers of record, who commit 100% compliant ethical, financial, and operational performance regardless of the destination point. Addressing a Global Employer of Record is a right way for multinationals to adhere to international labor standards, provide their services, sell goods, and keep the global networking system functioning smoothly and flawlessly.

Social Security Administration reflects the humane and mutually beneficial relationship despite the role of participants. Moreover, the relevant adherence to social standards leads to succession and appears as a leverage point of global integration. On the other hand, neglect of basic moral principles and core labor standards denotes failure to take advantage of that great opportunity.

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