Solving the Challenges of Cross-Cultural Team Management
Technology has dramatically transformed the way we communicate, work, and play, and it is having an enormous impact on how we conduct business. No longer restricted by geography and borders, tech innovations have opened doors for companies to recruit the best talent from anywhere on the globe. However, not all is smooth sailing.
International team management is complex, especially when your company has no local or regional subsidiaries. Working with the international community means navigating foreign systems that are not always convenient or compatible with your own, and failure to comply can land you in hot water. One comprehensive solution for managing your team is to partner with a reliable global employer of record to fulfill your obligations to employees anywhere in the world.
International Team Management Obstacles
Despite the ease of communicating and working across international borders, there are still many obstacles to building a global team. In addition to language and cultural barriers, you have to comply with local laws governing employment and taxation.
Some of the main obstacles faced by global employers include:
- Recruiting top performers: The ability to go beyond your company’s backyard to find the world’s best talent is a huge advantage for your business. But the downside is dealing with different cultural norms, languages, and foreign hiring processes that put your HR team to the test. Working with a Global PEO (Professional Employer Organization) or EOR (Employer of Record) provider can take the load off your home team and help you acquire the talent you need with minimal friction.
- Team management and training: Onboarding new employees is always a challenge, but even more so when they work remotely and are not accustomed to your corporate culture. Starting foreign employees off with positive work experience is key to making the process flow smoothly. Designate a teammate from the home office to be responsible for each new employee, making them feel welcome, answering their questions, and guiding them through the early months of employment.
- Compliance with tax codes and employment regulations: In the past, companies had to establish themselves as an entity within the host country where they wished to hire employees and to comply with local regulations for employment, taxes, and compensation. In many cases, the expense by far outweighed the advantages. Today, service providers like Acumen International eliminate the need for companies to open their own companies, saving you money and relieving an administrative burden while giving you access to a global pool of candidates.
- Payroll and compensation: Paying your employees is fairly straightforward until you add internationals and foreign branches to the mix. Then it becomes a hornet’s nest of compliance regulations, disparities in currency, withholding for local taxes, and other complicated issues that become a payroll administrator’s nightmare. An International PEO and payroll service provider like Acumen can make payments authorization to cross-cultural teams from anywhere a breeze, no matter the host country. Partnering with a “single point of entry” service provider will facilitate handling all workforce management tasks while letting you retain full control over the employees in their day-to-day activities.
- Benefits and other HR issues: Setting up equitable benefits that can be accessed and provided in different countries is a complex process. Acumen can manage employee benefits and perform a host of other HR-related tasks that are difficult to execute across international borders. A global PEO provider serves as the company’s global HR extension and can ensure an additional level of protection for a client against possible local provider fraud cases. The paying client remains protected by his agreement with the provider.
What About Contractors?
The gig economy has made it possible for businesses to expand and shrink their labor force when needed, with no long-term commitments to permanent employees. That can mean big savings in benefits and other perks that full-time top performers expect and demand. At the same time, freelancers are able to pick up extra cash, work flexible hours, and travel, without the restrictions and responsibilities that come with a full-time gig.
When it comes to paying short-term or part-time contractors, things can get a little sticky, especially if they live in another country. Employers need to comply with both local and regional statutes that regulate employment, and often need to communicate in multiple languages. In addition, foreign governments may view contractors as your employees, muddying the waters when it comes to compensation, taxes, and withholding. Cases like this often result in huge fines for employee misclassification.
Those obstacles cause many companies to steer clear of contractors whose geographic location makes hiring and payroll processing too complicated, even when the contractor possesses highly sought-after skills and knowledge. If you want the flexibility of working with contractors without the hassles of foreign compliance, payroll, and employee benefits management solution like Acumen offers the perfect solution. A global PEO provider will help you employ the worker compliantly, safely with the best of your company’s interest in mind.
Build a World-Class Team with Acumen International
No matter where your company headquarters is located, you don’t need to miss out on hiring the world’s best talent. Acumen International is a world leader in managing legal issues, payroll, benefits, taxes, and other HR challenges faced by businesses with a growing global workforce.
As a single point of contact partner, Acumen saves you from having to navigate the multitude of different laws governing local compliance by taking care of payroll, benefits, and other details, anywhere in the world. A single point of contact allows the client company to use standardized quotes and contracts without wasting time. In addition, it is easy to add a head account in different countries of the world, since one service contract provides all the conditions for the hiring and processing of benefits, regardless of the country of employment.
Contact us today, and learn how Acumen International’s solutions can help your business build a world-class team to meet your global expansion ambition.