Geopolitical upheavals in Europe arising in the aftermath of the pandemic and Brexit have posed new challenges to global expansion. In today’s global business landscape, relocating and retaining your key international talent to keep a company viable is getting ever more important. With constantly changing laws governing residence and employment in both EU and non-EU countries, and highly skilled employees forced to relocate, retention of a stable and reliable global workforce as well as benefits provision have become increasingly difficult.
Acumen’s global PEO and payroll solution was made for times like these. Learn how we helped our UK-based client to legally retain and provide benefits to a skilled Polish employee who had recently returned to Poland.
Our Client is an engineering company with headquarters in the UK. The company recently merged with a large Japanese corporation. Our Client contacted Acumen International when a key employee relocated to Poland, where the business did not have a legal entity.
The Client wished to retain its talented employee, but needed help navigating Polish labor laws for hiring and payroll. They wanted a risk-free and compliant solution that would allow them to provide their employee with a full benefits package and supplementary pension.
2 Common Challenges for UK-based companies Retaining Talent and Providing benefits in Poland
The client’s challenges that we faced in this instance were twofold:
- As a UK company post-Brexit, our Client could no longer leverage the open work policies of European Union member states and lacked knowledge of EU and local Polish labor laws concerning the employee onboarding, payroll and taxation. The Client also needed assurance that their intellectual property rights and private data would be safeguarded.
- The Polish government had implemented an Employee Capital Plan (PPK), a voluntary long-term savings plan for Polish workers, designed to supplement employee pensions. Under the plan, the employee would contribute 2% of earnings, while the employer would be required to contribute 1.5%, with the option of contributing up to 2.5%. Our client’s employee was not satisfied with the terms of the Polish PPK plan. He wanted the Client to provide a more amenable retirement savings package.
What to Know Before Hiring and Retaining Key Personnel in Poland: Acumen’s Solution
To satisfy the Client’s need for compliant employee onboarding, payroll and benefits provision for retention, we recommended our Poland PEO solution, and provided the Client with onboarding requirements and documentation.
Our team advised the client about employment details concerning notice period for employee termination, seniority recognition, minimum vacation days allotted, and other relevant information.
We also provided cost simulations, to empower our Client for informed decision-making.
To provide agreeable terms for the employee, we informed the Client about the IKZE individual retirement protection account. The plan allows the employer to contribute 4% of the employee’s salary, and enables the employee to deduct annual IKZE payments from their income, to exempt contributions from taxation.
Unlike the PPK plan, employer participation in IKZE is optional, and the plan allows the employer to voluntarily contribute additional income toward the employee’s retirement pension.
The End Result
Acumen’s expertise in global employment solutions proved to be invaluable for our Client. As Client’s #1 Poland PEO partner, we were able to successfully onboard and retain the employee, and provide an attractive benefits package that satisfied both the Client and the employee.
To further simplify things, the Client now pays a single monthly invoice to Acumen International, without having to worry about tax deductions and benefits provision. In addition, the Client’s IP rights and sensitive data are completely secure, with zero legal and compliance risks.
Acumen’s Innovative Global PEO and Payroll Solution for Retaining and Compensating Your Best Talent Internationally
As a recognized leader in international employment, Acumen provides services in 190 countries around the globe, helping businesses to grow on a global scale via attracting and retaining their key global personnel. Whether you need to compliantly onboard, payroll and provide benefits to your own or your international clients’ global workforce, Acumen International can help.
Contact the Acumen team today, and learn how our innovative global employment solutions can help solve the challenges you face in today’s changing global business landscape.
Do you have Ukrainian workers who are planning to flee to Poland to escape the Russian conflict? Or have your employees already left Ukraine and arrived in Poland? Acumen International can help companies like yours, including IT, to compliantly employ your Ukrainian talent in Poland within days, and retain them by providing the best employee benefits packages.
Acumen’s global PEO and Payroll solution helps you to legally relocate your Ukrainian personnel to Poland so you can enjoy uninterrupted workflow with employees you know and trust. Our solution enables us to arrange for global payroll, and to open bank accounts for your employees empowering your Ukrainian staff relocation and retention. We can also provide your talent with laptops, mobile phones, and other tools they need to perform their jobs.