Organizations pursuing plans for global expansion often overlook the HR department. The main focus is on finance or services and the HR team is left to figure things out for themselves.

Employee retention, recruitment and company culture are just as important as any other aspect of growth, but it is not always easy to convince directors of this. The process can be made easier with the support of a Global PEO (Professional Employer Organization) - here is how.

The Advantages of PEOs For HR Departments

Hiring and onboarding new talent is an important and complex task regardless of where it is being done. On home soil, HR departments are used to the culture, have no language barriers and be well aware of compliance laws that apply to employment. However, what happens when the same needs to be done in a foreign country? 

This kind of pursuit is challenging, placing HR professionals in a balancing game between home-country obligations and international requirements. However, that game is made far simpler with a Global PEO. 

Simple and Straightforward Recruitment

Hiring foreign employees abroad has its advantages, but also its challenges. Organizations gain local knowledge and experience; however, a lot of time-consuming research into labor laws, cultural requirements, background checks and other considerations is required. 

When hiring from overseas, background screening is a crucial process. It is needed to collect and verify important information about any potential new hire, allowing companies to ‘sort’ through who will be a good fit. But how can this be managed from a completely different country? 

This is where a Global PEO comes in. They can provide background checks which will be subject to various local laws that protect the employee’s personal information. Global PEOs help verify foreign credentials and communicate the differences in customs and laws between the potential hire and the client company. 

Once you have found the ideal candidate, a PEO can create the necessary employee contracts to ensure everything is completed compliantly.  

Streamlined Onboarding

Hiring an overseas employee is half the battle. The next half is providing effective onboarding. HR professionals may be unsure where to start because they have never onboarded a foreign national before. There may also be cultural differences and time constraints that are adding unnecessary pressure. 

Again, Global PEOs can assist in this phase. They can accurately prepare an employee for working with an organization, educating them on expectations, mission, company values and culture. 

The onboarding process is done in-country, streamlined through considerations for culture clash and specific regulations. The Global PEO will advise on necessary legislation and help to complete any necessary training, mirroring any onboarding process that would be carried out on home soil.

This helps speed up the onboarding process with fewer issues caused by timezone changes or language barriers. Overall, this will create a better experience for the new hire from the very beginning. 

An effective and supportive onboarding process can be the first step towards creating a happy and fulfilled employee. This can improve your organization’s overall employee retention, making you a more attractive place to work for other potential hires and reduce costs.

In fact, HR studies have found it can take 28 weeks for a new hire to reach the same level of productivity as an employee who left at an estimated cost to your business of $35,000.

Recruitment and onboarding both take place at the very beginning of an employee’s time at your organization. HR specialists will know their work does not end there. Take employee benefits, for example. 

Benefits like medical insurance, pensions and life assurance are all important considerations that need to be effectively managed at all times. These benefits can differ in how they are awarded and managed from country to country. To ensure compliance, many organizations turn to the support of a Global PEO who understands the subtle nuances that might exist from one country to the next. 

We understand HR teams have a lot on their plates when organizations expand and grow. It can sometimes feel overwhelming when it comes to learning all of the different laws, regulations and customs of each country.

Global PEOs are expert organizations that offer HR assistance and guidance. They can take some tasks off your plate and ensure you are heading in the right direction. You may be unfamiliar with Global PEOs and the work they do. To help, we have put together a free resource you can read at your own pace. 

The Value of a Global PEO

If you have questions about a Global PEO or are just interested in how they can help HR teams, feel free to download a copy of our guide now. Some of the points we touch on are:

• Managing a global workforce
• Directors and HR teams
• Entering new countries
• Maintaining global compliance
• Limiting risk
• Managing payroll

International expansion requires a lot of time, energy and knowledge, sometimes more than a business can deliver. To find out about the support a PEO provides during expansion, click the link below.