Don’t reinvent the wheel global HR consulting Don’t reinvent the wheel global HR consulting

Don’t reinvent the wheel global HR consulting
16 Jan 2018

By Ben Wright CEO, Velocity Global

Global HR consulting is a key part of any company’s international expansion plan when they do not have unlimited internal HR resources. According to a 2014 report from Deloitte, 35 per cent of firms outsource expat administration management and 21 per cent of businesses plan to outsource this HR task. Also, 38 per cent of companies surveyed plan to outsource HR administration duties.

Outsourcing HR is a commonality between small to mid-size firms because it allows them to focus on growth and sales, whilst knowing that their HR functions are taken care of. HR outsourcing has grown into more than a US$150 billion a year industry with more than 85 per cent of companies in the US outsourcing some part of their HR responsibilities.

If you’re expanding overseas you will eventually need to build a solid internal HR team, but while you grow there is an alternative. Nearly half of mid-size firms make at least 50 per cent of their revenue in international markets after expansion and, when you reach this level, you will need a reliable HR team to fall back on to sustain growth. If you don’t use global HR consulting, you may not be prepared for the following risks.

Understanding the native business environment

If you didn’t grow up in Tokyo, chances are you do not fully understand all the traditions and customs in that city. It’s important to know that bowing is the Japanese version of a handshake and if a bow isn’t returned that can be viewed as insulting.

When you work with a global HR consulting firm, they can help you learn the customs of your target country. The best part is that they can work with your native employees and make their work experience enjoyable. Corporate culture is key - in every country - and an outsourced HR firm can help build a strong one.

Valuable experience and diversity

Global HR consulting assists with compliance and cultural references, but it also gives you the opportunity to tap into different levels of experience. Consulting firms are specialised in all areas of HR.

Hiring these specialties in-house may not be realistic for small to mid-size firms. A global HR consulting company puts everything under one roof. Plus, it allows you to diversify your team and be better prepared for situations that may arise in the future.

Managing human capital and the necessary requirements

It is likely that each country you operate in will have differing labour laws and requirements. As you grow, managing these responsibilities is an increasingly daunting task. To remain compliant, we suggest outsourcing your payroll administration.

Keeping tabs on in-country laws is an enormous responsibility for an in-house team member.

Another benefit of using a global HR consulting team is the ability to outsource hiring and firing responsibilities. In-country recruiting may be a more efficient method to find the best talent. It also puts the unfortunate termination process on your consulting firm.

Plus, global experts can create effective international employee contracts and warn you about any labour laws that may affect the hiring and firing process before you run into unnecessary conflicts.

“Corporate culture is key - in every country -
and an outsourced HR firm can help build a
strong one”

 

Velocity Global is a global employment services company that is reinventing the way its clients do business internationally with its Foreign Subsidiary as a Service (FSaaS) solution. With capabilities across over 166 countries, Velocity Global is a leader in agile global expansion.

By Ben Wright CEO, Velocity Global

Global HR consulting is a key part of any company’s international expansion plan when they do not have unlimited internal HR resources. According to a 2014 report from Deloitte, 35 per cent of firms outsource expat administration management and 21 per cent of businesses plan to outsource this HR task. Also, 38 per cent of companies surveyed plan to outsource HR administration duties.

Outsourcing HR is a commonality between small to mid-size firms because it allows them to focus on growth and sales, whilst knowing that their HR functions are taken care of. HR outsourcing has grown into more than a US$150 billion a year industry with more than 85 per cent of companies in the US outsourcing some part of their HR responsibilities.

If you’re expanding overseas you will eventually need to build a solid internal HR team, but while you grow there is an alternative. Nearly half of mid-size firms make at least 50 per cent of their revenue in international markets after expansion and, when you reach this level, you will need a reliable HR team to fall back on to sustain growth. If you don’t use global HR consulting, you may not be prepared for the following risks.

Understanding the native business environment

If you didn’t grow up in Tokyo, chances are you do not fully understand all the traditions and customs in that city. It’s important to know that bowing is the Japanese version of a handshake and if a bow isn’t returned that can be viewed as insulting.

When you work with a global HR consulting firm, they can help you learn the customs of your target country. The best part is that they can work with your native employees and make their work experience enjoyable. Corporate culture is key - in every country - and an outsourced HR firm can help build a strong one.

Valuable experience and diversity

Global HR consulting assists with compliance and cultural references, but it also gives you the opportunity to tap into different levels of experience. Consulting firms are specialised in all areas of HR.

Hiring these specialties in-house may not be realistic for small to mid-size firms. A global HR consulting company puts everything under one roof. Plus, it allows you to diversify your team and be better prepared for situations that may arise in the future.

Managing human capital and the necessary requirements

It is likely that each country you operate in will have differing labour laws and requirements. As you grow, managing these responsibilities is an increasingly daunting task. To remain compliant, we suggest outsourcing your payroll administration.

Keeping tabs on in-country laws is an enormous responsibility for an in-house team member.

Another benefit of using a global HR consulting team is the ability to outsource hiring and firing responsibilities. In-country recruiting may be a more efficient method to find the best talent. It also puts the unfortunate termination process on your consulting firm.

Plus, global experts can create effective international employee contracts and warn you about any labour laws that may affect the hiring and firing process before you run into unnecessary conflicts.

“Corporate culture is key - in every country -
and an outsourced HR firm can help build a
strong one”

 

Velocity Global is a global employment services company that is reinventing the way its clients do business internationally with its Foreign Subsidiary as a Service (FSaaS) solution. With capabilities across over 166 countries, Velocity Global is a leader in agile global expansion.