Global expansion - HR and payroll compliance challenges – GPA

The Great
Transformation Guide

ADP has authored a series of thought-provoking articles exploring the relationship between organisations and payroll. From the HR and payroll challenges of global expansion to the rich resources of payroll data; from the payroll skills shortage to the true cost of inefficient processes; this series helps to identify and solve obstacles and appreciate and embrace the ever-greater asset payroll can become to companies navigating a treacherous business landscape.

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Global expansion - HR and payroll compliance challenges

04 August 2023 0 Comments

Many companies have set their sights on international expansion, despite global uncertainty and supply chain disruptions, but the question of which countries to consider is complex. Various factors can affect that decision, such as the industry sector, current locations and the size of the organisation.

ADP says shifts in global marketplaces and the rapid acceleration of new technology adoption mean that opportunities are there for agile companies with an appetite for growth. But what does business expansion mean for payroll and HR?

The challenges

Any organisation considering setting up business in a new country must weigh up:

  • Labour laws, tax regulations and government incentives
  • The ease of registering a business
  • Cultural considerations
  • Its economic outlook and political stability
  • Access to the right talent

In their guide, 'Payroll and HR compliance challenges around the world', ADP makes reference to the fact that HR leaders in expanding companies rank compliance with employment law and local customs as their second most common challenge (only slightly behind recruiting suitable staff and management). Three-quarters believe that "the regulatory challenges of hiring, paying and managing employees internationally are growing in complexity".1

Preparation is key to overcoming compliance challenges

If your organisation is looking to expand into new geographies, it's important to know the kind of challenges you could face from a payroll and HR perspective. According to ADP, having the right technology and payroll partner in place will be critical to success. ADP sets out to illustrate some of the most notorious compliance pitfalls across the world, giving practical advice on how to prepare for your journey ahead.

Download Payroll and HR compliance challenges around the world