Employing an international workforce is becoming more commonplace today, even for new business and SMEs. However as smaller companies explore the opportunities that the global market can bring, the burden of understanding these markets from a managerial perspective becomes more tricky. Here are some of the things to consider when you look to expand or hire abroad.
Payroll and Recruitment
This has become a complex task as companies expand and hire abroad. While it is important to ensure the rates abroad remain competitive within the market you are hiring in, but still attract quality employees, whilst at the same time respecting any laws, taxes, pensions, healthcare, benefits and CSR factors you may not have needed to consider prior. Some entrepreneurs opt to either hire experts in the local regions, or to outsource their HR function to a company that is more used to dealing globally depending on the need.
Temporary or Contract Recruitment
On the other hand sometimes a company may not need help with payroll, but rather actually attracting the talent on a temporary or contract basis. This may also be outsourced depending on where you plan to expand, via recruitment process outsourcing companies and workforce outsourcing companies, that specialise in this kind of recruitment, while allowing entrepreneurs to put some of the burden of risk back on these companies in case these employees don’t work out.
Luckily one of the biggest issues with small but global companies is less of an issue today, which is exchanging money and dealing with currencies. In the past global companies traditionally paid in dollars where they could, and contracts were paid in dollars, but the global marketplace has changed and contracts have therefore changed with it.
Technological advances have shaped the ability to become small but global businesses. Luckily most software and services for businesses do have the capacity to act with global interests given that most businesses today have a need for global interactions. Even if there is a service that only caters to one market, chances are there will be a competing company and product that will fit your global needs, and if not, well as a community of entrepreneurs telling our community may well give rise to a new business.
Places to expand to.
Total Population 24.6 million
Land area: 7.7million Km2
GDP: $1.323 Trillion
Top trading partners: China, Japan, South Korea, Hong Kong
Currency: Australian Dollar
Benefits: Safe, low risk forecast for a year on year 2.9% annual growth
Rating: AAA but all global rating agencies
Ease of doing business: 14th in a ranking of 190 economies for ease of doing business
Brexit: With the probability of Brexit looming, there may be greater opportunities for Britain to do business with Australia.
Total Population 4.794 million
Land area: 268 thousand Km2
GDP: $206 Billion
Top trading partners: China, Australia, United States, Japan, South Korea
Currency: New Zealand Dollar
Benefits: Safe, stable economy, which has grown positively year on year for almost 35 years straight
Ease of doing business: First place, in a ranking of 190 economies for ease of doing business
Brexit: With the probability of Brexit looming, there may be greater opportunities for Britain to do business with New Zealand.
Total Population 5.612 million
Land area: 721 Km2
GDP: $323.9 Billion
Top trading partners: China, Malaysia, EU, US, Indonesia,
Currency: Singapore Dollar
Benefits: One of the smallest nations yet one of the most competitive economies
The Government of Singapore has signed 21 free trade agreements with 27 economies and 76 comprehensive double tax avoidance agreements.
Ease of doing business: The most stable political environment in South East Asia, and a very strong legal system
Total Population 41.386 Billion
Land area: 9.597 million Km2
GDP: $12.24 Trillion
Top trading partners: United States, HK, Japan, Vietnam, South Korea
Benefits: The second largest economy in the world. Huge market, with an even bigger potential.
Ease of doing business: The number one trading nation and manufacturer by production. Conditions for workers in factories vary greatly, however often have to meet stringent demands from multinationals, leading to accreditations that you may request.
Brexit: With the probability of Brexit looming, China is likely to value other global relationships higher than that of Britain, leaving the stronger trading partner (the EU, particularly Germany) as more valuable.