Understanding Your Options for Global Expansion in Ben Wright

Transcription

1 Understanding Your Options for Global Expansion in 2017 Ben Wright

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3 HOUSEKEEPING CREDIT QUESTIONS TOPIC

4 HOUSEKEEPING Certificates delivered by no later than 6/10/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the full 60 minutes. The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit pre-approval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at

5 Today s Presenter Ben Wright Velocity Global CEO Ben Wright is CEO and founder of Velocity Global and is a recognized thought leader on international expansion. Ben speaks frequently on international topics such as employment, payroll, expatriates, and permanent establishment.

6 Talking Points Importance of Global Expansion Challenges when Going Global Tips for Developing a Successful Global Expansion Strategy International Hiring Options

7 Importance of Global Expansion Access to Unique Talent Pool Increase Client Acquisition Improve Market Perception Finance your Growth Increase Competitive Edge

8 Challenges When Going Global

9 5 Tips for Developing a Successful Strategy 1. Develop Entry and Exit Strategies 2. Keep a Light Footprint 3. Test Your Target Market 4. Partner Up 5. Determine a Hiring Strategy

10 5 Tips for Developing a Successful Strategy 1. Develop Entry & Exit Strategies A thorough global expansion strategy for entry into a new market aligns ideas and keeps the entire team on the same page Ensure executive team is committed and aligned before executing a global expansion plan Understand the complications of pulling your business out of the market before you enter

11 5 Tips for Developing a Successful Strategy 2. Keep a Light Footprint An agile approach can help you maintain control and compliance without establishing a foreign entity. Remain flexible and adaptable to change Focus on your employees, sales, and testing the market before investing in hard assets Treat your global expansion like an internal startup

12 5 Tips for Developing a Successful Strategy 3. Test your Target Market Understand the cultural dynamics - including language- and mold your brand around your new audience. Dive into the culture to fully understand what your potential customer base wants and needs Don t ignore cultural barriers

13 4. Partner Up 5 Tips for Developing a Successful Strategy Team up with a local expert who has experience navigating the local law and customs to ensure your company remains compliant. Seek advice from international consultants Develop a trusted, in-country team

14 5 Tips for Developing a Successful Strategy 5. Determine your International Employment Vehicle Choose your international hiring strategy based on your needs around speed, flexibility, asset holding, finances, and compliance. Your four major hiring options are: Nonresident Employer (NRE) Foreign Independent Contractors Foreign Subsidiary Establishment International PEO

15 International Hiring Options Non-resident Employer (NRE) Companies can file forms that allow them to employ people in other countries without setting up a true legal entity Pros Cheaper than entity establishment Tax Benefits Fewer regulatory/reporting requirements Cons Very limited functionality Often scrutinized for noncompliance Very short shelf-life Reporting requirements still exist

16 International Hiring Options Foreign Independent Contractors An individual who lives in a foreign country and contracts for work-for-hire (not an employment contract) Pros Allows for fast market entry Flexibility Keeps costs down Cons Contract may not address employment, legal or tax issues Hard to qualify for true contractor More expensive in long run Contractors stay as long Intellectual Property

17 International Hiring Options Foreign Subsidiary Establishment Formation of a legal entity in a foreign country that s controlled by another ( Parent ) company through ownership of over 50% of the voting stock Pros Highest legal liability protection Market Presence Legal Enforceability Physical Asset acquisition Cons Expensive Time Consuming Inflexible Compliance Management

18 International Hiring Options Moving Forward with Foreign Subsidiary Establishment Waterfall-style process: Identify a local director to complete in-country application Assemble and supply details of all corporate directors and executive team Open a local bank account Register with the local labor board Register with the national health, pension, and unemployment schemes Create legally compliant local employment contracts Establish local operating agreement Transfer pricing agreement Complete VAT registration, if applicable Secure office space or at a minimum registered office address

19 International Hiring Options International PEO Method of hiring employees anywhere in the world with a light footprint without establishing or maintaining a foreign legal entity Pros Cons Inexpensive Efficient and compliant Fast market entry Highly flexible Easy for expat situations Employee benefits & satisfaction Can serve as a solution to missing H-1B cap No presence in country Permanent establishment considerations

20 International Hiring Options International PEO

21 International Hiring Options Moving Forward with International PEO Locally-compliant employment contract On-boarding Payroll Ongoing-employment support Termination

22 Choosing the Best Solution

23 QUESTIONS Enter all questions into the Questions section of the GoToWebinar panel on your computer screen

24 HOUSEKEEPING Certificates delivered by no later than 6/10/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the full 60 minutes. The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit pre-approval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at

25 VELOCITY GLOBAL Experts on international employment matters Assist companies wanting to establish themselves in markets quickly with a light footprint Through our International PEO solution we can: Reduce costs by as much as 50% Reduce hire time by up to 90% Produce timely and accurate payroll Comply with foreign laws and benefits Keep you focused on running your business Capabilities in 185 countries and growing

26 Ascentis HCM Software Ascentis Recruiting Manages onboarding Standardizes paper-work Integrates with social media Portal that parses resumes Ascentis Talent Management Mobile interface No training required Easily identify top employees Employees can rate themselves

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