How to Expand Your Business Internationally And Stay Compliant By Translating Your HR Policies
Are you planning on expanding your business to a foreign market? Have you decided to do operations abroad? There are a lot of things to consider when you’re planning on expanding overseas but one point which you must prioritize when you are hiring employees is the fact that each country and region has its own Human Resource laws and regulations in place that you will need to comply with. This article will discuss business expansion and why, when hiring international workers, you will need to comply with the local labor laws of that country or region.
- 1 Business Expansion Also Involves International Workers
- 2 A Translation Company’s 7 Tips For HR Policy Compliance
- 2.1 #1. Coordinate with Local Legal Experts and Linguists
- 2.2 #2. Choosing the Right Employment Status that Works for Your Business
- 2.3 #3. Identify What Part of the Current HR Policies to Change or Retain
- 2.4 #4. Invest in Creating a Country-Specific Employee Handbook
- 2.5 #5. Selecting Worker’s Compensation and Benefit Programs in Line with Your Employees’ Work Culture
- 2.6 #6. Document Payrolls and Other Work-related Transactions
- 2.7 #7. To Unionize or Not Unionize
Business Expansion Also Involves International Workers
When you are planning on expanding into a new market, like a new country, then you need to consider the need and the possibility of hiring workers from the new location. It’s not necessary for all cases of expansion. For example, if you are just selling your products in a new country then you might not need to have actual employees from there. You can just have a distributor who will handle the selling.
It’s different when you’re a service provider or you’re selling something that’s not for the general consumer. You may have to hire employees then.
A Translation Company’s 7 Tips For HR Policy Compliance
When you are hiring employees in other countries, you need to consider the HR policies there because those are the ones that have to be followed. It’s also important to hear the inputs from those with experience in the matter. One of these experts is Tomedes, a translation company who has worked with numerous Fortune 500 companies. The company seeks to expand other companies to other markets and shares and it has a few insights regarding HR policies that you might find useful. They also have employees based in different countries so they have first-hand experience in hiring and working with foreign workers.
#1. Coordinate with Local Legal Experts and Linguists
It shouldn’t be surprising that HR practices vary from one country to another, not to mention the laws concerning employees. It may take a whole for one to become fully familiar with the HR laws and practices of a country. As a shortcut, you can coordinate with lawyers and linguists who can help you understand the local HR regulations in the country where you are expanding.
#2. Choosing the Right Employment Status that Works for Your Business
There are different employment statuses that you can choose when you are dealing with foreign workers. If you incorporate in the new country where you are operating then you can choose your workers to become regular employees. Keep in mind however that a regular employee will have the right to certain privileges and benefits in many countries.
In many cases, the most beneficial status for you to use is that of a contractor. This frees you from any obligation to pay the benefits and other privileges that regular employees have. You can still provide benefits if you want, this gives you more freedom.
#3. Identify What Part of the Current HR Policies to Change or Retain
Once you have consulted with legal experts, the next move for you is to determine which parts of your existing HR policy should be retained and which should be changed. For example, the Fair Labor Standards Act (FLSA) in the United States does not have provisions for breaks but it is a common practice to give that to employees.
In some countries, there are laws for breaks so you may have to adjust your existing HR policies to match those. Make sure that you go through your entire HR policy and have a sharp eye for anything that will not work in your new location.
#4. Invest in Creating a Country-Specific Employee Handbook
An employee handbook should have everything that your employees should know about their status and the rules of your company. If you have that guidebook for your employees in your main country then you should also have it for the employees in the country where you are expanding to.
#5. Selecting Worker’s Compensation and Benefit Programs in Line with Your Employees’ Work Culture
Aside from the regulations and laws concerning human resources, you should also mind the work culture concerning compensation in the location where you are setting up operations. For example, in some countries, it is a custom to give bonuses on certain occasions which might not be the same as the custom you follow. Being mindful of these differences mean a great deal.to your employees and can show them that you care.
This is something that you should be doing whether you are operating in a new country or not. You need to document all the work-related transactions, especially those concerning payments.
#7. To Unionize or Not Unionize
The question of unionization is something that you should discuss with local lawyers as there are different laws for different countries regarding this matter. The important thing is to stick to what’s legal in the country where you are operating in so you can avoid lawsuits.
These are just a few of the insights that were shared by a translation company. Expanding your business to other countries will take a great deal of work.