Month: September 2020

We believe that all companies looking to grow internationally put themselves in a better position to succeed when they outsource their human resources management. We believe this because we understand the risks businesses face when they take on the HR endeavor themselves. Today, we will look at some of the most common benefits of outsourcing global HR needs.

Enter Global Markets Faster

Establishing local entities globally can take quite some time. Growing organizations that trust Stipenda avoid the complex challenges of compliance, immigration changes, tax implications and more.

Protection from International Compliance Risks

Any business trying to navigate through international compliance issues will need to dedicate multiple people and a lot of man hours to do so correctly. Stipenda allows businesses to focus their time on their areas of expertise. When companies make Stipenda the employee of record for their outlets in Europe, Asia, Africa, etc., they greatly reduce their liability risk when hiring employees and licensing intellectual property in different parts of the globe.

Access to Better Quality Talent

Stipenda has built in relationships with top talent from around the globe. Local laws and regulations can be rather complex. Trusting Stipenda to add talent allows a company to remain in charge of their employees without worrying about compliance issues.

Better Employee Benefits

Companies that trust Stipenda as their co-employment partner gain access to the highest quality talent in different regions of the globe. Stipenda can often leverage our experience and talent pool to offer higher wages and better-quality benefits to employees. The higher the pay and the better the benefits, the more likely a business is to attract top tier talent.

Faster Route to Profitability and Growth

Because Stipenda has experience helping businesses grow in regions all over the globe, we are more efficient at setting up a business for sustained growth quickly and safely. Companies can start off small with a country or two and then ramp up as Stipenda starts to show how they can ensure a cost-effective and profitable rollout of a company in a foreign market.

Manage Risks

Outsourcing human resources allows for the lowering of legal risks as Stipenda takes on compliance issues. Additional shared employer risks can include handling everything from employee hiring to employee firings. When employee disputes arise, which can often be an unfortunate price of doing business, Stipenda can be trusted to resolve these issues legally, which will protect a business from facing damaging lawsuits.

Accurate Payroll Your Company and Your Employees Can Depend On

International payroll can be a rather expensive undertaking for a company. It’s vital that local/national income tax regulations are completely understood. Stipenda understands that money that needs to be deducted from employee salaries to ensure they are in compliance with their local government’s rules and regulations.

With social distancing today’s norm — coupled with widespread office closures throughout the industrialized world — prospective international surveyors are relying on companies like Stipenda.

By Chris Casacchia, California Business Journal.

The economic effects of the coronavirus pandemic have rippled across the globe, shrinking gross domestic product levels to their lowest rates in decades. Consider the sobering figures that marked the June quarter: U.S. economic contraction slid 9.5% from the March quarter, the biggest drop post-World War II.

Other developed economies in Europe fared worse. Spain’s GDP plummeted 18.5% quarter-over-quarter, while France’s fell 14%. Italy saw national production slide 12.4%, and Germany, Europe’s financial giant, saw a 10.1% reduction.

Despite the doldrum of economic data, some positive trends are emanating from Europe, where numerous cities are reopening economies as they move further away from the darkest months of the outbreak. The gradual shift has revitalized efforts from some U.S. corporations to expand internationally, boosting demand for employment service providers like Stipenda.

The Boston-based company, which has most of its management team based in the U.K., integrates solutions for private clients and for professional employer organizations supporting U.S. business expansion across Europe, Asia, Africa and Australia.

The advantages of globalization are still heightened,” Stipenda Chief Executive Solomon Williams said in a phone interview from his home in Leamington Spa near Stipeda’s U.K. operation in Warwick, about 100 miles northwest of London.

Labor cost disparity has long been the bedrock of globalization, which has given rise to electronic manufacturing hubs in China, apparel makers in Vietnam and information technology workers in India.

That arbitrage, most evident for decades in the global manufacturing industry, can be found in corporate functions as well, Williams argues.

“Labor cost disparity now exists even in professional work,” he says. “With the normalization of remote working, we are seeing companies capitalizing on that.”

Indeed, nearly half of respondents (45%) in a recent survey said they’ve continued global expansion plans or will initiate them within 12 months. Furthermore, 80% of companies say now is the time to take advantage of opportunities quickly disappearing in the global marketplace.

The survey queried 166 senior finance executives at companies with international expansion plans and generating more than $100 million in annual revenue—essentially Stipenda’s target market.

This constituency with more ambitious international growth plans, according to Williams, is facing cost and time constraints, as well as compliance concerns related to international laws and agreements. “We’re giving them the support they need without the risk,” he says.

Stipenda, which is handling about 550 projects for its customer base comprised mostly of U.S. businesses, offers payroll, tax management, immigration, benefit management and human resource services. With social distancing still the norm, coupled with widespread office closures throughout the industrialized world, prospective international surveyors are relying on service providers like Stipenda, which either have workers on the ground in foreign markets or a network of resources there to meet customer demands, from establishing subsidiaries to more IT-driven work, such as providing connectivity and developing virtual networks, a growing need for remote workforces in the digital age.

“Clients don’t need to have offices because remote working has now been normalized” Williams says. “You can be anywhere as long as you have infrastructure.”

The company is also seeing new interest from well-funded U.S. startups driven to international expansion by rapid economic growth in overseas markets; increased domestic overcrowding in certain emerging sectors; risk of foreign competitors capturing market share; and improved support for small businesses seeking overseas expansion.

“It makes sense to employ local people and get skill sets locally,” Williams says. “Even though we’ve had some big crashes, most countries are more stable than they’ve ever been.”

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