The Role of HR Tech for International Growth

Expanding your team across the globe can feel like building a complex puzzle with constantly shifting pieces. How do you keep up with ever-changing laws, ensure fair pay, and attract the best talent, all while juggling different time zones and cultures?

‍

The answer is not more hours in the day. It is smarter tools and strategic allies. Discover how modern HR teams are transforming challenges into triumphs by leveraging innovative technology and powerful partnerships, becoming the unsung heroes of global growth.

‍

Why Local HR Alone Is Not Enough

Many companies, when first expanding into a new country, might consider hiring a single local HR person. Anthony Smith, Chief HR Officer at Accertify, explained this approach is simply not scalable. He said you would not hire one HR person for only five or ten people. Instead, businesses must leverage the power of outsourcing their HR solutions and working with specialized partners.

‍

The traditional model of relying solely on local HR experts becomes challenging when dealing with numerous countries, each with its own unique legal and cultural nuances. For example, in the US, drug tests can be requested, but in Spain, they cannot. In Belgium, employees must provide their own labor court background checks. 

‍

A single HR generalist cannot realistically understand everything from visa and immigration laws to employment law, background checks, and labor unions across all markets. This is where strategic partnerships come in. Companies like Veremark, Helios, and Payrollminds offer specialized expertise that a single in-house HR team cannot replicate. Anthony emphasized that as businesses scale, they must understand what is reasonable and how to protect the organization through partnerships.

‍

Compliance Needs to Be Built In From the Start

Compliance is not a task to be tackled after the fact. It needs to be deeply integrated into all HR processes from the very beginning. Allison Hall, Chief Operating Officer at Helios, stated that compliance cannot be an afterthought. She warned against companies ending up on the front page for "an honest mistake that looks bad".

‍

These mistakes can range from mismatched records to significant penalties and fines. The solution lies in implementing standardized and centralized systems. Allison highlighted the need for one place to manage all employee information, including changes, serving as a single source of truth. This centralized system should integrate with other relevant platforms, allowing updates to spread automatically.

‍

Technology plays a vital role in automating processes and notifying HR when something might fall out of compliance due to legal changes. Helios, for example, helps HR teams manage their compliance status globally from a single platform, eliminating the need to switch between tools or constantly search for requirements. This approach saves considerable time and helps avoid scrambling to compile documents for regulators later.

‍

A word of caution was also shared regarding reliance on unverified information. Anthony advises against using ChatGPT for compliance decisions, as it is a great tool but not suitable for such critical matters. Fiona Cher added that AI tools are often outdated and can "hallucinate" information, making them unreliable for legal compliance where getting it wrong carries severe consequences.

‍

Payroll Must Be at the Forefront

Payroll is more than just processing payments. Kira Rubiano, Partner at Payrollminds, calls it the "connective tissue" within an organization. When problems arise, payroll often "feels the pain first" as a geyser of issues erupts. If payroll has a seat at the table from the beginning, they can raise concerns and preempt potential issues. This means payroll teams need access to information, experts, and technology to ask the right questions and provide necessary precautions.

‍

Payroll's early involvement is crucial for avoiding costly surprises. Anthony recalled how his company, Accertify, had to process mandatory profit sharing agreements (PTUs) in Mexico at the end of May. He explained that companies expanding into Mexico might only think about standard payrolls and overlook such mandatory profit-sharing, leading to major cost impacts if not considered upfront. Similarly, in Spain, collective bargaining agreements dictate per diem payments for internet allowances.

‍

Without upfront due diligence and consultation with payroll experts, organizations face many surprises on the backend.

‍

Preparing Your Workforce for Global Growth

HR leaders play a strategic role in preparing organizations for future growth. Anthony Smith sees his role as a CHRO not just leading an HR team, but preparing the organization for its next chapter of growth. This involves understanding the business need and translating HR initiatives to support it.

‍

To attract talent in diverse markets, HR must understand what excites local candidates. Anthony Smith, drawing on his experience living in Europe and the US, observed that European employees often prioritize time off and quality of life. US individuals might focus more on retirement packages like 401K. Localizing the talent attraction strategy is key.

‍

Anthony advocates for the "three B's" of talent strategy when going international.

• "Buy" refers to talent acquisition.
• "Borrow" involves contractors, which must be handled compliantly.
• "Build" means investing in employee development and reskilling.

‍

Choosing the right approach for each market is essential, and it may not always make sense to immediately "buy" talent.

‍

HR technology is critical for scaling beyond just a handful of employees. Moving from Excel spreadsheets and manual uploads to integrated systems with APIs and connectors reduces manual errors and compliance risks. Anthony predicts HR tech will drive demand for skills in the next 5 to 10 years. This agility is crucial for HR to adapt to changing geopolitical landscapes, regulations, and business needs.

‍

Global hiring offers immense opportunities. By understanding the hidden traps in background checks, anticipating the complexities of compliance, and recognizing payroll as a critical, early-stage consideration, companies can avoid costly mistakes and build a foundation for sustainable international growth. Getting it right from the start is a necessity.

‍

Watch the On-Demand Session

Want to learn more about navigating these global hiring challenges?

‍

Watch the full on-demand session where our experts dive deeper into these topics and share even more actionable insights.

‍

‍