International Expansion: How to Build a Global EOR Partner Strategy

We live in an increasingly globalized society — and more and more businesses across a wide range of industries are striving to take advantage of it. International expansion can help set your company up for significant growth and long-term success.

But only if it’s done right.

International expansion is rife with potential pitfalls and examples of American companies that have failed overseas — as well as international brands that failed to make an impact in the US. At the same time, there are plenty of examples of brands that have expanded internationally to great success, from McDonald’s to IKEA. 

While there are many factors that can play a significant role in the success of your international expansion efforts, few are more important than ensuring you are adequately equipped to address changing staffing needs. Working with a global EOR partner can ensure that you can effectively and compliantly make use of top international talent.

Identify the Type of International Expansion Meets Your Needs

How your organization decides to expand internationally will have a direct impact on its hiring needs, as well as the strategy you and your global EOR partner will implement. Common global expansion strategies include exporting goods and services, acquiring a foreign business (or merging with it), licensing or franchising, or establishing a wholly owned subsidiary.

Each of these options looks very different in terms of the level of control your business maintains over international operations, as well as the cost to execute and even the type of talent needed. In regards to staffing, having a firm goal and strategy for how you wish to approach international expansion will also determine the type of talent you need to reach your desired outcomes.

Performing an in-depth SWOT analysis, competitor analysis and market research of the target area can help you determine which expansion strategy will be the best fit for your goals and capabilities.

The Value of Local Talent

Your ability to connect with and hire local talent can go a long way in increasing your chances for success, regardless of the type of expansion strategy you choose. Local talent can provide firsthand knowledge of the new market’s culture and language, helping reduce potential barriers to business (and helping you avoid a major marketing fail).

Local expert talent can leverage existing relationships and business networks to help you build trust in the new market. Diverse backgrounds and experiences can also bring new perspectives and innovations to your company, making you even better equipped to compete on a global scale.

An international team can also boost your customer service capabilities. As Nicolas Dessaigne advises in a Forbes article: “Your borderless global company should also adhere to a ‘follow the sun’ model when it comes to customers, as the sun never sets for today’s 24/7 businesses. Basically, customer support issues across the globe are handled by and passed between offices in various time zones, reducing delays.”

Finally, hiring local talent can be a major cost-saver for businesses seeking to expand internationally. You can reduce money on travel and relocation expenses for your current staff.

And quite often, the market you are expanding to may have lower wage averages — meaning a fair wage in that market would still be much more affordable than what you’d have to pay a domestic worker. However, hiring local talent brings its own set of complications — which is where your global EOR partner comes in.

Why a Global EOR Partner Matters

When it comes to international staffing, a sound understanding of the local legal and compliance standards is of the utmost importance. This remains true regardless of whether you are planning to work with full-time employees or independent contractors. There is more to consider in managing your remote team than coordinating the times for Zoom calls.

As the employer of record, a global EOR partner is the legal employer for any hires that are made through its services. As such, the EOR is responsible for business registration in the locations where you use them. 

Payroll and human capital management is one of the most highly regulated areas of business across the globe, but standards can vary dramatically from country to country. Issues such as worker classification, benefits administration, risk mitigation, worker clearances and legal contract support can be difficult to navigate for those without extensive industry experience.

A quality global EOR partner will ensure that all hiring contracts are fully compliant with local regulations. You essentially outsource all HR and employment tasks and liabilities to the EOR, regardless of location. With a strong partnership, you will dramatically reduce global risk, be better able to access new markets quickly and compliantly and scale your international operations in an agile and flexible manner.

With time and resource-intensive staffing administrative functions delegated to your global EOR partner, you can focus your efforts on integrating international workers with the rest of your team and ensuring a successful launch in your new market.

This also leaves you better equipped to properly evaluate other potential local partners in your new market, such as marketing agencies or logistics partners. With a global EOR and other quality partners, you will be well positioned to make the most of your new market.

myBasePay Can Help With Your Global Expansion

Managing employment needs and international compliance guidelines is just one part of successful international expansion — but it is an essential aspect to consider when defining your growth strategy. With a strong global EOR partner, you can have confidence in your ability to find top talent, and remain fully compliant with all applicable employment laws for the areas where you are expanding.

myBasePay can help you achieve exactly that with our full suite of back-office solutions. Our unwavering compliance support is uniquely configured to help you safely navigate a wide range of potential compliance issues your business could face, including worker classification, worker clearance and visa verifications, client contract fulfillment and more.

With a strong global EOR partner, you can focus on other key aspects of international expansion strategy, and have peace of mind knowing that staffing and HR will be handled professionally and effectively.


Author: Cesar Jimenez, myBasePay CEO
Cesar A. Jimenez is an entrepreneur, investor, and military veteran with over 25 years of staffing industry expertise successfully leading technology staffing organizations. His expertise in the IT industry allows him to use his experience as a thought leader for talent acquisition, staffing, IT, and recruitment technologies with a passion for contingent workforce solutions. Cesar has held various leadership roles for both a global staffing organization and technology solutions companies. This expertise has enabled him to develop alternative workforce models that provide the agility for organizations to be competitive in today’s marketplace. In his spare time, he enjoys spending time with hisfamily, working out, and coaching high school baseball players.

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