Strategic Considerations in
Establishing
HR Operations Overseas
Janet L. Walsh
Global Differences in HR
• Definition of
employer/employee
• Hiring/firing authority
• Statutory requirements
• Required compensation
• Compensation systems
• Union representation
• Termination decisions
• Labor law requirements
• Tax implications
• Financial requirements
• Management power and
authority
• Management training
• Communication skills,
requirements, capabilities
• Cultural differences
• Work rules
PSST…It’s all different!
(C) 2014 Birchtree Global, LLC
Strategic Alignment
HR Strategy
• Long-term Goals
• Financial Objectives
• System Integration
• Ethical Guidelines
• HR Policies
• HR Tactics
• HR Infrastructure
• HR Systems
• Operating Guidelines
• Statutory Requirements
• Business Processes
• Feedback Loops
Corporate
Strategy
Country
Strategy
Review the corporate strategic plan
Create an HR strategic plan or guide
Critical Relationships
Caution-Radioactive!
Legal
Financial
Human
Resources
Confusion Builds Quickly
Use a
template!
(C) 2014 Birchtree Global, LLC
The Global 20
©
Strategic Concerns
• Corporate Strategy
• Finance Metric Measures
• HR Strategy
• Tax
• Incorporation
• Technology
• Communication
• HRIS
• Culture
• Ethics
Tactical Concerns
• Professional Qualities
• Labor Law
• Staffing
• Expatriates
• Compensation
• Statutory Benefits
• Non- Statutory Benefits
• Performance Management
• Training
• Safety and Security
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Finance and Metrics
• Why are finance and metric measures so important?
• HR metrics are tied to corporate metrics
• Corporations financial performance is a critical measure of confidence for the
business
• Financial measurement is the foundation of cost/benefit decisions for which HR
leadership is responsible
• In an emerging market the financial and operational costs may not be well
known or established. Given HR costs are a large portion of non-manufacturing
budges, accurately estimating HR costs and expenses throughout the business
life cycle of expansion and contraction is information critical for strategic
planning
• Financial measures and metrics are the preferred communication style
of C-Suite leaders.
• Corporations and key executives are measured on their
ability to manage business finances
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Tax Considerations
A. Corporate Tax Considerations
B. HR Payroll and Benefit Taxes
C. Expatriate Tax Considerations
Your company without pre-planning
and careful consideration….
(C) 2014 Birchtree Global, LLC
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Labor Law
A. What is the definition of “Employee”?
B. Why does size matter?
C. Who’s labor law controls
expatriate employees?
D. What is “Data Privacy”
and why do we care?
F. Foreign Corrupt Practices Act and others
G. Leased employees-a minefield of problems
(C) 2014 Birchtree Global, LLC
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Statutory Benefits
• What benefits are required by law or convention?
•
•
•
•
•
Health
Insurance
Vacation
Payments
Bonus
• Where to find this information?
(C) 2014 Birchtree Global, LLC
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Strategic Recommendations
• Develop corporate and industry expertise
• Measure HR activities using corporate metrics
• Develop and use an HR strategic plan
• Grow HR’s competitive advantage
• Know the legal tax implications
• Use technology to manage processes
• Hofstede’s cultural dimensions matter
• Establish a global ethical platform
• Over communicate
(C) 2014 Birchtree Global, LLC
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Tactical Recommendations
• Know the labor law in each country
• Pre-plan and cost all expatriate projects
• Think about the “golden rule”
• Think in terms of top line/bottom line
• Hire wisely
• Use all of a total rewards strategy
• Give performance appraisals
• Reward high performers
• Be action oriented and politically savvy
• Develop feedback loops for information
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Helpful Information
• HRPA, EAPM, SHRM
• Bi-lateral trade associations i.e.
Brazilian Chamber of Commerce
• World Bank
• Inter-American Development Bank
• United Nations
• Business websites
• Government sites
• Wikipedia
• Brookings Institute
• Embassy websites-business section
• Canadian Business
• MOOCS-Coursera, Udacity, edX
• LinkedIn
• Industry professional associations
• The Economist
• University library with dissertations
• World Trade Center Associations
• Forum for Expatriate Management
• Major newspapers
• Research organizations i.e.
international development research
center
(C) 2014 Birchtree Global, LLC
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Birchtree Global, LLC
Janet L. Walsh
CEO and President
Birchtree Global, LLC
44 Roosevelt Drive, Suite 321
Bedford Hills, NY 10507
http://www.birchtreeglobal.com
walsh@birchtreeglobal.com
Phone: O1 (914) 218-3149
(C) 2014 Birchtree Global, LLC
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