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Start a free trialGlobal employment has a way of putting a strain on even the strongest HR teams. The processes that you know and are comfortable with at home start to fray at the seams when you apply them across borders: Policies begin to lose their meaning. Payroll gets tangled up in the complexity of new currencies and tax codes.
It's very common for HR teams to run into these issues because each country and jurisdiction has a completely different rulebook. What may feel like a small oversight in one market might mean compliance violations somewhere else.
Below are five common mistakes that even experienced HR teams make during global expansion (and ways to avoid them).
Hiring someone from another country looks simple: add them to the payroll, translate their contract, and you’re pretty much done.. In reality, you’re entering a whole new legal system with its own benefits, tax laws, and cultural expectations.
Spoiler alert: Labour laws don’t work the same everywhere. Each nation shapes its rules based on its unique historical and political context. What’s standard in one place doesn’t mean it’s compliant somewhere else!.
Here’s an example:
In the US, “at will” employment means an employer can terminate an employee’s contract at any time, and for almost any reason.
This can be done without prior notice. This is in stark contrast to what we see in most of Europe, where employee protections are much stronger. To end an employment relationship, a company usually needs to follow strict regulations around dismissal, and may even need to go as far as employment tribunals to demonstrate fair grounds for termination.
This is but one example out of many where country-by-country differences aren’t just legal technicalities, but shape how employment relationships work in practice. Get it wrong and you could expose yourself to penalties or disputes!
Some HR teams think that once they get the setup right (such as by drafting compliant contracts, sorting out payroll, and getting benefits covered properly), all the hard work is done. But there isn’t ever a finish line when it comes to global employment compliance.
While that heavy lifting at the beginning is certainly a large part of the job, staying compliant isn’t something you “set and forget.”
Employment laws are constantly evolving –sometimes in minor ways and other times in major, sudden shifts. A country could, for example, introduce a new social security tax, tweak parental leave policies, or alter working hours halfway through the year.
Even a flawless setup at the start wouldn’t protect you from it. You’d need a system to track and adapt to these changes as they happen. Missing just one update could lead to costly issues like unpaid contributions, penalties, or drawn-out legal battles.
Handling payroll might feel like a simple exercise until you’re juggling five currencies, multiple pay schedules, and various benefit providers spread across different time zones.
Many companies try to handle this using manual processes or a mix of systems that were never designed to deal with international hiring. This approach might get the job done temporarily, but eventually falls apart.
Manual mistakes, tax filing issues, and late payments can build frustration and mistrust amongst your staff. When people worry about getting paid, it becomes an employee retention issue, not just an administrative one.
Managing global employment is more than just admin tasks. Don’t expect seasoned HR experts to know all there is to know about HR abroad when dealing with compliance, taxes, or terminating employees across borders.
Most teams simply do not have the time or resources to master the laws and cultural expectations of every country they hire in. Recognising when to ask for help through additional expertise isn’t a weakness; it’s good leadership.
If HR teams don’t feel like they can ask for help, they’ll wait until something goes wrong. By then, the fix to compliance issues or payroll falling behind will be bigger than it should have been in the first place – you’ll then need time, money, and energy to fix it.
When dealing with compliance, tax rules, and contracts, it’s important to remember that, at the end of every decision you make, there is a human. It’s natural to get caught up in admin and logistics, but compliance alone won’t be enough to create a good employee experience.
Employees working in countries outside of your HQ location deserve to feel valued and supported as much as their colleagues back home.
Global employment goes beyond putting people on the books: It means bringing them into the company’s culture, values, and day-to-day. As teams spread out, staying connected becomes a massive challenge. This is when lack of engagement, turnover, and inconsistent performance can arise.
The strongest global HR teams do more than just keep people on the payroll – They make employees feel like they are part of a bigger picture, no matter where they are.
Global expansion doesn’t have to be stressful, nor does it have to be risky.
If handled correctly, it can bring access to amazing talent, untapped markets, and a rich cultural diversity. But remember, doing it the right way means understanding how complicated “employment” becomes when international borders come into play.
After all, even great HR teams need great partners. With the right support and knowledge by your side, managing global employment can be smooth and hassle-free.
Boundless helps UK companies employ globally — compliantly, confidently, and without the drama. Find Boundless on the Charlie Marketplace.
