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Benefits and challenges. Business international.

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Benefits and challenges. Business international.
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The goal of any entrepreneur is to make their business grow internationally. Today it is possible thanks to the standardized prices of products and services and the homologated trends. At the same time, the internet has made it possible for any company to have a presence abroad through social media.But having a worldwide presence through the internet is not enough for many businesses that are thinking seriously about growing business internationally. When settling a branch of your company abroad, there are some advantages and disadvantages you might want to consider first.

You’ll spend too much time hiring

In a regular scenario, over 78% of employers said that they had trouble finding the right talent according to the values and objectives of the company. If hiring someone is already money and time consuming, being in a foreign country, it will require an extra effort. You want your talent to be the right one for your company, but also you want them to be helpful throughout your company’s adaptation in a new country.

You might hire the wrong staff

When you hire the right person, they will add value to your company, and they will effectively help your business grow, but when you’re in a foreign country you might realize that their culture is different, and they have different values and priorities. So, you might hire someone that will help you because they fully correspond to your needs and values, but they might be not so good to grow your business. For small and medium businesses, hiring inadequate talent becomes a threat to the well-being of a company.

Lose money

Settling abroad will require an investment that you have already considered. But when you’re not adequately advised you can lose a considerable amount of money by: • Not knowing the country’s labor laws and how to apply them properly. • Not knowing how payroll works, like minimum wage, benefits, social security or compensations. • Not know how tax payment works and getting sanctioned by the local authorities.

Benefits of PEO

You can avoid the problems mentioned above if you hire someone to manage Human Resources for you so that you can focus on the operational process of your company.

Grow faster with PEO

Professional Employer Organizations (PEOs) helps the small and medium businesses to access the best talent possible with a co-employment model. That is, you’ll still be responsible for the daily functions and work of your staff while a PEO will do the hiring, payroll, tax filing, and other Human Resources activities. By doing so, an international PEO helps companies grow 7% – 9% faster.

Use Employer Of Record

With this scheme, an Employer of Record (EOR) company becomes the legal employer of a company’s talent, as opposed to PEO, where the company is a co-employer. EOR helps companies to expand faster by avoiding companies to go over the legal paperwork to hire.

Growing business internationally in a solid way

The companies that go international grow more solidly for many reasons. First, they are more likely to resist any financial crisis and to be less vulnerable to the economic and politic changes of the country they’ve settled. Second, their staff is far more productive and satisfied with their job. Finally, clients trust easily in companies which are operating in more than one country. You might be also interested in reading: Why do businesses expand internationally

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