Global HR Outsourcing: A Solution for Multinational Companies

Global HR outsourcing can help organizations transcend borders by offering four foundational benefits:

1. Simplifying payroll services, compliance support, and employee benefits administration across countries.
2. Driving cost efficiency by centralizing HR functions, utilizing advanced technology and removing redundant or duplicative systems.
3. Enabling scalability for rapid, flexible market entry, without the time and expense  of local requirements.
4. Mitigating risk by strategically navigating diverse compliance requirements and enhancing workforce management processes across all locations.

Navigating global growth means facing shifting payroll requirements, tax compliance issues, workforce market standards and region-specific employee benefits. Each country has its own requirements, cultural expectations and hiring norms.

Managing these differences, alongside time zone coordination and international communications, can be a challenge for business operations. Without robust outsourcing strategies, companies risk costly compliance errors, inefficiencies and lost opportunities.

Global HR outsourcing can help deliver the flexibility, expertise and strategic edge that empower organizations to expand faster and keep their people engaged long term.

What Is Global HR Outsourcing?

Global HR outsourcing is engaging a global workforce company to support HR functions, HR technology and compliance. Companies leverage these providers to assist with both employees and independent contractors worldwide.

Services typically included

Outsourced HR services for global companies usually support:

• Payroll services with multi-currency processing and tax filing
• Employee benefits tailored to a country’s requirements and market norms
• Compliance support to stay on top of local rules and reporting and contractual obligations
• Talent acquisition support and the onboarding process to bring in top talent quickly
• Workforce management systems, including self-service portals
• Financial planning and analytics tied to workforce costs, headcount and performance metrics

Service Delivery Model: EORs

An Employer of Record (EOR) functions as the employer in foreign jurisdictions, assisting with contractual agreements, employment-related rules and requirements and support other HR functions.

A company can engage both an EOR for the international support and a professional employer organization for U.S./domestic support to enhance business operations at home and abroad. Their combined capabilities can help a business create a powerful global workforce.

The Global HR Challenge

As companies grow into new regions, they can face a web of challenges. This chart summarizes those possible challenges.

Here's an example of the challenge. A U.S. manufacturer expanding into Eastern Europe hires employees without fully understanding the local HR implications. By failing to follow the appropriate hiring processes, the company violates regional laws and regulatory requirements. As a result, they may face fines and even lose their license to operate. Working with a global workforce solution could help the company navigate the rules and requirements and prevent such challenges.

Key Benefits of Global HR Outsourcing

Let's examine the ways global HR outsourcing can address these challenges.

1. Scalability and flexibility

With outsourcing, a business can more easily expand its workforce across multiple countries without establishing local business entities.

Companies could hire engineers in Asia and sales staff in Europe, and engage with independent contractors globally. Outsourcing can be flexible, supporting different types of workers such as full-time hires, contractors, or seasonal employees.

2. Cost efficiency and streamlined operations

With outsourcing, a business may not need to duplicate HR processes in each country. The business could simplify vendor management by consolidating multiple regional vendors into one vendor. It also could maintain operational efficiency by centralizing payroll services and benefits administration on a single HR technology platform.

Outsourcing services can help a business mitigate delays in entering new international markets.

3. Risk mitigation and compliance support

Global workforce providers have the expertise and resources to stay up to date with constantly changing regulations in local areas of operation. They can help a business navigate the compliance frameworks and requirements in that location.

4. Access to local expertise and technology

A global HR outsourcing provider may employ native specialists who understand different local markets and cultures. They may also have advanced HR technology platforms to support payroll processing, performance metrics, analytics and many other services.

Core Service Areas in Global HR Outsourcing

While HR outsourcing solutions can provide a wide range of services, certain core services are particularly valuable in global HR outsourcing.

Global payroll services

Simply making sure your employees are paid efficiently and on time is a valuable service.  Other payroll services can include:

• Calculating and processing local payroll tax submissions and deductions for benefits and other programs.
• Integrating payroll data with company-wide business operations systems.
• Providing dashboards that make it easy to track job costs against performance metrics.

Compliance support

Don't let the joy of finding a great fit for an important position overseas be dashed by complications involving visas. While most EORs can hire in many countries, global HR providers can also offer immigration support to help businesses maintain talent mobility.

They can also simplify compliance by helping you stay on top of regulatory updates specific to the locality in which you operate, as well as support during audits and when it’s time to file the required reports.

Workforce management and employee experience

It's hard enough to find top talent in your own city, let alone recruiting, hiring and onboarding in other countries. Global HR outsourcing can provide valuable solutions, including:

• Employee benefits administration customized per market
• Self-service HR portals that provide access to documents and services
• Centralized systems for data syncing, training and performance management

The Competitive Advantage of PEO + EOR

Many multinational companies require both domestic and international HR support simultaneously. TriNet's PEO solution can assist with HR functions for companies that have employees working in the U.S.

We work with leading EORs (employers of record)—G-P and Multiplier - so  SMBs can rely on their capabilities for international support and on TriNet’s domestic support to help assemble the talent they need to thrive.

An EOR generally provides an entity in a global location and hires employees there on its clients’ behalf. EORs also can provide a wide range of HR services, covering things such as:

• Visas and work permits
• Providing an interface between employees and agencies
• Helping companies navigate local rules

Through these strategic relationships and integration with the TriNet platform, TriNet supports SMBs by providing a unified view of select worker data. This integration creates a competitive advantage by enabling agile expansion and confident global hiring, while allowing business to stay focused on growth.

To get insights on workforce management, risk mitigation and HR services in a borderless economy, download our free eGuide: “7 Compliance Challenges Companies Face When Growing Globally.”