INTERNATIONAL HUMAN RESOURCES COST PLANNING


1. Resolving to be present in a country for commercial, technical assistance, productive needs, or simply to be represented in one country for marketing or strategic aims, means most likely to have employed or self employed staff locally.  

This means that a list of decisions will have to be taken. 

Here is the check list HTLC is proposing :

A. the staff will have to be employed or self employed ?

B. the staff will have to be hired on a temporary of undetermined term base ?

C. the staff will have to be recruited and selected locally or might be expatriate ?

D. will the employer have internal knowledge in order to manage H.R. administration internally or will have to outsource services and consulting for such purpose ?

E. might the staff be engaged to work in the chosen country also from a neighbour country ?

F. should the solution chosen be an employment contract, will only the law be applicable or also a national collective agreement legally applicable on a territorial base or according to the kind of company activity, established/ agreed by a public entity or between company unions and labour unions ?

G. will the employer in case of employment contract allow in addition to fix salary, also a variable salary and benefits ?

H. will the employer in case of employment contract, need also investment protection clauses like ‘training clause’, ‘minimum permanence incentive clause’, ‘non competition agreement’, ‘remote work clause’ ?

I. will the employer appreciate an aligned and advisable country company HR policy with its international HR policy, respecting at the same time the single country legal obligations ?

L. will the employer grant the respect of the possible country obligations related to work and health safety in the work environments ?

M. will the employer grant the respect of the possible country obligations related to privacy and confidentiality of the worker individual and sensible data ?

N. how much of the activity of the staff is really linked to the country and cannot or can hardly be supplied elsewhere ? 

All the replies to this questions will allow the company to take a careful and wise decision, forecasting with more transparency the staff cost, for an advisable period between 1 and 3 years, related to the number of workers which might be considered in different scenarios, according to the possible results in terms of growth, which the market and business plan will allow.

Often comparing Europe, US, Asia and South America, according to the kind of activity supplied by the company, our network can supply detailed information related to cost of personnel and cost of living, which can allow the employer to manage staff cost with differences until 7 or 8 times.

This is of course a powerful instrument in the hand of employers, a one of the most meaningful advantages, which can be used according to the worldwide globalization process.

If managed together with a careful and wise international taxation optimization plan, the combination of the two instruments will be a strong leverage for performance implementation, creating internal resources and economical base for any company growth plan.





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