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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