strategic considerations in establishing hr operations overseas janet l. walsh
TRANSCRIPT
Strategic Considerations in Establishing
HR Operations Overseas
Janet L. Walsh
Global Differences in HR
• Definition of employer/employee
• Hiring/firing authority• Statutory requirements• Required compensation• Compensation systems• Union representation• Termination decisions• Labor law requirements
• Tax implications• Financial requirements• Management power and
authority• Management training• Communication skills,
requirements, capabilities• Cultural differences• Work rules
(C) 2014 Birchtree Global, LLC
PSST…It’s all different!
• Long-term Goals• Financial Objectives• System Integration• Ethical Guidelines
Corporate Strategy
• HR Policies• HR Tactics• HR Infrastructure• HR Systems
HR Strategy • Operating Guidelines• Statutory Requirements• Business Processes• Feedback Loops
Country Strategy
Strategic Alignment
Review the corporate strategic planCreate an HR strategic plan or guide
Legal
HumanResourcesFinancial
Caution-Radioactive!
Critical Relationships
Confusion Builds Quickly
(C) 2014 Birchtree Global, LLC
Use a template!
The Global 20©
• Corporate Strategy• Finance Metric Measures• HR Strategy• Tax• Incorporation• Technology• Communication• HRIS• Culture• Ethics
• Professional Qualities• Labor Law• Staffing• Expatriates• Compensation• Statutory Benefits• Non- Statutory Benefits• Performance Management• Training• Safety and Security
(C) 2014 Birchtree Global, LLC 6
Strategic Concerns Tactical Concerns
Finance and Metrics• Why are finance and metric measures so important?
• HR metrics are tied to corporate metrics• Corporations financial performance is a critical measure of confidence for the
business• Financial measurement is the foundation of cost/benefit decisions for which HR
leadership is responsible• In an emerging market the financial and operational costs may not be well
known or established. Given HR costs are a large portion of non-manufacturing budges, accurately estimating HR costs and expenses throughout the business life cycle of expansion and contraction is information critical for strategic planning
• Financial measures and metrics are the preferred communication style of C-Suite leaders.
• Corporations and key executives are measured on their ability to manage business finances
(C) 2014 Birchtree Global, LLC 7
Tax Considerations
A. Corporate Tax Considerations B. HR Payroll and Benefit TaxesC. Expatriate Tax Considerations
(C) 2014 Birchtree Global, LLC 8
Your company without pre-planning and careful consideration….
Labor Law
A. What is the definition of “Employee”?B. Why does size matter?C. Who’s labor law controls
expatriate employees?D. What is “Data Privacy”
and why do we care?F. Foreign Corrupt Practices Act and othersG. Leased employees-a minefield of problems
(C) 2014 Birchtree Global, LLC 9
Statutory Benefits
• What benefits are required by law or convention?• Health • Insurance• Vacation• Payments• Bonus
• Where to find this information?
(C) 2014 Birchtree Global, LLC 10
Strategic Recommendations• Develop corporate and industry expertise• Measure HR activities using corporate metrics• Develop and use an HR strategic plan• Grow HR’s competitive advantage• Know the legal tax implications • Use technology to manage processes• Hofstede’s cultural dimensions matter • Establish a global ethical platform• Over communicate
(C) 2014 Birchtree Global, LLC 11
Tactical Recommendations
• Know the labor law in each country • Pre-plan and cost all expatriate projects• Think about the “golden rule”• Think in terms of top line/bottom line • Hire wisely• Use all of a total rewards strategy• Give performance appraisals• Reward high performers • Be action oriented and politically savvy• Develop feedback loops for information
(C) 2014 Birchtree Global, LLC 12
Helpful Information
• HRPA, EAPM, SHRM• World Bank• Inter-American Development Bank• United Nations• Brookings Institute• Embassy websites-business section• Canadian Business• The Economist• University library with dissertations• World Trade Center Associations• Forum for Expatriate Management
• Bi-lateral trade associations i.e. Brazilian Chamber of Commerce
• Business websites• Government sites• Wikipedia• MOOCS-Coursera, Udacity, edX• LinkedIn• Industry professional associations• Major newspapers• Research organizations i.e.
international development research center
(C) 2014 Birchtree Global, LLC 13
(C) 2014 Birchtree Global, LLC 14
Birchtree Global, LLC
Janet L. WalshCEO and President
Birchtree Global, LLC44 Roosevelt Drive, Suite 321
Bedford Hills, NY 10507http://[email protected]
Phone: O1 (914) 218-3149