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

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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

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Tax Considerations

A. Corporate Tax Considerations B. HR Payroll and Benefit TaxesC. Expatriate Tax Considerations

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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

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Statutory Benefits

• What benefits are required by law or convention?• Health • Insurance• Vacation• Payments• Bonus

• Where to find this information?

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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

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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

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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

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Birchtree Global, LLC

Janet L. WalshCEO and President

Birchtree Global, LLC44 Roosevelt Drive, Suite 321

Bedford Hills, NY 10507http://www.birchtreeglobal.comwalsh@birchtreeglobal.com

Phone: O1 (914) 218-3149