Stop Compliance Barriers Holding Back Your Talent Strategy

This year, we can expect to see more UK employers turning to global hiring practices to widen the pool of potential candidates in an increasingly competitive market.

With layoffs still taking place and skills development varying from market to market, UK businesses have a very real opportunity to snap up talent from across the globe to fill their open positions.

In fact, according to Deel’s Global Hiring Report, the hiring of UK talent by international companies increased by nearly 10% (8.4%) last year alone, and we anticipate this will rise.

While it’s positive to see a 74% growth in global hiring over the past 12 months, according to Deel data, there are still big barriers to adoption, the primary barrier being compliance.

However, HR leaders in charge of implementing global hiring must understand the changes and challenges that global hiring imposes on businesses. Many are faced with confusing labor laws, which can send them backward in their global hiring journey.

What are the most important compliance considerations people teams need to be aware of when supporting business leaders in their global hiring journeys?

Payroll compliance

Global payroll is one of the more complex processes of global expansion. Businesses have to comply with different payroll laws in each new country, different taxes and currency rates, and different employee expectations regarding health insurance, pension contributions, holiday, and maternity leave.

If businesses don’t get global hiring right, they could be subject to lawsuits and tax bills topping the tens of thousands. With so much to consider, there’s plenty of room for hiccups, which are rarely well-received by employees who simply expect to be paid for their work accurately and on time.

Businesses also need to consider the data management and security challenges associated with a global payroll system. Payroll involves processing sensitive employee data, such as social security numbers and bank account information. Remote companies are, therefore, more likely to expose this sensitive data and are more susceptible to phishing scams.

Global payroll providers like Deel consolidate and streamline your international payroll operations on a single platform. A team of in-house payroll experts handles compliance, tax deductions, and filings so your workers get paid compliantly wherever they reside.

See also: All-in-One Payroll: Why 300+ HR and Finance Leaders Say It’s The New Standard

Labor law compliance

Every country has established a complex system of labor laws. These laws protect the interests of workers and employers and assure a minimum standard of living and a healthy economy.

In most jurisdictions, governments enforce labor laws to:

• Provide workers with fundamental human rights such as minimum wage and parental leave
• Regulate employment relationships by raising the costs of laying off workers and increasing work hours
• Empower labor unions to represent workers and enforce workplace regulations

Global hiring requires HR teams to stay current on the legal landscape, ensuring business operations follow the rules. Failure to follow labor laws can result in financial penalties and lawsuits.

In many countries, especially those with strict labor regulations or tax rules, you may need a local entity to:

• Comply with local labor laws and tax obligations
• Offer benefits like health insurance, pensions, or other statutory benefits
• Withhold taxes and make social security contributions on behalf of employees

Many companies prefer to partner with an Employer of Record (EOR) service to avoid the lengthy, complicated, and costly process of establishing a local entity in every country or jurisdiction where they wish to hire talent.

An EOR is a third-party company that handles global hiring, payroll management, and compliance on your behalf. EORs like Deel EOR operate by setting up local entities worldwide and acting as the legal employer and global payroll manager of your workforce.

See also: Pros and Cons of Hiring with an Employer of Record (EOR)

Continuous compliance

It is no secret that the legal and regulatory landscape changes frequently, often bringing complexity, direct costs, and risks, creating uncertainty that impedes businesses from planning for the future and making long-term investments.

Compliance guidance often suggests substantial investments in internal legal counsel, recruiting local legal firms, or investing significant human hours in managing compliance. However, the alternative and most effective approach involves using a compliance platform that continuously monitors and evaluates a company’s adherence to legal and regulatory requirements across multiple jurisdictions.

Deel’s Compliance Hub can support businesses in this way.

Analyzing worker data and staying abreast of compliance developments, coupled with automating compliance processes, enables businesses to provide real-time compliance alerts. This proactive stance allows them to stay informed about compliance status, instilling confidence as they hire and manage workers worldwide.

See also: Stay Ahead of Changing Regulations With These 3 Compliance Strategies

Overcome compliance challenges and hire top talent with Deel

Deel is everything your organization needs to hire, pay, and manage a global workforce. With our all-in-one platform, you can:

• Pay anyone, anywhere, in minutes
• Expand your team and hire globally
• Consolidate your HR operations
• Simplify, speed up, and scale global IT operations
• Set your team up for success with performance tools
• Attract and retain talent with immigration support

Sound like the ideal solution? Book 30 minutes with a product expert to get your questions answered.

This article was originally published on Employer News: The compliance shaped barrier standing in the way of talent hiring