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As the business world continues its post-covid realignment, companies, and enterprises are increasingly expanding their horizons, both literally and metaphorically.

However, this is not necessarily as straightforward to accomplish as it might seem, as moving into new markets can pose a number of challenges — cultural, legal, linguist, and regulatory, to name but a few.

This is undoubtedly the case for enterprises who want to establish a presence in the Asia-Pacific (APAC), and while there is a certain degree of uniformity with regard to political stability in the region (albeit under very different economic systems), there is nevertheless quite significant diversity between each country’s business cultures.

Doing business successfully anywhere in the Asia-Pacific, therefore, requires an agile approach, and an appreciation of the business and political cultures encountered.

As Papaya Global, a global payroll company explains, any business planning for success in a new market, in particular anywhere in APAC, should therefore take the factors discussed below into account when planning and executing an expansion program.

Identify opportunities and align strategy 

Although it is an obvious question, it is also an easy one to overlook — what are the market opportunities an expansion into APAC represents? Expansion for its own sake is unlikely to be successful unless appropriate market opportunities have been identified and a clear strategy formulated to take advantage of them.

As an example, a key reason many enterprises want to have an APAC presence is to be able to take advantage of opportunities created by the formation of the Regional Comprehensive Economic Partnership (RCEP). This is a regional free trade agreement between Australia, New Zealand, Brunei Darussalam, Cambodia, China, Japan, Laos, Singapore, Thailand, Vietnam, South Korea, and Malaysia, and covers trade in goods, services, and investment, with particular reference to e-commerce and technical cooperation.

However, any business planning to expand into APAC should be looking closely at RCEP and its implications for operations. For instance, will it present the business with opportunities for reaching into multiple markets simultaneously, or will it expose it to greater competition, the challenges of which it is not set up to meet?

This is just one example of the way in which expanding enterprises need to think and plan strategically — will being in APAC increase your access to customers in these countries, with greater exposure to global trade resulting in the growth of the business, or will more competition in practice actually mean that development stalls and opportunists contract?

How will you build on local talent?

One of the most appealing aspects for many enterprises to developing a presence in APAC is the access to an enormous talent pool. To be best placed to take advantage of the opportunities this presents, it is important that accurate and honest assessments are made of the current ‘home’ talent available at all levels of the business, and identifying shortfalls and gaps that need to be addressed.

At the same time, however, a relocating or expanding business also needs to understand the specific challenges that operating in a different culture can present and, crucially, how a local workforce can most effectively be managed.

Asian countries within the APAC region can have very different workplace structures, hierarchies, and customs in place (both when compared to European businesses and each other), and failing to recognize this can mean that valuable human resources are either lost, or not given the chance to fulfill their potential.

Therefore, clear-headed assessments should be made as to whether or not you have the management capacity in place to successfully lead a foreign workforce (or if you have to bring it in), how well you understand the cultural and workplace practices in a new location, and how attractive your employment offer will be to the best local talent, in comparison with your competitors.

Is your business set up to operate in APAC?

Any business that wants to operate in multiple locations simultaneously needs to have structures in place that will enable some important functions of the business to be conducted remotely.

For instance, when beginning operations in new countries, leaders need to ensure that robust reporting procedures are established and in place in advance so that there is minimal disruption to beginning operations in the new locale.

If this requires investment in new technologies, this should ideally be done ahead of operations commencing, as too much focus on setting up processes and procedures can put an unnecessary and unwanted handbrake on more important aspects of operations.

An essential question for expanding businesses, therefore, is to determine how these functions can most effectively and efficiently be performed, and whether an in-house or outsourced solution is required.

Get to grips with the regulatory environment

When a global business relocates part of its workforce to a new region, and/or hires workers locally (either on-demand or as contract hires), ensuring that it remains in compliance with local employment laws, taxation and other regulations regarding workers’ pay and conditions is essential. In addition, there are important obligations regarding the protection of sensitive personal data, which will vary according to the jurisdiction.

Adhering to the various employment regulations and data protection laws in different countries in the APAC region can unquestionably be a burden, but it is nevertheless essential, and so any enterprise looking to engage a workforce in this part of the world needs to take specialist advice re: compliance as early in the expansion process as possible, as these obligations will have a significant impact on planning and implementation.

The right payroll model is the solution 

Following on from this, it is important that a company with workforces in multiple locations is using the right model for the delivery of payroll services. An effective global payroll system can help significantly in the management of a dispersed workforce, where different currencies, languages, pay cycles, and regulations all need to be accommodated simultaneously.

For instance, a wholly-owned model might make sense, where payroll is managed locally by a team who are employees. Alternatively, relocating or expanding business might opt for an aggregated model, where payroll is managed by a global payroll provider working in partnership with in-country partners (ICPs), who are locally-based service providers.

Payroll is a very significant function for businesses wherever they operate, but for enterprises with a global workforce in multiple APAC countries, ensuring the smooth operation of payroll is fundamental to be able to operate successfully and with goodwill.

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When it comes to running a business, whether big or small, payroll processing can sometimes feel like a war. Payroll processing is a lot more than what it looks like. In addition to getting your employees paid on time, payroll involves the calculation of tax deductions, paid and unpaid leaves, employee benefits, bonuses, and much more. It requires attention to detail and scrutiny if you want to avoid fines and complaints. This makes it quite clear why payroll managers are highly-trained individuals with years of experience because the job isn’t that easy!

Instead of learning the art of payroll yourself or hiring internally, outsourcing payroll is a great option for start-ups, small businesses, and medium-sized businesses alike. Outsourcing isn’t a new concept and has already proven to be beneficial for organizations. It is both a time and money-saving exercise. Why not spare yourself the pain of spending sleepless nights with spreadsheets staring into gridlines and numbers by outsourcing it.

Even though it might sometimes seem hard to make changes to the ongoing business processes, there has never been a better time to outsource your payroll. Payroll systems these days are generally cloud-based, and hence extremely agile. It can easily scale up or down as the business needs to change. For repetitive tasks, these can be automated, leaving your resources to focus on being the best in your business space that you can be.

If you’re still skeptical about outsourcing your payroll, here are a few reasons why you should.

• Outsource payroll – It’s always quicker.

Whether you have 10 employees or 100 employees, payroll processing demands significant time and attention. When you consider the time spent processing and managing payroll, outsourcing to a trusted service provider may seem attractive. Time is money, after all.

• Outsource payroll – It’s always secure.

Using email for sensitive documents is inherently unsafe and opens the door to hackers easier than many might think. Similarly, the use of spreadsheets and out-of-date technologies, combined with a lack of proper security across all areas of the company, creates the risk of a data breach and violation. A secure portal protects your employees’ sensitive information.

• It ensures payroll tax compliance.

This is a big one. One of the most daunting tasks for small to mid-sized businesses is complying with laws, regulations, and mandatory rules, especially when various government agencies are involved. An effective and experienced payroll provider will ensure that your payroll process complies with the current rules and regulations.

• It’s automated and remote.

Cloud-based payroll software can be run anywhere with internet access. Now with people working remotely, there’s no need to be onsite, no need for a person to manually type in hours or print checks, and no need for anyone to be involved with paying employees. Employees input their time, the system tracks it, and they get paid automatically with necessary approvals in place.

• It’s customizable.

Whether we’re experiencing a pandemic or other critical business issues, there’s no reason to pay for things you don’t need. With unpredictable times and changing business needs, it is always flexible to add or subtract services.

Outsourcing payroll can be successful as both a short- and long-term solution for organizations.

Procloz would be more than happy to assist you with payroll outsourcing. We will be happy to provide you with a customized solution that meets all of your business’s requirements. We’ll help you remain compliant and efficient, with outsourced payroll services that help your business thrive.

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If we consider the workforce environment, COVID-19 was a game-changer. The pandemic has forced companies to rethink how to do business. The new way to work now means more than just not working in the office. Mega-companies like Microsoft, Apple, Google, Adobe, Twitter have put a remote work strategy. On the one hand, when Geography and time zones become irrelevant, technological advancements have also led to the possibility of considering hiring and managing remote employees in different countries across the globe.

Managing a geographically distributed workplace may sound great on paper but if you try to specifically focus on the concerns of global expansion, the following points might trigger in your mind:

• Is it possible to quickly deploy a global workforce?
• Is it possible to manage the workforce in a compliant manner honoring the local laws and legislations and eliminating any business risks?
• Is it possible to achieve a similar productivity, keep time-zones, and employee engagement among others?

No matter what, opting for remote work policies would set you up for opportunities you haven’t been able to take advantage of. There is more upside than you can imagine to being able to access global talent.

Here we shall help you understand how you can succeed in global expansion with remote work strategies.

Effective International Remote Work Strategy

If you plan for global expansion with a remote work strategy, you need to do careful research and planning to navigate cultural, legal, and communication challenges across borders.
The key areas to pay attention to are:

1.  Compliance: Laws are in favor of employees worldwide as compared to independent contractors, and their misclassification risks and penalties. To hire remote employees in a foreign location, your teams must be familiar with local regulations or an in-country expert to guide you through the process.
2. Trust: In an international remote work engagement, trust goes both ways. The company trusts the employee to perform their duties, and the employee expects the organization to provide the infrastructure to do their work, pay them on time, manage their social payments and benefits.
3. Digital Communication: This is no brainer. Remote work is as good as technology and tools in place to help employees collaborate with the team members effectively. Also, remote employees risk losing their sense of connectivity and team, not to forget water cooler conversations. This is no brainer. Remote work is as good as technology and tools in place to help employees collaborate with the team members effectively. Also, remote employees risk losing their sense of connectivity and team, not to forget water cooler conversations.
4.  Strong Local HR, Employment & Tax Expert: Employee query resolution on their employment and tax is another area; employees look up to their employer. It is crucial to have a firm hold of the local laws and regulations either internally or through a local expert.

Now knowing all this, when you plan to go remote, you’ll need to think whether to consider hiring local experts or lawyers in the country or pick a single point multi-country employment partner who can effectively consolidate and manage the remote workers effectively, present reports and keep you abreast of the changes.

Now is the time to reimagine what’s possible. If you are thinking of International Remote Work Strategy, think of Procloz. We can help you go remote and hire employees all over the world.

Contact us today to speak with a global solutions advisor and learn more about outsourcing global employment. CONTACT US