In today’s working environment, employees are located around the globe. Access to technology and systems such as email, cloud and share-based databases, chat, webinars and conferencing applications make any virtual environment a workplace. With all these technologies available, employees can work anywhere, which provides companies with greater access to resources. However, in this environment companies have to streamline processes and apply greater controls on where their employees are located and who and how they are being paid.
Imagine a multi-national company with expatriate employees, independent contractors, local national employees and various other combinations. Keeping track of numerous employees worldwide can be challenging. In smaller companies, employees are often hired, sometimes, without much notice to the appropriate channels and often under the radar of the corporate office. This can create several problems including lack of visibility of financial transaction information, negligible HR controls, and possible compliance risks. The parent company could be subject to penalties, fines, litigation, and other costly settlements.
Companies, with international operations, need to do their research and gain greater understanding of employee locations and assurance they are being managed in the most efficient, transparent, and compliant manner. Whether you have a global workforce today or are planning a global expansion, it is critical to seek the expertise necessary to avoid costly mistakes that waste valuable time and energy. Taking the time to set up everything correctly in the beginning will be well worth the potential risk.
Blog Post by Keri