How Mauve can support the medtech industry

As an employer, the shift from local to global is a significant step towards company success. Expanding internationally provides many opportunities to boost profits and brand recognition. However, it can be difficult, especially in complex areas like medical technology (medtech) and healthcare.

Before embarking on this journey, organisations must undertake extensive research. Employers should use the research to create a detailed plan that ensures global expansion goes smoothly.

Differing country regulations, financial expenses, immigration policies, security considerations, and much more – the many facets of going global can appear overwhelming. With good management, that first step can help your local operations grow and succeed on a global level.

According to the UK government, medical technology “includes items we rely on every day, from a simple plaster for a scraped knee, to life-saving blood tests that detect cancer early and robots that can perform highly complex surgeries.

Medtech products play a crucial role in the whole pathway of care, supporting people from prevention, through to diagnosis, treatment and ongoing management of health.”

Medtech companies need to remain at the forefront of new developments in the dynamic sector, meaning that global mobility is a must.

How going global can benefit medtech companies

Conquering new markets and territories provides a wealth of opportunities for medtech companies to accelerate their business growth.

In  2020, the global healthcare market was valued at $8.45 trillion and is expected to reach $12.48 trillion by 2025. In the same year, the digital health market was valued at $282 billion. And the telemedicine market is expected to grow to $155 billion by 2027.

Within healthcare, expectations are high and responsibilities are extremely complex. Therefore, healthcare organisations, including medtech companies, require skilled and highly qualified professionals to meet the demands of the industry.

An international presence offers healthcare and medtech organisations greater access to the global talent pool. In turn, it provides a wider selection of highly qualified individuals and international talent, best-suited to the challenging responsibilities of these sectors.

Some countries excel in certain medical or technical areas. However, they may not have enough local resources to address specific skill shortages. Additionally, healthcare and medical organisations operate globally, to bring greater health equity and consistency in healthcare knowledge and treatments across borders.

The pandemic has brought the various disparities in medical training, education, research, and service into stark focus. Health inequalities from country to country have long been observed. But the interconnected nature of the pandemic has hastened the need for greater uniformity in tackling health issues.

The global expansion of the healthcare and medical sectors, especially the medtech industry, can bring their knowledge, products, and services beyond their own countries – to spark a more global approach to health.

The unique needs of the healthcare industry

Global expansion has many benefits. But medical companies face challenges that they must overcome for a successful transition. Different types of healthcare organisations may have different needs. These will depend on how they are funded and what they plan to do.

For NGOs in the healthcare industry, operations are not-for-profit. Whereas, medical technology companies and pharmaceutical firms often create saleable products. Organisations should pay attention to their target country’s competition and market rules, and be mindful of how these impact their operations. These may differ from what they are used to in their home countries.

In the UK, for example, the Health and Social Care Act grants the sector regulator powers to “apply competition law to both publicly and privately funded healthcare.”

Unlike other industries, the overall healthcare industry is directly impacted by variances in socio-economic factors and populations across different countries. Factors such as differences in wealth, lifestyle, housing, diet, and many others influence the type of health issues prevalent across countries.

Therefore, medtech companies are required to develop various types of cures, treatments, and technologies that meet local needs. The vast diversity between countries suggests the need for greater preparation and extensive research, when seeking a new location for expansion.

Organisations should not only consider population demands, but also the varying regulations between each country. As a healthcare organisation, you may be impacted by trading laws, certain insurances, security and confidentiality, and much more.

To ensure full compliance, employers should research the countries’ regulations thoroughly before expanding.

If we return to the benefits of international employment, going global opens a range of possibilities for employing skilful talent. Healthcare organisations should consider the operational and logistical factors of global expansion.

These factors apply whether you are hiring workers who already reside in the foreign country, or plan to move existing employees to the new location. From work permits to visas and transportation, to payroll setup in each location, employers should be prepared for the complications of setting up in a new country.

The healthcare sector demands highly qualified individuals. So, employers should assess the backgrounds of each of their new hires. With employees spread across the globe, it can be difficult to monitor each of their details and reliability. Conducting a background check can prevent any breach of regulations or security, and ensures they are qualified for what is required in their job role.

Key considerations

Mistakes in global employment usually stem from a lack of understanding the individual circumstances of the project at hand. In some instances, errors may occur due to applying a time or cost-saving solution that is not appropriate.

As there is, very rarely, a “one-size fits all” approach to global mobility, take some time to weigh the situation up properly, speak to experts, and ensure you have a well-rounded view beforehand.

Browse our medical sector global guide to explore a series of questions we’ve put together that consider:

• location;
• nationality;
• relationships;
• timescale and scope;
• legal, HR, and contracts;
• tax, payroll, and payments;
• and many other factors.

Facilitating the global assignment

Individual circumstances will influence the method available to you, to enable the global assignment. Keep in mind that these may cause local employment, immigration, and taxation laws to come into play.

Consider the answers to the questions we raised in our medical sector guide. Seek expert advice, familiarise yourself with local laws, and assess which option is best-suited to your assignment goals.

The main routes include:

Direct hire of the Individual

In certain circumstances, or if the medtech company has a local entity that can legally employ staff, it can place the individual on its own payroll and employ them directly.

But employers should remain mindful of the in-country employment and taxation laws with this type of solution.

Are you set up to run in-country payroll, if the salary needs to be paid locally – and will you incur fees by doing so? Do you need to amend the employment contract to comply with local employment laws? In certain countries, long-term activity may prompt permanent establishment/foreign employer risks.

Employer of Record

A third-party organisation specialising in global employment can provide a type of service known as Employer of Record (EoR). Through this solution, an organisation is able to outsource the employment of the worker to the EoR company’s local entity, but still retain control over the employee’s day-to-day activities.

EoR companies are well positioned  for you to consult on the local legal knowledge necessary to employ individuals. An EoR provider can cut through the red-tape on your behalf. They will take on responsibility for multiple requirements, including local payroll and liaison with the authorities – saving you time, expense, and stress.

Global Business Expansion

If you’re looking to set up long-term or permanent operations, or need to hire a large number of individuals, a local entity may offer you a more cost-effective route to global expansion.

This also depends on the individual circumstance of the project and location. There are various types of entity options in each country. So, without full local knowledge, understanding the process can be complex – a third-party expert supplier can advise on the best option.

Global Payroll

Engaging Mauve Group’s Global Payroll service will allow your company to outsource all in-country payroll services to Mauve. Our team of experts will ensure 100% tax compliance and the timely remittance of salaries to your workers abroad. And we’ll establish in-country payroll, including employee registration with the local authorities.

Our global payroll experts create and file comprehensive reports, as well as securely-held payroll records – which you can always access. Our team also keeps abreast of all the latest updates to local tax regulations and incentives and can make any and all necessary changes.

Visa and Immigration

Mauve Group’s team of experts in global visa and immigration can support our medtech clients to comply with visa, immigration, and residency rules in their country of expansion.

Our experts advise on the best immigration routes, and carry out corporate work permit, global visa, and residency applications. So, companies can trust Mauve with the efficient and compliant transfer of employees.

Independent Contractor Solutions

If the scope of work is for a fixed term and meets certain criteria, independent contracting is another option for medtech companies. To be considered an independent contractor, the worker should generally contract to multiple clients, have their own equipment, and manage their own hours and activities.

If they could be characterised as a full employee, there are heavy penalties imposed for misclassification as an independent contractor.

Solutions like Agent of Record can ensure your contracting agreements are fully compliant.

Consultancy Services

Global mobility organisations have the network, knowledge, and resources to provide consultancy services in areas specific to the medtech sector.

These expert consultants can highlight risks and recommend the best ways to approach compliance, salary packages, payroll, taxes, employment law, and more in the locality – reducing risk and potential penalties.

Success Story: Creo Medical testimonial

Mauve Group works with more than 20 organisations in the medical sector across a broad scope of fields including healthcare, health technology, medical testing and diagnostics, pharmaceuticals, biotechnology, medical NGOs, and more.

One such organisation is Creo Medical, an innovative global medical device manufacturer. Dedicated to improving patient outcomes, it applies Advanced Energy to the emerging field of surgical endoscopy. Mauve Group provides Employer of Record (EoR) and Global Payroll services to Creo Medical. Read the following testimonial to learn more about our success story.

In 2023, Creo Medical approached Mauve Group for assistance when expanding into The Netherlands, where we did not have an existing entity or payroll presence.

Mauve’s Employer of Record service has enabled Creo to hire workers in a country where we have no expertise, negotiating the differences in the rules and regulations between the Netherlands and the UK on Creo Medical’s behalf.

Since Creo Medical started partnering with Mauve Group, I have been very pleased with the service provided.  Our contacts have been responsive to any queries and the overseas payroll management has been handled efficiently.

I would recommend Mauve’s services to other organisations in need of assistance with overseas employment and payroll.

– Emma James, Payroll and Benefits Manager, Creo Medical

For further guidance about any of the hiring options detailed above, or how Mauve Group could help your medtech company to expand its global operations, please contact us.