How to succeed at your global assignments

Going global is the ultimate aim for many small-to-medium enterprises (SMEs). But as a significant task, it can appear intimidating.  A successful overseas expansion of operations requires you to consider and action a number of factors.

You must conduct market research, to confirm there’s demand for your product or service in your preferred location. Then, there’s entity establishment, the recruitment process, payroll set-up, and more. And finally, you’ll need to comply with local business, tax, and employment laws – all of which vary from your home country.

It’s a big undertaking. Let's be frank, if not done properly, the margin for error is significant. But with the right help, companies of any size can expand internationally and avoid failing at their global assignments – which can be costly, in more ways than one.

However, if done correctly, going global is definitely a risk worth taking. From providing cross-border opportunities for your team, to diversifying your operations, internationalising your business comes with a host of benefits.

Benefits of global assignments

Hiring international talent, seconding employees abroad, or establishing an entity in a new country? Whatever the reason, the benefits of going global are manifold in the following ways:

Increased profits

Entering foreign markets introduces your business to an expanded pool of potential customers. So, as your client base grows, the potential of turning over greater profits grows.

Broader talent pool

Expanding abroad provides your enterprise with the chance to hire a skilled workforce from a broader, diverse talent pool. Such a strategic entry to markets gives rise to innovation, knowledge sharing, and high-level talent.

Diverse markets

When you run multiple branches of your business in distributed locations worldwide, you ease dependence on any particular market. In turn, you mitigate the risks of local challenges such as political upheaval or economic instability.

Elevated reputation

Global expansion elevates your business’ reputation as an industry leader. This, in turn, gives you a competitive advantage in an increasingly dynamic marketplace. By providing your staff with the opportunity to relocate abroad, your company reputation as a global force will be bolstered.

Long-term opportunities

By expanding into global markets, your business’ longevity will improve due to dispersed pressures, increased opportunities, new markets, and enhanced reputation.

What can a failed global venture cost a business?

Recently released findings from International SOS, the world's leading health and security services company, combined with a ‘Return on Investment’ report led by Ipsos with KPMG, show that a failed international assignment can set a company back an estimated 1.25 million USD.

What can cause a global venture to fail?

Expectation versus reality for workers

In some instances, workers who relocate overseas via work can find it difficult to integrate with the local culture and make friends. Then, there’s the added responsibility of dealing with bureaucracy and paperwork, as well as navigating tax laws. These issues for new arrivals can result in them wishing to return home.

In its ‘Where Expats Love (& Hate) Living in 2023’ report, Expat Insider noted that expats in Mexico and Spain were happiest. In fact, these Latin American (LatAm) countries were the top two that scored among the highest for ‘Ease of Settling In’.

The countries are reported to have high levels of friendliness to newcomers, be easy to make friends in, and be affordable, especially in terms of accommodation. The availability of personal career opportunities and the work-life balance were also praised.

Alternatively, Norway and Kuwait scored the lowest for ‘Ease of Settling In’. Expats to these countries struggle to adapt to the local culture; tend to be unhappy with leisure options; complain of high cost of living; have difficulty making friends; and are faced with a low quality of life. With that said, Norway’s secure employment and Kuwait’s plentiful housing market were listed as positives.

Taking these examples into account, it is important to be aware of the local conditions of the country into which you’re considering expanding.

Lack of support for team

To ensure workers are happy in their new home, it is key for business leaders to take the necessary steps to support their team members with their global relocation.

Cost of living and cost of accommodation are two factors that seriously impact the expat experience. Offering a competitive remuneration salary, in line with local costs, signals that your employees are supported and valued.

Salary forms a crucial part of why workers are motivated to move abroad. If your team members are struggling on their current salary or feeling undervalued, you may face retention issues and damage the potential success of your global assignment.

For example, 59% of respondents found it straightforward to deal with local authorities in Bahrain, as did 64% of respondents in UAE. Meanwhile, ‘incredible levels’ of bureaucracy were reported in Italy, which expats found difficult to navigate and negatively impacted their overall experience.

Inadequate preparation

Expanding abroad is a complicated process, which requires meticulous planning and careful preparation. It’s an endeavour which is very much a case of ‘fail to prepare and prepare to fail.’

From navigating complicated employment law to adhering to local tax, there are many potential areas in which businesses may fail to be compliant – and meet serious consequences, as a result.

Hefty fines, more serious legal proceedings, and reputational damage. This is the fallout that can face businesses which do not make every effort to comply with all local requirements, when expanding abroad.

How to ensure the success of your global assignment

Seek local expertise

The ‘Return on Investment’ report noted that 72% of HR specialists observed a positive impact on employee health and wellbeing, when partnering with third-party specialist organisations. This was due to the extra level of support received by employees.

Partnering with experts in global expansion is one way to ensure the success of your global assignment. Global employment solutions providers, like Mauve Group, can help you to navigate even the trickiest parts of internationalisation.

With 28 years of experience under our belts, Mauve Group offers a pioneering Employer of Record solution, allowing you to compliantly employ overseas without having to undertake establishing a local entity.

We also offer Global Business Expansion services, Global Visa & Immigration services, Consultancy Services including Salary Benchmarking, and more.

By engaging a global employment solutions provider like Mauve, you can:

Be prepared

When you partner with Mauve Group, our team will guide you through all your options for global expansion and help you to decide which one best suits your organisation.

Once decided, they will support you every step of the way and ensure that no stone is left unturned and no corners are cut. Allowing Mauve Group to accompany you on your global journey is the best way to prepare.

Guarantee employee support and wellbeing

By partnering with Mauve Group, you’re ensuring that your team has 24/7 on-the-ground support, wherever they are.

This support is invaluable to team morale, ensuring workers feel supported and valued, no matter their time zone or what may be happening. Ensuring that they have all the necessary resources to navigate the relocation process, is key to a successful global assignment.

Ensure compliance

Our local experts know the ins and outs of complex tax and employment laws. By partnering with Mauve Group, you’re making sure that every last detail of your global expansion is done by the book, mitigating the risk of non-compliance, and supporting the success of your global expansion.

Mauve Group can help

With over 28 years’ experience and more than 70 wholly owned entities in over 150 countries worldwide, plus trusted partners in many more, we are industry trailblazers and pioneers of the Employer of Record (EoR) solution.

No matter what size your organisation, or the industry in which you operate, we can help. With SME and multinational clients spanning industries such as NGOs and educational institutions, our experts will find the best solution for you. Contact our team, today.