Successful companies and businesses are often looking to expand their activity abroad. The main rationale is that there are so many great opportunities for business development in markets other than the Israeli market.
Launching business activities overseas often allows business development in countries that have more convenient conditions, which are preferable to the Israeli conditions, when considering regulations and cost living in Israel.
Nevertheless, even with Israeli businesses’ will and ambition, it is not possible to jump into the deep water without the proper preliminary information.
Adecco Israel is a leading business solution company, that provides services to its numerous customers in 66 countries around the world. Adecco assist in development in the companies’ home countries as well as abroad, with maximum efficacy and professionalism.
In order to find out about the potential challenges of hiring employees overseas, the different employment methods that are worth consideration and how to do it the right way….
Stay tuned and continue reading this following article.
One of the main and most important challenges in starting a business activity abroad is hiring employees. In most cases, the destination country has a different culture, different regulations and a different language, that are not familiar or common in Israel.
It is necessary to address all of the aspects that distinguish the employment method in the target country, in order to face all of the challenges ahead.
Among the challenges that exist in any market, it is recommended to pay attention to the following topics:
Every country has different (sometimes completely dissimilar) legislation on the subject of hiring employees. For example, in the USA, although there is the Federal law that has jurisdiction over all 50 states, each state has its own judicial system.
It is likely that there will be many variations in subjects such as minimum wage, vacations, pensions, social security, sick days, etc. In addition, clauses such as the non-competition clause that is customary in some business sectors in Israel, can be illegal in the target country.
There are some sectors in Israel in which it is very hard to operate without full approval of the labor union. Labor unions pose a challenge wherever businesses are interested in operating.
It is recommended to do a comprehensive market survey and a thorough inquiry regarding the nature of labor unions in the target country, to be aware of any possible placement challenges.
It is likely to have distinctions in customary business standards that should be taken into consideration when recruiting employees overseas. For example, tests are a familiar sorting method in the Israeli hi-tech market, but not in the US.
Asking candidates in the US to take admission tests may drive-away some worthy candidates. Instead, background checks might be a better alternative.
Furthermore, in the United Arab Emirates it is customary to keep the negotiations open even after signing a contract, which could come as a surprise to many Israelis who are not familiar with their customs. Each country acts differently, and it is important to address each country individually.
Lacking familiarity with the conditions in each target country could lead Israeli business owners to make many mistakes.
Adecco Israel offers her clients various business solutions that help companies overcome hardships that follow expanding their businesses abroad, in the most efficient and professional way.
Among Adecco’s services, you will find market surveys, employment solutions, Payroll services, outsourcing services, and plenty more solutions, tailor-made to each company’s specific needs.
Hiring employees abroad can be done independently, but it is important to keep in mind that this action requires an extensive understanding of employment, including familiarity with taxing issues, employees’ rights and more.
In addition, independent employment requires, in most cases, physical presence of the business owner in the target country, as well as operating a human resource system, which is often unwanted from a business standpoint.
Many projects require business flexibility and agility, which sometimes adds difficulty to the business’s needs and efficacy due to being obligated to tend to complex human resource issues.
Adecco Israel has solutions to various business demands and provides business solutions in necessary arenas. This allows the clients to invest their time and resources in the business activity and the success of the company.
It is very important to consider alternative employment options, including relocation for Israeli employees, Payroll services, employer of record services, outsourcing, etc.
Each alternative has pros and cons in accordance with the project, and they could affect the business’s performance in the target country.
Among the employment methods, you may find:
Direct employment is best suited for Israeli companies who are interested in acting as an extension in the target country, or in situations where the Israeli business is interested in transferring the business to the target country for the long term.
In these cases, the company would act as a local company, will be a legal entity and will deal with all employment issues, including running a human resource department and dealing with the local laws.
Adecco Israel helps Israeli companies overseas in finding the most suitable employees and hiring for them, without having a legal entity, and without having to deal with employer-employee relationships.
Payroll services are suitable for companies that are interested in managing a project professionally, while transferring the administrative management to an external source.
When giving the Payroll service, Adecco Israel acts as the employer to the employees throughout the employment period. The client company takes care only of the business and professional aspects, while Adecco Israel manages all aspects of employment, so the company can avoid dealing with bureaucracy.
When applying outsourcing, the client avoids any responsibility that goes beyond the core of its business activity. in this case, Adecco Israel manages the requested project from end to end, which enables the company to get the necessary activities done quickly and efficiently.
Adecco Israel will accompany your activity overseas!
Whilst establishing a company’s business abroad, it is important to address the main issues involved in activating a business.
Deciding on establishing a business extension abroad, which will hopefully be a huge success, involves many significant challenges that could harm the success of the business if not dealt with properly and professionally.
Adecco Israel – a business solution management company that operates in 66 countries worldwide. As part of its business activity, Adecco provides qualitative and flexible management services, personalized to each business.
Through Adecco Israel’s global activity, companies can optimize the establishment and operation of business activities abroad, and focus on the business activity of the company, on its way to great success!
Contact us today and we will be happy to be at your service!