Talent & value for money: the two reasons to go global.
There are two types of companies that aim to grow their global operations: those who have an established international presence, and those planning to establish one. Both see access to talent, cost optimization and business expansion as the main benefits of going global.
In today's competitive landscape, organizations are increasingly seeking global talent to bridge skill gaps and drive innovation. Accessing specialized skills from the global talent pool not only enhances an organization's in-house capabilities, however, but can also offer significant cost efficiencies in terms of accessing more favorable salary benchmarks.
Forward-thinking organizations are also starting to see the added cost benefits of working with an EOR provider like Atlas for international workforce management, especially in terms of avoiding the costs of setting up and maintaining entities in every region they want to do business in.”
Rebecca Croucher
Chief Growth Officer | Atlas
The search for talent to bridge the skills gap remains a key reason to build an international team. Going global addresses talent shortage, but can also be seen as a cost saving exercise.
As a result, organizations need the ability to leverage talent insights with deep sectoral knowledge of salary/employment cost data across a range of markets to achieve their business aims.
Compliance is a headache & AI may make it worse.
Compliance is cited as the biggest challenge with international expansion and management, but there is a considerable risk for companies that attempt to create their international workforce policies based on AI recommendations, rather than consultation with experts.
Navigating the complexities of international employment laws is a significant challenge for organizations expanding globally. While AI tools can sometimes offer preliminary research and guidance, they absolutely cannot replace the nuanced understanding that experienced legal and compliance professionals provide.
Though AI might give confident answers to your questions, don't forget that it can be confidently wrong!
At Atlas, it's our job to prioritize robust compliance frameworks that ensure our clients operate confidently across borders. Remember, compliance isn't just a box to tick — it's the backbone of sustainable international growth.”
Denisse Becerra
Chief Legal and Compliance Officer | Atlas
Compliance is complicated. There is no substitute for a market entry and compliance advisory from international workforce management consultants including legal, tax, and regulatory requirements that matches business imperatives with international opportunities.
Contractors and owned entities are the dominant methods of international workforce management... for now.
Owned entities and independent contractors/freelancers dominate as the main methods to manage international workforces, but EOR service usage is becoming significant.
Employer of Record usage is significant and will grow even further, consolidating as an efficient, flexible, and compliant alternative to other methods.
As organizations expand globally, the choice of workforce management models becomes critical. While company-owned entities can offer more control, they come with substantial legal, compliance, infrastructure, and cost considerations. Meanwhile, setting up and managing an international network of independent contractors might offer enhanced flexibility, but the risks around non-compliance in terms of local worker classification laws are significant.
That's why many organizations are turning to EOR services like Atlas, who can provider flexible solutions that enable companies to navigate these complexities efficiently, ensuring compliance, operational agility, and cost savings vs more traditional models."
April Savino
Chief Operating Officer | Atlas
While contractors and owned entities remain the most common approaches to managing a global workforce, there are alternatives, including strategic partnerships, joint ventures, direct engagement, and most prominently, Employer of Record (EOR). Interestingly, 41% of respondents with an international workforce said they already rely on Employer of Record service provider, which looks set to increase as organizations consider consolidating their international footprint of entities.
Borderless ambitions meet macroeconomic uncertainty.
While compliance is considered the biggest challenge for companies planning to go global, keeping abreast of geopolitical risks and trade restrictions is becoming increasingly important.
However, there is still a huge appetite to expand internationally, especially into regions like North America and the UK & Ireland.
In an era marked by increasing uncertainty, organizations must balance growth ambitions with the realities of geopolitical and regulatory challenges. However, businesses with a long-term view understand that moments of volatility can sometimes present the greatest opportunities, and the ability to scale up or down your international presence is an integral part of this.
Not only do Atlas' EOR services provide organizations with a means to enter new markets, quickly and compliantly, but our expert teams also support our clients with workforce intelligence and advisory to help them to navigate the complexities of each market they're targeting, confidently and sustainably.”
Jim McCoy
Chief Executive Officer | Atlas
The changeable macroeconomic situation means flexible models of international employment like EORs offer the greatest potential to build competitive advantage, without any tradeoffs in relation to compliance.
