Future-Proofing Against Compliance and Risk When Expanding Globallyby Fintech News Singapore September 6, 2021
Globalization Partners, a US-based compliant and automated global employment platform, found that companies that grow internationally without prioritising compliance are sure to run into problems according to its “7 Compliance Challenges Companies Face When Growing Globally” e-book.
As a fast-growing fintech industry, scaling up and expanding internationally are key components to your growth.
But how do you navigate the complex labyrinth of global compliance?
Preparing for compliance before expansion — why is it important?
Entity setup, hiring, onboarding, financial reporting, transactions, and product and service commercialisation are but a few of the myriad aspects of compliance.
And when it comes to talent, compliance starts with hiring and continues all the way to termination — in some cases, all the way to the employee’s retirement.
Does your company have the breadth and capacity to navigate global compliance seamlessly, particularly if you’re just beginning cross-border growth?
It’s crucial that companies in the early stages of their global growth are prepared with everything from country-specific legal expertise to HR know-how to ensure they’re adhering to the local employment laws and regulations, and avoiding the potential penalties related to noncompliance.
Additionally, on-the ground experts on compliance prove vital when it comes to ensuring locally compliant employment contracts, benefits, and worker classification.
Sharing the considerable workload is the only route to sustainable scaling for most companies, if they wish to grow quickly.
Compliance is vital to avoid costly fines, but also critical to maintaining employer brand equity and retaining employees.
On a global scale, the importance of compliance multiplies as complexity mounts — when looking toward international expansion, organisations have to consider the varying labour laws and regulations that change country to country.
How will compliance impact your day-to-day business growth?
Companies must compliantly manage employee data. Companies that handle employee data will be called upon to establish the necessary protocols to avoid data breaches and compliantly manage all private data relating to its employees.
This is no easy feat when it comes to cross-border data flows amid differing local regulations.
Running payroll in a new country can also present some complexities, including dealing with a new currency. Understanding any laws governing payroll is key, including when and in what form employees should be paid.
Employers must also comply with data privacy laws that mandate how to handle employees’ personal banking information for direct deposit.
And although it has yet to become mandatory in every country across the world, an increasing number of markets are integrating Environmental, Social and Corporate Governance (ESG) reporting into their rules and regulations.
Lastly, there’s the challenge of adequately maintaining diversity. Diversity is likely to continue to drive corporation’s take on social responsibility policies, which will in turn trigger the enactment of new regulations that employers need to be on the lookout for.
Million-dollar fines, criminal sanctions for executives, bad press, social media condemnations, customer abandonment, and employee discouragement can all prove fatal for a company.
So, is your company able to future-proof its business against compliance and risk when expanding internationally?
Download this “7 Compliance Challenges Companies Face When Growing Globally” e-book to learn more about what companies can do to protect themselves against growing obstacles like fast-paced globalisation, new tax law enactments, changes in accounting standards, increased demands from tax authorities, and more.