Globalization means it’s never been easier for businesses to expand into international markets and take their revenue and profitability to the next level. As a result, doing business across borders is no longer a differentiator in the marketplace: it’s increasingly a business necessity in order to stay competitive.
There are many different ways to approach international expansion. You may want to go all-in and extend your reach to all four corners of the globe. Alternatively, you may want to focus on a small number of core markets and new customers – or maybe even just one – where you feel your opportunities for success are greatest. In any case, there is much to gain from global markets – if you can put the right strategies and processes in place, including for payroll.
This blog highlights five compelling reasons to pursue a global expansion, and why it doesn’t have to be as challenging from a payroll perspective as you might think.
What are the benefits of global business expansion?
A global, regional or international expansion done right can benefit your business in any or all of these five areas:
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New markets and customers: moving into new markets multiplies the number of potential customers you can sell to, and therefore multiplies the potential amount of profit you can make. This is especially the case if you have first-mover advantage and you’re moving into a territory where your customer base has few other options
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Diverse talent: every country you expand into gives you a whole new pool of new talent to access, and employing them has never been easier thanks to flexible and remote work. These employees are often cheaper to employ, and can give you valuable cultural insights around operating in the local market
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Wider expertise: those new employees mentioned above will also bring their own skills and expertise that the business as a whole can benefit from. This gives you the opportunity to build an overall skill-set stronger than those of your competitors
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Lower business costs: moving some of your operations to new markets with lower salary and business overheads can yield substantial cost savings. This means you can improve your profit margin, and keep your expansion costs down
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Greater stability: operating in multiple countries at the same time means that you’re no longer putting all your eggs in one basket. If you find difficulties in one territory, then your success in others can help support the organization as a whole, meaning the risk of financial shock to your business is vastly reduced
What would this mean from a payroll perspective?
Naturally, hiring employees in several different countries brings its own set of challenges in payroll terms. Firstly, you may find yourself having to pay across several different currencies. Then you have to take into account different cultural norms, such as whether certain countries’ employees pay weekly or monthly, or whether they expect a 13th-month bonus at the end of the year. And on top of that, every country has its own unique set of laws around employment, minimum wage, tax, and social security.
This may sound so complicated that it makes global expansion seem more trouble than it’s worth – but it doesn’t have to be. A unified, cloud-based payroll solution such as CloudPay brings payroll from around the world together into a single platform supported by automation. Within it, differing currencies, pay dates, regulations, and more can be taken care of, with data synchronization ensuring consistency across every territory. The global payroll expertise of the CloudPay team also ensures that all of our users can focus on their expansion strategy for moving into foreign markets, without having to worry about payroll.
In summary
If you’re looking for ways to take your business to the next level and generate substantial growth, then a global or international expansion is one of the best ways to do it. Whether your organization is big or small, you can expand your talent pool, improve market share and lower costs. And as long as you’ve got the right solutions in place for your back-office processes like payroll and HR, you can expand with confidence that you have solid foundations in place.
With CloudPay’s global payroll solution, you won’t have to worry about any headaches when it comes to expanding your business across borders. Find out how our solution can support your ambitious growth plans here.