In recent conversations with founders and CEOs, the topic of expanding outside of the UK has been on the rise. While hiring internationally opens up numerous opportunities, including access to new talent pools, it’s essential to proceed carefully and prepare thoroughly. Key Considerations & Qs: 🟡 Local Employment Laws - Research local laws in areas such as hiring, parental leave, and terminations to avoid legal pitfalls. Walk through a typical situation at your company to test & prepare. 🟡 Employee Costs - Explore the obligations for payroll, benefits, employee and company taxes. Are there any hidden costs or incentives? 🟡 Cultural Differences - How will the company adapt to varying communication styles, holiday schedules & cultural nuances? Will team members receive guidance on feedback styles & cultural sensitivity? Are there times of the year when everyone must be available to work? Is fluency in a particular language essential, & how will this be assessed or trained for? 🟡 Competitive Compensation & Benefits - Market mapping & doing practice searches will help. Research local compensation trends & benefits expectations to design compelling packages. What percentile are you aiming for? Who are the main competitors, & what are their hiring and retention strategies? Consider if generational preferences also impact what’s appealing. 🟡 Local Compensation Variations - How will pay/comp differences be communicated and parity established? A clear communication plan is vital to ensure transparency and credibility. 🟡 Visa and Work Permit Logistics - Will employees need to relocate or work temporarily in the new location? Clarify processes, timelines, and associated costs. 🟡 Onboarding & Integration - With the help of your current employees, develop tailored onboarding to help international hires integrate with an evolving company culture. 🟡 Data Privacy & Security Compliance - Ensure compliance with local data privacy laws, like GDPR, to protect employee information, maintain trust, & avoid fines. 🟡 Time Zones - How will team structures cover core hours? Identify teams that need synchronous interaction & those that can work asynchronously. Clarify accountability expectations. Cluster talent in timezones / countries to support organisational efficiency & costs. 🟡 Remote, on-site or hybrid - be intentional. Hoping it will work itself out, is not a strategy. Consider how will you avoid siloing & encourage cross-team engagement. Get your employees’ thoughts. 🟡 Entity Setup or Third-Party Provider - Evaluate the costs & benefits of setting up an entity versus using a third-party provider (e.g., Deel., Oyster®) or outsourcing teams / roles. In my experience, intentionality is essential when planning for international expansion. Thoughtful preparation can help mitigate risks, save valuable runway & support the company’s short and long term success. Do you have any helpful insights & tips? #hiring #culture #internationalgrowth #people
Solid guidance, Geraldine! (That I wish I knew in my first role!) In 4 startups to/from the US to the UK/Europe (and having spoken to many, many other companies) the most common, hard to spot, and damaging theme I’ve experienced is the expectation from Founders & Leaders that the new expanded office/location will “flex towards HQ” in order to “figure things out.” In reality, HQ needs to flex to each new location individually, not the other way around. Many layers of org dynamics at work when work, people, energy/activity, and power “expand.” Most startups are quite unaware.
Great post Geraldine Butler-Wright. One other part to consider, though perhaps an extension to onboadring, is the provisioning of equipment vs BYOD (another part available through Deel :)
Language, translation?
Great post Geraldine Butler-Wright! So timely and such great insights - I'm glad you mentioned Cultural Differences and how to get rewards right. I wholeheartedly agree with approaching expansion with intentionality! Not an easy thing to get right but thank you for capturing these key considerations so succinctly!
Very informative!!!!!
Senior Associate - Employment Head of Employment
1moExcellent summary G!! From my experience employers often forget to get advice on the risks of unintentionally setting up a permanent establishment of the company in that country for tax purposes. The threshold in many countries for the type or amount of work carried out that can create a permanent establishment is not very high. Get this wrong and it’s not only unbelievably onerous on the company, but failure to comply with any corporate tax and registration requirements can result in serious penalties and even criminal sanctions.