It doesn’t take a ton of Claude research to figure out the advantages of a global workforce:
- Favorable taxation
- Increased access to talent
- Supply chain resilience
- Reduced labour costs
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But if it were easy to open up a new branch in the UK, or Singapore, or India then everyone would be doing it. Unlike making a PowerPoint based on last quarter’s results, setting up operations in a foreign country is a deep, complex, and often expensive proposition.
Organizations looking to expand their business have some serious hurdles to cross, particularly when it comes to attracting, onboarding, and paying talent in a foreign country.
And that’s why we’re here today—if you’re curious about the risks and opportunities that come with expanding your workforce across the globe, we’ve got just what you need.
Managing Risks
Expanding Costs
Many organizations want to benefit from either a greater pool of talent or lower talent costs when they set-up in foreign countries. But there are often significant costs related to workers that you may not be aware of:
- Taxes, overtime, and regulated employment benefits
- Licenses or certifications
- Internal company fees
Delays
As with any major project, going over budget and going past schedule go hand-in-hand. Sometimes that is because delays cost you money, sometimes it’s because getting adequate funds take time. But either way, there are lots of unexpected risks that can put expansion projects behind:
- Delays in getting licenses or certifications for workers in a foreign country
- Lack of communication/collaboration between on and offshore operations
- Accounting for time zone differences (including daylight savings time!)
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Compliance, Compliance, Compliance
The worst case scenario for any foreign operation is the legal one.
Instead of paying more than you expected to fill a role, you are dealing with lawsuits that threaten your entire business (like this one, which awarded 2.2 million to misclassified truckers this year, or an October 2026 example, which awarded 1.7 million to construction workers in DC). Misclassification is a common issue, but there are many, many ways to run afoul of the law in a foreign country:
- Incorrect or insufficient benefits
- Incorrect taxation (income, withholding, social insurance, etc.)
- Working hours, overtime and leaves
- Data use and privacy
- Terminations
Maximizing Opportunities
Unified payroll and onboarding across jurisdictions.
There’s no such thing as a global payroll program that was built in a day.
Which is why we often see processes and providers that are stitched together from yesterday’s emergencies, which get carried on far past their prime: a mess of suppliers, processes, and platforms that aren’t coordinated.
Fixing that isn’t easy, but the benefits are real:
- Faster, more compliant hiring
- Much improved data and oversight
- Complete transparency and risk management
Speed and Scale
You can have a derisked, cost-effective payroll system that still sucks.
In fact, one of the biggest issues we see are bottlenecks and gaps in process that make scaling up and scaling down way more difficult than it should be. On the surface, there are many programs that look good, but are actually running well below peak efficiency.
The best way to fix those sorts of issues is to take a look at the program as a whole and find ways to standardize systems and processes.
Where to Start
Global expansion has a number of benefits and offsetting risks. Any enterprise company with either an existing or planned global workforce needs the right partners and expertise to do it right.
If your team is interested in transforming your payroll, get in touch with Raise. Whether you’re going to RFP, or just exploring what’s possible, we can help find solutions for your global staffing needs.
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