As part of an ongoing global HR 101 webinar series, GoGlobal leaders are teaming up with industry peers to share hard truths about hiring and managing talent across key regions. The goal is to help international companies get smart, avoid costly surprises and confidently navigate the realities of cross-border employment.
In the recent Asia Pacific (APAC) installment, GoGlobal’s Associate Director Marcos Salgado joined the panel to break down the operational complexity of this vast and diverse region. Below is a recap of the Q&A highlights from Marcos, offering practical guidance on succeeding in APAC.
How should international companies think about the APAC region as a whole?
Don’t. There is simply no “one-size-fits-all” APAC strategy. With nearly 50 countries spanning massive legal, cultural and operational differences, the only viable approach is country-by-country.
Marcos recommends sorting markets by complexity:
| Regulatory Environment | Countries | What to Expect |
| High Control, High Localization | Japan, South Korea | Deep employee protections, cultural expectations of lifetime employment |
| China, India | Multi-tiered laws (national, state, city) | |
| Hybrid or Developing | Vietnam, Indonesia, Taiwan, Thailand, Philippines | Evolving legal frameworks, varying enforcement, local interpretation can vary, frequent policy changes |
| Business-Friendly Entry, Structured | Singapore, Hong Kong, Malaysia | Clear, transparent frameworks with simplified processes, English as an official language |
Bottom line: Regional strategies fail in APAC. Break it down country-by-country and adjust expectations accordingly.
What makes employment in APAC fundamentally different from other markets, such as the US?
Everything. US companies are used to at-will employment, fast onboarding and limited bureaucracy. In APAC, the rulebook flips and you’re facing the following realities:
- No at-will employment—anywhere
- Government filings are mandatory
- Employment contracts often require official stamp duty
- Employee handbooks are required (commonly after 10+ employees)
- Concepts like “life employment” are cultural norms in places like Japan and Korea
Takeaway: APAC is compliance-heavy from day one. You can’t “build the plane as you fly it” here.
How complex is it to terminate an employee in APAC?
Universally more complicated than in the US, and often highly regulated. Here’s an example of what termination looks like in Indonesia:
- Must prove just cause.
- Two written warnings and a documented Performance Improvement Plan are required to substantiate termination cases.
- Employee termination requires documented bipartite negotiation, with any mutual separation agreement filed at the Industrial Relations Court.
- Without mutual agreement, the Ministry of Manpower appoints a mediator, with unresolved cases escalating through labor court to the Supreme Court.
Advice: Don’t assume you can terminate quickly anywhere in APAC. Always consult local experts and plan for a process, not an event.
What’s unique about payroll across APAC?
Every country has its own playbook—and it’s never plug-and-play. In APAC, payroll is about each country’s own rules on pay frequency, mandatory benefits and tax withholding. Here’s a sampling of what administering payroll encompasses in various APAC markets:
| Country | Payroll Highlights |
| Indonesia | Mandatory religious allowance (13th-month salary) |
| Japan | Complex annual reports (year-end tax adjustment and annual social insurance) |
| Philippines | Bi-monthly pay cycles; contributions to three different government bodies |
| Vietnam | Cultural expectation of Tet bonus |
| Thailand | Expectation of employer-sponsored Provident Fund contributions |
| China and India | Regulations on a province-city level and state level significantly affect payroll calculations |
Reality check: Different pay frequencies, social security systems and local customs create a minefield. Compliance and cultural fluency both matter.
What about benefits? How do APAC expectations differ?
Statutory social insurance isn’t enough—and expectations vary widely from country to country. Here’s a snapshot:
| Region/Country | What to Expect |
| China, Japan, Korea | Strong government-run systems, but employer-sponsored supplements are still expected |
| India, Philippines, Indonesia | Employer-provided benefits often serve as the primary healthcare coverage |
The following expectations often come as surprises for international companies:
| Country | Unexpected Expectations |
| India | Health insurance often expected to cover employees’ parents |
| Japan | Retirement plan setup requires a 6-month government approval process |
| Singapore, Thailand, Hong Kong | Provident fund contributions are mandatory and expanding in scope |
Key point: Benefits aren’t just cost centers. In many APAC countries, they’re critical to hiring, retention and general business operations.
What visa and mobility trends are shaping hiring strategy?
Cross-border hiring in APAC isn’t as simple as posting a role and flying someone in. Governments across the region are actively reshaping visa and workforce mobility policies to prioritize local employment.
Companies expanding into the region need to be strategic—not just compliant—when planning headcount.
Here’s what to expect:
| Policy Trend | What It Means | Where It’s Happening |
| Labor Market Testing | Must prove no local talent is available before hiring a foreigner | Singapore, Malaysia — expanding to other markets |
| Quota Systems | Strict local-to-expat ratios required for hiring approvals | Thailand: 4 locals per 1 expat (common across APAC) |
| Slower Visa Timelines | Increased documentation and longer approval periods | Region-wide |
Tip: Always plan local hires before placing expats. Your ability to secure visas often depends on meeting these local employment thresholds.
What cultural mistakes do companies make when entering APAC?
One of the most prevalent mistakes is underestimating hierarchy and communication norms. For example, in Japan, you should always defer to the most senior person. Don’t direct junior staff until invited.
Norms vary but, in general, it is helpful to keep the following in mind across APAC:
- Nodding ≠ agreement. It may just mean “I hear you.”
- Avoid idioms or sarcasm, which can confuse non-native speakers.
- Don’t rush conversations or business. Relationship-building takes time.
Recommendation: Hire local HR leaders or consultants who understand both sides. Respect cultural nuance. It’s not optional in APAC or anywhere else.
What’s the best strategy for a first-time APAC expansion?
Start small and match your strategy to your scale. Here’s a simple framework to help guide your first move.
| Team Size | Recommended Approach | Why It Works |
| 1–2 Employees | Contractor agreements (if legally permitted) | Low commitment, quick start, minimal setup |
| 3–5 Employees | Non-resident payroll or Employer of Record (EOR) | Provides structure without the need to set up an entity |
| 5+ Employees | Entity setup (with long-term commitment) | Enables full control but comes with legal, compliance and tax responsibilities |
It’s also critical to match market entry to your risk appetite and growth horizon.
| Market Type | Countries | Why It Matters |
| Best Markets to Start | Singapore, Hong Kong, Malaysia | Business-friendly environments, English-speaking talent, clear legal frameworks |
| Markets to Approach with Caution | Japan, Korea, China, India | High complexity, strict labor laws, long setup timelines, cultural sensitivities |
What are the best talent strategies for APAC?
International companies should leverage each country’s unique strengths when it comes to recruitment.
- Tech Talent: India, Vietnam, Indonesia
- Operations & Admin: Philippines, Malaysia
- Leadership & Strategy: Singapore, Hong Kong, Australia
Talent optimization means market-specific planning—not regional generalizations.
What should HR leaders new to APAC prioritize?
Start with the basics—but go deep. Consider the following:
- Build local knowledge and on-ground relationships
- Invest in country-specific legal counsel
- Get familiar with visa processes and workforce ratios
- Customize employment documentation per country
As parting wisdom, Marcos advises respecting APAC’s complexity, partnering with local experts and avoiding the mistake of applying home-market logic where it doesn’t fit. Success in APAC comes from thorough preparation, not improvisation.
Looking ahead: more to come in this series
This post is part of an ongoing HR 101 webinar series, where GoGlobal leaders share first-hand expertise on hiring across the globe. Stay tuned for future editions covering Europe, the Middle East and Africa (EMEA) and the Americas.
Schedule a consultation with our international HR experts today for personalized guidance on your APAC expansion strategy.
