Round-Up: Lessons Learned From Our 5 Most Popular Blog Posts of 2022

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As we close out the year and prepare for the start of 2023, there’s both an air of caution as well as compelling reasons to be optimistic when it comes to international business and HR.

On one hand, many companies are concerned about an ongoing economic downturn or even a recession. At the same time, we’re seeing more HR departments explore innovative ways for combating the converging conditions of a tight labor market and budget crunches, such as hiring through an Employer of Record (EOR). 

While it’s difficult to predict what 2023 has in store for us, we decided to look back on five of our most popular blog posts in 2022 and share some key lessons learned — think of it as the best of our best! 

1. Survive and Thrive: Using an EOR in a Downturn

Our global HR experts were ahead of the curve when they suggested a blog post early on in 2022 explaining how an EOR can help companies weather the storm of an economic downturn. Lo and behold, as 2022 unfolded, the dreaded ‘R word’ crept its way back into our daily vocabulary. 

In this blog post, we explore how companies can apply an EOR hiring strategy to restructure or wind down, gain flexibility in hiring and hire where the talent is – even when the purse strings are being tightened! 

Lesson Learned: “The pandemic and its resulting economic volatility have shifted the global talent market tremendously. A pre-pandemic talent strategy may not work today, especially with labor shortages, inflation, uncertainty and the uptick in remote work. The EOR hiring model greatly expands a company’s potential talent pool and enables them to engage workers anywhere in the world.” 

2. Global Recruitment: An Essential Tool in Winning the Race for Talent

Despite the global economic slowdown, the Race for Talent does not appear to be slowing down any time soon. For instance, according to recent research conducted by Mercer, 70% of companies surveyed in Asia-Pacific said they were struggling to attract talent.

But all is not lost, thanks to a growing pool of remote talent in emerging markets like Nigeria, Egypt, India and the Philippines. As a result, the traditional tech hubs – such as Silicon Valley and Seattle in the United States – are no longer the only source for exceptional tech talent. 

Accessing this talent, however, can be rather difficult. This post written by GoGlobal partner Nick Broughton explores how companies are tapping into EOR partners that offer both recruitment and hiring solutions so they can dive into new talent pools. 

Lesson Learned: “By working with an EOR that is also able to recruit, companies can develop an end-to-end global recruitment strategy based on finding the right people for the right role at the right price.”

3. Applying EOR in an M&A Carve Out

M&A activity may have lagged behind in 2022 but rising pressure to liquidate non-core business lines amid a recession, along with lower valuations, may shake things up in 2023 – especially in terms of carve outs. 

While any corporate transaction can be a complex process, a cross-border carve out deal can prove to be especially challenging in terms of talent management. That’s because carve outs often produce ‘orphaned employees,’ meaning there’s no in-country legal business entity to employ the acquired talent. 

In this post, we explore how an EOR solution can help bridge talent gaps and support quick, compliant hiring during a carve out. 

Lesson Learned: “An EOR solution is often an ideal solution for addressing the issue of orphaned employees in carve out deals, serving either as a transitional bridge for larger headcounts or as a long-term solution for smaller headcounts in-country.”

4. Are You Sure Your Independent Contractor is Not an Employee?

Some companies may look to engage an independent contractor (IC) rather than bringing someone on as a full-time employee. While sometimes this is intended to contain fixed costs, it works best when a company requires a specific service and can tap into professionals with the necessary expertise.

In order to maintain a compliant principal-contractor relationship, companies must follow certain parameters when engaging an IC. The regulations vary from country to country, but the typical rule of thumb is that an individual is an IC if the company (the client) has the right to control or direct only the result of the work – and not what will be done nor how it will be done.

Failure to comply with regulations can result in fines, penalties and implications for permanent establishment, which can open a company up to tax and legal liabilities. In this blog post, we offer compliance guidelines for engaging ICs and also offer insights into how an EOR solution can help mitigate these risks. 

Lesson Learned: “The misclassification of contractors can present global businesses with enormous damage in terms of added tax liability, fines, legal troubles and reputation. In some markets, misclassification can even restrict a company’s right to operate. At GoGlobal, we work with clients to ensure proper classification compliance across the entire workforce – from current team members to new hires.”

5. Four Considerations for Managing a Digital Nomad Workforce

 After years of stalling, travel is now back in full swing and 2023 may be a record year for global travel, according to two separate studies from American Express Global Business Travel and Travel Experts

With remote work now a permanent fixture in many companies, it’s safe to say at least some of the boom will come from remote workers who choose to travel the world and work from any location they wish. 

But what does the rise in “digital nomads” mean for employers? In this blog post, we take a look at four key HR considerations companies with remote teams should take into account when approaching the new world of travel and work.

Lesson Learned: “The Employer of Record (EOR) hiring model can help companies circumvent many of the risks associated with employing remote workers. Hiring through an EOR effectively protects both the company and the individual by minimizing the global tax footprint, ensuring compliance, mitigating risks of permanent establishment, promoting IP protection, streamlining cross-border payroll, offering options in benefits, supporting recruitment and saving all parties time and money.” 

Thinking of global expansion or hiring in 2023? Check out our ‘What is an EOR?’ guide or contact us to talk with an international HR expert.