For SMEs that want to compete on a level playing field in a global market, going global enables HR leaders to leverage their company’s core competencies to enter new markets quickly and effectively. Virtus Mind Expat Management Services (EMS) provides a comprehensive solution that helps SMEs hire the best and brightest talent and expand their business by managing their expatriate workforce.
Our EMS solution is designed to help HR teams quickly and easily hire, pay, and manage team members in new markets while maintaining compliance with local employment regulations. Often, traditional expansion methods create operational challenges overseas. If your business is established in a country where labor laws are too complicated and/or there are associated complications with labor costs (such as taxes being too high) that make expansion prohibitive, Virtus Mind EMS can help. Our Expat package will allow you to save a significant amount of money, pay your resource more if desired, and decrease the administrative effort involved in managing your overseas team.
We also offer a pay-as-you-go model that helps you control costs, and our team of experts will work with you to develop a customized solution that meets the unique requirements of your business.
You maintain day-to-day control of your team, while we manage payroll, benefits, risk mitigation, compliance, and ongoing employee support.
How does Virtus Mind EMS work?
Virtus Mind utilizes its global infrastructure and locally compliant employment contracts to hire your workforce and becomes their legal Employer of Record – so you can focus on running your business.
Essentially, all expatriates fit into one of four categories, according to Dowling:
Foreign correspondent
As a foreign correspondent, the expatriate remains employed and paid by the home country employer entity while working abroad. The place of employment shifts to the host country, but there is no local host country employer entity and, thus, no in-country visa sponsor. It’s important to know that this structure violates payroll laws in many countries.
Secondment
In the secondment model, an expatriate remains an employee of the home country employer entity but is assigned to render services to a host country entity, typically the employer’s affiliate or business partner. The place of employment shifts to the host country. Either the home or host country entity – or both – may pay the expat, or the home country entity may pay the worker and the host country entity issues a “shadow payroll,” and reports the expat’s income to authorities to comply with local laws and regulations. Then, the host country reconciles the amount paid each payroll period with the home country’s employer.
Temporary transferee or localized expatriate
As a temporary transferee or localized expatriate, an expatriate transferee resigns from the home country employer, moves overseas, and then is hired and paid by a new host country employer. Often, this new employer is an affiliate of the initial employer but may be a third-party employer.
Joint employee
The joint employee arrangement works in two ways. Either an expat is simultaneously employed by the home and host country employer entities, or actively works for the host country employer entity with the home country employment agreement suspended or “hibernating.” The place of employment usually shifts to the host country, and the host country employer can sponsor a visa.
International PEO (Professional Employer Organization)
Businesses that want to go global lower their risks and gain more control when they opt for an International PEO partner to compliantly hire overseas. This option eliminates the risks of being non-compliant with the multitude of issues that come with operating in a new country. This is because the startup requirements for hiring overseas are outsourced to an experienced firm. An International PEO manages the working relationships, including independent contractors, which saves your company from those expensive risks. This leaves businesses free to focus on developing their product or service and managing their customer base.
One facet that an International PEO does not cover is the holding of physical assets. If your firm operates in real estate or manufacturing, you will need to establish a foreign subsidiary.
Utilizing the International PEO model, Virtus Mind hires the employees and becomes their legal Employer of Record. You maintain full day-to-day management of the employees while Virtus Mind becomes an extension of your internal HR department and manages your supported employees’ payroll, expenses, benefits, and ongoing support.
What our expat management services include: an overview
Management
Don’t let the logistics of managing global employees be a barrier to your hiring goals. We provide fast and compliant onboarding, payroll, and benefits administration, so you can focus on what matters most: your team.
- Payroll: We Provide accurate, on-time payroll for your workforce in any country, every time.
- Visa assistance: We can offer assistance with applications for the necessary VISA for the Expat we manage.
- Travel: We can arrange all Expat’s travels for you including, but not limited to booking flights, hotels, cars, etc.
- Logistic: We can manage the rental of living accommodations for the expat, including houses, guest houses, apartments, etc.
- Insurance: We take care of all necessary insurance including, but not limited to health and travel insurance.
Recruitment
We act as the liaison between job seekers and employers. We have extensive experience working on behalf of employers to find the most qualified candidates to fill vacancies. We also utilize the latest technology, resources, and systems to identify, screen, and evaluate job candidates to provide solutions to the highest standards.
Benefits
Fast Market Entry
Don’t wait months to establish an entity – get your business up and running quickly in a new market in a matter of days.
Flexibility
Maintain flexibility with no long-term commitments on employee costs
Tax Relief
Cost savings: save up to 60% compared to the cost of establishing a foreign entity and the ongoing maintenance costs in-country
Stress-Free
- Reduce overhead costs
- Mitigate risk by ensuring your company, intellectual property, and supported employees are protected
- Streamline processes with a provider that manages compliance, payroll, and benefits, and simplify your international invoicing
Pay as you go
We offer a pay-as-you-go service with no long-term commitments, so you can easily scale up or down as needed.
Improve efficiency and productiveness
When you work with us, you can focus on your core business goals and leave the logistics to us. We have a team of experts who are ready to support your expansion into new markets, freeing you up to focus on what you do best.
