Managing projects and employees domestically is a massive and time-consuming task.
But when such transactions must happen internationally, the level of complexity reaches an entirely new level.
One of the big obstacles is making decisions on how to onboard transitioning employees in countries where there is no established company entity.
All of the time, money, and expertise that it takes to pull off such a move can cause three challenges:
1) Employee readiness on day one
Often, time and money cause the acquiring company to leave employees with the seller. Even when willing to pay additional transitional service agreement (TSA) costs, it only pushes the problem down the road. The buyer needs a long-term, sustainable plan for setting up transitioning employees at deal close and beyond.
2) Benefits stability
In addition to getting paid on time, newly acquired employees need the assurance of comprehensive, continued benefits coverage. From holidays to bonuses to health care, it’s difficult to understand what the standard is from country-to-country. The buyer needs to establish a location-specific benefits strategy to keep employees whole, and a means to implement the global benefits plan of choice.
3) Communication to new employees.
Managing the communications to newly acquired employees during the transition period is critical to long-term retention. The buyer needs a clear communications strategy to help alleviate apprehension and promote trust during the transitional period.
To counter these challenges, buyers and sellers can implement a Global Employer of Record model to help manage employees around the world.
To find out more about this process, click the link below for more information.