1. Strategic Considerations in Establishing HR Operations Overseas Janet L. Walsh

2. Global Differences in HR Definition of employer/employee Hiring/firing authority Statutory requirements Required compensation Compensation systems Union representation Termination decisions Labor law requirements Tax implications Financial requirements Management power and authority Management training Communication skills, requirements, capabilities Cultural differences Work rules (C) 2014 Birchtree Global, LLC PSST…It’s all different!

3. Long-term Goals Financial Objectives System Integration Ethical Guidelines Corporate Strategy HR Policies HR Tactics HR Infrastructure HR Systems HR Strategy Operating Guidelines Statutory Requirements Business Processes Feedback Loops Country Strategy Strategic Alignment Review the corporate strategic plan Create an HR strategic plan or guide

4. Legal Human Resources Financial Caution-Radioactive! Critical Relationships

5. Confusion Builds Quickly (C) 2014 Birchtree Global, LLC Use a template!

6. The Global 20 © Corporate Strategy Finance Metric Measures HR Strategy Tax Incorporation Technology Communication HRIS Culture Ethics Professional Qualities Labor Law Staffing Expatriates Compensation Statutory Benefits Non- Statutory Benefits Performance Management Training Safety and Security (C) 2014 Birchtree Global, LLC6 Strategic ConcernsTactical Concerns

7. Finance and Metrics Why are finance and metric measures so important? HR metrics are tied to corporate metrics Corporations financial performance is a critical measure of confidence for the business Financial measurement is the foundation of cost/benefit decisions for which HR leadership is responsible In an emerging market the financial and operational costs may not be well known or established. Given HR costs are a large portion of non-manufacturing budges, accurately estimating HR costs and expenses throughout the business life cycle of expansion and contraction is information critical for strategic planning Financial measures and metrics are the preferred communication style of C-Suite leaders. Corporations and key executives are measured on their ability to manage business finances (C) 2014 Birchtree Global, LLC7

8. Tax Considerations A. Corporate Tax Considerations B. HR Payroll and Benefit Taxes C. Expatriate Tax Considerations (C) 2014 Birchtree Global, LLC8 Your company without pre-planning and careful consideration….

9. Labor Law A. What is the definition of “Employee”? B. Why does size matter? C. Who’s labor law controls expatriate employees? D. What is “Data Privacy” and why do we care? F.Foreign Corrupt Practices Act and others G.Leased employees-a minefield of problems (C) 2014 Birchtree Global, LLC9

10. Statutory Benefits What benefits are required by law or convention? Health Insurance Vacation Payments Bonus Where to find this information? (C) 2014 Birchtree Global, LLC10

11. Strategic Recommendations Develop corporate and industry expertise Measure HR activities using corporate metrics Develop and use an HR strategic plan Grow HR’s competitive advantage Know the legal tax implications Use technology to manage processes Hofstede’s cultural dimensions matter Establish a global ethical platform Over communicate (C) 2014 Birchtree Global, LLC11

12. Tactical Recommendations Know the labor law in each country Pre-plan and cost all expatriate projects Think about the “golden rule” Think in terms of top line/bottom line Hire wisely Use all of a total rewards strategy Give performance appraisals Reward high performers Be action oriented and politically savvy Develop feedback loops for information (C) 2014 Birchtree Global, LLC12

13. Helpful Information HRPA, EAPM, SHRM World Bank Inter-American Development Bank United Nations Brookings Institute Embassy websites-business section Canadian Business The Economist University library with dissertations World Trade Center Associations Forum for Expatriate Management Bi-lateral trade associations i.e. Brazilian Chamber of Commerce Business websites Government sites Wikipedia MOOCS-Coursera, Udacity, edX LinkedIn Industry professional associations Major newspapers Research organizations i.e. international development research center (C) 2014 Birchtree Global, LLC13

14. (C) 2014 Birchtree Global, LLC14 Birchtree Global, LLC Janet L. Walsh CEO and President Birchtree Global, LLC 44 Roosevelt Drive, Suite 321 Bedford Hills, NY 10507 http://www.birchtreeglobal.com walsh@birchtreeglobal.com Phone: O1 (914) 218-3149