The professional services industry has experienced significant growth and transformation recently. Despite economic uncertainties, the sector is expected to grow from USD 65 billion to USD 88 billion by 2028, according to Statista.
As professional services firms increasingly adopt global expansion to drive innovation, many encounter a host of challenges in new markets, including complex compliance regulations. Navigating international employment laws, managing cross-border payroll and benefits, addressing cultural and communication barriers, and finding and retaining competitive global talent are critical hurdles for all companies planning to expand.
Fortunately, all these challenges can be addressed by leveraging the strategic benefits of an Employer of Record (EOR). Let’s take a closer look at some of the specific obstacles professional services firms often encounter during global expansion and how an EOR can help simplify these complexities.
Top global hiring hubs for professional services roles
Hiring beyond borders is a proven competitive advantage for professional services firms, but many leaders struggle with the question: “Where is the best talent located, and how can we secure these professionals?”
Answering this question requires careful planning, conducting market research to understand competitive salary and benefits packages, and developing a comprehensive onboarding program that includes cultural integration, training, and mentorship programs to help new hires adapt to their roles.
Below is a listing of some of the top global talent hubs for professional services firms and roles each hub is known for:
India
India is emerging as a key player in IT and business process outsourcing (BPO) services. Cities like Bangalore, Hyderabad, and Mumbai are known for their skilled professionals in IT, consulting, and software services. Top roles in these regions include data scientists, cybersecurity specialists, legal consultants, and market research analysts.
Brazil
Brazil is increasingly emerging as a top region for professional services firms, with skilled specialists known for their expertise in financial services and business consulting. Top roles include market analysts, account executives, and legal advisors.
Singapore
As a major financial hub in Asia, Singapore hosts a significant number of professionals in finance, legal, and business consulting roles. Its strategic location and business-friendly environment make it a preferred destination for global hiring and recruiting. Singapore is known for its financial analysts, business consultants, and business development manager roles.
Spain
Madrid and Barcelona are growing hubs for professional services, particularly in consulting, finance, and technology. Top roles in these regions include financial analysts, business development managers, project managers, and customer success managers.
United States
The U.S. remains a top destination for professional services firms, particularly for roles in consulting, finance, and legal services. Cities like New York, San Francisco, and Chicago are known for their concentration of top-tier talent in these fields. Popular roles in these cities include financial auditors, tax advisors, legal advisors, and HR managers.
Key challenges in global hiring and compliance for professional services firms
- Navigating international employment laws and regulations
Understanding and complying with the employment laws and regulations in different countries can be hard to handle for companies new to global expansion. Each country has its own legal framework, and noncompliance can result in costly legal and financial consequences. Standards that are considered compliant in the United States might not be acceptable in Germany or Japan.
Here are a few examples of the kinds of market-specific rules and regulations your company will need to watch out for as you plan your expansion.
- Employment contracts, termination, and severance in Spain
In Spain, employment contracts must be in writing. There are different types of contracts, including indefinite, temporary, training, and apprenticeship contracts. Each type has specific requirements and conditions. Spain has strict regulations regarding termination — employees are entitled to severance pay in certain circumstances based on their length of service, and all terminations must be justified. Unfair dismissal claims can lead to increased severance requirements and additional compensation for the employee.
- Employment contracts, working hours, and overtime in Mexico
Employment contracts in Mexico are generally for an indefinite period, unless the employer can demonstrate that the nature of the work performed requires a fixed-term or when it is temporarily replacing an existing employee. Contracts should clearly state the terms of employment, including salary, job description, and working hours. The maximum weekly work hours in Mexico is 48 hours. Any work beyond this is considered overtime and must be paid at a rate of 100% above the normal hourly wage. Overtime is limited to three hours per day and three times a week.
- Employment contracts, severance, and working hours in Canada
While employment contracts in Canada are not always required to be in writing, it is highly recommended to do so. Employment contracts should outline the terms of employment, including salary, benefits, job responsibilities, and termination conditions. Standard working hours in Canada vary by province, typically around 40 hours per week. Overtime regulations also vary, but generally, any work beyond the standard hours must be paid at twice the employee’s regular hourly rate. In many provinces, certain roles, such as managers, are exempt from overtime pay. Termination laws in Canada also differ by province. Generally, employees are entitled to notice of termination or pay in lieu of notice. Severance pay is also required in some provinces, based on the length of employment and other factors.
2. Managing cross-border payroll and benefits
Administering payroll, taxes, and benefits across various jurisdictions is a huge undertaking. Each region has its own tax, benefits, and payroll reporting requirements, which can be a significant administrative burden for professional services firms and increase the risk of expensive mistakes. Ensuring timely and accurate payments while complying with multiple regional laws is critical for maintaining employee satisfaction and compliance.
3. Finding and retaining top global talent
The competition for skilled professionals is fierce worldwide. Building a cohesive team from a geographically dispersed talent pool requires an effective talent management strategy and strong retention efforts. Professional services firms need to adapt to the local job market and understand what motivates top talent in different regions.
How to overcome global hiring and compliance hurdles with an EOR
- Ensuring compliance and risk management
An EOR handles the complex compliance issues associated with global hiring. They ensure adherence to local employment laws and regulations, including those related to employment contracts, significantly reducing legal and financial risks. By partnering with an EOR like G-P, professional services firms can confidently expand their global footprint without the worry of costly penalties.
- Simplifying and streamlining global payroll and benefits administration
EORs manage payroll, taxes, and benefits administration across multiple regions and countries, ensuring accuracy and compliance across distributed teams. This not only reduces the administrative burden for internal teams, but also saves time and money.
- Accessing global talent pools
EORs can help professional services firms hire competitive talent from around the world. By eliminating the need for entity setup, EORs provide access to global talent pools and help professional services firms like yours to quickly scale operations in new markets, ensuring you have the right people in the right places.
- Improving focus on core business activities
Delegating HR and administrative tasks to an EOR allows professional services firms to concentrate on core business activities. This strategic advantage facilitates a stronger focus on client service and business development, driving overall growth and expansion goals.
Maintain your competitive advantage and enter new markets faster with G-P.
If your professional services firm would like to hire in a specific region or expand to new markets but doesn’t have an entity, G-P can help. As a global EOR and recognized leader in the global employment industry, we provide HR, legal, and compliance support at your fingertips, so you can build teams anywhere.
With our industry-leading suite of global employment products, companies of all sizes can hire, onboard, and manage global teams in 180+ countries. Partner with us today to unlock global talent and fill critical professional services roles like business development managers, legal advisors, and financial analysts, quickly and compliantly.
Contact us or request a proposal to learn more.
