Nick Ganzha | CEO | Acumen International
How Acumen’s work in 2021 helped shape the future of international business operations and Acumen’s role as a Global Employment industry leader in 2022 and beyond.
An interview with Iryna Oprya, Acumen International’s Media Head
The global pandemic has posed new and unforeseen challenges to multinational companies, forcing them to adapt quickly. The complex restrictions imposed on business operations by governments have made matters even worse. As a result, many international companies and those in the early stages of global expansion are looking for innovative ways to hire global talent with minimal red tape and low financial and compliance risks.
Global PEO/EOR providers offer creative ways for globally expanding companies, regardless of size or location, to work around newly imposed restrictions.
Thanks to our agile and perceptive response to global upheavals, the Global Employment industry is experiencing unprecedented growth. Experts project that the market for international PEO services will reach around $800 million USD by 2025, up from $478 million in 2019.
To elaborate on the forecast and learn how Acumen has stepped up to meet the latest industry developments, we interviewed our CEO, Nick Ganzha. We asked Nick to reflect on what the forecast means for our company and on the challenges, transformations, and aspirations he expects Acumen to encounter in the near future.
Iryna Oprya (IO), Media Head, Acumen International:
My guest today is Nick Ganzha – Nick, welcome!
Nick Ganzha (NG), Founder and CEO, Acumen International:
Thank you so much for having me.
IO: Nick, I hope this interview can give our readers an overview of the past pandemic years and their impact on your professional sphere.
Can you describe Acumen’s ideal client company? How has the client profile evolved due to recent global changes, such as the pandemic and the shift to remote work?
NG: Our ideal client is no longer just an international company but any company, even local, that bases its global hiring strategy on the best international skills it can find to manage and expand its business.
Advances in technology have transformed the entire globe into a talent marketplace. Previously, companies were limited by geography, and how they operated at home was basically how they operated worldwide. Now, geographic boundaries are less consequential, and even employees living near the home office may not physically come to work for months on end.
In addition, it is crucial for any company that wants to sell its products and services in foreign markets to onboard local workers from the first stages of product development and not wait until a product is ready to sell. An inclusion-based global hiring strategy can help companies better meet the needs and expectations of foreign markets.
IO: Can you provide a glimpse of what’s ahead for Acumen International and our clients?
NG: Analyzing the year 2021, I can say that the future of the global workforce will be some sort of hybrid. Research by Future Forum revealed that 72% of employees expressed no desire to return to the traditional talent engagement model, and they expect the future of work to be a hybrid workforce model.
Research by numerous global HR analysts has proven that when a workforce is well-matched and well-managed, hybrid working models can help companies attract better global talent, build more efficient global remote teams, achieve greater innovation, and build a flexible, productive work model for the future.
IO: What significant challenges do you see on the pandemic’s front-line impact on our clients? How have some countries’ labour laws and regulations altered the business landscape?
NG: Companies used to be able to prepare more leisurely for international growth, but things have become more urgent these days.
During volatile times like these, many businesses face new challenges that require quick solutions. Those challenges are not only financial; they also concern human resources. As the pandemic continues to spread around the world, it is essential for businesses to remain agile. This applies especially to multinational companies that work in multiple countries and face numerous new legal regulations they must comply with.
One ongoing trend is radical changes to employment, tax, and payroll laws in various countries in response to COVID-19. With local laws continually changing, global companies are challenged with engaging their global workforce in low-risk and cost-effective ways.
The biggest challenge for global employers and the staffing and recruiting agencies we work with is rapidly adapting to changes while staying compliant with evolving labour laws. Companies have had to quickly adapt to remain compliant, adjusting their global employment and payroll processes and immigration policies along the way. The three significant challenges global companies face are compliance issues, protection of intellectual property, and data privacy.
From a tax compliance point of view, permanent establishment risks pose some of the most significant hurdles.
Permanent establishment risks occur when local tax authorities in a foreign country determine that your business is continuously operating in that country rather than sporadically. The business can then be declared a permanent establishment, liable for all corporate taxes. According to the local tax rates, a company deemed a permanent establishment becomes subject to all taxes imposed for profits generated within the country. In addition, the company can be levied charges for interest on the taxes, depending on the country and the time during which the company’s activities took place.
In addition, many anti-discrimination laws are being adopted in numerous countries, and in-country regulations are becoming ever stricter. Governments prohibit employment discrimination based on ethnicity, race, religious beliefs, sex or gender, pregnancy, sexual orientation, civil status, and a host of other potential scenarios.
The same applies to terminating or laying off global employees. Employee termination can be difficult outside of the United States, even in “normal” times. Many countries strictly regulate the terms under which an employee can be dismissed. Other than in cases of serious misconduct, workers cannot be arbitrarily fired on short notice.
If anything, the pandemic has amplified the issue, causing disruptions in multiple facets of business that demand the downsizing of staff, at least temporarily. A January 2021 report by the International Labor Organization (ILO) reported massive disruptions in global labour markets throughout 2020 after the pandemic break-out, resulting in an 8.8 per cent loss of working hours, which translates to the loss of 255 million full-time jobs worldwide. As recently as late October 2021, the ILO warned that the recovery of the global market had stalled, with significant disparities between advanced and developing economies.
To circumvent compliance requirements for job termination, some companies put employees on furlough, meaning they remain technically employed with reduced hours or are placed on leave without pay. Other companies have been forced to temporarily lay off their employees while they scale down or close their operations, intending to rehire them once business returns to normal.
In either case, global businesses risk violating labour laws and facing fines and penalties, which can worsen a bad situation.
In the United States, the pandemic has forced millions of Americans to suspend their normal daily activities and stay home. The US government has issued business loans to small businesses to help retain their workforce under slowed or disrupted business operations conditions.
Measures were taken in response to the COVID-19 mark, significant changes in termination policies, unpaid leave, salary support, reduced work hours, and extended unemployment. For global businesses, the expenses imposed by COVID both at home and abroad can be crippling, especially if local labour laws in overseas countries prohibit them from laying off or furloughing employees.
IO: On that note, how has the pandemic impacted the benefits strategies of international companies for their global teams?
NG: Globally distributed teams that operate remotely are facing several challenges. Countries worldwide are adopting new rules and laws impacting business operations, including global employee payments and benefits. Imagine dealing with legislative changes in multiple countries to handle international pay and employee benefits for your global workforce!
Beyond the minimum required by in-country laws, providing additional benefits can be crucial to employee retention for international companies and an attractive draw for top global talent. Acumen’s one-stop-shop global employment solutions help businesses deftly adjust to rapidly changing regulations that impact employee compensation in 190 countries where Acumen provides core global employment services. We help our clients offer the best-matched benefits according to each country’s requirements and their individual business needs.
IO: What about immigration? How has the pandemic impacted the ability of global businesses to relocate personnel from one country to another?
NG: A pause in most types of immigration worldwide has imposed lengthy visa application processes and rigid rules for international travel. This has especially impacted companies in the USA that rely on foreign workers to fill certain job vacancies. It has also affected companies needing to relocate overseas employees to run their business operations.
In many cases, countries have imposed quotas for the number of ex-pat workers who can legally enter and remain in the country, severely impacting global business operations when qualified local talent cannot be found.
In addition, we cannot ignore the global political climate. For example, Brexit has upended many UK and EU businesses. And Britain’s IR 35 legislation disincentivises many global companies from hiring contractors. California’s bill AB5 has reclassified numerous independent contractors as employees in the US, costing businesses billions of dollars.
Today, international companies are faced with the question of whether to reclassify their contractors as employees, what pitfalls they can avoid by doing so, and how to go about it.
Fortunately for them, Acumen is one step ahead, ready to save our global clients from costly decisions and help them answer questions such as:
- Why should we convert existing contractors/freelancers into employees?
- What are the incentives for offering employee status to selected global prospects, and what risks are involved?
- How can we meet key legal and taxation requirements and not be overwhelmed by multiple in-country tax and labour regulations when engaging independents?
In our free ‘Employee vs. Independent Contractor’ Checklist, Acumen explains how to streamline decision-making on worker employment status and outlines optimal global hiring methods for our client’s employees.
* Please download our checklist to learn how Acumen’s solutions benefit your business.
Something for international companies to consider today is building teams that blend full-time employees with commission-based professionals. Combining the forces of a direct team and independent contractors allows you to benefit from the specific expertise of some independent contractors while enjoying the reliability and work ethic of a full-time team.
Companies looking to gain a presence in multiple markets can leverage the capacities of an international PEO service provider that offers expansive coverage. As a global PEO company covering 190 countries, Acumen can help you engage a hybrid workforce that devotes 100% of its time to your business. As the legal Employer of Record (EOR), Acumen can onboard and payroll your global workforce in multiple countries on your company’s behalf.
* Learn more details by downloading our ‘Global Expansion Guide.’
Simply put, the world of global employment has never been more volatile, and businesses are looking for innovative HR solutions that simplify and secure international HR processes.
IO: Is Acumen’s Express Global Employment solution the one? Let’s take a minute to talk about it. Nick, why and how is Acumen International currently evolving to respond to the changing needs of our global clients?
NG: Sure. As an industry leader in global PEO, Acumen keeps its finger on the pulse of global business trends, and we respond quickly to changes in the international business landscape. We initially developed our solution in response to global business demands. We’ve branded our service as Express Global Employment, a turnkey solution designed to help our international clients make a footprint in 190 countries worldwide in as few as three business days (72 hours).
Business demands are rapidly changing, and more companies than ever are looking for ways to innovate and venture into new markets or augment their existing teams with international talent.
Our Express Global Employment solution helps businesses of all sizes confidently employ a global workforce quickly and risk-free, in 100% compliance with local laws and regulations.
Acumen’s Express Global Employment service provides a one-stop-shop solution to meet our clients’ needs. Whether you’re an enterprise looking to employ your selected global talent or an agency hiring a global workforce for your clients, Acumen’s Express solution can help you achieve your goals in a few days.
* Please explore our updated website to learn more about the benefits of our solution and how we can assist with your company’s urgent global hiring needs.
IO: Apart from developing innovative solutions, what else is in the works for Acumen in the upcoming year and beyond? And what other challenges are we facing in our efforts to meet clients’ needs in the present global climate?
NG: Our main challenge is finding ways to help our client companies restructure their operations and recover from the impact of COVID-19. By that, I mean the many significant hurdles that global businesses struggle to adapt to, including new working methods, in a relatively short time.
The recent shift to remote work and e-commerce has caused a surge in work-from-home arrangements and a new marketplace for remote workers. The pandemic aside advances in digitalization are making remote work a permanent institution, and Acumen is tracking this trend and discovering ways to optimize it for our clients.
Regarding our work moving forward, Acumen will continue to be a global employment industry leader, staying ahead of further disruptions and leveraging technological innovations to meet our clients’ needs.
IO: Nick, what are your thoughts on technology’s impact on global HR? What trends and technological developments have come about in response to the pandemic, and how will they affect the global employment industry long-term?
NG: Global HR operations need to be further digitalized and platformed. We urgently need to develop new tools in response to COVID and, most importantly, to work towards global payroll automation, transformation, and unification.
IO: What proactive steps is Acumen International taking to incorporate technology into its business practices to meet the needs of our global clients?
NG: The past years’ events have challenged us to respond to the many disruptions and innovations that have upended the global HR industry. Acumen strives to keep a finger on the pulse of global business trends and quickly respond to changes in the international business landscape.
To meet our global clients’ demands and stay ahead of our competition, this year, we released our innovative Global Payroll Calculator (GPC)—a unique online SaaS tool. The GPC was designed to help international employers and expanding companies estimate the cost of hiring global talent in minutes without having to wait for weeks for service provider quotes.
Our GPC transforms the process of calculating the cost of hiring global talent globally. The tool helps multinational businesses and global business service providers quickly calculate payroll costs for local and expatriate talent in 190 countries where we serve our international clients. With Acumen, you can now make faster and better-informed business decisions, streamline budgeting for your global hiring needs and make business operations more cost-efficient.
This year, the Acumen team also had the opportunity to share our accomplishments as a one-stop-shop global employment solutions provider with our industry peers, first at the Staffing Industry Analysts’ Conference on Collaboration in the Gig Economy (SIA GigE 2021) in Phoenix, Arizona, and again at the SIA Executive Forum Europe in London. We were especially pleased to be nominated for a GPA 2021 Award and attend the Award ceremony in London in November.
Our participation in these international events gave us insights into the latest challenges faced by the international HR, staffing, and global payroll community, and we had an opportunity to build strategic partnerships with our industry peers.
As 2021 draws to a close, we look forward to expanding the offerings and capabilities of our Global Employer of Record (EoR) services and incorporating our Global Payroll Calculator product offering.
Our core solutions enable international firms to expand globally and engage global talent in 190 countries. Our new tools add value for our clients in their global expansion endeavours, helping them make informed decisions about talent acquisition and providing customised client support.
Another feather in our cap is being recognised by NelsonHall (a leading US analyst firm) as the best Global PEO. After pioneering our Express Global Employment turnkey solution, we are making strides to develop a suite of self-service tools to support our clients in global expansion, talent acquisition, retention cost modelling, and compliance.
We look forward to presenting our latest innovations to NelsonHall in February 2022 for their upcoming Global PEO Market Analysis.
We at Acumen plan to launch another innovative SaaS product soon, the Global HR Assistant (GHRA). This is our global knowledge base that continually updates the in-country information of 190 countries. It aims to provide our client companies with valuable information to help them make informed decisions about global employment and in-country HR compliance.
IO: How will the new challenges mentioned above influence your efforts to build a strong company culture in the coming years, Nick? What role will company culture play in the future of work in the coming decade?
NG: Culture is foundational to any business. Even companies that don’t focus on their culture still have one, and sometimes, that’s not the one the founder or leader initially wanted to create. Leaders must pay close attention daily to the culture they create by hiring people who share company values and by setting a good example.
When remote work became the norm, it became harder for some individuals to hide behind their teams. Working remotely does not mean that no one sees what you are doing. The value and results you bring to the company become even more visible. In the remote landscape, companies must develop clear KPIs and performance-based rewarding to attract high performers who excel at remote work and do not try to hide behind it.
IO: Thank you, Nick, for this informative and inspiring interview. We began with the International PEO service market forecast. One last question – What is your forecast for 2022 and beyond, Nick? How do you see our industry developing in the coming years?
NG: The industry has changed tremendously in the last couple of years, and the driving force is technology. Many platforms are now designed to ease human work and enhance communication and the flow of documents across departments.
At the same time, we recognize that nothing can replace human interaction. Technology must not be used as a substitute for humans but rather to support them and add value to their work. Companies that combine technology with a human touch will succeed in attracting and retaining clients.
Acumen is a human-first company that uses technology to reduce time previously spent on paperwork and expand the time our managers can spend with clients and their remote workforce. What can be more important to a client than to know that their voice is being heard by a human and not a robot (platform)?
Thank you.