Expanding into a new country can sound straightforward. Hire people, establish payroll, put policies in place and get on with the business. In reality, international expansion can expose gaps in an HR function that were never visible in the home market, from compliance and employment models to payroll and culture.
In this UC Today conversation, Kristian McCann speaks with Vivian Forero, CHRO at Ontop, about what HR leaders get wrong when they begin scaling people operations across borders. Drawing on Ontop's experience as a global company with more than 187 people across more than 35 countries, Forero offers a practical view of what needs to be considered before, during and after international expansion.
Forero breaks the challenge into three areas: legal, operational and human. HR leaders need to understand which employment model works in each country, ensure people are paid correctly and on time, and find ways to create a shared culture when employees may never physically work together.
The Hidden Cost of Building for Every Market
One of the biggest mistakes, according to Forero, is assuming that the best way to enter a new market is to establish a legal entity and hire employees directly. Ontop experienced this itself, establishing entities in countries including Brazil, Mexico, Colombia and Spain before recognising the time, cost and operational complexity involved. Establishing an entity can take three to five months, which can be a significant delay for a fast-growing company.
That delay can have consequences well beyond HR. If a business is waiting months before it can make its first hire, it is also potentially delaying market entry and revenue. And candidates are unlikely to wait indefinitely. As Forero puts it:
"Great candidates don't wait around for your legal entity to establish to be incorporated."
If a competitor can make an offer within a week, a company taking several months to become operational can simply lose the talent it wanted.
There can also be an impact on workers' compensation and cash flow. Hiring through a legal entity means accounting for local taxes, insurance and benefits, all of which can affect the amount a worker ultimately receives. Forero argues that independent contractors can provide greater flexibility in some circumstances, allowing individuals to manage those expenses according to their own situation and local requirements.
The broader issue is speed. Forero describes velocity as one of the most important resources for a growing business, arguing that HR infrastructure should enable expansion rather than slow it down. Ontop's own experience of managing more than 18,000 active contractors across more than 114 countries has reinforced the idea that some elements of people operations do not necessarily need to be built internally.
Building an HR Function That Can Change
The answer is not to remove structure, but to build an HR operation that can adapt. Before hiring, Forero recommends evaluating the available employment models in each country and understanding which one best fits the company's circumstances and stage. Where that expertise does not exist internally, HR leaders can use partners and platforms to understand regulatory requirements and local market conditions rather than attempting to develop everything from scratch.
