10 GUIDING TIPS FOR SETTING UP REGIONAL OFFICE

10 GUIDING TIPS FOR SETTING UP REGIONAL OFFICE HR Related Considerations 1

Setting Up Regional Office : Guiding Tip 1 ü UNDERSTAND More about the country in terms of culture, availability of resources / labor 2

Setting Up Regional Office : Guiding Tip 2 ü EXPAND Personal network by visiting the HR council, institutes and local HR manager of other firms 3

Setting Up Regional Office : Guiding Tip 3 ü MEET HR consultants, tax consultants, and/or legal advisors to get advice on: - establishing local handbook or standard employment contract - setting up staff insurance scheme for mandatory requirement and staff benefits 4

Setting Up Regional Office : Guiding Tip 4 ü GET In touch with headhunters and personal agencies to: - know more about the labor market - get more salary information for budgeting - check the local package 5

Setting Up Regional Office : Guideline 5 ü CHECK - The statutory requirement for local employment and expatriates assignment - Immigration Law e. g. Any restriction to foreign workers? What are the work visa process and requirements? - The tax policy of ‘allowable duration of stay’ e. g. Travelers are subject to tax if they travel to a country for more than a certain no. of days a year (the traveler may need to keep record for the traveling schedule and plan ahead for tax efficiency) 6

Setting Up Regional Office : Guiding Tip 6 ü CONSIDER to hire a local HR or outsource the payroll / tax function to local service provider particularly in those countries of complex social security and/or withholding tax systems (Depends on the business plan and affordability) 7

Setting Up Regional Office : Guiding Tip 7 STATUTORY REQUIREMENT Ø UNDERSTAND local employment and other HR related legislation having an impact on devising your HR strategy or policy. e. g. minimum wages, maximum no. of working hours Ø UNDERSTAND local tax law having an impact on compensation/ benefit policy/ tax liability for staff seconding or expatriate assigning 8

Setting Up Regional Office : Guiding Tip 8 STAFFING REQUIREMENT Ø Positions require: Østaff relocation from head office / regional headquarter to different countries Øto be filled by local employees with reference to availability in the local labor market 9

Setting Up Regional Office : Guiding Tip 9 HR STRATEGY / C&B POLICY Ø MAKE reference to the HR strategy / C&B policy of the head office and determine which strategy / policy should apply regionally or globally e. g Salary scale and types of benefits for different levels of staff Ø DETERMINE policy applying to international staff assignments e. g. Employees assigned from overseas may follow the terms offered in the country they originally reside (Cont’d) 10

Setting Up Regional Office : Guiding Tip 9 HR STRATEGY / C&B POLICY (Cont’d) Ø DETERMINE what employment terms need to be adapted to meet the local minimum requirement e. g To employ HK staff, the minimum employer contribution to the local MPF system is 5% of the staff’s relevant income Ø “SERVICE PAY” - HR should inform Finance to accrue the fund in their books if there’s a potential liability in paying the employees upon their separation from the company Ø SALARY level will usually follow local cost of living and inflation 11

Setting Up Regional Office : Guiding Tip 10 OTHER RECOMMENDATION FOR SELF-STARTER Ø SEARCH through websites for information on employment law & economic data in each country Ø VISIT official websites frequently, keep abreast of the changes Ø READ and understand the legislative document as far as possible to analyze different sources of information 12