$640K Avoided in Potential Employment Compliance Infractions

In today's globalized tech landscape, accessing international talent is no longer a luxury —it's a necessity. However, with great talent comes great responsibility, particularly in navigating the complex web of global employment regulations. You're likely all too familiar with the compliance headaches that come with hiring international contractors. But what if there was a way to tap into global talent pools without the compliance risks?  

The compliance conundrum

Before we dive into the solution, let's acknowledge the five main pain points:

1. Constantly changing international labor laws
2. Risk of misclassifying employees vs. contractors
3. Complex tax regulations across different countries
4. Potential for severe penalties for non-compliance
5. Time and resources spent on managing compliance instead of core business activities

These challenges can keep even the most seasoned tech and HR leaders up at night. The stakes are high, and the consequences of getting it wrong can be severe.

Leave the groundwork to us

A 2024 Forrester Consulting Total Economic Impact™ study commissioned by Andela, has shed light on a compelling benefit of Andela’s talent marketplace: significant cost avoidance on compliance-related risks.

Key Finding: The study estimated that organizations avoided a potential $640,000 in compliance infraction costs over three years by partnering with Andela.

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Let that sink in. That's over half a million dollars saved, not to mention the peace of mind that comes with knowing you're operating within the bounds of international labor laws.

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How Andela mitigates compliance risks

1. Streamline compliance processes: By centralizing compliance management, Andela eliminates the need for your organization to create and maintain complex policies and procedures for each country you hire from.  ‍
2. Stay ahead of regulatory changes: Andela’s global team monitors changes in international labor laws, ensuring that your talent engagement complies with regulations. ‍
3. Proper worker classification: One of the biggest risks in international hiring is misclassifying employees as contractors or vice versa. Andela's model ensures that all talent is properly classified, significantly reducing this risk.  

Real-world impact

When interviewed by Forrester for the TEI study, a Global Executive Director at an advertising and marketing company shared:

Andela takes away risk from our organization. We don't have to deal with global staffing paperwork that include taxes or transfer pricing, all that is out the window. Andela's service level agreement to handle that removes those risks."

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This sentiment is echoed across industries. Tech leaders are finding that partnering with Andela not only gives them access to top-tier global talent but also removes a significant administrative and legal burden from their plates.

The bottom line

When you factor in the potential costs of worker classification compliance infractions — which can run into millions of dollars for severe cases — the value of Andela's model becomes clear. By avoiding $640,000 in potential infractions over three years, you're not just being fiscally responsible; you're protecting your organization's reputation and allowing your team to focus on what they do best: innovating and delivering value.

Moreover, this compliance benefit is just one piece of the puzzle. The Forrester study revealed a total ROI of 97% for organizations partnering with Andela, factoring in benefits like accelerated hiring, increased productivity, and cost efficiencies.

In a world where tech talent is global, but regulations are local, Andela offers a bridge to seamlessly and safely build your international team.  

Ready to transform your approach to global tech talent and compliance? Explore how Andela can help your organization accelerate your projects, deliver ROI, and onboard faster, all in a compliant manner.

Schedule a consultation with our team to learn more about how Andela can drive value and peace of mind for your organization.

Or calculate your own ROI based on your company details. Click the Configure Data bar on the right side of this webpage to get the estimated ROI of using Andela's talent marketplace.

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