Crtitical Time To Rebalance Your European Workforce?
Is it time to rebalance your European workforce? US companies with a European presence will need to consider things carefully as HSBC becomes the first to jump as a potential no deal Brexit approaches.
The ability of businesses to strategically understand and plan HR and Payroll as part of political and regulatory developments in Europe has become more pressing following HSBC’s announcement to move seven of its European-focussed offices to Paris early next year.
The move, in advance of Brexit in March 2019, doesn’t come as a shock but should see the start of a changing strategy for businesses in the UK and internationally as no deal becomes a real possibility. HSBC, who have long said that they would leave any change to the very last minute, have obviously assessed the situation and have concluded that they can wait no longer.
More international companies may now consider moving part of their operations from the UK amid continuing concern about Brexit, as reported by International Investment.
Planning to Rebalance your European workforce?
The seven offices involved in HSBC’s move were all based in London. But the change will see them moving to Europe, with up to 1000 jobs affected, the BBC reported. The bank’s activities in Italy, Spain, the Netherlands, Belgium, Luxembourg, the Czech Republic and the Republic of Ireland are affected.
British rival Lloyds Banking Group is planning three such subsidiaries in Europe, Reuters reported last month, while Barclays has made its Irish unit its new European hub while also shifting jobs to Frankfurt.
Bank of America is set to move 200 jobs to Paris.
The UK market is still however a big economic market, but US companies may choose to dot some employees within Europe to maintain the best of both markets.
Moving to a new European country is not easy
If you thought all of Europe worked in the same way in terms of HR and Payroll legislation and in-country arrangements, you’d be sadly wrong.
From Declaration Nominative Annuelle (DNA) in France and Berufsgenossenschaftsmeldung in Germany to municipal business tax in Switzerland and SKAT in Denmark, placing or relocating people from the UK will be difficult, and strategically need to be planned now. Luckily there is help at hand if you decide to change your strategy, with the best Global HR and Payroll outsourcers able to help at strategic level with your next steps.
You may decide that no action is needed or that there is no need to rebalance your European workforce, or conversely that the time is ripe to start further European expansion. Either way the political and economic lines will change in March 2019 and US companies should ensure they have the right representation in Europe to maximize opportunities