Increasing competition, desire to enter new markets, and diversifying the customer base drives companies to go global. To find your footing, think global.
Global expansion isn’t happening without employing a global workforce.
What is a Global Workforce?
Global workforce refers to the total number of an international pool of workers working for a particular company, connected through a global system of network and production. These are people willing to be engaged in or available for work internationally.
Advantages of International Workforce
A global workforce engages your business in multi-dimensional aspects and thus, serves as the baseline to establish a well-connected, powerful universal front.
ACCESS TO GLOBAL TALENT
As an employer, you always look for the best talents that fit right with your company. Going global, you have more options to choose the best people from. The wider your search is, the more probability of you finding the ideal employees who align with your goals.
According to a report from Josh Bersin, organizations hiring internationally are 1.7 times more likely to transform into innovative leaders. It gives you an edge over the others in establishing an innovative and productive human capital.
COST-EFFECTIVE HIRING
The labor cost and pay structure of developing countries are lesser than the developed countries. You can harness the same levels of an able and competent workforce at a relatively lower budget.
Besides, establishing new businesses in developing countries improves their economy and money influx that favors their progress.
CULTURAL DIVERSITY
McKinsey’s report on delivering through diversity identifies that ethnically diverse companies are 29% more profitable than companies that do not go beyond borders. This reaffirms the link between diversity and financial outperformance, a link that you do not want to miss.
Including a diverse global workforce also brings onboard better employee engagement. Deloitte’s report suggests that engagement is the outcome of diversity and inclusion. The employee engagement levels are reportedly 101% high.
Thus, establishing a global workforce diversity encompasses several benefits on the productive and financial fronts.
A POWER TEAM WITH DIFFERENT PERSPECTIVES
People from different backgrounds and regions have had different experiences and have faced distinct challenges. Thus, establishing a global workforce demographics equips you to encounter a diverse array of challenges.
Further, when such unique minds work together, they bring about a great potential to innovate. They include different perspectives and innovations that grow your business to greater heights.
EXPANDING TO NEW MARKETS
When thinking of global expansions, you need to consider the nature and potential of the market in that specific country or region. Who better to guide you than a local who has resided and most likely worked from there?
A localite who understands the cultural intricacies and nuances can effectively communicate your business and its utility. They can also overcome language and cultural barriers and empathize with your local customer base.
A global workforce thus gives an in-depth understanding of new markets and helps you curate region-specific business strategies.
Complications in Global Workforce
Even elixirs come with terms and conditions. Similarly, establishing and managing an international workforce overseas comes with its own complications.
Employee-centric Complications
Here, we highlight the complications faced by the employees employed in a global workforce.
DIFFICULTY IN COLLABORATION
Going international with your hiring includes your employees working at different time zones. These differences might lead to disruptions in the coordination and within the teams.
Also, liberties such as official holidays and vacation time vary from region to region. They would affect the availability of team members during meetings and decision-making.
Thus, managing time differences is one of the crucial factors you must address while planning for a global workforce.
COMMUNICATION DIFFERENCES
With only virtual communication at play, there are huge chances of miscommunications and communication gaps popping up between employees.
This Culturalwizard’s report states that 51% of employees have a hard time understanding the full context of what their colleagues try to communicate. Lack of face-to-face conversations makes it harder to convey messages.
A lot hangs on assumptions. Thus, communication breakdowns may lead to a chaotic environment with employees not knowing their responsibilities and tasks. Setting up proper communication channels and mediums must become your priority.
SOCIAL DISCONNECT AND LACK OF TEAM ENGAGEMENT
A global workforce calls for the remote working of most of your employees. While remote working enables working from the comfort of our homes, at our own pace, it also means that employees stay isolated from their team members.
The feeling of isolation is bound to turn into disconnection and alienation. Subsequently, managers might feel such employees are less likely to be focused on their work and remain loyal to the company.
LACK OF MOTIVATION AND PRODUCTIVITY
Due to the lack of an orchestrated office environment, remote working also risks poor time management. This results in burnout and stress leading to a lack of motivation.
Social disconnection is also a major reason for lack of motivation. Further, it takes a toll on their mental health. This takes a toll on their mental health.
Forbes study states that 80% of workers are willing to quit due to employers’ poor care of mental health issues. Thus, you must ensure you address mental health issue concerns, motivate and engage your teams to establish a fully functional global workforce.
Employer-centric Complications
Here, we address the complexities faced by employers in managing an international workforce.
SETTING UP LOCAL ENTITIES
As a global employer, to hire from different countries, you will have to set up local entities and have a functioning team take care of the hiring processes.
It is easier said than done. This involves unnecessary expenses, loss of time and energy. Thus, you should look for ways to follow hiring and other operations without having to lose much.
MANAGING LAW AND COMPLIANCE
The labor laws and regulations followed in each country are unique. Also, with time, they get updated and revised to stay at par with the growing technology and practices.
Thus, you have to ensure you stay compliant with all these laws and adhere to them without fail. You might not want to mess up or go against those laws.
It isn’t just frowned upon. It comes with pricey penalties.
MANAGING PAYROLL
Similar to the compliance of labor laws, the payroll system, practices, and tax norms differ from country to country.
They also differ for different types of employment. For example, you will have to abide by the tax norms of your full-time employees while your contingent workforce takes care of their own taxes. Such things have to be considered while establishing a successful global company with a global workforce.
MANAGING RIGHTS AND BENEFITS
The global workforce includes employees from different countries serving different job roles and positions in your company. Employee rights such as fair compensation, hikes, and other benefits such as health insurance policies are drafted based on these.
However, maintaining and updating records on all employees on a global scale is cumbersome. It is complex as these are the crucial aspects to an employee.
Thus, global workforce management, if not done right, might become chaotic.
Global Workforce Management
Despite these complexities, transcending companies do require a fully functional international workforce. When handled well, your global workforce facilitates a successful global reach.
Thus, we bring to you a handful of global workforce solutions to help you manage better.
ADDRESS TIME-ZONE DIFFERENCES AND BARRIERS
Addressing the time-zone differences is crucial for effective collaboration and communication. Respect their time-zone boundaries and encourage other employees to follow the same.
You can provide tips and guidelines to overcome these barriers. Regulate check-ins, check-outs, and other time trackers to instantly let everyone the availability of others for collaboration.
FOSTER A CULTURE OF COMMUNICATION
As a global employer, it is your responsibility to foster good communication across your teams, beyond borders.
Remove the ambiguity that so often persists in virtual teams by training your international employees. Provide guidelines as to what mediums they can use and how their interactions can be optimized.
Disseminate clear goals to the teams and regularly update them with all necessary details. Keep them in the loop.
Foster better tools for clear-cut communication. Tools such as Zoom, Slack, Google Meet, Loom videos became prominent since the onset of the pandemic. They are predominantly used for their clean and user-friendly UI.
EMPLOYEE ENGAGEMENT
As mentioned, the feeling of a disconnected dysfunctioning team is a common issue among remote employees.
To avoid alienation, you can engage the remote workforce and teams to connect and strengthen their bonds.
- Regular team meetings and discussion
- Informal coffee chats beyond work discussions
- Fun virtual team building activities
These are some of the ways you can direct your managers to engage their teams.
ENSURE MENTAL HEALTH AND LOW STRESS
Employee burnouts and stress though common must be addressed to improve employee satisfaction and productivity.
Set up support structures and in-house counseling teams to help them cope up with the seclusion and burnouts. You can also provide tips and guidelines to plan their working hours to distribute work evenly and decrease stress levels.
ADDRESS MOTIVATIONAL AND PRODUCTIVITY ISSUES
The challenges of keeping the remote workforce motivated have been bridged by innovative communication tools, employee portals, education sites, and other infotainment applications.
To cope up with productivity loss, ensure accountability. Set realistic expectations and goals. Communicate them clearly to your global employees. Deploy progress trackers, timesheets to keep track of their progress.
There’s only a fine line between effective management and micromanagement. You might not want to step across. Have occasional one-on-one meetings to discuss their progress and provide support with any issues they face.
OUTSOURCE SOME RESPONSIBILITIES
We discussed some employer-centric complications. You can work towards trying to manage them better with more professionals on board or outsource those responsibilities and functions to service providers who are experts in those fields and have dedicated teams to work for you.
The former costs you more money and time, while the latter is both time and cost-effective.
Take help from EORs
Employer on Record (EOR) organizations assist you in global hiring without you having to set up local entities. Instead, they have the required local legal entities in each country to help you hire.
Partner with PEOs
Professional Employer Organizations (PEOs), often addressed as co-employers, help you stay compliant with prevailing labor laws and regulations across countries.
They monitor and revise your company policies regularly to ensure they adhere to the region-specific laws and regulations. Thus, you can steer clear of penalties to ensure a smooth business setup.
Payroll regulation
We discussed how managing international payroll can be cumbersome, especially with different kinds of global employees onboard. You can simplify the process by outsourcing your payroll process to HR service providers.
By automation, they declutter your global payroll processes. They provide professional help in providing distinct wage policies for different employees.
Automate global benefits and compensation
Similar to payroll regulation, the global benefits and compensation you provide for employees of different cader can also be outsourced and automated. The service providers aid in providing well-deserved compensation and fitting benefits to your employees on your behalf.
How Multiplier can Help
Multiplier is a SaaS-based employer of record services. We serve as your local HR platform in every country.
Onboard at ease with our EOR feature. Partner with us through the PEO services to stay compliant with changing labor laws and regulations. Let us manage your global payroll and benefits on your behalf.
You can avail of our services from a single platform and at only a fraction of the cost, you would pay an in-house HR team. Check out our pricing to compare.
Book a demo with us to learn more.
Frequently Asked Questions :
Q. What are the challenges of managing a global workforce?
Some pressing challenges in managing a global workforce include language and cultural barriers, time zone differences, varying labor laws and regulations, difficulty building a cohesive team, and communication issues. Additionally, there may be challenges in ensuring consistent performance and productivity across different locations and addressing employees’ unique needs and preferences from diverse backgrounds.
Q. How can my company ensure a successful transition to a global workforce?
To ensure a successful transition to a global workforce, your company can take the following steps:
- Develop a clear strategy and goals.
- Invest in technology and tools that facilitate communication and collaboration across different locations.
- Provide cultural training and support to employees.
- Ensure compliance with local labor laws and regulations.
- Foster a strong company culture that values diversity and inclusivity.
- Develop a talent management program that identifies and develops high-potential employees across different locations.
- Continuously monitor and measure the success of the global workforce program and make adjustments as needed.
Q. What are the legal considerations when managing a global workforce?
When managing a global workforce, legal considerations include compliance with local labor laws and regulations, taxation, work visas, and permits, data privacy and security, and intellectual property protection. Employers may need to ensure that employment contracts, policies, and practices align with local laws and regulations and that employee benefits and compensation packages are competitive and compliant. Understanding the potential legal implications of cross-border data transfer and ensuring compliance with local data protection laws is also essential. To ensure compliance, employers may need to work with legal counsel and other services, such as an EOR or PEO.
