Over the past few years, human resource management solutions and technology adoption has been over the roof and will continue to flourish in the future as well. According to Grand View Research, Inc., the value of the global human resources management market is expected to reach US$38.17 billion by the year 2027 . The growth is anticipated to happen at a compounded annual growth rate of 11.7% from 2020 through 2027. As HR tech adoption booms all over the world, it is important to have a global HR solution strategy.
Human Resource management Systems (HRIS) by big tech companies are absolutely worth the investment. These solutions are a great advancement as compared to the systems we’ve been using for a while now, like spreadsheets. However, it is important to know that as the footprint of the companies grows, HRM solutions don’t really have the ability to keep up. As organizations go global and geographical boundaries blur, it is becoming tough for small companies that never thought they’d go global, to manage their global HR operations.
Though it might be presumptuous to execute global HR strategy before becoming a global operation. However, designing a human resource technology stack with an international perspective can give a company an upper hand over others. Having strategic international human resource management solutions in place can help you hit the ground running as well as make the entire organization more adaptive and agile.
Here are 7 reasons why global HR solutions & strategy is needed
1. To encourage leadership
Encouraging and cultivating leadership within the company has always been a high priority for many organizations. However, once an employee reaches the top in the company, chances are they might think about a job switch or a career switch. Having an environment of moving top-performers to different locations in order to gain leadership experience is of key advantage in these scenarios. Rather than losing high performing talent to another company, global HR solutions make it easier for you to offer this talent better or the same opportunity. This ultimately helps in retaining talent as well as organizational knowledge, in addition to sparking the leadership funnel from within.
2. To provide flexibility to employees
As the world goes digital and opens up arms for international collaboration opportunities, employees are becoming more interested in career opportunities that come with global, cross-cultural opportunities. Moreover, remote work is now accepted in work cultures more than ever, because of the pandemic. Integrating a global HR solution that backs your international footprint will allow you to embrace unique opportunities.
3. For diversification
All great, forward-thinking organizations of the world are understanding the need for diversity and making it a priority. Diversity drives more creativity, innovation as well as inclusivity. When a strategic international human resource management is combined with robust HR and mobility solutions, it is possible for you to attract and maximize diversity in your company. Global HR solutions make it easier for you to attract talent from any city/country, ethnicity, gender and culture. It helps you tar down cultural and other barriers that would typically restrict the available pool of talent in the local market.
4. To help in hiring
Freshers and young talent often strive for opportunities that will help them explore new cultures and give them new adventures, in addition to personal growth. When you have a global mobility solution, you get access to the tools needed for creating global opportunities. The solution also gives you a big advantage when hiring and recruiting talent.
SEE ALSO: The Importance of Human Resources Analytics
5. To be prepared for growth and expansion
You might be a 20-employee digital marketing agency or a team of 100 designers right now. It does not mean your company won’t grow. As you and your company gain experience, your customer base will grow. As your customer base will grow, you will find your company contemplating acquisition or expansion opportunities that will increase your global footprint. By integrating and executive global HR solutions, your company will be prepared to easily place international staff whenever opportunities arise. Why? Because the global HR solutions one in-built with support for payroll, international and taxation and much more.
Business expansions to international markets can be tricky. It can either make or break your organization. With a solid plan and a clear vision, global expansion can be executed seamlessly. However, there are 10 global expansion mistakes that can slow down and hinder the expansion process. If you want to read in details about it, you can download a whitepaper, absolutely for free, on this topic from here.
6. For seamless relocations and transitions
Imagine that you are a mid sized company who’s got a few employees already moving around the world. Chances are your existing tools are already cumbersome. The absence of a global HR solution puts extra burden on employees. These mobile employees are also dealing with the stress of relocating to another city or country.
Having the right global HR solutions and tools can help you sustainably enhance employee experience during relocation by equipping them with self-service tools.
The tools can give employees a preview of the neighborhood they’ll be working and living in. It will also keep them informed about the logistics of their relocation. They’ll also be able to submit expenses, call for help and get access to resources when needed through the global HR solution. The solution will make the complete relocation experience much less stressful.
7. To ensure compliance with global laws
When going global, just fitting into the country’s culture and making global employees happy aren’t the only important things. It is also extremely crucial to comply with employment laws of the country you are expanding into. Moreover, other things such as taxation, compensation and immigration also need to be taken care of. With an integrated global HR solution and strategy, you are well-equipped with built-in compliance for local, regional and national entities. You will also have access to the right policies and procedures to avoid risk of non-compliance and grow as fast as possible. Having all this by your side, you feel confident in going global and pursuing a global business strategy.
Integrating and executing global HR solutions and an overall global HR strategy is important in today’s era. Global HR solutions provide you with the right tools and systems needed for operating on a global scale.
It can give your business an upper hand over the competition, when it comes to capturing new markets, attracting talent as well as growth opportunities. Rather than figuring it out on the go, your company can move seamlessly, quickly and confidently in the right direction that is in sync with your long-term business objectives with global HR solutions and strategy.
SEE ALSO: Machine learning in HR: how it works & its real-world applications
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 Grand View Research (2020) “Human Resource Management Market Worth $38.17 Billion By 2027” [Online] Available from: https://www.grandviewresearch.com/press-release/global-human-resource-management-hrm-market [Accessed May 2021]