The perks of global expansion include access to new markets, an increase in customer base, new competition, and access to a global workforce. A global workforce is a consequence of a vast diversified talent pool and offers the best crop of talent organizations have access to globally.
A global workforce offers several benefits for global organizations and this article highlights everything you need to know about global workforce.
What Is a Global Workforce?
A global workforce is a term companies use to refer to employees in countries other than their primary location. This is the opposite of a local workforce which refers to employees working at the company's base location. Technology allows an international workforce to collaborate seamlessly regardless of location to achieve a common goal.
Benefits of a Global Workforce
Diversity and Cultural Exchange
Working with a global team with individuals from different backgrounds and cultures is beneficial. It introduces you to new concepts that can make a significant difference and improve your business approach.
When your team members contribute ideas from different perspectives, they develop a multifaceted approach to problem-solving. There is cultural exchange and an atmosphere of inclusion, appreciating each other's cultures and finding common ground.
Unlimited Access to Global Talent
You may have many top talent in your current business location, but it cannot compare to the global population. Hiring a global workforce helps you tap into a pool of global talent in quality and quantity.
Global hiring also benefits you more if you're from a region with a shortage of skilled workers. Global hiring is ideal for you if hiring costs are relatively high in your location. There are exceptional talents worldwide; some may live in countries with relatively low hiring costs.
International Market Penetration
If you're looking for a quick way to penetrate the international market, consider hiring a global workforce. Outside of adequate funding, extensive research is another key factor in international market penetration, and a global workforce can aid that effort.
Employing workers overseas means having representatives in those countries in which you hire. You can gain valuable information to help with your market research and understanding of the local market. This can be a foundation for entering new markets.
Low Hiring Cost
Companies spend time and money looking for ways to reduce their spending, especially hiring costs. Employee benefits, social security and tax deductions, and the onboarding process all play into the high cost of hiring. Fortunately, you can reduce these costs through a global team.
Partnering with a global payroll platform like Skuad can help you spend less when hiring employees globally. Skuad can help you offer employee benefits, process payroll, and cover onboarding expenses. You have more money to hire international employees to boost productivity.
How To Manage a Global Workforce
Although hiring a global workforce can be tricky, managing them can be even more challenging. Proper global workforce management goes beyond ensuring employees perform their duties expertly. The steps below provide seamless ways to manage a global workforce.
Learn about different cultures
Ignorance of a particular culture and its values may well result in insult. Although you may not violate employment laws, your ignorance can negatively affect how locals perceive your brand. Virtually every employee would like to work for foreign businesses they feel support their community.
Learn all you can about the culture, language, and history of the places home to your international employees. It helps you understand and communicate better and hopefully get the best out of the workers.
Understand country-specific employment laws
Virtually every country where you hire employees has labor laws defining how you operate and hire talent. Ignorance or inadequate knowledge of these laws may lead to the mismanagement of employees, which may be punishable by law.
If you can't read the labor code from cover to cover, at least learn specific crucial laws. Labor laws on employee contracts, termination, benefits, and leaves are essential. Understanding them can help you manage satisfactorily and earn your employees' respect and loyalty.
Ensure efficient communication
People interpret words and gestures differently based on their culture and beliefs. Even if you speak the same language as your global team, some gestures and expressions may have double meanings in their culture, of which you are unaware.
Although knowing all the gestures or terms some cultures consider taboo is a big ask, communicate with caution. Make sure you speak or send messages most clearly and objectively. In addition, pay attention to your employees' body language or responses when you use certain gestures or words. If some are shy to point out certain culturally inappropriate gestures, their reactions can give you a hint.
Schedule team bonding activities
Achieving your company goals is feasible when everyone is on the same page. Therefore, there's a need to encourage cohesion within the team. Team bonding activities are some of the effective ways of building cohesion within your international team.
These are a combination of fun and interactive activities such as games and fun group projects. Since your international workforce collaborates online, organize virtual team bonding activities. There's a litany of online games for multiple players. Some games require a team effort, which encourages interaction between co-workers.
Besides fostering teamwork, employee engagement can improve their professionalism. A Gallup study also reveals that engaging employees in activities can reduce absenteeism by 41%. Make sure you schedule these activities at least once a year.
Encourage Cultural Awareness
Having everyone respect each other's cultures within the organization enhances positive communication and seamless collaboration. While you educate yourself on various cultures, also encourage cultural awareness within your workforce. Meet with your HR team to discuss programs or workshops to help workers understand and appreciate their colleagues' cultures.
Find Solutions to Time-zone-related Challenges
One of the significant challenges of hiring a global team is the difference in time zones. Automation and advanced communication systems ensure you can message your team. However, there are times when you need to have emergency meetings or team bonding activities. To ensure all hands are on deck, find solutions to the time zone issues.
You may need to establish a monthly period when you can have real-time communication. Ask your employees for suggestions. You must understand that having everyone present simultaneously is nearly impossible. Thus, try creating two or three meeting times to encourage maximum participation.
Use Employee Management Technology
Managing an international workforce would be almost impossible without employee management systems. These tools help you oversee daily activities, communicate with the team, and track productivity. These tools include time trackers, internal messaging systems, and payroll software.
Attendance and time management top the list of tools from employers' perspectives. About 88% of employers use time and attendance management tools to monitor their workers' activities during working hours. Some time management software makes you see what an employee has on their screen during working hours.
Efficiently manage your global workforce with Skuad
Efficiently managing a global workforce requires having the best solutions at your disposal. With Skuad’s global employment and payroll platform, you can hire the best global talent, onboard your preferred global contractors and full-time employees, seamlessly manage payroll and ensure compliance with country-specific employment laws without setting up a subsidiary.
Skuad handles the entire employment lifecycle for organizations enabling them to scale operations with lower cost, reduced effort and an efficient HR administration which is crucial for efficiently managing your global workforce.
To know more about Skuad, book a demo today.