1. To optimise your international human resource management, we recommend you take on board the five tips that follow.
2. Recruit the right talent.
3. Increase global mobility.
4. Optimize compensation and benefits.
5. Focus on training and development.
6. Choose the right organizational structure.
Efficient international human resource management means putting in place a strategy to effectively manage your global workforce. Here we set out five tips for developing an international human resources management strategy and managing an international workforce.
For more on workforce planning, check out our Complete Guide to Strategic Workforce Planning.
Tip 1: Recruit the Right Talent
When building your global human resources strategy, you should consider the benefits of recruiting staff from overseas. Often, other countries (including developing nations) can provide a highly skilled and educated workforce, at a fraction of the labor cost of other countries. As well as cost advantages, other potential benefits of an international workforce include:
Summary: Your international human resources strategy should emphasize the way in which global expansion can improve your recruitment practices.
Tip 2. Increase Global Mobility
As part of a global expansion, it is worth considering the transfer or secondment of some head office staff to the new country of business. In its 2019 Global Assignment Policies and Practices Survey, KPMG noted that:
The potential advantages of sending your workforce overseas include:
Summary: There are significant benefits to allowing company staff to transfer between different branches and posts of the company across national borders. To ensure your approach is fully compliant, consider professional global mobility and visa support.
Tip 3. Optimize Employee Compensation and Benefits
As a major cost of business, and having a significant impact on workforce wellbeing, employee compensation and benefits need to be carefully managed with any offshore operation. Matters you need to take into account include:
Summary: When expanding overseas, your human resource management strategy needs to take into account both the legal/compliance implications of expansion, as well as standard practice in the new country, to ensure that compensation and benefits are fair.
Tip 4. Focus on Training and Development
Enterprises need to consider how they will ensure that their entire workforce receives the training and development that will allow their organization to prosper. This may need to take into account linguistic and cultural differences in the new country. This includes:
Summary: International human resources strategy needs to take into account both global and local elements of training and development.
Tip 5. Choose the Right Organizational Structure
The way in which you set up your global enterprise will have a significant impact on how you manage your human capital. Consider, for example:
Summary: Your international human resource management needs to consider how chosen business models and organizational structures will impact your workforce.
Optimize Your International Human Resource Management
For any company expanding into other countries, it is essential to have a strategy in place for the expansion. This applies equally to international human resource management, as it does to other aspects of the expansion. By focusing on recruitment, global mobility, compensation, training, and organizational structure, you will be in the best position to exploit the benefits of global expansion.
Horizons provides expert human resources, payroll, recruitment, and compliance support for enterprises making the move into a new territory. Employing expert partners to support your move is the best way of making your international expansion a success.
Frequently Asked Questions (FAQ)
International human resource management ensures that your business has a comprehensive and consistent approach to hiring and managing staff across your international locations.
It covers all elements of managing your people capability across international borders, including recruitment, compensation and benefits, performance management and employment dispute management.