HR reality behind the global workforce revolution

Companies can now tap into talent from every corner of the globe and expand operations far from home base.

The global workforce revolution has unlocked opportunities such as flexibility, access to diverse skills, and round-the-clock productivity.

But behind the scenes, HR professionals face the challenge of navigating a complex matrix of local labour regulations, tax codes, and employment law.

From payroll to public holidays, every detail needs to be considered to ensure compliance and manage risk.

Managing this complexity and turning it into a competitive advantage was the focus of discussion at a recent HR leader roundtable in Singapore, sponsored by G-P, a global Employer of Record (EOR), and ADP, an online payroll services and workforce management software firm.

Getting payroll right

Erwann Thomassain, senior director APAC marketing at ADP, discussed the importance and complexity of ensuring employees everywhere are paid correctly and on time when managing a global workforce and protecting business reputations.

This is not as simple as it sounds, with challenges such as some employees not having bank accounts and multi-country payroll compliance. But solving these challenges can make payroll a talent acquisition tool and give companies a competitive advantage.

Thomassain believes innovative pay solutions such as cryptocurrencies or stablecoins will be part of payment options in the next ten years.

Another innovative payroll approach discussed was earned wage access, which gives employees access to their earned pay before the traditional, scheduled payday.

The benefits of virtual assignments – “moving the work to the people, not the people to the work” – were also canvassed, with research from Vialto Partners showing use of this option increased from 6% to 17% in the past year.

Compliance beyond pay

For every border crossed, there is a new rule book that needs to be mastered.

One of the solutions discussed was using an Employer of Record (EOR) company, which allows you to hire talent directly while the EOR legally employs them on your behalf and takes on the full responsibility for managing global payroll, benefits, and critical compliance with local labour laws and regulations. This approach gives companies instant access to global expertise and knowledge, empowering them to be agile, fast, and secure in establishing their global footprint without the typical administrative burdens.

Asked how HR leaders can adjust their talent acquisition strategies to effectively address local skill shortages, Johannes Eckold, Partner Director at G-P, told HRD that leaders should be open to hiring talent outside of their home markets.

“They can consider flexible yet compliant ways of employing talent such as Employer of Record (EOR) services,” he said.

“HR leaders should strive to become a strategic partner to the business by establishing a ‘no friction hiring process’ – being able to provide talent quickly while adhering to overseas markets’ labour law and regulations.”