With talent pools stretching across the globe, employers can now tap into a vast network of employees
Work norms have undergone seismic shifts over the last 5 years, accelerating different approaches to organising teams and work, allowing work to transcend borders.
The opportunity to build a global workforce comes with the challenge of navigating a complex matrix of employment, tax, and payroll compliance laws as well as cultural and language differences.
These themes were unpacked in a recent roundtable hosted by HRD, in partnership with G-P, an Employer of Record (EOR) service, and ADP, a payroll services and workforce management software firm.
The discussion centred on the future of the global workforce and the need for employers to be flexible and adapt to change.
As noted by G-P’s GM and corporate development Lead, APMEA, Charles Ferguson, “agility is the new stability”.
According to research from Vialto Partners, APAC has emerged as a leader in this space, with more employers in the region than anywhere else in the world adopting hybrid and remote styles of working.
Now, the challenge for employers is managing strategic mobility. While skills shortages are a worldwide issue, Ferguson believes this also creates an opportunity to tap into global talent pools.
Through an understanding and leveraging of different options such as virtual assignments (“moving the work to the people, not the people to the work”), Employer of Record services, and partnering with experts in payroll, HR leaders can implement a global vision while retaining the “human” element.
‘Move the work to the people’
Virtual assignments were discussed as a “strategic mobility tool” that enabled an employee to work in another location without relocating.
According to Vialto Partners, virtual assignments have increased from 6% to 17% in its most recent survey.
Employer of Record (EOR)
As interest in operating a global workforce increase, Employers of Record have emerged as a powerful tool for expanding companies.
The benefits of this structure allow organisations to hire talent immediately and more easily establish a presence in a foreign market – enabling them to test the viability of new regions without the risk and commitment of setting up a local entity.
Compliance across borders
Emilia Colosimo, senior director project services APAC at ADP, said compliance is the key issue to be considered when planning a global expansion.
Even seemingly minor hurdles like time zone differences can delay payroll processes.
This is where flexibility must be championed, said Colosimo. The typical 9-5 may not be viable in all countries and innovative approaches should be considered when managing payroll.
Colosimo said employers need to do their due diligence when they’re trying to enter a new market and be “as transparent as possible.” Ensuring all stakeholders were consulted across HR, finance, IT and legal from the beginning of an implementation project. It can be surprising the items that impact and delay a new countries payroll – business registration and general ledger decisions are a couple that come to mind.
Retaining the human element
An overarching theme of the discussion was keeping the human in the loop, with the expansion of teams needing to be managed in two parts: the human and the virtual.
Investing too heavily in one and neglecting the other can create an imbalance. Ferguson said there must be a line toed between human capital management, tech, and finances.
“Know your strengths and more importantly know your weaknesses,” said Ferguson. “Don’t try to be everything to everyone and don’t go into challenges alone.”
