Too Much Time Onboarding?
In an age where borders are increasingly permeable, businesses operate in numerous nations, each having its distinct regulatory, social, cultural, and fiscal nature.
So, updating traditional HR elements is imperative for hiring globally. In short, in the era of international operations, a global HR strategy is essential to successfully navigate this complex environment.
This article focuses on the five essential steps to creating a winning global HR strategy while effectively managing the workforce. But before we begin, let’s discuss what is global HR strategy and its importance in the current business landscape.
What is Global HR Strategy?
Global HR strategy is a comprehensive and cohesive plan covering the management of an international workforce. It ensures fairness across all locations and aligns global employees with the company’s purpose, culture, and goals.
The primary elements of a global HR strategy are international hiring, onboarding, training, performance evaluation, and managing payroll.
Why is Global HR Strategy Important?
The main reasons why a global human resource management strategy is crucial are:
- Cross-Border Consistency: Global HR strategy ensures uniform HR practices across different regions, promoting fairness and employee equity.
- Cultural Sensitivity and Adaptation: It encourages understanding and respecting diverse cultures, fostering a harmonious work environment.
- Operational Efficiency: Global HR strategy enables centralized HR functions, leading to cost savings and improved operational efficiency.
- Strategic Workforce Alignment: A great global HR strategy aligns talent with business goals, aiding in effective strategic workforce planning.
- Competitive Advantage: It brings a competitive edge in global markets through a cohesive organizational culture and attracting international talent.
5 Steps to Implement a Successful Global HR Strategy
A one-formula-fits-all approach isn’t suitable for building a global HR strategy. However, follow these steps to lay the foundation and tailor them to your business needs.
Step 1: Conduct a Comprehensive Organizational Analysis and Set Goals
The first stage in developing a successful global HR strategy is to conduct an in-depth analysis of the company's activities, values, and structure. This analysis lays the groundwork for a strategy that aligns with the organization's general goals and mission.
Understand the Organizational Structure:
- Recognize the organization's structure at both the macro and micro levels.
- Identify important teams, departments, reporting structures and any unique attributes that affect internal communication and decision-making.
- For example, if you’re a startup with no hierarchy, employees can easily communicate with the people involved in strategy-making. Further, they can independently make decisions without being micromanaged by managers.
Identify Core Organizational Values:
- Develop a thorough understanding of the organization's basic values, culture, and beliefs.
- These ideals outline the organization's guiding principles and the conduct required of its employees.
- Your global HR strategy should align with these values to guarantee a holistic approach.
Conduct Competitor Analysis:
- Carry out a thorough analysis of your industry rivals. This involves studying their organizational structures, talent management practices, and HR policies.
- For benchmarking and implementing industry best practices and understanding how to hire independent contractors and employees, a knowledge of the market environment is a must.
Assess Current HR Practices:
- Conduct an in-depth assessment of the existing HR practices, such as recruitment and hiring processes, training and development programs, performance management systems and compensations.
- Identify strengths, weaknesses, opportunities, and threats (SWOT analysis) to aid goal-setting.
Set HR Goals:
- Establish clear and attainable HR goals based on the insights from organizational analysis, comparison of competitors, and evaluation of present HR procedures.
- Your goals should include both short and long-term targets. They should reflect what you do, who is your target audience, why your product/ service is important in the market, etc.
- Your short-term objectives must align with the broader organizational goals. They must be realistic and meet the SMART requirements - specific, measurable, achievable, relevant, and time-bound.
- Further, your long-term goals involve broader visions like strengthening diversity, maximizing talent acquisition, or streamlining HR processes.
Step 2: Finding Talent and Hiring Globally
Once the goals have been clearly established, look for candidates who bridge your skills gap. Enabling global recruitment effectively is the most crucial step in global HR strategy.
- Global hiring is easier said than done. To find the right talents, you must open up for opportunities worldwide.
- One effective method for global hiring is using EOR services. With EOR services like Gloroots, you can enter foreign markets without establishing local entities.
Gloroots can help you streamline the hiring process by managing payroll and compliance aspects.
Generate Contract of Employment:
- Documentation submission, filing and independent contractor agreements are part of onboarding.
- Create the contracts depending on the responsibilities, locations, and type of employment (full-time or contractors).
Step 3: Implement HR Practices for Local Compliance and Adaptability
A vital component of a successful global HR strategy is compliance with local labor regulations, as non-compliance may result in hefty penalties and imprisonment. For example, violating US pay equity laws can result in huge compensatory damages of around US$100 million.
Partnering with EORs enables businesses to stay compliant with the legislation of each country.
➡️Check out how Gloroots helped PriceLabs hire in India in compliance with the hiring norms and Indian taxation laws.
Regulating Local Labor Laws, Regulations and Payroll:
- Take care of aspects such as working hours, minimum wage, independent contractors agreement, leave policies, and firing an independent contractor. Stay updated with the laws to ensure full compliance.
- Taxation is one of the most complex aspects of global HR. For every country, there are different tax provisions that companies must comply with. Similarly, taxes differ in case of employees and contractors. Hence, it is essential first to classify independent contractors and employees for 100% compliance.
Employee misclassification can lead to serious consequences and hefty fines. Read more about misclassification here.
Gloroots can be a reliable partner for all legal compliances. The platform can automate the entire payroll process for multi-country and multi-currency payments while assuring compliance and transparency.
Step 4: Improve Employee Management and Relations
The next step to a global HR strategy's success is ensuring that your global workforce is engaged, happy and willing to work with your company for longer.
Establish Transparent Communication Channels:
- Encourage open communication among employees so they can express their opinions, worries, and ideas.
- Create channels for genuine, anonymous feedback. The simplest approach to begin is with a modern employee engagement platform that includes simple real-time feedback tools, such as pulse surveys.
- Utilize multiple communication channels to overcome geographic barriers and uphold a strong sense of belonging. Conduct regular or weekly check-ins, 1:1 calls, surveys, and monthly meetings, and use messaging apps to ensure seamless communication.
Recognize and Reward Employees:
- Implement a system of rewards and recognition to appreciate employee contributions at every level. Offer incentives, give them a shoutout, and appreciate their good performance.
Provide Mentorship and Guidance:
- Facilitate mentorship programs that connect experienced employees with newer talent to fill the skill gaps.
- Foster knowledge sharing and skills transfer, bridging geographical gaps and supporting professional growth. For example, host a knowledge-sharing webinar, or conduct brainstorming sessions.
Conduct Employee Engagement Surveys:
- Conduct regular employee engagement surveys to determine areas for improvement, evaluate work satisfaction, and gain insights into employee issues.
- Implement specific measures to solve particular demands and problems in response to the feedback to increase employee satisfaction.
Step 5: Leverage Technology and Data Analytics
An effective global HR strategy can be developed by utilizing technology and data analytics.
Modern HR technologies and data-driven insights are essential for optimizing HR processes, from recruitment to retention. In fact already, 58% of employers utilize HR technology to recruit and retain talent.
Implementing Advanced HR Systems:
- Integrate complete HR management solutions that can handle a range of HR tasks on a global level.
- Recruiting, onboarding, performance reviews, personnel records administration, payroll administration, and compliance monitoring are all streamlined by these systems, which offer a centralized framework for managing HR procedures.
Use Employee Self-Service Portals:
- Implement employee self-service portals that let employees access HR information, submit requests, and update their personal details independently.
- These portals enhance employee engagement, provide a sense of control, and free up HR executives to focus on strategic initiatives.
Get Predictive Analytics for Talent Management:
- Utilize predictive analytics to foresee skill gaps, succession planning, and talent requirements.
- Organizations can ensure a long-term talent pipeline that supports overall organizational development by predicting HR requirements and integrating talent strategies with business objectives.
Use Cloud-Based Solutions:
- Adopt cloud-based HR solutions that allow you and your team to access HR information and applications safely from anywhere globally.
- Cloud technology enables real-time updates and accessibility for managers and employees across time zones, supporting data privacy and security.
Enhance your Global HR Strategy with Gloroots
A successful global HR strategy is the key to hiring and retaining the best employees in your organization.
To revolutionize your global HR strategy and take your organization to the next level, connect with Gloroots. We specialize in empowering organizations to unlock their full potential in managing global human resources by assisting businesses with:
- Faster onboarding
- Multiple currency payments through a single platform
- Automating employee contracts
- Compliant offboarding
- 24/7 support
Gloroots also makes payments easier and seamless with crypto payins and payouts. Want an all-in-one platform to hire, pay and manage contractors and employees globally?
Get in touch with Gloroots now!