International Expansion Through A Global HR Strategy
We live in a time where the world is more connected than ever in terms of business. International expansion is proving not just to be a potential option, but a key facet in businesses developing their audience, reach, and workforce.
However, there is a right and a wrong way to take advantage of this trend. Plotting to expand internationally without a true HR strategy is not only expensive, but opens up your company to legal risk due to non-compliance. So, with this in mind, here are some of the key elements of consideration for your international HR management strategy.
Why You Need A Global HR Strategy
Ultimately, when it comes to expansion, you have two main purposes in mind:
- Broadening the scope of business operations in terms of groups served
- Broadening the amount of services your company offers
Expanding internationally strikes both of these points. Not only are you opening your company up to a whole new audience, but you’re also needing to take the country’s needs into account. For example, a telecommunications company based in the United States, trying to branch into Nigeria, is going to need a very different approach due to the different infrastructures there. However, success here means they have two huge audiences to profit from.
However, international expansion is about staffing strategy as well as planning. For example, in order to facilitate that Nigerian expansion, the American company would want:
- Employees who are able to communicate in local languages to facilitate partnerships.
- Employees who are familiar with the local telecommunications structure.
- Employees who know the American strategy and work mode to ensure this new project maintains the original standards.
This often requires a combination of expat and international hiring to manage. Your HR management strategy for globalization can take three major forms, which are as follows.
Expansion Through Diversification: This basically entails when a business expands via changing what they offer. Using our telecommunications example, the American company that focuses on landlines may make a stronger push into mobile to appeal to the Nigerian market. By taking this step, they are better insulated against economic downturns.
Diversification can take two forms, concentric and conglomerate. Concentric is expanding into areas similar to or adjacent to the current area of business, while conglomerate is going into new areas.
Expansion Through Concentration: This covers when a business doubles down on some of their existing strategy, rather than implementing a new product or service. For example, bringing existing telecommunications services to a new country, in and of itself, fits this description. However, introducing a new product into your existing market fits as well. The benefit here is that there’s less of a learning curve, but shifts in your niche can affect your business more drastically.
International Marketing: When it comes to developing international marketing, you have a variety of different options you can go with. These range from direct/indirect exports to global web businesses to joint ventures with local companies in the field of choice. However, all of these share one major hurdle for your human resources team.
Refining Your International HR Strategy
Whether you want to build a global web empire or set up an office in a new country, each country you’re looking at has its own set of rules regarding hiring. These hurdles for hiring the team members you want can slow your international expansion plans. There is one way to compliantly tackle the issue, though: a Global Employer of Record (GEOR) solution.
Global Employer of Record programs as the heart of your expansion strategy offer two key benefits:
- The ability to hire qualified talent to help fit your new market, meaning you always have the best workforce behind your expansion.
- Ease of use when it comes to the hiring process, including risk mitigation and compliance with any local regulations.
But how do you make this work in your business?
Implementing a GEOR Solution For Your Global Human Resources Strategy
Creating an HR strategy for global expansion is important not just for compliance, but also for helping to expand the sales reach and overall effectiveness of your company. However, to increase the return on investment for your efforts, you need advanced HR strategy solutions, like a Global Employer of Record program.
If you find yourself in the market for these human resources services, Acumen International is a standout option. We offer an express advantage to all of your international hiring needs. Whether your plans include hiring only a few temporary employees or a large expat workforce, we make it easy to work inside the hiring laws where you live, facilitating smoother international expansion. We also provide speed, helping you to onboard employees within 72 hours.
Reach out to us today for more information.