Top International HR Trends for Growing Companies
International HR trends are constantly shifting, depending on country laws, available talent, and technology. In recent years, the shift to remote work has paved the way for international hiring to become more commonplace.
At this point, it’s clear that work-from-home culture has been established across the world. This means HR leaders now have access to a global talent pool to build and develop their teams. In this article, we’ll discuss upcoming trends to help businesses compete for top talent in a global marketplace.
1. A global shift to remote working environments
The pandemic highlighted the fact that many workers in the information economy are fully capable of working from home. With no change in employee productivity, many businesses are recognizing this as the new frontier for digital business. To emphasize this point, here are some additional work-from-home statistics:
- 16% of companies around the globe are 100% remote
- 77% of remote employees say they are more productive when working remotely
- 85% of company managers believe remote working environments will become the new norm
- 74% of workers say working remotely makes them less likely to want to leave the company
For companies looking to expand to international markets, it makes sense to keep workers remote, if possible. This allows HR teams and managers to focus on daily tasks, while empowering employees to succeed.
The goal for HR leaders is to make this work-from-home lifestyle as smooth as possible for new international hires. Having the right technology and infrastructure in place to support global growth is critical for remote environments to be successful. This is especially the case when working across borders.
2. A renewed emphasis on work-life balance
Regardless of whether a worker is remote or not, they now expect to have a strong work-life balance. If remote work isn’t possible for your organization, make sure to emphasize that employees will still have flexible working hours. This ensures that they have the freedom to attend important family events and activities, without becoming overburdened by the job.
Work-life balance is a critical component to stable mental health for employees. A survey conducted by Gartner found that employees who reported better mental health jumped by 23% when employers made an active effort to develop authentic relationships.
These deeper relationships, in conjunction with trusting your global teams, will be a key trend to watch in the coming years. This strategy is already proving to increase productivity and employee retention as mental health becomes more of a focus. Overall, businesses that implement an employee-centric strategy will be more likely to retain top-tier talent from across the world.
3. Customized compensation and benefits packages
Employee values vary from person to person, region to region. Whether it’s higher salaries, more flexibility, or better benefits, it’s important to know the norms of the countries you plan to hire in. Then a company can adjust accordingly.
When hiring globally, recognizing the difference between mandatory hiring requirements and supplemental/customary offerings is crucial. Mandatory requirements include things like holidays for a specific country and negotiations with trade unions. Supplemental or customary offerings, on the other hand, include certain expected gestures that are required to attain top-tier talent.
For example, when companies hire a country manager in India, it’s common to provide a vehicle for their transportation. In some cases, employees in India may also expect a company to offer funding for their higher education. Although these offerings are not required by law, it could make all the difference to your global HR strategy.
The complexity of benefits (such as health insurance, maternity and paternity leave, etc.) can quickly become cumbersome for HR teams hiring internationally. With costs and expectations varying widely across the world, it’s wise to work with an expert on these matters.
4. Focus on providing positive employee experiences
Many of the top international HR trends point to providing seamless and positive employee experiences. From onboarding to retirement, it’s crucial for businesses to make this a priority to retain talented workers.
Employees are the biggest investment a company can make in their future growth potential. Keeping workers happy and engaged may require your business to provide learning and growth opportunities for these individuals.
You can maximize an employee’s production and skills by empowering them to take professional courses to improve their technical skillset. This adds immediate value to a company, while providing engaging, worthwhile activities for the employee. Positive work culture, clear expectations, organized employee structure and more will also contribute.
5. The globalization of skilled workers
Ten years ago, it would have been considered ridiculous to hire someone that couldn’t travel to the office. Today, however, it’s abnormal for companies not to consider remote, global talent acquisition. In other words, geographic location or consent to relocate are no longer essential elements of the hiring process.
As HR teams search for top candidates, geographical borders are far less important than they were before the onset of the pandemic. Today, more companies are enabling their HR departments to make informed decisions about the most qualified talent, regardless of location.
In addition to job-specific skills, workers provide local insights to the countries and regions the company plans to expand into. This provides better opportunities for businesses to scale globally.
6. Working with partners to ensure HR compliance
For companies hoping to hire candidates quickly, they will need to work with a global expansion partner. The best option for this is to hire a Professional Employer Organization/Employer of Record (PEO/EOR).
A PEO is a human resources company contracted to manage certain functions such as HR, payroll, compensation, benefits, employment taxes, and recruitment. Using their network of legal entities, the PEO hires employees and leases them to businesses. This allows companies to manage all employee-related activities, without dealing with the administrative burdens. Some of these challenges include employment contracts, payroll, compensation and benefits, and more.
Another benefit of engaging with a PEO/EOR provider is that the PEO leverages their collective bargaining power to negotiate better benefit packages. They often get deals at lower costs with increased operational efficiencies.
Essentially, a global PEO handles all the administrative burdens associated with building a team overseas. With so much complexity between countries, it’s no wonder why this is one of the most popular international HR trends.
7. Companies are investing in better global HR technology
International HR trends show that technology is a critical component to building an international team. Better technology means better data for leaders to review actionable insights and make strategic decisions.
According to DDI, organizations that do a good job collecting people analytics are three times more likely to outperform their peers. Human Resource Management tools can leverage AI-driven processes to speed up HR tasks, without sacrificing quality.
Companies like Global PEO Services already have such technology, with in-country compliance built into their software. This technology makes it easier for companies to navigate a remote landscape, for both employees and employers.
Global PEO Services, a Safeguard Global company, is constantly monitoring international HR trends for businesses. We help companies expand globally without setting up legal entities or dealing with related talent acquisition, HR, benefits, payroll, tax, and compliance issues. Hire employees fast, test new markets, and respond to growing business needs quickly while leaving the compliance and operational burden to us.
With our Professional Employer Organization (PEO) or Employer of Record (EOR) services, you get full control. All without taking on legal entity liabilities, contractor risks, or sacrificing on talent and speed to market.