April 13th, 2022 | Sterling

The Cost of Not Going Global: Why Entering International Markets May be Critical for Company Success in 2022

Today we are delighted to feature a guest post from Globalization Partners, whose AI-enabled global employment platform leads the way in allowing companies to gain greater access to talent by eliminating the barriers to building a global remote team.  

The last two years have proven challenging for all industries; we’ve seen that change is the only constant, and to remain resilient, business leaders need to learn to adapt quickly. However, many companies entering 2022 are facing a new roadblock — the talent shortage. Globally, 54 percent of companies say that they are experiencing a talent shortage. However, the problem stems from more than simply finding local talent but retaining it as well. In fact, a September 2021 survey revealed that 55 percent of professionals believe employee turnover will only increase in the coming year.

Finding the right skilled talent is becoming increasingly complex as the total number of skills (mostly hard skills) required for a single job is increasing annually by 6.3 percent. In addition, employees’ expectations of their employers are changing, fueled by the desire for a more flexible work-life balance, positive employee wellbeing, and better career opportunities. As a result, business leaders must think more broadly about talent attraction and retention to combat the talent shortage in 2022 and beyond. It’s critical to reimagine benefits, company culture, and employee wellbeing strategies. Most importantly, companies should consider taking their talent acquisition strategies beyond their local area and recruit from talent hubs located in international markets.

Going Global: Top Things to Consider When Locating the Right Talent Hubs

The cost of the ongoing talent shortage is estimated to reach a massive USD 8.5 trillion, as over 85 million jobs could potentially go unfilled by 2030. Companies limited to a local hiring pool may feel this impact more significantly than companies that open up their recruitment efforts to candidates across the world — not all locations are experiencing this talent shortage, as many have even been deemed emerging hubs of highly skilled talent. Therefore, entering new international markets and recruiting from global talent hubs may be hugely beneficial, as 43 percent of business leaders say the talent shortage negatively impacts their company’s operations.

To hyper boost your search for the best global talent, let’s look at some of the top factors to consider when locating the right talent hubs.

#1 – Recruit Based on Regions

Companies can often benefit from hiring team members in the same geographic regions, especially if you require the team to collaborate on projects remotely. This way, the time difference won’t significantly impact the productivity of your team. Offering the option to work flextime can also help to maintain productivity and accommodate employees in different time zones. Ultimately, hiring in a central hub helps focus your recruitment efforts and brings additional benefits to the company, such as achieving deadlines on time and accelerating your time- to- revenue.

#2 – Narrow Down Your Talent Pool

Accessing global talent hubs comes with responsibility — as an HR business leader, you should consider the talent requirements your company needs. There is a lot of global talent out there; thus, we recommend you narrow down your search by looking at some of the main characteristics and skills in demand for your company. International talent also often possesses bilingual skills and substantial global business experience that can increase companies’ success during global growth.

#3 – Preserve Your Resources

Recruiting new talent can be time-consuming and expensive. To reduce costs, consider looking at some of the talent hubs located in lower-cost jurisdictions where the labour cost is much lower. In addition, it can allow you to offer a competitive salary and benefits package. Some of the more affordable countries with skilled talent include Colombia, Brazil, Hungary, Romania, and India.

#4 – Mitigate the Risk of a Bad Hire

Compliance obligations regarding background checks can vary dramatically for different jurisdictions around the world, and the penalties for failing to meet those obligations can be significant. Working with a screening provider whothat has a global reach and local knowledge, and who understands the intricacies of international background checks, can be essential when it comes to meeting legal requirements and maintaining a consistent global background check program. It’s essential to choose a partner during this stage of the recruitment process whothat can cater to your company’s unique hiring requirements, as well as offer screening services across a wide range of territories and languages.

The Role of Technology in Gaining Greater Access to International Talent

In a world where over 72 percent of employees want the flexibility to work from anywhere, and where the nature of work itself is changing so fast, it’s critical to ensure compliance while expanding into new markets and recruiting from global talent hubs. Across the globe, companies are finding it challenging to avoid compliance mistakes, such as failing to meet complex global tax obligations, managing international payroll, navigating the challenges of entity setup, and much more. To help your company easily overcome these obstacles of international team growth, it’s essential to choose the right global growth partner, such as an AI-enabled global employment platform that simplifies and automates: entity access, payroll, time and expense management, benefits, data, and reporting, performance management, employee status changes, locally- compliant contract generation, and more. With Globalization Partners’ global employment platform, you can scale your remote team overnight and grow revenue faster – anywhere in the world.

This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.