Having a global workforce can provide your business with several key benefits. Employees can offer fresh ideas to improve their business processes and increase efficiency by utilizing diverse backgrounds.
There are three types of staffing strategies for a company to use when expanding overseas: expatriates, third-country nationals and home-country nationals. This article will cover the pros and cons of each approach.
Access to a Wider Pool of Talent
When you employ global talent, you can tap into a wider pool of potential candidates. Staffing agencies have years of experience building talent pools through networking, referrals, and other engagement strategies. This gives them a competitive advantage in terms of speed to hire and cost per hire.
Moreover, outsourcing the work to local talents reduces operational costs associated with onshore employees, like paying for workplace supplies, insurance coverage, etc. This also helps your business save on resources that could be invested in building and maintaining its corporate entity.
Besides reducing costs, local talents can guide you in building a strategy that resonates with the market in a specific region. They are more familiar with the local landscape and the needs of the consumers.
No question hiring employees can be expensive. Between sourcing, screening, and onboarding, the process can take up a lot of time and money for an organization.
However, when businesses turn to staffing solutions companies, they can save significantly on these costs. The reason is that global staffing companies already have the requisite talent pool, and their hiring process is much faster than a company’s HR team.
Global staffing companies also have the advantage of hiring local workers at reasonable, competitive local wages. This helps mitigate the risk of misclassification (i.e., treating contractors as employees rather than independent contractors), which can lead to tax issues, compliance risks, and additional expenses. This is especially important when dealing with volatile currencies and worldwide payroll regulations.
Bringing in employees from different backgrounds allows you to expand your company’s perspective and ideas. Employees from other countries can bring their experiences to the table that can help your business grow and thrive.
The global staffing strategy is a market entry method that alleviates the stress of establishing a corporate entity and managing local payroll, tax compliance, and regulatory compliance for foreign markets. This allows businesses to focus on other critical market entry strategies.
When companies have access to a large pool of talent worldwide, they can increase productivity by hiring the best candidates for the job. This can help them improve their operations and expand their business into new regions and markets.
Global staffing companies can help businesses save time by handling the entire recruitment process. This allows the company to allocate its resources to other business-crucial tasks.
Global employees can also offer a more diverse perspective on the business. This can be beneficial when addressing cultural or language issues with customers. Moreover, they can be quicker to respond to customer queries, resulting in improved customer service. This can also lead to increased revenue for the company. In contrast, local employees may take longer to understand the company’s processes.
Access to New Markets
For many business leaders, expansion to new territories is the best way to boost their company’s revenue. However, operating in foreign countries is challenging; it requires understanding local taxes and employment laws, compliance with trading regulations, workers’ compensation, and other legal frameworks.
Fortunately, working with global staffing companies helps to reduce the burden of international operations. This allows businesses to focus on other essential tasks, such as acquiring more clients, increasing productivity, and developing innovative products. It also gives them access to markets they might not have considered otherwise. This is the advantage of choosing a professional employer organization (PEO).