Technology is making the world increasingly smaller. Language translation and travel planning can be done with the touch of an app. Countries have opened borders. Modes of transportation from here to there are readily available and affordable.
As the world has shrunk, business potential has soared. The possibilities for global workforces, supply chains, and markets are enormous. And reaching them has never been easier.
If you have been wondering whether you should take your work team international, here are some considerations. Moreover, here are some recommendations for how to get it done if you decide to step across your borders.
The Talent Pool Is Tantalizing
The dynamics of the workforce are changing. Unemployment is low. Workers aren’t afraid to make only brief commitments before moving on to another job. And technology is changing what jobs are performed by humans and how.
Unless you go international, the prospective employee pie is the same size. You just keep slicing it into different pieces. You need to take a global hiring approach to make the pie larger.
There’s more than just a larger pie of talent globally. It’s also multifaceted, offering niche talents and skills as well as unmatched diversity.
For many companies, employing an international team can be daunting. You can’t simply hire someone in another country to work for you. There are laws, compliance issues, and cultural considerations.
To make global hiring easier, you can work with a professional employer organization. A PEO can help you with hiring, onboarding, payroll, and benefits administration. But you will still need to establish a legal entity in the country you’re hiring in.
If you don’t want to do that, partner with an employer of record established there instead. The EOR is the employer, and your company is the de facto employer. You get the same services as a PEO, but you won’t have the formal presence.
Technology has proven how well teams can work together while doing so remotely. Assembling an international team builds diversity automatically. If you’re tempted to globalize your workforce, nothing should be standing in your way.
A Competitive Edge Is Yours for the Taking
Putting together an international team gives you an edge when hiring top talent. But it also gives you a leg up on the competition in other ways. Make the move to global and move ahead.
Multicultural teams bring a range of language, social, educational, and personal traits and experiences to your brand. In essence, they present a worldview rather than one limited by domesticity. Team members will view challenges differently and have different takes on solutions.
That inherent diversity will foster innovation and creativity. Plus, it will give your brand insight into how it can best compete in new markets and among new audiences. Don’t ever underestimate the power of first-hand knowledge.
Global ecommerce sales are estimated to reach nearly $7 trillion in 2024 and increase by another trillion by 2026. Adapting to the norms, customs, and culture of a new market is a shrewd marketing strategy. Politics isn’t the only consideration that’s local.
If you have a team with members who are from and live in that market, you leave competitors at a disadvantage. Your company will be able to develop localized marketing, sales, and customer service strategies from the get-go. You’ll be setting up your brand for success while competitors throw strategies at the wall to see what sticks.
Consumer purchasing decisions everywhere are impacted by cultural preferences. Those may be subtly different from what you’re used to or worlds apart. Developing teams who understand both is critical to your success.
Remember, one of the aspects you’re adding to an international team is their values. You may need to adjust your corporate culture to also embrace global ones. Everyone prefers to patronize companies that understand them.
Boosted Productivity Is a Winner
Those broader perspectives that accompany diversity lead to better decision-making. Better decisions result in more hits than misses, more wins than losses. When teams are on the right track, they’re more productive.
One study showed how strong performance can be for companies who have assembled ethnically diverse executive teams. Those in the top quartile of this type of diversity were 39% more likely to outperform companies in the lower quartile.
Multiple studies performed during and in the wake of the pandemic indicate that remote and hybrid work arrangements also boost productivity. Teams who can work with some flexibility are happier and more creative. They tackle problems with more energy and have the confidence to try more innovative solutions.
Of course, technology is the great equalizer of global teams. Time zones and language barriers are non-issues. Teams used to collaborating with members in the same country will have few problems working with members in other countries.
Productivity is also heightened by round-the-clock teamwork. During any given hour, some team members will be working. When other members clock in, they will find projects have moved forward and will pick up the baton.
You also shouldn’t discount the opportunity for global teams to provide 24/7 customer support. Forget shift differentials when you can staff your support services globally. There’s also the value of international customers receiving support from someone local.
Productivity is the key to profitability. If you increase your team’s output by hiring internationally, you can improve your bottom line.
Seize the Global Day
As you want to scale up your business, consider the advantages of using global opportunities to do it. Given the growth of technology and the shrinking world, the time is right to explore the advantages of building international teams. Just don’t be left behind.
