According to a G-P report, nearly three-quarters (72%) of leaders are eager to hire international talent, but many often struggle with getting expansion right. The new series on Netflix of Emily in Paris serves as a timely reminder for these businesses to understand the significance of cultural differences, cross-collaboration and strategic planning for successful international expansion. Laura Maffucci, Head of HR at G-P, explores top tips for hiring and managing a global workforce.
As businesses increasingly look beyond their borders for skilled talent and growth opportunities, building and managing global teams has become a focal point. G-P’s 2024 World at Work report found that 98% of executives agree that establishing a market presence in multiple countries is essential for remaining competitive in today’s business landscape. Yet many struggle to execute their global expansion strategies effectively.
With the fourth season of Emily in Paris streaming now, the show continues to entertain with its playful portrayal of Parisian work culture. While the series is known for its exaggerations, it highlights real-world lessons about the complexities of adapting to new environments – insights crucial for companies thinking about scaling their businesses in new countries. The show reminds businesses that understanding cultural differences, cross-collaboration and strategic planning are essential to hiring teams globally.
While the allure of accessing diverse talent and expanding market reach is undeniable, businesses must engage in careful planning and execution. Alternative employment models, like employer of record (EOR), can help companies navigate building and managing teams in new markets around the world without establishing a local business office or legal entity. EORs can significantly reduce the risks associated with entering a new market, from navigating cultural nuances to managing compliance.
Navigating cultural differences across regions
Cultural nuances are often underestimated when entering new markets. Companies must recognise that strategies effective in one region may not work or translate seamlessly to another. For instance, communication and working styles vary from one country to another and often subtle differences can lead to misunderstandings, strained relationships, and at worst, failed business ventures. With 49% of employees stating that culturally diverse workplaces make global companies more attractive, it’s crucial for businesses to implement strategies that empower staff to perform at their best.
Effective cultural training and sensitivity programmes can help prepare employees to navigate these differences and ensure they can operate effectively in diverse cultural contexts. Businesses that invest in cultural competence, resourcing and expertise are better positioned to prepare their teams and avoid culture clashes related to local customs, business etiquette and communication styles. This can help foster stronger relationships with regional teams, enhance collaboration and productivity and build trust and loyalty, essential for long-term success in any business or market.
Companies that overlook the importance of cultural understanding may face significant barriers to entry or expansion, limiting their ability to capitalise on global opportunities. Cultural diversity and the need to get cross-cultural communication right are no longer optional ‘nice-to-have’ but strategic assets that can drive productivity and foster a healthy workplace.
Balancing talent acquisition and company culture
G-P’s World at Work report highlights that 84% of UK executives expressed difficulty in finding skilled talent in their existing markets. While going beyond borders to hire skilled teams opens access to new talent pools, having talent based across multiple regions can present new challenges in maintaining a unified company culture. When hiring in new markets, local practices and expectations may differ significantly from those in the company’s home country. So, as companies consider going global, how do they retain their culture?
It’s not just about finding skilled workers; it’s about ensuring that these individuals align with the company’s core values and culture, regardless of location. Overcoming this requires a strategic approach to hiring, onboarding and managing talent. Companies must balance integrating new hires into the existing company culture and respecting local practices. A standardised yet flexible onboarding process, tailored to different regions can help achieve this balance while maintaining consistency in overarching values. By doing so, companies can ensure that global teams are cohesive and proud of their company’s culture.
In addition to onboarding, talent management is crucial for maintaining a strong company culture across borders. Your employees are your most valuable resource – understanding their skills, strengths and aspirations allows for better workforce management, talent development and strategic planning. This includes regular communication, performance management and training and professional development programmes accessible to employees in all regions. Effective training, focusing on enhancing collaboration and cultural understanding, not only boosts productivity, innovation and talent retention but also mitigates conflicts.
It’s only through focused efforts that it becomes possible to maintain – and even enhance – your workplace culture, regardless of where your team is based. Companies that invest in their global workforce will build an engaged team committed to driving the company’s success worldwide.
Ensuring compliance with regulatory standards
One of the most complex challenges of building and managing teams in multiple locations globally is navigating legal, regulatory and compliance requirements. Labour laws, tax codes and employment practices are different and specific to each individual market. Businesses must prioritise compliance from the outset to avoid disruptions and expensive fines. For example, EU and UK GDPR imposes strict requirements on how companies handle personal data, with severe penalties for non-compliance.
Navigating the complexities of international and local regulations is essential for smooth operations in foreign markets. Compliance involves staying informed about the regulatory environment in each market, including any changes that could impact their operations. The introduction of emerging tech, like AI, is poised to help. In fact, 49% of executives globally believe AI can help predict business challenges in prospective new markets, underscoring the role of technology in navigating international expansion.
EORs can help business leaders more efficiently manage hiring talent across borders. At G-P, we recently introduced AI-powered global hiring and onboarding to help businesses manage the offer process, execute employment agreements and facilitate onboarding and benefits set-up, all while ensuring hiring teams receive real-time guidance through onboarding workflows in accordance with country-specific regulations.
By leveraging technology and taking a proactive approach, companies can mitigate risks and seize opportunities, ensuring that their international expansion efforts are successful in the long-term.
Ensuring a strong foundation for international success
Success isn’t drawn in a linear path and can take many forms. Yet successful global expansion requires more than just a desire to grow – it demands a well-thought-out strategy that addresses cultural, human, operational and regulatory challenges across markets.
By investing in understanding nuances across regions, maintaining a strong company culture and leveraging best-in-class technology to ensure compliance, businesses can navigate the complexities of the global workforce and move toward sustainable growth.
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