Organisations with global operations face complex and relentless personnel issues. From increased legal risk exposure across borders to dealing with a worldwide scarcity of talent, the HR challenges of international business must be overcome to maintain advantage at scale through a high performing, mobile workforce.
Legal risks
The legal and regulatory environment presents challenges for any business, but where the organisation is active in multiple jurisdictions, the threats necessarily multiply.
All areas of law relating to the management of a multinational workforce must be considered against the backdrop of relevant local laws. HR departments within global organisations are under an imperative to continually and proactively review the legal environment and the obligations placed on their organisation to identify potential risks of non-compliance.
Immigration compliance, employees’ working rights and entitlements, tax and remuneration, in particular, all require organisational policies and procedures to be aligned to and in full compliance with the rules of the specific jurisdictions concerned.
Furthermore, the ever-changing political landscape, in particular, Brexit, have brought significant uncertainty and anticipated legislative change within the UK that will impact on a global scale.
While wholesale reform of UK employment legislation is not expected as a result of Brexit, the UK Government may take advantage of the circumstances to put through some changes, potentially in areas such as working time regulations and TUPE.
Employers should, therefore, be on standby to respond to new or amended employment laws affecting employee rights and employer obligations.
Scarcity of talent
A lack of talent remains a challenge for HR.
In developed nations, lower-skilled roles can be difficult to fill from within the domestic labour market. Highly skilled roles are typically difficult to fill due to a shortage of requisite skills, particularly in emerging fields such as tech. International recruitment has, as a result, become critical to meeting talent needs.
Hiring migrant workers, however, brings substantial compliance challenges which again will be determined by the rules of the local jurisdiction and in many cases, the circumstances of the worker. Governments globally are showing increasing vigilance against employers failing to comply with immigration compliance, with enforcement powers often including substantial fines.
Deploying employees on overseas assignment remains an option of choice where employers require specific technical skills and organisational knowledge, or as part of global leadership development programmes. Across the global mobility assignment portfolio, from relocations, short-term or long-term assignments to frequent business travel, cost control remains a key driver, and the need to ensure international assignments are both cost-effective and commercially viable.
To retain talent and maximise return on their global mobility investment, employers also need to consider more creative ways of encouraging returning assignees to remain within their organisation at the end of the assignment lifecycle.
Through this period of change, employers should be open to new approaches to recruiting and retaining talent. This impacts fundamentals such as competitive compensation and relocation packages, career development and progression programmes and overall investment in the employer brand and employee engagement.
Technology & data advancements
Traditionally the focus of HR has been on people. But modern demands and capabilities in workforce planning, management, development and engagement are increasingly reliant on technical solutions, or organisations risk being left behind.
HR departments have an ongoing responsibility to understand emerging technologies that offer operational advantages. Global mobility software is enabling real-time traveller tracking, capturing data relating to tax and expenses and enabling instant communication and contact with overseas employees investment. Automated systems offer greater efficiencies of HR processes and connectivity across networks and functions. Employee engagement and communication channels have never been so vast in choice and capability.
The effective use of data and analytics are driving workplace cultural shifts and performance transformations, aligned to business goals and needs. Data competencies are fast becoming critical within the HR function. Measuring and monitoring workforce performance and behaviours support informed decision-making and allow for investment to be placed in areas that will deliver improvements, return and strategic value.
The potential is for HR to optimise tech solutions to deliver on the transactional demands of managing a global workforce in a compliant and cost-effective way while allowing the HR function to focus on areas of strategic importance and value.
Need Assistance?
Given the current global upheaval in political, economic and technological terms, international HR teams are facing an overwhelming array of challenges. This includes staying up to date with legal changes and technological advancements, aligning global mobility policies to evolving business needs, and developing and managing the organisation’s present and future global talent pool with commercially viable incentives.
FAQs
What are the most common HR challenges faced by UK employers in international business?
UK employers often face challenges such as navigating cultural differences, ensuring compliance with varying local labour laws, recruiting and retaining global talent, managing remote or dispersed teams, and overcoming communication barriers due to language differences.
How can UK companies ensure compliance with local labour laws in different countries?
To ensure compliance, UK companies should work closely with local legal experts who understand the specific labour laws and regulations of each country. Regular audits, staying updated with legal changes, and implementing a global HR compliance framework are also essential.
What strategies can be used to manage cultural differences in a global workforce?
Companies can manage cultural differences by providing cultural sensitivity training, encouraging open communication, and promoting an inclusive workplace culture. It’s also important to understand and respect the customs, traditions, and working styles of different regions.
How can UK employers effectively manage remote teams across different time zones?
Effective management of remote teams requires clear communication, the use of collaborative tools, and setting expectations for availability and work hours. It’s also crucial to establish a strong team culture and regular check-ins to maintain engagement and productivity.
What are the best practices for recruiting international talent?
Best practices for recruiting international talent include leveraging global job boards and recruitment agencies, offering competitive compensation packages tailored to local markets, and ensuring a smooth relocation process if needed. It’s also important to consider visa requirements and legal implications when hiring from abroad.
How can UK companies retain top talent in their international operations?
Retention strategies include offering professional development opportunities, providing competitive and locally adjusted benefits, and creating a positive work environment that respects cultural diversity. Regular feedback and recognition of employee achievements are also key to retaining talent.
What role does technology play in overcoming HR challenges in international business?
Technology plays a crucial role in managing global HR operations by streamlining processes such as payroll, compliance tracking, and communication. HR software can help centralise data, automate tasks, and facilitate collaboration among teams across different regions.
How can HR policies be tailored to fit both global and local needs?
HR policies should strike a balance between global consistency and local flexibility. This can be achieved by creating a core set of global policies that are adapted to meet local legal requirements and cultural practices, ensuring they are relevant and effective in each region.
Glossary
| Term | Definition |
|---|---|
| Cultural Sensitivity | Awareness and respect for the cultural differences and practices of individuals from different regions or countries. |
| Global HR Compliance | Adhering to the various labour laws and regulations in different countries where a company operates. |
| International Business | Business activities that involve the exchange of goods, services, or information across national borders. |
| Labour Laws | Legal regulations that govern employment practices, worker rights, and employer responsibilities within a country. |
| Remote Teams | Groups of employees who work together from different geographic locations, often across different time zones. |
| Talent Acquisition | The process of identifying, attracting, and hiring skilled workers to meet an organisation’s needs. |
| Retention | Strategies and practices aimed at keeping employees satisfied and committed to an organisation long-term. |
| Global Talent | Skilled workers who possess the qualifications and experience to work in various countries or regions. |
| Compliance Audits | Regular reviews and checks to ensure that a company’s practices adhere to local and international laws and standards. |
| Collaboration Tools | Digital platforms and software that facilitate communication and teamwork among remote or international teams. |
| Inclusive Workplace Culture | A work environment that values and embraces diversity, ensuring all employees feel respected and valued. |
| Professional Development | Training and education opportunities provided to employees to help them grow their skills and advance their careers. |
| Visa Requirements | Legal conditions and documentation needed for an individual to work in a country other than their home country. |
| Compensation Packages | The total remuneration, including salary, benefits, and other incentives, offered to employees for their work. |
| Global HR Framework | A structured approach to managing HR policies and practices across different countries, ensuring consistency and compliance. |
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
