Yet despite the numerous challenges currently threatening businesses – including economic uncertainty and talent shortages – the study highlights that building global teams is important to 66% of leaders.
28%, in fact, described the business goal of global expansion as a ‘central’ part of their business strategy.
These findings indicate that global growth is essential to success and to ensure businesses remain competitive.
What are the challenges that come with global growth?
Technology is one of the driving factors as to why business leaders are keen to seek global growth, with 48% of executives believing that global businesses are better at adopting new technologies, including AI.
Global companies are also believed to “outpace” their peers, offering more desirable perks, such as greater flexibility, better pay, and access to learning and skills development, so much so, that 79% of professionals strive to work for a global company.
However, global growth is no mean feat, with executives facing a number of challenges along the way, including inflation (43%), increased competition (42%) and economic uncertainty (39%).
Little control can be had over these factors, yet others – which can be managed more easily – also arise as concerns, such as maintaining company culture across regions (36%); being able to successfully onboard staff (34%) and navigating complicated compliance regulations (32%).
“By leveraging the correct technology and working with expert in-country partners, these executives can navigate common legal, tax and HR issues in minutes,” says Mark Hedley, Vice President of Talent Recruiting at G-P.
“Removing these barriers to timely progression allows them to make much more impactful use of their valuable time.
“Given these findings, it is also interesting that nearly half (49%) of employees question if their company is ready to go global at all.
For example, something as simple as working out how to accommodate for different time zones is still considered a hurdle by a third (34%) of executives – but could be a huge impediment to establishing an inclusive work culture for those based overseas.”
Organizations that offer opportunities for global collaboration will also be more successful in attracting talent, according to Hedley.
He continues to explain that executives who are able to successfully tackle these challenges will be able to improve employee morale and in so doing, gain an edge over their competitors.
“Preparation is key,” Hedley adds.
Hedley’s top tips for global expansion
Although challenges can be expected for any business planning global expansion, they should be seen as obstacles, rather than complete roadblocks.
Firstly, Hedley believes that leaders must get to know the talent. Particularly as maintaining company culture across regions was the top concern for execs when recruiting globally.
“Your employees are your most valuable resource,” he says.
“Understanding their skills, strengths, and aspirations allows for better workforce management, talent development and strategic planning.
“It’s only through this that it becomes possible to maintain – and even enhance – your workplace culture, regardless of where your team is based.”
Secondly, businesses should be investing in technologies, such as AI, that can support global recruiting, while providing insights into new markets and helping to manage legal or compliance risk.
The report reiterates the importance of new technologies, with 47% of executives stating they thought it would help comply with new laws and regulations.
“Technological investment is no longer just a nice-to-have for global companies – it is absolutely vital,” Hedley affirms.
“For example, global growth technology can now help handle contract development issues, providing customizable and locally compliant digital document templates, as well as compliantly managing the unique challenges of employees working and living in multiple markets.
“This means executives can focus on value-add activities and building a great team, without getting bogged down in complex legalities.”
Hedley’s third and final piece of advice is to make use of experts when needed – especially as more than three-quarters (75%) of global companies have relied on outside support to break into new markets.
“Executives don’t need to be the expert in every market they hire in,” he says, “but they do need to rely on systems and experts to advise on the local laws, regulations, and processes.”
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