Global mobility is growing in popularity, and with it, so is the emphasis on lean methodologies for expansion. “Going lean” is more than just a trending idea, it’s a necessity for companies that hope to gain a competitive edge in a global marketplace. Lean methodology emphasizes the importance of bringing the most value to a customer by eliminating waste in a company’s processes. Companies that utilize a lean hiring strategy during global expansion experience increased productivity that leads to quicker time to market and notable cost-savings, allowing them to focus on their global growth.
What are the Basics of Lean Hiring?
A Lean approach strives for a fully streamlined operation, with little to no waste in regards to time, production methods, and processes. The goal of “going lean” is aimed at maximizing the value for the customer by practicing efficiency.
According to the Lean Enterprise Institute, lean is achieved by first identifying the target customer and determining the benefits the company provides to them. By focusing on providing the most benefits for its customers, companies can then discern which areas do not create value and eliminate the waste in order to simplify their processes.
When it comes to global expansion, lean practices mean maintaining a flexible and agile approach, especially when it comes to hiring. A clearly identified lean hiring strategy makes it easier for companies to adapt to change, overcome potential challenges, and can save them time, money, and resources associated with international expansion.
Developing a Lean Hiring Strategy During Global Expansion
As companies approach new markets, they need to create an effective hiring strategy that employs lean practices if they hope to remain flexible. Companies that fail to maintain a light approach when testing international markets may end up having to exit a country if there is no potential for long-term success.
For example, in 2006 Home Depot expanded into China by buying 12 local stores and setting up a legal entity. After going through the process of establishing an entity, the company found that their message did not resonate with locals as they intended, and they decided to go through the lengthy process of taking down an entity in order to exit the market in 2012. Similar to Home Depot, many companies go through the process of setting up entities, only to tear it down shortly after because they do not see the success they had hoped for. A lean approach can help companies avoid this costly process by allowing them to forego setting up an entity until they are fully committed to a country.
One way that companies can stay lean during expansion is by using an International PEO (Professional Employer Organization) service. With International PEO, an organization can enter a market quickly and compliantly while efficiently building an international workforce without having to set-up an entity. This expansion solution gives companies access to hiring benefits including:
- Ongoing HR support that gives international employees peace of mind
- Managed payroll that provides monthly, easy-to-read invoices
- Streamlined onboarding to get employees up and running without delays
- Ensured compliance with local labor laws with help from on-the-ground experts
Take a lean approach with your global expansion and maintain flexibility in the ever-changing conditions of the global marketplace. Join the growing trend, get in touch with Velocity Global’s team of international experts. Our flagship International PEO solution can help you develop and execute an effective lean hiring strategy.