In his dissertation, William Steingruber reminds us that “Traditional” human resources are reactive rather than proactive. The department waits for smoke and then puts out the fire. As a business grows in complexity, reactive processes become increasingly difficult to manage. Multiply this with international business and you have an international human resources problem. Would you rather build a strategic human resources system designed to handle rapid growth? Take control of your international human resource to keep your business running at peak efficiency.
Compliance and International Human Resources
Labor protections and regulations can be the most difficult aspect of international human resources. No one starts a manufacturing business so they can spend their nights reading Thailand employment law or researching how to get a work visa in Finland.
Compliance with local labor laws and regulations is extremely important and is the first step in taking control. Contracts need to have accurate language and managers must understand mandatory training and statutory rights. Make a mistake with just one regulation and you may find yourself in court wasting both time and money.
Global Expansion
Human resource management is more than simply compliance. Michael Volkov reminds us that human resources have several goals beyond compliance:
- Implement and promote a culture of ethics
- Promote employee satisfaction
- Ensure productivity
- Enable every employee to perform their job correctly
As you grow your business in the global marketplace, this aspect of human resources becomes more important. Your employees may have different expectations, different cultures, and different communication methods. To manage those employees, one needs to understand their culture. It can be as simple as how often employees expect to be paid or as complex as the relationship individuals have with authority figures.
How To Optimize International Human Resource Management
Because international HR is so complex, savvy business leaders find ways to simplify the process and optimize their workers’ performance. Here are some best practices:
1. Include Your Human Resources Department in Strategic Planning
A proactive strategy for human resource management can help develop the right culture for your business. An international human resources strategy can help you understand what you can expect from workers in international markets.
2. Link Your Compliance and Human Resources Departments
Since compliance is such an important piece for managing employee relationships, the two departments are a perfect match for each other. When compliance and HR come together they can leverage their strengths to make both departments perform better.
3. Commit to a Global Labor Strategy Above What is Required by Law
A global labor strategy can simplify your policies with an international standard. In the report, Managing Risk, the authors state that businesses that operate at international labor and human rights standards see serious benefits including:
- More stakeholder satisfaction
- Improved reputation and brand image
- Minimized liability
- Improved employee relations
- Greater business value
Consult with experts who can simplify international human resources. Consider using an International PEO (Professional Employer Organization). As the Employer of Record, an International PEO ensures legal compliance in everything from contract language to which days are paid public holidays. An experienced International PEO understands local culture and keeps you up-to-date on labor laws, helping you save time during global expansion. Plus, they can help you expand your business with less cost and risk. Contact us to learn more!
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