The decision to “go global” marks an exciting time for any business, with new opportunities for growth on the horizon. However, it is not a decision that should be made lightly as there are numerous pitfalls and obstacles that can stand in the way of international success.
Before confronting these challenges, it is necessary to first understand the basics of international business, including common use cases, benefits and starting points for a global expansion and hiring strategy.
What? Use cases for international business
There are various situations within the business lifecycle where a company may benefit from global expansion or hiring, including:
- Testing existing products and services in a new market
- Piloting a new product or service in a different market
- Preparing for a cross-border corporate transaction (e.g. IPO, M&A, carve out)
- Building an interim team in an international market (prior to establishing an entity)
- Tapping into new talent pools (either for niche skills or to build a more cost-effective team)
Why? Benefits of global expansion and hiring
The main objectives for global expansion and hiring are to gain access to new markets, supply chains and talent. At the end of the day, a global strategy is aimed at enhancing business opportunities and realizing the following benefits:
- New revenue potential
- Operational cost reductions
- Increased Diversity, Equity and Inclusion (DEI) in the workforce, product development and customers
- Supply chain diversification
- Sustainable growth opportunities
- Talent development, including niche talent and a more cost-effective workforce
How? Starting points for a global strategy
While a global expansion and hiring strategy can present itself in various formats, it is a comprehensive business plan that outlines how a company will expand its footprint into new locations abroad.
Your global business expansion and hiring strategy may cover the following and more:
- Specific goals and objectives in expanding globally
- Identification of target countries
- Product development strategies
- Collaboration with international partners
- Risk assessment and mitigation policies
- Overview of labor laws and other HR considerations
Can EOR hiring bolster your global strategy?
The payoff for global expansion is potentially huge but navigating unfamiliar markets can be challenging, particularly for the HR team.
Building a global expansion and hiring strategy is now becoming easier, thanks to more companies choosing to build remote global teams through an Employer of Record (EOR). The application of EOR services is anticipated to grow at a steady but solid compound annual growth rate (CAGR) of 6.9% through 2028, according to research recently conducted by Valuates.
By 2030, up to 85 million jobs will go unfilled globally according to the World Economic Forum, generating an $8.5 trillion gap between possible and realized annual revenues. EOR hiring may prove to be critical in addressing this ongoing skills shortage, empowering companies to access and harness the best people for the job – regardless of their location around the world.
By using a trusted EOR partner, your fast-growth company can enjoy agility, efficiency and peace of mind in global hiring and business expansion.