A global contingent workforce: is this something you’ve considered for your business, in these times of COVID-19 and the consequent economic uncertainty?
You see, organisations large and small, in most developed countries, are trending towards establishing contingent workers in multiple countries. Here’s why…
As the growth of the contingent workforce continues across most industries worldwide, organisations are becoming increasingly savvy in how they manage these workers. Capitalising on specialist skills and the ability to upscale or downscale their operations are, amongst other factors, now considered standard outcomes of a contingent workforce.
But since COVID came into our lives, companies are taking a broader scope. They’re leaning towards outsourcing contingent labour beyond their shores, as a means of widening their distribution and services reach, and of optimising their contingent labour spend.
It’s a smart approach. And, when managed right, a lucrative one.
Today, we’ve covered the key best practices you need to consider, if your company is looking to globalise – or at least extend beyond Australia – your contingent labour force.
1 Know the Local Laws and Cultural Disparities
Are you across the legalities of engaging contingent workers, in another country? Make sure you seek advice from both your legal counsel in Australia, and in the offshore country. This way, you’ll avoid breaching any employment or international compliance laws. The local lawyer in the destination country will ensure you are across all local requirements. And your legal counsel here, will cover off global hiring requirements, tax implications and statutory compliance issues with your global contingent workers.
In terms of Cultural differences, it’s important to take time to learn about the business and cultural environment of the country where your contingent workers will be based. A sound understanding of the cultural distinctions of the destination country, will ensure you don’t misstep local customs; a situation which could place your success in that country, in jeopardy.
2 Partner with a global contingent workforce expert
The best advice we can offer you, for establishing a global contingent workforce, is to engage a specialist partner who is a proven contingent workforce management provider (CXC is your best option!). Whoever you choose, with the right expertise, can guide you on the tax implications, local laws, and provide local contacts for your supply chain. Also, the right partner will offer you advice on the feasibility of different global locations for engaging contingent workers. This partnership will more than pay for itself as your global contingent workforce will be established, productive and optimised efficiently and effectively – giving you a certain competitive advantage.
3 Establish Robust Communications
When you’re managing a global contingent workforce, communications are typically a major challenge. But thanks to this era of COVID, we’re all becoming far more adept at relying on technology to facilitate communications.
Contingent workers in multiple remote locations with access to Zoom, IM, email and WhatsApp – to name a few – can converse and engage in real-time, with little to no issues (internet speed factored in). So, by embracing the right technology for your business, and establishing a program of regular meetings and impromptu catch-ups your global contingent workforce will feel like they’re in the next room. Or the next suburb, at least.
4 Don’t Suffer International Payment Fatigue
By engaging a global contingent workforce, you’ll need to establish an effective and affordable route for international payments. Find an FX service that doesn’t charge the extreme fees of the major banks. But do your due diligence on these providers, first. The leading providers include Wise, OFX, WorldFirst and XE.
Are you Looking to Establish a Global Contingent Workforce?
If your business is seeking to establish a global contingent workforce, there’s much you need to know before you embark on this strategy. You can reach out to me here, for a preliminary discussion about your goals, and how you can achieve them with the right information, resources and approach.
