Virtually unheard of only 20 years ago, ‘Global Workforce Management’ is now a buzzword in business circles all over the world. Especially in this almost-post-Covid era, where remote working and international recruitment have become part of the new normal. But what exactly is it? What could it do for your business? You’ll be surprised….
A global workforce, of course, refers to an international pool of workers working for an organisation or company, all connected through a network or focussed production system.
Global workforce management (GWFM) is the integrated set of processes and systems that a company uses to streamline and optimize the productivity of its employees – across different countries, different cultures and different time zones.
By definition, that management process must incorporate an eclectic range of elements and expertise to achieve its goal – including recruitment strategies, scheduling, cultural diversity, compliance and payroll, Government rules and regulations, technology and communications, administration, employee entitlements, pensions and superannuation, staff morale, motivation and mental health; and more!
Complex? Yes. But if you get it right the rewards are huge.
Advantages of a Global Workforce Management Strategy
Delineating an effective global workforce management strategy engages your business across many dimensions and brings with it so many advantages.
For example, expansion itself can deliver increased profitability and expansive new markets. Profitability can be turbo-charged, especially if you’re expanding into developing countries where wages are lower yet opportunities are higher than in your home country.
Then there’s the benefits of developing a global recruitment system, which opens your door to an international pool of world’s-best candidates.
Cultural diversity too, an inevitable by-product of managing a global workforce, can also give you a competitive edge. A recent McKinsey report shows that ethnically diverse companies are 29% more profitable than companies that do not go beyond borders.
What’s involved in Global Workforce Management?
A comprehensive global workforce management system must meet a number of key challenges. Among them are:
Law and compliance: Government rules and regulations are different in each country. You need to stay compliant with all relevant labour laws and Government regulations within your operational jurisdiction
Worker classification: These will vary. With a global workforce you will inevitably hire people in varying roles as employees, contingent workers, freelancers, casuals and more. You need to make absolutely sure they’re all classified correctly and that you meet different pay-rates and benefits etc according to each country’s rules and regulations
Payroll: Like labour laws, the payroll systems, practices, and tax practices will differ from country to country. You need to get it right, right from the get-go
Setting up local entities: When you employ globally and hire staff from different countries, you will probably have to set up local entities plus have an experienced HR team take care of all aspects of the hiring process – including onboarding, training, admin etc
Record keeping: This is an important, ongoing process, especially with regard to compliance. Regulations can evolve and compliance certificates expire. You will need an automated system that can send notifications of renewals and changing compliance requirements to relevant staff to stay ahead of any compliance challenges.
All this complexity means that global workforce management, if not done right, might become a highway to hell.
Which is why so many smart companies on the road to global expansion choose to partner with a proven workforce management provider like CXC. Their many years of experience and knowledge – combined with the very latest technology systems will help you to analyse, evaluate, configure and streamline your global management processes to achieve maximum efficiencies across the board.
Not only will you benefit from decades of experience and know-how, but our advanced automated tools and technology will also help optimise your GWM systems, thereby ensuring you maximize productivity, reduce costs, decrease compliance risks and streamline your operations.
The world’s your oyster! Like to know more about the latest in Global Workforce Management? Or how best to plan your global expansion? Or are you interested in CXC’s comprehensive, market-leading GWM offering? Then do not hesitate to contact CXC for more information.