HR challenges of international expansion

For internal HR teams, international expansion presents a new set of challenges. 

The challenges are many when a company lands in a new country. This is because the process involves not only building new teams, but also learning a variety of lessons about how to find the best talent. 

With this in mind, we have compiled the key issues that Talent Acquisition professionals must consider when expanding internationally.

Research the culture

Cultural differences should not be underestimated. Knowing the culture of the country you’re recruiting in will help you better understand the people you’re looking to hire.

Depending on the distance from the country in which you are looking for talent, cultural differences may have an impact on the background or skills of the candidates. In this video, Miguel Angel Cruz Flores gives an example of what to look out for when recruiting in Latin America.

Adapt your recruitment process

According to the Economist Intelligence Unit, recruitment is the biggest HR challenge. 46% of respondents identify “recruiting suitably qualified staff/managers” as one of their top three challenges. 

Therefore, it is important to consider that adapting the selection process to the country’s expectations may be a good initiative.

In some countries, networking is essential. Reach out to local organizations and groups who may be able to provide insight into the talent pool and job market. They can also provide valuable advice on how to navigate the local culture.

You’ll also need to know the best places to advertise your vacancies, whether they’re country-specific job boards, social media channels or printed publications.

Compensations and benefits policy

From one country to another, and even from one industry to another within the same country, salaries and benefits can vary widely. It is therefore important to have a thorough knowledge of the market before you start interviewing or even advertising a position.

To classify the new employees and match them with the appropriate compensation it’s necessary to research. You need to know the cost of living and employment laws for businesses

Some things to keep in mind are:

  • Employment contracts.
  • Wage and overtime rates.
  • Personal data management.
  • Work hour maximums.
  • Public holidays.
  • Paid leave and sick leave entitlements.
  • Parental/caregiver leave entitlements and restrictions.
  • Healthcare rights.
  • Working conditions.
  • Termination requirements.

On the other hand,  it’s necessary to know benefits and industry expectations. That’s why it’s  important to research how competitors attract talent and what their main challenges are.

Once the research is done, the next step is to create a benefits package that will attract talent. It is important to consider the objectives you want to achieve to make the recruitment process as successful as possible.

The cost of international expansion

The learning curve of this type of process can be more costly than companies expect. According to research by the Economist Intelligence Unit these challenges have increased management costs (51%), increased HR staff costs (50%), increased legal costs (35%) and reduced the efficiency of HR processes/practices (31%).

The central concerns of an international expansion process should focus on how best to manage remote employees or how to succeed in a new market. Since there is no strategic advantage to be gained from researching unfamiliar tax and labor laws or a country’s customary benefits, a good way to deal with these issues is to hire a partner to help with globalization.

We can help you!

At MBI Talent Group we have more than 15 years of experience supporting the international expansion of global companies. Therefore, we can guarantee the delivery of 3 to 5 selected candidates according to the needs and culture of your company in just 5 days. Do you want to know more? Please contact us here