How Does Globalization Impact Recruiting?
Globalization has brought many transformative changes, and the recruiting field is no exception. Businesses that were once tied to local labor pools now have global options. This move toward global hiring has allowed organizations to secure the very best workers and reap the benefits of a diverse workforce.
Although the advantages of a global approach to recruiting are numerous, there are challenges to finding and placing the right candidate. Here are some tips to ensure a smooth process.
Global Recruiting Challenges
Companies new to global hiring should be cognizant of the very real pitfalls for firms that enter this process ill-prepared. For example, the laws governing job status classifications vary between jurisdictions, as do statutory protections for workers. Failing to take this into account can lead to serious legal and financial difficulties.
Legal and regulatory issues aren’t the only hurdle to clear. There are numerous other factors to consider. Here are some things businesses need to be aware of when recruiting globally:
• The cost of global labor is rising. Businesses cannot assume going global will result in cost savings. For example, Russian engineers are often paid more than their Silicon Valley counterparts, according to the Society for Human Resource Management.
• Expanding markets more prevalent. For decades, U.S. organizations dominated their competitors. But thanks to globalization, those days are gone. Companies in places such as China, India and Brazil that are now operating in the same space have successfully emerged.
• Tapping global talent is important for growth. Staying globally competitive means having access to the widest pool of talent. This also means effectively recruiting and integrating these workers. Placing the right people in new markets is fundamental to any growth strategy.
The Next Steps
Firms with an eye on global hiring should ensure an appropriate level of organizational readiness. This should include:
• A rigorous assessment of new positions and roles created by expansion
• Investigation into legal, regulatory and cultural issues
• A specific plan for recruiting prospective workers in particular markets
• An overview of market-specific strengths and weaknesses (i.e. Vietnam has low labor costs, Africa needs more engineers, etc.)
Global recruiting will be successful if these important issues are part of a comprehensive strategy. Follow-through with solid research and be sure to grasp cultural norms. This approach will support future growth and attract top talent for new markets.