We are seeing organizations becoming increasingly global thanks to the internet. Though with organizations aiming for a more global reach HR managers need to overcome the challenges of HR globalization. According to a paper by the Society for Human Resource Management Foundation, it is fundamental that HR managers and companies start to understand the impact of the new environment in which they aim to do business. Understanding and overcoming the complexities of new global environments is one of the keys to HR success.
Expand and Tailor Business Practices
Companies expanding into new markets and especially those in regions labeled as “developing” need to understand, accept and overcome local challenges and values. HR Globalization will require playing, in essence, a professional tug-of-war with other established businesses in the region as you try to attract their experienced workforce. However, in doing so, they’re also improving an understanding of the local market with each experienced employee.
HR Globalization will also require tailoring its policies to the region. For instance, in some countries, Women workers may not be considered equal to their male counterparts in the same way. Their attire, room location, and work timings will differ. HR will need to be thus sensitive to these issues or acquiring female employees to meet a stipulated corporate quota or policy will be nearly impossible.
HR managers will also be responsible for recognizing local laws regarding part-time and temporary employees which vary from one country to the next. For instance, in Indonesia, there is no difference between a part-time and full-time employee. So, both are entitled to the same rights.
The Goal of Professional Development
Another significant effect of HR Globalization is the need to push for professional development. Professional development is regarded as providing employees with various opportunities with which they can achieve their stated career goals. Organizations will need to provide resources which can range from university degree subsidies to free courses and training days.
Professional development is one of the keys to globalization as it puts employees in a winning position because they feel that the company cares about them, their skills and competencies. In return, the organization also benefits from the new skills which helps them get out on top of the competition which may not be adapting as quickly.
Local Human Resource Laws
Another big part of HR globalization is the need for businesses to understand and astutely apply the local laws to their business. These laws range from labor to tax and business types. So, companies need to comply with these laws. Other important laws which vary are minimum wage, tax allowances and working hours.
HR globalization is all about HR localization which may sound strange, but in practice it is important. Take for instance an American business expanding into China. The HR in China will need to be localized not just regarding laws but also culture and language. So, that local Chinese understand what the company is all about before they decide to work there.