Market expansion strategies that work
10 avril 2024
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An HR guide for finding and hiring the talent you need to grow globally
People are the foundation for successful new market expansion, and HR teams are the drivers for finding, hiring and onboarding talent. And 81% of business executives agree, saying the business agenda and the people agenda has never been more connected. As organizations prepare for international expansion, whether to reach new customer or talent bases, or to increase market share and revenue, the role of HR has never been more critical.
There’s a lot that goes into a new market expansion strategy, such as analyzing potential markets, monitoring competitor activity, and conducting research around your products and services. But before you can run your operations, you need to recruit and hire the right workers in the right countries at the right time.
HR teams manage the entire hiring process, from compliant employment contracts to attractive compensation packages. They are responsible for onboarding and training these new employees to help grow the business and its offerings around the world. HR helps drive global growth because growth hinges on people—and HR empowers those people to succeed.
Related: The art of market expansion
This ebook will help your HR team create a customized plan for your organization’s growth initiatives. It will outline all the key elements of developing your own market expansion strategy.
Finding the right local talent
Talent varies significantly depending on the different market you plan to expand into. Some countries are more well known for their IT and customer service, whereas others are more established for manufacturing labor. Understanding the local markets and expectations will help you find the right local talent to ensure you meet your strategic objectives. It’s important to:
- Tailor the recruitment experience: Although a customized global recruitment approach for each job posting may take more effort, it will increase your chances of hiring more qualified workers. Take the time to fully understand the unique cultural nuances of a country and its labor market. It could be the difference to help your organization stand out and hire workers quickly.
- Extend and attractive offer in the local market: With so many talent shortages around the world, hiring qualified workers is more competitive than ever before. Make sure you understand the local market to determine the salary benchmarks and supplemental benefits packages that will be the most appealing.
Hiring skilled workers for long-term growth
After you’ve found your ideal candidates for new market expansion, you’ll need to hire that worker in a compliant manner. This requires a legal infrastructure to maintain operations in another country. Creating a hiring strategy that works best for your unique growth goals is the foundation upon which entering new markets becomes a reality for growing businesses. The ebook will go into extensive detail regarding each of these strategies:
- Hire local workers directly: Most hiring strategies must be completed through some form of subsidiary structure. In order to hire workers directly in a foreign country, you first must have a local legal entity to do so. Incorporating in a foreign country takes time and expertise, but it’s a great long-term strategy for building a global workforce.
- Hire with an employer of record: An employer of record (EOR) already has established entities in the countries you want to operate in. They assume all the cost and risk regarding entity establishment and employment regulations. The EOR will hire local workers on your behalf, taking on the legal and administrative responsibilities, while you manage your team’s day-to-day contributions and performance.
- Hire international contractors: Independent contractors are the one exception to hiring with an entity, but it comes with its own set of challenges. Contractors provide specific and specialized services to clients as a non-employee, and usually operate on a project or fixed-term basis. They have more control over their schedules and communication preferences, but the employer doesn’t have to pay taxes or employee benefits.
Onboarding workers in a new market
HR teams that implement a successful onboarding strategy increase their long-term stability and growth in new markets. Employee retention and productivity are key components directly affected by your ability to train these new workers. Effective onboarding enables new hires to swiftly adjust to their roles, obtain requisite skills and knowledge, and integrate with both the social dynamics and performance expectations within the organization. Some considerations include:
- Localizing employment contracts: Employment contracts are legal statements of record between a business and its employees. It’s a document that protects both employers and workers, as long as it contains all key terms and conditions for employment. HR departments might be tempted to use a generic template online, but compliant contracts are tailored to the specific labor laws of the country.
- Providing local HR support: Having a local HR team can help your new workers quickly adapt and contribute to key business outcomes. Onboarding is much more successful when you have some available in the worker’s local language and time zone to resolve any questions or concerns. When you designate specific HR support to these new workers, they can quickly adjust to their new roles and contribute to the organization’s growth.
- Maximizing worker productivity in new markets: With advancements in AI and automation technology, it’s more important than ever to provide opportunities for workers during global expansion. The needs of the business may evolve over time, and having a dynamic workforce will create long-term stability in new markets.
An experienced HR partner for market expansion
What strategies for new market expansion are you exploring?
Safeguard Global provides comprehensive international HR solutions to maximize the speed and effectiveness of your growth goals. With operations spanning 170+ countries, we can help you implement market expansion strategy with a range of solutions, including recruiting, hiring and onboarding workers around the world, as well as setup and compliance management for your foreign entities.
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