The economy today looks much different than it did before the pandemic as demand for products, services, and delivery models has shifted. Sectors such as e-commerce, telemedicine, online banking, and streaming entertainment have taken off, while other industries – such as food services – have needed to adapt their operating model to keep serving customers. Looking ahead, companies across all sectors will require different types of skills to drive innovation and business success.
Beyond disrupting what type of work is done, the health crisis has also required employers to rethink how work is done. Many companies that have rolled out remote or hybrid working arrangements are planning to keep this type of work model. In a soon to be released Ceridian study, we found 27% of organizations are currently working in a hybrid model, while 34% are working remotely. In the next two years, half of organizations expect a more permanent move to hybrid work with 71% planning to hire more remote employees.
Workers’ expectations of their employers are quickly evolving, and many expect employers to address their individual needs with a more integrated, seamless employee experience. Leading organizations are realizing that to both meet employee expectations and scale globally, they need to invest in technology. Outdated solutions, poor user experience, and disparate systems are obstacles in the changing world of work.
Companies will need to consider how they’ll remain competitive as markets evolve in this new reality and employee expectations continue to shift. Here are five things global businesses can do to stay competitive.
Managing pay and time data in many disparate systems presents challenges for organizations, such as increased risk exposure and added administrative effort for payroll teams as they reenter data to ensure employees are paid accurately for hours worked.
Companies with a global presence that have employees working out of different locations will need the right technology to help reduce inefficiencies while staying on top of regional compliance laws.
Combining employee pay and time tracking a single solution will help employers improve pay accuracy and minimize time-consuming payroll reconciliation efforts caused by errors. Paying the workforce accurately is a critical part of employer branding as job candidates and employees see the investment employers are making in the pay experience.
Organizations recognize that they need a workforce that is engaged, skilled, and flexible enough to meet their business needs. This need is amplified for those that operate across borders. HR will continue its transformation from an administrative to a core strategic function – not only occupying a space in the c-suite, but even leading it.
This will not only ensure that companies place their talent at the center of their thinking, but it will also result in greater integration between HR and the business, as leaders understand how HR contributes to and enables smooth company operations and greater business success.
Although every country offers a different pool of talented workers, two constants will remain: the need to remain in compliance with labor regulations, and the need to recruit and retain the most talented and productive workers. From both a cultural and a regulatory perspective, the need to ensure gender pay equity is increasing. This need is mounting across the world and for businesses in the U.K., reporting on your gender pay gap is already a legal requirement. A human capital management (HCM) solution that can help you track and reduce your pay gap is crucial for organizations to provide a better employee experience for their people.
Companies across the world should also be correcting unconscious bias in their hiring processes to increase the diversity of their talent pool. One way employers are doing this is through investment in artificial intelligence: by integrating AI technology into the recruiting and hiring process (for example, to screen resumes), gender, ethnic and other biases can be taken out of the equation, allowing the hiring process to focus on what really matters.
Organizations should also be reworking job descriptions and eliminating any potentially exclusionary language to ensure that their hiring process is as open and inclusive as possible. Industry leaders do not allow biases to stand in the way of finding the best fit candidates.
Finally, organizations must invest in employee learning and development. In Ceridian’s 2021 Pulse of Talent survey, 77% of employees said it’s important that their employer provides learning opportunities, but only 29% said they either aren’t getting them, while 11% are unsure if their employer provides them. By investing in employees’ skills, organizations can future-proof their employees, allowing them to stay at the cutting edge of their fields. This will help increase the likelihood that they will stay at their jobs, reducing turnover, and increasing productivity.
While big data offers bigger opportunities to understand and engage the workforce, much of the data HR departments handle is highly private and confidential – and in most countries, this privacy is protected by law.
Businesses operating at a global scale also operate within a global threat environment. Additionally, the necessity to remain in compliance with regional and country-specific legislation adds another layer of complexity to HR data. Organizations will need to avoid cobbled-together solutions that have greater integration and maintenance complexity to reduce risk exposure.
In a world of increasing interconnectivity, an HCM solution constrained by borders is behind the times and unable to serve today’s global, mobile workforces. Many employees will continue to work remotely from anywhere, which means organizations need an HCM solution that can help address the challenges of a dispersed, borderless workforce.
Today’s HR teams must also be prepared to deal with the elevated complexity presented by global compliance. A strong HCM partner can help companies reduce regulatory friction, minimize administrative overhead, reduce risk, and allow HR managers to concentrate on engaging their workforce.
Learn about trends in the global payroll market and the advances in payroll technology that are addressing the challenges global enterprises face.