Tag Archives: globalisation

News

Global expansion and new talent central to business success, according to new research

Majority of CFOs Indicate Lack of Global Talent Strategy Will Suffocate Business Growth

Reveals Pandemic Has Fundamentally Altered How They Hire and Manage Their Workforce

In a recent global survey by CFO Research and Globalization Partners, 81% of CFOs indicated their company’s long-term growth strategy includes international expansion–either currently ongoing or in their future plans. The survey also uncovered changing perceptions about hiring and remote work because of their pandemic experiences, with 85% of respondents indicating the ability to tap into a more cost-effective, global talent pool that is equipped with the appropriate skills would be desirable.

Overall, the survey uncovered three key themes:

  • CFOs are taking a global view within their business strategies and hiring approaches
  • CFOs have altered workforce management strategies
  • CFOs are optimistic in 2021 and believe that their success is tied to global expansion

CFOs are taking a global view within their business strategies and hiring approaches

*CFOs have a high degree of interest in tapping into a more cost-effective, global talent pool—a concept favoured by 85%—and capturing market share through global expansion—favoured by 81%. By contrast, in the 2020 CFO Survey only 63% of respondents said they were moving forward with global expansion plans in the face of the Covid-19 pandemic.

*When asked to describe their hiring strategy over the next 12 to 18 months, 42% say they want to attract new talent that is unbounded by the geographic restrictions of their company’s operating model.

CFOs have altered workforce management strategies

*Three-quarters of the executives also say the Covid-19 pandemic fundamentally altered the way they think about hiring and workforce management and 81% say it altered how they consider remote employees or the work-from-anywhere model. More specifically, three-quarters of the survey respondents anticipate operating remote or hybrid workforce models in the next 12 to 18 months.

CFOs are optimistic in 2021 and believe that their success is tied to global expansion

*Ninety-three percent of the surveyed executives predict that their companies will meet or exceed their 2021 goals and a resounding 81% are planning expansions into new countries as part of their long-term growth strategies.

“The data from the survey points to the fact that CFOs are now re-calibrating their talent plans in order to maximise the opportunity that global remote teams provide from a long-term business perspective, including cost efficiency and access to hard-to-find talent,” said Nicole Sahin, CEO and Founder, Globalization Partners. “In addition, the hubs for highly skilled talent are shifting and currently half of the world’s college graduates come from top emerging countries, which means that companies that adopt this strategy now will be able to gain a competitive advantage in the future.”

Also, an added benefit that should be noted is that a global workforce typically provides better bottom-line results. Study after study points to the fact that employees who are part of a diverse culture are much happier and engaged,” continued Sahin. 

As an EOR (Employer of Record), Globalization Partners allows companies to hire anywhere in the world by serving as the legal employer, ensuring compliance with local employment laws and regulations, freeing up companies to manage and direct the daily work of their team members. To see a demonstration, please watch this video.

To download the 2021 eBook, with additional information and details of survey results across the globe, please click here: Report: CFOs See a Clear Pathway to Growth Through Global Expansion.

News

International companies hire more women

Globalisation provides opportunities for gender equality in employment, according to new research by Vienna University of Economics and Business (WU).
The study, conducted by WU’s researchers Alyssa Schneebaum and Carolina Lennon, found that there is a correlation between global economic interaction and the gender distribution among a firm’s employees.

Firms that export or are owned by parent companies abroad have a higher female share of full-time, permanent employees than firms that are only active in their national markets.
This was especially apparent for exporters with customers in countries with equal gender norms – these companies employed six to seven percentage points more female employees.

“What we see here is a ‘race to the top,’ meaning that global firms adopt more equal hiring practices compared to non-global firms if they interact commercially with more gender-equal economies. There seems to be no evidence of a race to the bottom, that is, gender inequality isn’t imported through commercial links with gender-unequal countries,” says Professor Schneebaum.

However, the percentage of women only increases at the lower and middle levels of the organisation – exposure to gender equal norms has no effect on top management positions.
Being internationally oriented has a negative effect on the probability of a firm having a female in top management positions with exporters 3.9 per cent less likely to have a female in charge.

“These results are important because they show how commercial trade serves as a medium through which gender norms can be transmitted across countries. However, we do find that for more prestigious jobs, it will take more than just commercially-base exposure to norms of equality to get more women into management positions,” says Professor Schneebaum.

The study analysed data administered by the Enterprise Analysis Unit of the World Bank from 2006 to 2014, on 30,000 firms in more than 100 developing and emerging economies.