The demand for specialized skills is outpacing the available talent pool, hindering companies’ ability to innovate and expand.
It’s a squeeze that continues to tighten.
The Society of Human Resource Management found that three-quarters of HR professionals believe that there is a skills gap among applicants. According to estimates, this is a pressing economic concern behind unrealized revenue of up to $8.5 trillion globally.
Given such staggering figures, businesses must explore innovative solutions to address talent shortages and unlock economic opportunities.
Tapping into international talent pools
Thankfully, there are several potential paths to take to remedy the situation. One lies in tapping into international talent pools, where a diverse range of skills, expertise, and perspectives can fill the void.
Making the case
By bringing together teams with diverse backgrounds and experiences, businesses can drive innovation, the lifeblood of competitiveness. International talent brings fresh ideas to the table, sparking creativity and driving problem-solving in new and unexpected ways.
This diversity of thought helps businesses survive and thrive in rapidly evolving markets.
Research strongly suggests that diversity drives innovation. Not only that, but on the other end of the spectrum, Glassdoor says that 75 percent of job seekers prefer diverse companies and coworkers.
Whether it’s expertise in emerging technologies, specialized industry knowledge, or language proficiency, global employment offers access to a vast array of skills and capabilities that can fuel business growth and expansion into new markets.
Cultivating a global mindset
Furthermore, tapping into international talent pools enables businesses to fill critical skill gaps that may be difficult to address locally. By leveraging international talent, businesses can stimulate growth in new markets and capitalize on emerging opportunities.
Global employees bring valuable insights into local markets, consumer preferences, and cultural nuances, enabling companies to tailor their products and services to meet the needs of diverse customer bases. The strategy drives innovation and revenue.
Impediments galore for the unprepared
Despite these big benefits, businesses face big challenges when navigating international labor laws, compliance requirements, and payroll management. From understanding local regulations to ensuring tax compliance and managing cultural differences, the complexities of global recruiting and hiring can be daunting.
Organizational agility: The key to tapping into a global talent pool
To gain access to international talent pools demands organizational agility.
But what is organizational agility? It’s many things. In the context of crossing borders to capitalize on global talent, agility means the ability to do so at a moment’s notice.
Most employers don’t have this “agility ability” that already exists in-house. And to scale for it on their own is a major mountain to climb—and not at all cost-effective. Never mind that the vast majority of such in-house efforts are apt to fail.
This is where an employer of record (EOR) comes in. It’s a solution to mitigate these challenges and provide the necessary support for businesses to succeed.
By acting as the legal employer for globally distributed workers, EORs take on the complexity and risk of global recruiting and hiring. They also handle payroll, tax withholding, compliance, and other administrative tasks on behalf of the employers that partner with them.
Skirting local talent shortages by going global
The economic rationale for adopting global employment practices is clear: Businesses get the opportunity to sidestep local talent shortages, unlock new revenue, and drive innovation and growth in new markets.
To fully realize these benefits, businesses must overcome the challenges of global employment with the support of an EOR.
EORs offer expertise in navigating the global regulatory landscape. By partnering with them, employers streamline global employment and ensure compliance with local labor laws and regulations. EORs lighten administrative burdens and mitigate risk.
Worried about the existential threat of the talent crunch? Need a life raft to clamber aboard? Speak to one of our experts today to find out how an EOR can help you stay afloat.
