Global survey of over 500 senior HR leaders accounting for $189billion in global turnover published following macro-economic volatility reshaping how businesses will scale internationally in 2024 and beyond. Over 80% of companies agree global layoffs have made them consider expanding into new markets for the right talent, with the same number changing their approach to hiring in order to be more cost effective.
The 2023 Global HR Study*, the EOR industry’s most comprehensive report to date, exploring the impact of technology, evolving skills, talent shortages, and regulations on businesses globally.
Set against a backdrop of significant macroeconomic and political volatility, findings from the survey of over 500 HR decision-makers in large and SME companies across the U.K., UAE, Singapore, Australia, and the USA, reveal that 82% of companies are considering expanding into new markets to find the right talent.
However, the survey finds that despite talent being the number one priority for HR-decision makers, concerns about compliance and a lack of local employment regulation knowledge remain major blockers. In fact, three in five (60%) companies find it particularly challenging to ensure compliance with local regulations.
To navigate the complex regulatory landscape, the survey shows that businesses are increasingly turning to HR technology, with over two in five (41%) companies reportedly “very likely” to streamline hiring and compliance using technology over the next 12 months.
Chelsey Griggs, Chief Strategy Officer at Atlas, comments: “A volatile business landscape and fears of a prolonged global downturn means that employers are looking for new ways to be more flexible and economical with their growth plans. Effectively accessing talent and successfully venturing into new markets necessitates a nimble and adaptable partner capable of navigating local laws and regulations, both domestically and internationally.
This study reaffirms that, despite the high appetite to enter new markets, expanding is a financial risk. Of those surveyed at large companies, over half (54%) are willing to allocate over 25% of annual turnover to expanding into new markets. Our modelling shows this as at least $204k – which, if done unsuccessfully and without regards for compliance, creates an expensive mistake.
The study revealed that over half (59%) of businesses don’t often review and update HR policies. Further, 3 in 5 (60%) find it particularly challenging to ensure compliance with local regulations. This is a potential risk to a successful expansion as businesses might be unable to remain compliant with local and international employment laws.
However, new solutions are emerging to address the new ways that we work. Employer of Record service providers, like Atlas, are one of the pioneering forces of this new world as they enable the fast expansion of people ops into new regions for just a fraction of the cost of setting up entities, allowing businesses to operate and hire talent internationally. Organizations that are nimble enough to adapt to the changing landscape will be the ones that will benefit the most in the next decade.”