How Remote Work Helps SMEs Reach Global Expansion
Developing an international footprint is no longer a task reserved for large companies with sizable financial lungs. While it certainly helps to have stable revenue streams and available cash flow for growth, global mobility is now in the reach of small companies with international growth
The latest developments in remote work and digital technology on a global scale are acting as a growth enabler for companies with small headcounts but big international aspirations. Yet, few SMEs (small and medium enterprises) have a fully-fledged global mobility program with dedicated resources.
How can SMEs go about acquiring the necessary global HR expertise and a thorough understanding of the legal requirements inherent to global mobility without breaking the bank? What ways can they meet employee expectations on an individual level with minimal management? What is the right level of support on the ground to capitalize on the globalized practice of remote work?
Here’s how remote work helps SMEs reach global expansion–and it starts with a good global mobility policy.
1. Draft a Nimble Global Mobility Policy
Since many professionals and companies have become accustomed to remote work, SMEs can now capitalize on a global remote workforce as a viable alternative to traditional employee assignments abroad. Companies must keep compliance in check when looking to hire anyone, anywhere, based on the specific market’s labor laws and changing regulations around remote work. Although hiring local talent remotely in the location of interest may bypass immigration issues, there are still tax liabilities as well as compliant payroll and benefits to consider. Any SME’s effective growth strategy should include a compliant, strong global mobility policy that encompasses:
- Standardizing and structuring compensation approaches;
- Providing adequate on-site support to employees (compliant contracts, payroll, and benefits);
- Establishing a tax policy clarifying the assignee’s role and responsibilities relating to expatriate tax, personal tax, and company compliance.
2. Reap the Savings of Flexible Working
Today, with remote work, SMEs can capitalize on skilled talent working in cost-effective locations. Additionally, they can reintroduce flexible working as a talent retention perk. For instance, perhaps assignees returning to their home country on either business or home leave can extend their reunification periods with their families while working remotely to deliver on their commitments in the host country.
3. Keep Employee Experience Front and Center
Remote work has raised the stakes on how companies traditionally conceptualized employee wellbeing. For the past two decades, the common approach to managing mobility revolved around segmenting assignments by either duration or purpose. Today, employee expectations have evolved at an unprecedented fast pace around work-life balance and mental health, making solid and hands-on employee support a centerpiece of global mobility management.
This adds to the complexity for SME leaders accustomed to segmentation. Segmentation may fall short in connecting with the aspirations of employees. However, community, purpose, and job satisfaction will play a more prominent role going forward. Giving employees a voice and echoing their preferences and concerns is an important element of meeting employees’ aspirations.
A global mobility policy should integrate remote work elements to include a wide array of options for employees to choose from, from the classic expat-lite or local-plus policies to the emerging virtual assignments.
4. Look for Valuable Partnerships
For SMEs looking to operationalize its global workforce aspirations, the seemingly infinite global talent pool may seem daunting. Building up a global mobility management team with remote work elements can be both time intensive and resource consuming. SMEs that further delay their international growth plans could miss their opportunity. This is especially true considering the increasingly competitive landscape and that remote work has leveled the playing field. To mitigate administrative complexities, SMEs can access the burgeoning Employer of Record. They can tap into this industry to find strategic partnerships that can help streamline and materialize their international footprint aspirations.