In this article, we’re discussing some of the standout benefits for businesses and workers, along with some practical advice for transitioning businesses.
The cost saving implications of global talent mobility: increased flexibility, reduced overheads
The most obvious advantage for businesses is the ability to eliminate or downsize office space and all the costs that go along with brick and mortar premises. In the post-pandemic world, that hasn’t meant a total abandonment of the office.
But it has forced business leaders to reconsider how central the office is to the life of a company.
Most have found a happy equilibrium in hybrid models: some days remote, some days on site, negotiated between management and staff (ideally). Even businesses who choose hybrid models have been able to downsize, making the most of a smaller space by rotating schedules.
And it’s not just businesses who get to offboard overheads by augmenting work policies and operating models. For workers, freedom from daily commutes can help score those all-important work life balance points.
According to Mercer, workers cite the flexibility to work from home as the second most compelling reason to stay with a company, just behind job security.
As life has regularized in the latter part of 2022, workers have shown an understandable reluctance to give this up. And talent will gravitate towards employers who don’t try to force them to do so.
More talent, more opportunity: connecting people and businesses globally
Just as workers have been freed from dreary daily commutes, companies are free of the constraints of local talent pools. Borderless hiring enables recruiters to widen their search, and it’s provided a welcome reprieve from talent shortages that plague high-tech industries.
Quality, not just quantity
And it’s not just that there’s more talent to choose from – research consistently shows that remote and hybrid work arrangements yield higher productivity and employee engagement. Importantly, though, this only works when teams are properly enabled and equipped with the tech they need to succeed.
And it also depends on having a way to legally employ and pay people in foreign jurisdictions (more on this later).
Overall, this is a win for workers, too. Highly skilled people are able to leverage talent mobility to access opportunities with global companies, without having to relocate. This has been especially beneficial for teleworkers in developing countries, who benefit from salary arbitrage.
Retention up, turnover down: remote work leads to happier, more productive relationships
As Spotify famously demonstrated with their Work From Anywhere policy, a well designed global talent mobility strategy can boost retention and employee satisfaction, even under adverse circumstances. Here’s a snapshot of what they achieved by allowing their 6,500 more freedom over where they worked:
- 15% drop in staff attrition, much higher than their competitors
- Reduced time to hire to an average of 42 days
- Increased diversity and representation across the workforce
It’s worth noting that Spotify was able to achieve all of this during the most acute phase of the “Big Quit”, while other tech companies were scrambling to cope with soaring rates of staff turnover and chronic talent shortages.
Flexibility is key
The takeaway here, especially for transitioning businesses, is that Spotify succeeded precisely because they aligned their business practices with the interests and preferences of their people. Interestingly, a majority of their workforce opted for a hybrid model, spending some of their time on site and some at home.
By being flexible enough to accommodate all preferences, Spotify created the kind of environment where people want to work. This is essential to creating a winning employer brand that attracts top international talent.
Reaping the benefits of global talent mobility through Employer of Record partnerships
The question of whether it’s worth taking your talent search to the global stage is, by now, a moot point. The benefits are too clear and too numerous to ignore. But employing people across borders comes with complex challenges that most businesses aren’t fully able to solve on their own.
The intricacies of foreign labor law and tax compliance, the complexities of running an international payroll – all of this can put global expansion outside the reach of an otherwise globally minded business.
At Playroll, we make it possible for businesses to clear the hurdles and get straight to the good part: building international teams. Playroll’s global, technology-enabled platform is geared towards companies seeking to expand their teams internationally and retain talent.
We enable our clients to hire in over 170 countries, without the need to establish their own entities, through our network of international subsidiaries.
The best way to get to know Playroll is by booking your own demo with our team. They’ll take you through the platform and show you how Playroll can unlock the benefits of global talent mobility for your business.