The Next Chapter in HR Management: Top 6 Globalisation Challenges and Solutions

Human Capital Management Today

Managing today’s global workforce in an increasingly disruptive economic landscape is a strain on business operations. HR professionals’ role is more complex as companies continue to scale their business and fast-track into new markets.

Human resource management focuses primarily on core HR administrative functions like maintaining employee personnel records, payroll and leave management. Today, the role of HR professionals is more strategic. It encompasses Human Capital Management like core HR functions plus more strategic aspects such as performance management, workforce planning and people analytics.

While globalisation offers many advantages for companies to gain new customers and generate revenue streams, there are also challenges.

• Complexed Labour Laws

Labour laws differ by country and, in many instances, vary by state and province. In the US, for example, taxes are assessed twice – first by the federal government and again by the state. Likewise, in China, individual income tax (IIT) differs across the country’s four first-tier cities – Beijing, Shanghai, Guangzhou and Shenzhen.

Without an in-depth understanding of the local labour laws and employment regulations, companies could face a disruption in business operations and, in more severe instances, hefty fines due to non-compliance, including negative brand perception.

Partnering with an experienced HR and payroll service provider like BIPO, which has a team of in-country experts, minimises the risk of non-compliance. In addition, BIPO’s cloud-based global payroll solutions leverage technology and BI capabilities to ensure timely and accurate payroll processing.

• Access to a Diverse Pool of Talents

The global war for talent is a constant battle for start-ups, SMEs, and MNCs across all industries. Against a competitive business landscape, access to a diverse and international talent pool ensures that companies have the right talents and resources to meet business demands.

Hiring without borders is an important business strategy. Partnering with a reliable international recruitment partner can help businesses access a vast talent pool in different markets. However, hiring, paying and managing these talents compliantly can strain business operations.

NextGen cloud-based HR Management System (HRMS) platforms like BIPO act as a central repository or personnel hub to store employee data. HR teams can also use HR management system as a platform to send offer letters by integrating with eSignature functions, enabling companies to make an offer and onboard global talents quickly.

• Payroll and Compliance Challenges

With employment regulations and complicated payroll and tax computations that differ vastly across countries, many companies outsource their payroll to reliable vendors with the knowledge and in-country expertise.

In many instances, companies that need to scale their business and the number of employees quickly may face challenges paying them locally and in the currency of choice. BIPO, with its cloud-based HR Management System (HRMS) and built-in payroll calculation capabilities, can help to reduce such complexities.

BIPO HR management system integrates employee data with payroll, leave, expense claims and other core HR modules. BIPO’s payroll module is compliant across Asia Pacific, including Singapore, Hong Kong, India, Indonesia, Malaysia, Philippines, Thailand, Vietnam and China.

HRMS platforms with built-in payroll calculation enable companies to pay their global talents accurately, on time, compliantly and in the local currency of choice. In addition, a cloud-based HRMS platform speeds up the payroll process, reduces manual calculation errors, and minimises the risk of non-compliance.

• Compensation Management

Companies must prepare, monitor budgets, and plan their compensation strategy to retain and attract the best talents. Therefore, a compensation management solution is critical, especially when companies scale their operations and increase employee headcounts within a relatively short timeframe.

Don’t estimate the power of HR management system. HR teams can use cloud-based HRMS platforms like BIPO to set up the annual compensation cycle, budgets and guidelines. In addition, users of such platforms can initiate dynamic payment cycles and allocate compensation according to employee performance and rating by country.

Additionally, a compensation management solution also acts as a centralised system. It manages monetary compensation like annual bonuses, performance incentives, and non-monetary items such as flexible work hours and other perks.

• Attendance Management for Remote Teams

With offices scattered across different countries, a cloud-based attendance management system enables employees to clock in/out using their mobile phones.

BIPO’s award-winning cloud-based Time & Attendance Management System leverages facial recognition, geo-fencing and QR code capabilities to facilitate employee attendance. As a result, Line Managers and HR teams can manage multiple shifts efficiently without using spreadsheets or manual uploads of timesheets.

In addition, businesses with overseas entities now have access to an accurate and reliable system that syncs employee attendance and overtime with payroll for timely salary payments.

• Training & Appraisal

Appraisal, performance management and a comprehensive training programme are critical components of a successful talent retention strategy.

Automating the process enables HR teams and Line Managers to organise regular reviews online. In addition, they can set the frequency cycle at the 30, 60 or 90-day mark to check in with new hires and implement checks and balances along the employee lifecycle.

HR Management Systems today allow HR teams to set training goals, create forms and access templates easily tailored to fit the individual department’s or company’s needs. In addition, auto-prompts and reminders ensure that HR teams and Line Managers know of critical vital dates and tasks.

Managing the appraisal process is now done seamlessly through cloud-based HRMS platforms like BIPO. In addition, HR dashboards connect HR teams and Line Managers with employee data and online appraisal forms to ensure accuracy and a seamless appraisal process.

Conclusion

To manage the hiring, onboarding and payroll needs of today’s global talents, companies must ensure digital tools are in place to facilitate this. Cloud-based HR Management Systems that offer ESS (Employee Self-Service) functions empower employees to take ownership of their personal data and information accuracy. In addition, HRMS platforms like BIPO also include access to a mobile app, available on both iOS and Android devices, to simplify workflows.

Find out how BIPO’s award-winning Human Capital Management Solutions, global payroll outsourcing, and Employer of Record (EOR) services leverage technology to simplify the on/offboarding process. Connect with their team of in-country HR and payroll experts today!

Established in 2010 and headquartered in Singapore, BIPO is a global payroll and people solutions provider. Its enterprise-ready Human Capital Management (HCM) solution automates HR processes, simplifies workflows, and delivers actionable insights. Complemented by its award-winning global payroll outsourcing and Employer of Record (EOR) services across 100+ countries, BIPO makes globalisation easier.