What are the International Staffing Approaches that Work for your Business?

International staffing is an important avenue to explore and embrace if you’re looking to expand your business on a global scale. To do so effectively, it’s essential that you know and understand the new market and hire the right local employees to assist with the growth of your organization. Partnering with a recruitment firm could be a good step to take at this point. However, before diving into one, you must understand the various international staffing approaches there are and choose the one that aligns your strategies with your business goals.

What is International Staffing?

International staffing means the process of recruiting, hiring, and managing employees across multiple countries. It is a crucial aspect of global business operations, especially for companies that operate in various international markets. There are two different types of international staffing strategies that one must know. One, is where they use employees from the home country to live and work in the country. These individuals are called expatriates. The second is a host-country national strategy, which means to employ people who were born in the country in which the business is operating.

What are the Benefits of International Staffing?

The importance of international staffing has grown drastically during the last few years, considering factors like globalization of the economy, shortage of skilled workers, and development of new technologies. International staffing could be a great way to improve remote working. Some of the various benefits of international staffing are-

1. Access to the huge talent pool

With international staffing practices, organizations can get access to a wide pool of talent, maybe beyond the borders of the country. This bodes well for industries that require individuals with specialized skills that may not be available locally. Also, with a diverse pool of talent comes creativity and innovation, and with the changing market conditions, access to a larger pool is important.

2. Cost-effective

One of the biggest advantages of international staffing is cost savings. Your company can acquire the best international candidates within the industry while paying lower salaries, if they hire from countries where the cost of living and pay is lower. This is extremely beneficial for small businesses and startups. Also, hiring international candidates can save infrastructure expenses like space, rent, utilities, technology etc.

3. New market opportunities

When you hire from outside, you’ll have access to fresh perspectives, new local markets, regulations, and best practices. Having local employees in other countries can also help companies establish local suppliers, distributor,s and other stakeholders. They also tend to have a better understanding ofthe  culture of the place leading to better customer satisfaction.

4. Risk management

Operating from multiple regions is beneficial as there is more chances of saving the business during natural disasters. Additionally, having employees in different regions allows companies to operate at any time, leading to operations running smoothly around the clock. This can help with better responses to customers.

5. Enhanced brand reputation

Hiring internationally can go a long way in improving your brand reputation and also in enhancing your overall brand image. It also can be an exciting opportunity for employees to work in different countries and cultures. Companies with strong employer brands tend to have higher employee satisfaction and lower turnover rates. This is an important factor in developing a more engaged and productive workforce. Those who are more committed to diversity are more likely to have a positive brand image.

However, there are some challenges of international staffing like

Language barriers

Having an effective communication system can help address this

Cultural difference

Companies must be aware that people with different cultures, and backgrounds come together, and they must be respectful of it

Compliance issues

Companies that hire employees from other countries must ensure that they comply with local labour laws and regulations.

What are the International Staffing Approaches?

There are four main approaches to international recruitment. They are-

1. Ethnocentric Approach

In an ethnocentric approach, the recruitment firm will assist in sourcing candidates who fit your home country’s operational and management style and business practices. In this type of approach, the organization relies on the parent country nationals (PCNs) to fill key positions.

Advantages

• Ensures consistency across all locations with regard to the company’s culture and policies.
• A lot easier to co-ordinate employees or managers working in other locations as they are PCNs and are familiar with the company’s culture and standards.

Challenges

• There maybe a lack of cultural adaptation and sensitivity, which can lead to misunderstandings with local employees
• There maybe a lack of understanding of local market conditions

2. Polycentric approach

The recruitment firm consultants with a deep knowledge of local markets provide insight and access to top local talent. They make sure that the select the best host country nationals who fit well with your company’s culture and can align with your company’s goals. In this approach, HCNs manage operations in their own country as they have a better understanding of their local market conditions.

Advantages

• With local talent on the front, there is a better understanding of culture, market, and regulations
• It’s also cost-effective as it eliminates relocation and expatriate management costs

Challenges

• Integration of the subsidiary with the parent country’s company culture and practices could get challenging.
• HCNs may see limited career opportunities within the wider organization, potentially affecting their motivation and commitment.

3. Regio centric Approach

Your recruitment partner helps identify and attract regional talent who can manage operations in multiple countries within the region effectively. If required they also assist you in creating training programs that can harmonize practices and standards across the region. Here the focus is on hiring and managing talent within the particular geographic region.

Advantages

• Has enough regional knowledge and network to manage operations effectively
• Offers a balance between global integration and local responsiveness

Challenges

• Management across multiple regions gets complex for obvious reasons
• This leads to regional biases and there may be an overlooking of global perspectives

4. Geocentric Approach

Recruitment firms like Alp Consulting with a global reach can offer access to a vast network of potential candidates globally. This approach takes a global perspective, focussing on hiring the right talent regardless of nationality.

Advantages

• Access to individuals with a wide range of experiences and skills from around the world
• Helps build a unified corporate culture that stretches across national boundaries

Challenges

• Management of a global workforce involves challenges regarding logistics, immigration, visa, and relocation
• Can be a costly affair due to international relocations

How to Pick an International Staffing Approach that Works for Your Business?

Deciding on which international staffing approach is right for your business depends on your company’s nature, strategy, and business goals. Some of the factors to consider are-

1. Company Size and Resources

Larger organizations with substantial resources are more likely to adopt a geocentric approach, while smaller firms may find a polycentric strategy more practical and cost-effective.

2. Nature of Business Operations

Companies that rely heavily on local market insights often benefit from a polycentric approach, while those aiming for seamless global integration may favor a geocentric strategy.

3. Cultural Sensitivity

Effectively understanding and respecting cultural differences is essential, particularly when implementing ethnocentric or polycentric approaches.

4. Long-Term Vision

For businesses with aspirations of establishing a strong global footprint, regiocentric or geocentric strategies are often better aligned with their long-term objectives.

International staffing is of course about filling various complex positions, but it is also about creating a dynamic, resilient, and forward-thinking workforce that can thrive in a global environment. By integrating international staffing into their strategy, companies can unlock opportunities for growth, innovation, and sustainable success.

FAQ- Frequently Asked Questions

1. Who is an international employee?

An international employee is an individual who works for a company in a country that is different from their home country.

2. What is the job of staffing?

The role and purpose of staffing is to find employees with the right talent and place them in specific positions to improve business value. It aims to optimally utilize human resources and their skills to not only fill vacant positions but also to meet both current and future business needs.

3. What is the role of HR in staffing?

The role of staffing is to analyse jobs collecting information about jobs to prepare job descriptions, develop incentives and compensation plans and also be involved in the training and development of employees over time.

4. What is a staffing company?

A staffing agency acts as an intermediary between job seekers and companies looking for new workers. These agencies, also known as recruitment agencies or staffing firms, have systems in place to match skill sets and experiences with the requirements of the jobs available.

5. What are the types of staffing?

There are many different types of staffing. Some we would like to mention here are temp-to-hire staffing/contract-to-hire staffing, short-term and seasonal staffing, and specialized staffing. These types of staffing differ in the duration of the hire, the kind of work, etc.