However, without the right staff, it could be a costly endeavour that never delivers on possible returns. Local employees are a must for cultural awareness and insider knowledge, while the relocation of senior team members to organise the initial set-up should be handled with care.
Avoid potentially costly missteps in recruitment and position yourself for success in the new markets by focusing on these hiring priorities.
1. Cultural expertise
Understanding the local market is one of the most significant hurdles for businesses expanding abroad. Your new consumer pool may have different demands, preferences and expectations, in product design and pricing and how sales and services are conducted. Harnessing the market and establishing your place among competitors will rely on having this knowledge, so hiring employees with cultural expertise is essential.
Having a team well-versed in the local culture will also help you avoid blunders in terms of correct etiquette and language when doing business with clients and partners. Even the biggest corporations have made disastrous errors with translation when going global, and polite greetings and negotiation tactics differ widely from country to country.
2. Legal awareness
Every country has its own set of guidelines companies must abide by such as employment laws, tax requirements and licensing. Non-compliance with these laws can result in legal penalties, operational delays, or in extreme cases reputational damage. Ensuring you hire legal professionals well-versed in local employment laws to assist your existing HR team is critical for mitigating these risks.
As well as advising on long-term operations, local lawyers can help with your set-up overseas. This might include registering your company in your chosen destination, corresponding with your UK legal team and drawing up employee contracts.
3. Role restructuring
International expansion often requires businesses to rethink their organisational structure. Some senior team members will need to be relocated, whether temporarily or permanently, to oversee the setting up of the new office and educate your fresh team on your brand and value which can leave large gaps in your existing operations. You’ll also need to work out where your new hires slot into your employee tree and set up buddy systems with those in similar roles across the pond to ensure cohesion across the countries.
You might find it useful to speak to consultants specialised in company restructuring before you make any changes to ensure the restructuring goes smoothly and doesn’t interrupt your operations. They can also help you put together plans for staffing in the long term once your global expansion is bedded in and growing, to align and integrate with your existing business strategy.
4. Team integration
Bear in mind that with advancements in technology, businesses no longer need to establish large, costly offices in every country they expand to. While you will need a physical presence in some form, especially initially, remote and hybrid working models can provide an efficient way to scale while keeping overheads low. According to recent research by Forbes, 91% of workers have a ‘positive’ view of remote working, and it gives you access to a wider talent pool so you can select the best.
Ensure you’re prepared with quality IT equipment and a secure internet system for seamless communication and to protect your organisation against cybercrime which is on the rise.