Global Employment & Expansion 12 min

The benefits of globalization for growing companies

Written by Pedro Barros
July 30, 2021
Pedro Barros


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It’s never been easier to set your company up for global success.

Thanks to globalization, even small companies can hire and onboard workers from around the world.

Despite the ease with which companies can hire on an international scale, many have been tentative about working with a remote team.

Some employers are still hesitant to take the leap out of concern for productivity or a lack of experience. Now that the world has witnessed the economic benefits of remote work, these are no longer valid excuses.

Today’s most talented workers expect the option to live where they choose and work remotely. The benefits of globalization apply to workers just as they apply to the companies and multinational corporations that employ them.

This may be the perfect time to embrace globalization and grow your international team.

In this article, we’ll look at the benefits of globalization and how to overcome some of the common challenges associated with it.

What is globalization?

Globalization occurs when a company expands its reach across national borders through its products, services, knowledge base, customs, and ideas. The company that’s expanding grows its influence. But it’s also influenced by new cultures, laws, and people.

In this way, globalization involves a lot of potential for dynamic growth. Companies bring something new to the areas they impact, but they also gain through exposure to talent, ideas, and new markets.

The goal of all this interdependence? To build mutually beneficial connections and maintain them over time.

Successful globalization occurs through the positive development of relationships among businesses and the countries in which they operate.

Global interconnectivity today is unmatched. Networks of commerce, supply, culture, and geopolitics — not to mention the internet — have brought us all closer together.

Globalization falls into three categories:

  • Political globalization refers to how different countries collaborate for political and economic gain. The United Nations (U.N.) is an example of political globalization.

  • Cultural globalization occurs when one culture influences another through its ideas, values, and customs.

Services and products are a part of cultural globalization. When a brand becomes a staple of a foreign country, it impacts that country’s way of life.

For example, Starbucks provides a casual, friendly cafe experience wherever it goes. The brand now has more stores internationally than in the United States.

  • Economic globalization describes how companies operate and supply their goods and services to other countries.

The United States-Mexico-Canada Agreement (USMCA), which was enacted in July 2020, is a form of economic globalization. USMCA facilitates free trade and market support for all of North America.

What do the benefits of globalization include?

The blurring of borders means businesses can work with employees in other countries. The rise or remote work combined with today’s technology has made what would have seemed almost impossible years ago accessible to companies of all sizes.

In the U.S., 35% of workers are now fully remote, and globally, 76% of workers want to continue working remotely. That means, not only are businesses operating across borders, but workers are too.

This bridging of people and companies is leading to everything from more diversity and better collaboration to reduced costs and increased flexibility.

Here are the key benefits of globalization for your business:

Availability of new markets

While foreign markets are only a click away, the complexity of managing your company’s economic growth in those markets can be daunting.

With different time zones, languages, and cultural customs, maintaining a consistent global presence presents its fair share of hurdles to overcome.

Those growth opportunities are worth the effort, though. International expansion opens up a broader labor pool for a company to draw from. The company then has the opportunity to provide jobs in areas in need.

And instead of forcible relocation or demanding hours, employees can work from the comfort of their own location and time zone.


Expanding to new countries and cultures is also cost-effective.

Operational labor costs may be lower, and the workforce may be more affordable. This means companies may be able to set lower prices for their products to reach a broader customer base.

Employers can cut costs even further with a remote workforce.

After salaries and benefits, one of the highest costs for any company is office space. Not only do you need to rent an office large enough for your employees to work comfortably, but you also have to maintain and stock it too.

By setting up your company to work remotely, you can expect those savings to add up. One study found that fully remote workers save businesses more than $11,000 annually.

Without commutes and cubicles, factors including absenteeism and distractions also drop significantly.

Effective collaboration

In a global world, your remote employees are only an email, Slack message, or video call away.

Technological advances make it simple to replicate the parts of the office that facilitate collaboration while eliminating the parts that do not. For example, instead of long email chains, public documentation tools allow workers to keep projects and notes available for all to see.

The biggest hurdle in using these technologies is simply practice. The more your team uses these tools with a remote-first mindset, the more efficiently your team will be able to work asynchronously, providing another boost to productivity.

Broader talent pool

Expanding your employment strategy to hire globally allows you to hire and retain the best talent, regardless of where they live.

The idea that top talent will move for the job is outdated, if not outright wrong.

In the first quarter of 2023, only 1.6% of workers relocated for a new job. This is a drop of about 3% from the same time last year.

Most people prefer living near friends and family in a familiar location. Even if you convince some employees to relocate, you may have to make your offer more attractive by providing relocation packages or other benefits.

Existing employees increasingly want to work remotely, too. About 39% of employees would consider relocation if their company would allow them to be fully remote.

The beauty of globalization is that you don’t have to miss out on hiring top talent because of location. You can hire the best employees globally without asking them to uproot their lives.

If any of your employees do want to move, then it’s a win-win for both of you.

Improved diversity and inclusion

Diversity and inclusion are beneficial for every organization.

It’s hard to hire a truly diverse workforce if you are limited to local talent only.

When you take away the restrictions of working at headquarters or in your country of origin, increasing diversity of talent becomes much easier. It is now a natural extension of the ability to hire people from anywhere in the world.

Globalization also helps your employees showcase their talents on equal ground.

Introverts tend to fly under the radar in an office environment, but working remotely allows introverts to excel.

Extroverts can participate in team bonding activities, meet with nearby coworkers, or even spend time working from a coworking space. With remote work, the possibilities are endless.

Universal standards creation

Another benefit of globalization is the opportunity to create universal standards that apply across companies within an industry.

Companies that work together to share knowledge and streamline procedures demonstrate increased transparency and efficiency in their operations.

Governments work with employers to create and maintain fair labor laws in compliance with international standards.

The International Labor Organization (ILO) is a U.N. agency that works with 187 members to set standards, develop policy, and create programming.

Employees and workers will be more likely to consider global work if they know with certainty that their employers and country of interest will offer the same competitive opportunities in other locations.

Employers will be more likely to expand with the knowledge that their employees will be treated fairly and in full compliance with international standard requirements.

Cultural gains

Global expansion provides businesses with cultural opportunities, too.

Exchanging information and knowledge with other companies establishes your reputation in the industry. It also provides you with essential knowledge of the community your business is joining and connections within the industry.

You may find new avenues to explore for your business or discover technological advances you haven’t yet taken advantage of.

Your employees will get to explore new locations, foods, music, and customs, too. Some may even decide to learn the regional language.

Now that you know some of the benefits of globalization, let’s address some of its challenges.

Overcoming the challenges of globalization

Hiring international employees globally can add complexity if you lack experience in hiring and managing a remote team.

The task of figuring out local employment laws while supporting your economic growth can seem daunting.

Luckily, that shouldn’t stop you from enjoying the benefits of globalization when building your remote team.

Remote specializes in understanding local employment laws across the globe. We help you manage risk, fast-track onboarding, and scale effectively while avoiding the legal risks of international expansion.

The challenges of globalization include recruiting, payroll, risk of permanent establishment, intellectual property (IP) control, compliance with local tariffs, and the costs of establishment in a foreign country. We’ll discuss each of these below.

International recruiting

Global recruiting is a unique process. When creating a system for recruiting, vetting, hiring, and onboarding from country to country, you must also consider time zone, cultural, and language differences.

People are also compensated differently, depending on the country.

For example, in the United Kingdom, full-time employees are eligible for 28 working days of annual leave. Employers are also required to contribute a minimum of 4% to the employee’s pension fund.

Do you want to pay everyone the same salary, independent of location, or would you rather adjust salaries based on the cost of living? You may want to investigate the demand for international markets and employee expectations for benefits to be competitive.

Global payroll

If you own a legal entity in the country, you either need a trusted local payroll provider or an internal team of local payroll experts.

That may make sense if you’re planning a major expansion into the country, but most businesses don’t need to go to that much trouble.

Working with an employer of record (EOR) that owns its own local legal entity is the safest, smartest way to manage payroll and benefits in another country.

An EOR is a third-party institution that hires, onboards, employs, and pays workers for another business. They manage and maintain compliance for HR and payroll, freeing up companies to focus on other areas of the business.

If you manage operations in multiple countries, you will need to be informed of differences in employment and tax law regulations.

For example, Belgium offers the highest minimum wage, 1995 euro monthly, of any country in the European Union. Compare this to Denmark, which does not have a minimum wage requirement. Instead, national collective bargaining agreements agreed upon by worker unions and employer associations set the standards of approximately 110 Danish krone (DKK) per hour.

If you do not partner with an EOR, you will need to take full responsibility for correctly implementing the rules and regulations in the new location.

Risk of permanent establishment

The only way you can avoid the risk of a permanent establishment in a country is by knowing the law and legislation.

As a tax classification, permanent establishment could lead to significant costs if you don’t understand the risks. Our guide to permanent establishment risk can help you learn more.

Intellectual property control

Protecting your IP in every country where you have employees is challenging. Some global employment providers may even pass your IP to their partners.

No matter where you hire, make sure your IP stays protected.

As experts in international employment law, we created Remote IP Guard to guarantee the maximum protection for your IP abroad.

Tariffs and export fees

If you plan to engage in international trade of products or goods, you will want to look into tariffs and export fees.

Each country has different tariffs and fees for international shipments that may affect a company’s bottom line. The United States currently has free trade agreements (FTAs) with over 20 countries.

Some countries assess higher fees than others, so you’ll want to be sure you have this information before you ship internationally.

Investment costs

Another challenge of globalization is the costs involved with establishing your business in a different country.

For example, you must identify the location and type of infrastructure you need. Are you constructing new buildings or restoring existing structures? Will you need to build access roads or connect to electricity, water, and sewer systems?

A remote workforce may simplify this process for you. As remote employees work out of their homes and other non-office spaces, you will not need to establish and maintain a separate physical location.

Establishing a relationship with an EOR will cut down on these costs, too. You won’t have to manage your HR and payroll on location. Instead, a partner like Remote will handle it for you.

Ready to reap the benefits of globalization with an international workforce?

The time to expand your hiring search and enjoy the benefits of globalization for your business is now.

Remote work provides benefits for employers and employees alike, allowing you to access the best talent and provide a better experience for your hardworking employees.

Allowing employees the flexibility to work from anywhere is no longer a perk — it is becoming a  requirement for the most experienced and in-demand workers.

Don’t give the competition an edge.

Embrace globalization and let remote work become your organization’s superpower.

If you want to get started hiring and onboarding employees quickly, look no further than RemoteRead our guide on hiring leading tech talent globally to help your business get ahead.

Remote also offers EOR services in over 50 countries, allowing you to start your expansion almost anywhere in the world.

Contact Remote to start building your global workforce today.

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