Global HRM planning: everything you need to know

Organizations with big dreams to expand internationally but with limited HR budgets need effective global human resource management (HRM) planning.

However, it can be challenging to navigate global HRM without having the proper strategies and tools in place to manage a diverse workforce. 

It’s important to have a clear understanding of what global HRM planning entails and the benefits it can bring to your organization. The better your global HRM planning, the more easily you can plan for the future (and avoid costly mistakes).

This article provides a comprehensive guide to global HRM planning, including a step-by-step roadmap to help you get started.

What is global HRM planning?

Global HRM planning is a strategic approach to managing an organization’s human resources on an international scale. It involves developing and implementing HR strategies and practices that address the unique challenges and opportunities of operating in a global business environment. 

Strategic HRM focuses on human capital, whether your team members are contractors or remote employees spread across the globe. In order to expand your business internationally with a global workforce, you need a strong global HRM plan.

What are the goals of global HRM planning?

Below are the three overarching goals of having a comprehensive global HRM plan:

1. Recruiting the right talent

The first and foremost goal of global HRM planning is to attract and onboard top talent worldwide. This means identifying first individuals who fit with your company culture and have the right skill and experience, regardless of their location. Recruiting an international workforce can be haphazard without a plan, leading to potential mismatches between talent and roles.

2. Keeping global teams engaged

International workforces are often dispersed across multiple time zones and work environments. Team members can also have a hard time interacting with each other due to cultural differences. 

Global HRM planning focuses on strategies to ensure every team member feels valued, connected, and motivated, no matter where they work from.

3. Scaling and managing HR complexity

As your organization expands its global footprint, the complexity of its HR functions grows exponentially. 

International HRM planning is crucial for scalability. Global HRM ensures that your HR processes are adaptable to new markets, while staying compliant with local labor laws and other legal requirements. It’s also vital to managing the intricate web of payroll, benefits, and other obligations across borders.

What are the benefits of global HRM planning?

HRM planning enables a company to build a complete HR ecosystem for its workforce. Your business cannot remain stagnant – you need to continuously update your employee onboarding and talent management process to keep up with today’s dynamic business environment.

Your business can scale while aligning with changing laws and norms through global HRM planning. With the appropriate tools and technology, your business can grow internationally by streamlining data and processes. 

Let’s dive into the detailed benefits of global HRM planning:

1. Enhanced compliance

Global HRM planning ensures that your organization is compliant with everything from labor laws to tax requirements. It involves setting up parameters and policies for employees and managers, and establishing procedures to follow when rules change. 

Even when unexpected problems arise, you can make sure your company is always on track through global HRM planning. This proactive approach helps mitigate legal risks, prevents costly penalties, and fosters a reputation for ethical and lawful business practices.

2. Consistency in policies

Your business can implement consistent HR policies across all locations through global HRM planning. This uniformity ensures that employees are treated equitably and that the organization’s values and standards are upheld companywide. It also simplifies human capital management, reduces confusion, and enhances employee experience.

3. Risk management

International HRM planning proactively addresses potential risks associated with global expansion, such as cultural differences, economic instability, and geopolitical challenges. Organizations can respond swiftly to unforeseen circumstances by anticipating risks. Ultimately, you can minimize disruptions, and safeguard your business functions and reputation through global HRM planning.

4. Succession planning

Global HRM planning includes a critical human resources and talent management aspect: succession planning. Simply put, you can develop talent within the organization to fill key leadership roles in the future. This approach ensures a smooth transition in leadership and contributes to the long-term sustainability and growth of the company worldwide.

5. Cost efficiency

International HRM planning minimizes administrative overhead and leverages economies of scale through the use of technology. 

Streamlining HR functions and utilizing software can reduce operational costs, enabling organizations to allocate resources to achieve strategic goals.

If you’re looking for a service provider to assist you in every stage of your global HRM planning, check out Remote. Remote is a global HR platform that integrates human resources information systems (HRISs), payroll, international employment, contractor management, and more.

The global HRM planning process step-by-step

The best global HRM planning process is unique to each organization. Different companies have different needs, so create a global HRM plan that reflects your organization’s specific goals and daily operations. 

Here’s a step-by-step guide to the global HRM planning process, including actionable tips and examples:

1. Conduct an environmental analysis  

Conducting an environmental analysis involves scrutinizing the external factors that impact your organization’s HR functions. These factors may include the economic, legal, cultural, and market conditions in the regions where you operate.

Actionable tips:

• Stay updated on local labor laws and regulations.

• Monitor the cultural nuances that affect employee expectations.

• Leverage technology for global data collection and analysis.

For example, let’s say a tech company expanding to a new continent undergoes an environmental analysis to discover a significant talent shortage in a specific tech niche. This prompts them to adjust their hiring strategies and invest in skill development programs for local talent.

A service provider like Remote can help you start hiring international employees in minutes without needing to understand local labor and tax laws. You’ll have access to Remote’s legal experts and local partners, who work to guide your business through ever-changing regulations.

2. Assess your current HR capability 

This step involves evaluating your existing HR infrastructure, including your team competencies, technologies, and processes that support the company on a global scale. Doing this can help identify gaps and strengths in your system.

Actionable tips:

• Conduct skills assessments of HR team members.

• Evaluate your HR tech stack for scalability and compatibility.

• Review existing HR policies and procedures.

• Seek employee feedback on HR services.

To put this into context, let’s say a manufacturing company realizes that its HR team lacks experience in handling cross-border payroll. To bridge this gap, they hire a global payroll specialist, consolidating their multi-country payroll process and paying their entire team quickly, accurately, and compliantly.

3. Use data and trends to forecast future HR needs

Leverage data analytics and industry trends to predict future human resources requirements. This involves understanding your global workforce demographics, employee retention rates, and possible gaps in technical skills.

Actionable tips:

• Implement HR data analytics tools.

• Regularly review your global workforce demographics.

• Analyze historical turnover data.

• Stay informed about industry-specific HR trends.

For instance, a company operating in several regions wants to ensure that it has the right talent to support its growth and technological advancements. To achieve this, they use a tech tool to track key metrics, such as their turnover rate.

4. Develop a global HR strategy 

A global HR strategy begins when an organization’s HR goals align with its overall objectives. This involves an understanding of the company’s mission, vision, values, and long-term strategic plans. A global HR strategy starts with evaluating the current state of HR within the organization, and identifying gaps or areas for improvement.

Actionable tips:

• Define clear HR goals and objectives.

• Establish key performance indicators (KPIs).

• Develop a global roadmap for HR initiatives.

• Ensure alignment with organizational goals.

For example, let’s say a company wants to create a global HR strategy that aligns with its regional expansion goals. They conduct a needs assessment and find that they need to hire engineers with specific technical skills in artificial intelligence and data analytics for their Research and Development division. Through a needs assessment, the company also finds that they need to hire multilingual customer service representatives to support their new expansion.

5. Partner with a global HR platform 

Leverage a comprehensive global HR platform to centralize payroll, compliance, employee management, and other HR processes. You can access a wide range of tools and services to support and tailor your international HR operations through a global HR partner.

Actionable tips:

• Evaluate global HR platform providers for scalability and compliance.

• Implement a cloud-based HRIS.

• Integrate HR platforms with existing tools.

• Train HR teams on platform utilization.

Many international companies who want to manage their team in one HRIS software platform choose to partner with Remote. With Remote, get rid of spreadsheets, multiple logins, and manual work, while managing your employee information to expand your global team.

6. Evaluate your plan’s effectiveness 

While coming up with a global HRM plan is important, it’s just as crucial to regularly assess the plan’s performance and impact. This means measuring KPIs, collecting employee feedback, and adjusting strategy based on results.

Actionable tips:

• Implement regular HR audits.

• Collect global employee satisfaction feedback.

• Measure key HR performance indicators.

• Adapt your global HR strategy based on results.

For example, a services firm conducts quarterly reviews of its global HRM plan, tracking key metrics and making adjustments as needed to ensure alignment with its goals. In this situation, Remote API can easily help you consolidate your global employee data across platforms.

Common global HRM planning mistakes (and how to avoid them) 

As employee needs and work environments continuously evolve, your global HRM plans need to change accordingly. Here are a few common global HRM planning mistakes and how to avoid them:

Ineffective payroll management

One of the most critical aspects of global HRM is managing payroll across multiple regions with varying tax laws and regulations. 

For one, payroll mistakes can lead to compliance issues. In addition, payroll errors, late payments, and discrepancies can erode employee trust and morale. Making a mistake in payroll will make employees dissatisfied, less engaged, and unproductive.

How to avoid it: Use a global payroll service like Remote to help ensure accurate and compliant payroll processing in multiple countries. Streamline your payroll operations effortlessly with automated calculations and tax compliance checks.

Neglecting local talent

When a company expands its operations into new regions or countries, it might be tempted to rely primarily on its existing workforce or bring in talent from its home country. This approach can lead to the company missing out on the rich pool of talent available in each new region. 

How to avoid it: Develop inclusive hiring practices that actively seek out and consider talent in new regions for job openings. To help streamline the recruitment process, leverage global HR platforms that grant you access to expansive talent networks worldwide.

Overlooking cultural differences

One of the most critical aspects of global HRM planning is acknowledging and addressing cultural differences. This involves recognizing that people from different cultures may have distinct values, communication styles, work habits, and expectations. 

Failing to consider these differences can lead to communication breakdowns, a lack of team cohesion, and legal or ethical issues.  

How to avoid it: Provide cultural training and awareness programs periodically for your employees. Encourage open and respectful cross-cultural communication throughout your organization. Develop HR policies that respect and accommodate cultural differences. It also helps to partner with a global HR partner that understands cultural nuances and local practices. 

How can a global HR platform help with HRM planning?

As a trusted global HR platform, Remote assists businesses with comprehensive HRM planning, including the following:

Talent acquisition

Remote enables you to hire talent in different regions with ease. Remote gives you access to a diverse and inclusive talent pool so you can find suitable candidates from anywhere in the world.

Onboarding processes

With Remote, hiring is seamless. Remote’s platform offers tools and resources to efficiently onboard new hires. Your employees will have all the information and resources they need to thrive in a centralized platform.

Payroll

Remote simplifies global payroll management by automating calculations, tax compliance, and reporting across different regions. Our accurate payroll system makes sure that your employees are paid on time.

Benefits

Managing employee benefits across borders can be complex. Remote centralizes benefit administration for you, making it easier to offer competitive and region-specific benefits packages to employees worldwide.

Compliance

Staying compliant with local labor laws and tax regulations is a priority in global HRM planning. Remote provides valuable insights, resources, and support to help businesses navigate these complexities.

See how Remote can help you onboard, pay, and manage contractors around the world through simplified global HR management.

Level up your global HRM planning

Global HRM planning can be difficult without the right resources. It’s essential to follow a plan that aligns with your unique needs and goals for the future. You also need to factor in cultural differences and legal requirements of the countries in which you operate. 

Partnering with a global HR hub like Remote means you can rely on industry-leading professionals to help streamline your HR procedures and increase your company’s efficiency. 

To learn more about how you can level up your global HRM planning, and attract and hire top tech talent around the world, check out the Remote Tech Talent Report.