“Today, a large number of enterprises frequently manage small headcount countries on excel spreadsheets. Not only does that make for a poor employee experience, but it also puts the organization at risk of data privacy violations,” says Adam Sheffield, Chief Revenue Officer, Global Upside, in an exclusive interview EnterpriseTalk.
ET Bureau: What are the HR challenges enterprises face expanding their business
Adam Sheffield: The first obstacle HR professionals face as they expand globally is determining the right infrastructure to establish for their organization. It falls on HR to ensure the correct registrations are done for setting up the company – all the way down to the different works councils – before they can even think about employing someone internationally.
HR then needs to understand the various onboarding components based on the employee’s job type and location. These two aspects inform the employment law, contracts, compliance and various other pieces that must be set up properly before onboarding can even begin.
Now once the company is established, the employee is set up and things are moving along, the next challenge to be aware of is ongoing regulatory changes. When a company is centralized or based in a different country, it can be difficult to know what is going on at the local level and how to support those employees. The enterprise can be compliant one day and not the next due to a new law getting passed.
Those are challenges that can drain the resources of even the most robust HR team. Additionally, payroll falls into the HR realm in a global landscape. This comes with its own unique set of decisions and challenges.
These are all critical functions left to HR professionals to manage and figure out themselves. The easy part is selecting who they want to hire and where they want to go. The hard part is to make sure they can actually do it right.
ET Bureau: What are your views on the current Merger and Acquisition (M&A) services landscape?
Adam Sheffield: Unfortunately, a lot of private equity groups have always avoided picking up global companies. There is a lack of providers who implement a holistic approach in a global setting and PE firms may not even understand how these different global services work. Often, they miss out on very profitable opportunities simply due to a lack of experience on the global playing field.
M&As require a robust understanding of HR, payroll and compliance so typically a Big 4 company is leveraged. Yet these deployments tend to be very costly, and it is common for them to bring in multiple service providers. It then falls on the buyer to juggle these countless partners and ensure everything is done accurately in each country. This severely drains costs and reduces speed.
It’s a big problem. Yet, it is the way it has always been done.
Today, private equity firms have more cash than they did five years ago, and they have been holding onto it for the past year. With money burning a hole in their pockets, now is a hot time to look globally. The future of the M&A services landscape is one where firms can rely on global providers. Providers that can step up and address the challenges that come with global M&As rather than having a costly, time-consuming disparate approach.
ET Bureau: How can enterprises effectively use advanced technologies for managing their global workforce?
Adam Sheffield: Putting the right infrastructure and technology in place is critical to supporting and managing a global workforce. Organizations can leverage technology to communicate with their employees, provide self-service functionality and even track labor accurately. Today’s workers will do anything to find the answer online or do their own enrollment rather than pick up the phone to ask questions, especially if they are in another country.
Today, a large number of enterprises frequently manage small headcount countries on excel spreadsheets. Not only does that make for a poor employee experience, but it also puts the organization at risk of data privacy violations and can even be inaccurate – someone can easily delete a cell without realizing it.
Organizations spend endless time and effort to be efficient when it comes to scrap or waste or, depending on the industry, consumption of fuel or real estate costs. They want to keep expenses low. By putting the same energy into supporting global employees, companies make their global employees feel valued. They empower them. Something as simple as utilizing technology so employees’ wages and hours are tracked properly can cut down on overtime costs and even turnover.
Enterprises should take the time to deploy the latest technology. They can take advantage of it to communicate and engage with their employees in a new, unique way. Additionally, this can enable them to establish workflows applicable to their workforce through a global system that understands local languages and local laws.
ET Bureau: In today’s dynamic enterprise environment where regulations, data privacy are continuously evolving, how can enterprises manage their global business effectively?
Adam Sheffield: Too often enterprises think the answer is to implement new technology. Now, especially for multinational organizations, advanced tools can help. It helps for all the reasons discussed above.
But in today’s dynamic environment, technology alone is not the answer. Organizations need to ensure that they have the right people in place to augment that technology because laws change, regulations change and technology must be adapted to what is going on.
If it fails to adapt and evolve, the technology quickly becomes non-compliant and outdated. This can really hurt an organization. Supplement the technology with the right people or expertise to continuously maintain and improve processes worldwide.
Adam Sheffield is the Chief Revenue Officer of Global Upside Corporation (GUC), a conglomerate of brands offering the most comprehensive accounting, human resources, payroll, global expansion and HR technology solutions in the market. As the CRO, Adam’s primary focus is optimizing and growing GUC’s current revenue streams, as well as exploring future partnerships and opportunities across various global markets.