As a recognized leader in the Employer of Record (EOR) industry, G-P is always advancing the conversation around the future of work and the new opportunities our EOR solutions are helping to create. In a recent episode of our Pangeo Perspectives podcast, we explored how expectations of both companies and talent are changing as traditional HR and hiring practices are shifting.
In a quickly evolving, globally connected world, companies relying on traditional HR and hiring practices are facing challenges. The Employer of Record (EOR) solutions G-P has created have sparked a world of new possibilities, and changes in the world’s business landscape have prompted shifts in how companies attract candidates, leading to a redefinition of the total rewards package.
Miguel Santos, Global Benefits Practice Director at HUB International, and Andrea Goodkin, People and Technology Practice Leader at HUB International, shared an insightful conversation on this topic on our Pangeo Perspectives podcast.
Let’s take a look at some of the key challenges HR departments face as traditional practices are being disrupted.
Challenge #1: HR teams must meet the needs of the individual.
Generational diversity in the workplace, coupled with a growing emphasis on work-life balance, has motivated employees to be more vocal about their needs. Traditionally, HR departments often separated work and personal life. But today, a holistic approach is essential. HR departments must now focus on the “whole person,” which means bringing together professional and personal needs in a way that hasn’t been done.
Traditionally, HR departments often separated work and personal life. But today, a holistic approach is essential.
The abundance of data available can help companies create personas and identify cohorts in the workplace to better understand employee needs, which entails looking beyond conventional perk sand prioritizing the overall wellbeing of each individual. Traditionally, personas are created more for prospects or customers, but in the wider and more diverse talent pool that exists today without borders, there is a real need to understand employees’ unique preferences to retain talent and create a more supportive work environment.
Challenge #2: Companies must emphasize trust and transparency.
As jobs become more widely available across borders, the expectations of both job seekers and employers have also shifted. For candidates, trust and transparency have become two of the most important elements during the recruiting process. Today, job seekers are expecting open and honest communication about salary ranges, benefits, location, commute, time, employee reviews, and other things that may not have been so easily available in the past.
This shift and emphasis on transparency can be a bit uncomfortable for HR professionals that historically aren’t accustomed to such openness, but short-term turnover can happen when trust isn’t created up front. Trust is tested at the very first touchpoint, so if businesses can’t follow through, it’s a recipe for low retention rates.
Challenge #3: Companies must adapt benefits offerings to different countries.
With a global talent pool comes the need to customize programs and policies for different countries. Employers need to consider differences in cultural expectations and laws around the world, particularly tax laws. Employee benefits are often heavily influenced by tax considerations, especially in countries with high tax rates and favorable incentives for such benefits.
Social benefits also vary widely from country to country. Medical benefits are extremely important in a country like the United States with no socialized healthcare but wouldn’t necessarily be as crucial in countries with a robust public healthcare system like Germany or the Netherlands. Companies need to provide particular sets of benefits per country to align with the local environment, or else run the risk of losing valuable talent. And while programs should meet local requirements, it’s also a good idea to have benefits consistent with corporate policies across the board, like a minimum level of life insurance, for example. Finding that balance of global and local benefits is key to modern HR practices.
It’s time to embrace new HR and hiring practices.
Businesses must rise to meet the new challenges of global growth. Prioritizing the holistic needs of individuals, creating trust and transparency in every step of the employee lifecycle, and adapting benefits offerings to different regions are now essential practices. While these concepts may not be traditional HR and hiring practices, they are crucial for attracting and retaining top global talent.
For more insights and expert commentary on this topic, listen to the full episode of “Disrupting Traditional HR and Employment Practices,” delve into other related podcasts in the Pangeo Perspectives series, or check out our 2023 Global Growth Report to discover how others are seeing the future of business.
As the recognized leader in the global employment market and standard bearer for industry compliance, we continue to pave the way with new technology for new times. The #1 Global Growth Platform™ helps companies plan, hire, and manage global teams in 180+ countries, quickly and compliantly. G-P continues to gather key perspectives and insights from growth-minded leaders, HR innovators, and entrepreneurs from around the world through our Pangeo thought leadership efforts as we help shape the global growth conversation.
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