Impact of globalisation on HR

Globalization is a term in business that refers to the integration of an organization's operations, processes and strategies into diverse cultures, products, services and ideas. Because of its emphasis on diversity, globalization also has a deep impact on the way companies manage their employees. Understanding the effects of globalization on human resources can help managers to better equip their organizations for the increasingly global business environment.

Diversity Recruitment

With the rise of globalization, companies of all sizes are now interacting with customers and stakeholders from diverse cultures, languages and social backgrounds. In response, many human resources managers seek to hire employees from equally diverse backgrounds. Companies engaging in this diversity recruitment recognize the value of having people on staff that their customers can relate to, and they know that having a team of diverse people contributes to the range of ideas and influences within the organization.

Push for Professional Development

A further effect of globalization on HR management is a push for professional development. Professional development is concerned with providing employees opportunities to achieve their career-related goals. Some organizations provide resources for their employees to earn a university degree, others send their employees to conferences or networking events and training days. Professional development is important to globalization because it creates a win-win situation. The employees feel as though the organization is concerned with providing a range of skills and competencies for their employees. Likewise, the organization benefits from the added skills and connections that the employees who take advantage of professional development programs acquire.

Greater Emphasis on Training

Similar to professional development, a greater emphasis on training has resulted because of globalization in human resources management. Training, however, tends to be focused on the needs and professional competencies of groups of employees within the organization. The company might, for instance, host language classes to give its call center staff an edge in telephone sales. It might also teach its employees how to use a new global software platform. This emphasis on training seeks to give the company a competitive edge in the global marketplace by honing the employees' diversity emphasis.

Management of Laws Across Jurisdictions

A final effect of globalization on human resources management is the need for businesses to understand and apply the laws of many different jurisdictions to the particular business. The government sets out a number of tax and labor laws that businesses operating in the country must comply with, but there may also be local and regional laws that apply to companies that operate in different states or different countries. Selling products in India, for example, might mean that a company has to impose a Value-Added Tax on its goods. Hiring employees at branch locations in different locations might change the requirements. Understanding these laws is vitally essential to the organization because any breach of them will have a serious impact not only on the business's financial well-being but also on its reputation.

International Recruitment and Hiring

Globalization allows businesses to recruit and hire employees from all around the world. This is particularly attract to smaller businesses who, while may not be able to have more than a few employees, can fill their available positions with the very best talent, even if that talent doesn't live locally. The HR trend of international recruitment and hiring is focused on bringing diversity to the organization and it recognizes that employees from abroad may be able to provide unique perspectives on customer service, marketing and sales, among other areas of the business.

Progressive Approaches to Benefits and Compensation

Similar to the trend of recruiting abroad from a diverse pool of applicants is a progressive approach to providing benefits and compensation to employees. Federal laws mandate minimum wage and basic employee benefits, however, globalization has brought new ideas to business owners and managers on how to reward their employees both as a standard policy and as a reward for hard work. Taking their cues from abroad, some U.S.-based businesses are now offering paternity leave, extended holiday time, work-from-home programs and flexible childcare options for their employees. These approaches to compensation allow employees to balance their work with their personal life and are aimed to increase happiness and productivity among the staff.

Introduction of Social Media

Social media and mobile technologies are a hot trend in HR globalization. Social and mobile tech enables HR to expand its services by more easily and rapidly communicating with employees. If the office will be closed for inclement weather, for instance, HR can send social media messages to let employees know as opposed to using a phone tree. Social and mobile tech also helps HR to increase the value of the company by providing the business with employees who are tech savvy and eager to embrace new ways of doing business.

Professional Development

Professional development training programs have also arisen as a trend in response to global compensation approaches. Professional development is about providing employees with opportunities for growth outside the day-to-day routine of the organization. For example, HR might send employees to training seminars to sharpen their IT skills for use in global social media campaigns, or customer service personnel might be sent to language courses to enhance their ability to communicate with customers who live abroad. Such professional development programs keep employees motivated and feeling rewarded, and the new skills these employees learn are put to direct use within the company.