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The need for more skilled workers is a significant obstacle, especially for companies aiming to grow globally. According to findings from G-P’s World at Work Report, four out of five executives say finding skilled talent in their existing markets is difficult. Recognizing the need to go beyond their geographic borders, nearly all executives (97%) agree that establishing a market presence in multiple countries is essential for remaining competitive in today’s business landscape, with 72% willing to look internationally for talent.
Against this backdrop, solutions are being intensively discussed. Two approaches are increasingly emerging as viable: The targeted hiring of international talent and the strategic use of AI in HR and global employment.
Creating a Roadmap for Accessing the Global Talent Pool
Some reports predict that by 2030, a global talent shortage of more than 85 million jobs will result in nearly $8.5 trillion in revenue losses. Expanding into the global talent pool presents a chance to access highly skilled professionals, diversify teams and proactively address talent shortages. However, if not done thoughtfully and strategically, global expansion can bring more problems than it solves.
To start, companies should have a clear view of their long-term needs. When selecting countries or regions to expand into, organizations should prioritize places with reliable workforce data to make more informed decisions. By understanding local skills availability, compensation norms and employment trends, a company can better tailor its job description to speed up hiring.
Next, companies should eschew a one-size-fits-all onboarding process. By tailoring to different markets’ cultural norms, new hires feel supported from day one, building a cohesive global team that contributes to long-term success.
Finally, businesses must make global collaboration seamless. Investing in platforms designed for real-time, multiple-time-zone, cross-border communication helps ensure more efficient operations. Adopting the right technology can not only help attract but also retain talent.
Streamlining Global Employment with AI
Hiring the right talent can be challenging and time-intensive, and entering new markets introduces additional complexities. However, AI tools can simplify the process by automating tasks, providing real-time support and ensuring compliance in an increasingly-regulated global environment.
Our research found that almost half (46%) of executives worldwide think AI will help catch and respond to legal or compliance risks. With AI technologies developing exponentially, tools now have the potential to manage the full employment lifecycle and provide real-time guidance and expertise on labor laws, vacation policies and payroll processing. Companies are using these tools to ensure compliance and smoothly manage cross-border employment no matter the stage of the hiring journey.
Imagine that a mid-sized U.S.-based company wants to expand to the U.K. The company has put out a requisition for software development talent but is now faced with hundreds of resumes and the need for employment contracts compliant with the U.K.’s specific and complex labor regulations. A mistake in the contract could lead to delays in the employee’s start time or even compliance issues that can turn into financial or legal penalties.
However, AI can navigate these complexities with remarkable efficiency. Employment laws and regulations are continuously evolving and region and country-specific. AI tools trained on these nuanced labor laws can assist in drafting a compliant contract the first time—and flag any potential non-compliance issues before they become problems. Moreover, some tools can also recommend appropriate benefits packages based on the labor environment (for example, healthcare benefit options for a contractor vs. a full-time employee). These checks reduce the risk of legal disputes, financial penalties or reputational damage while ensuring the company can onboard employees confidently.
Unlocking New Growth Opportunities
When it comes to the potential of AI in the global workforce, we are only scratching the surface. According to the “AI at Work” report, 84% of decision-makers want to invest in AI in the next year. However, AI can only provide lasting added value as part of an overall strategic approach to global employment. By integrating technology and human expertise into their workforce planning, companies can overcome the talent shortage—and unlock new growth opportunities for themselves and their teams.