The reduction in trade restrictions, lower transportation and communication costs have immensely helped companies expand beyond borders. Given that companies largely rely on human capital, human resource procedures must extend from its core activities to face larger internal and external challenges of the global environment. In a global context, managing human resources is determining how the capabilities will be delivered internationally taking the diverse workforce and external factors into consideration.
Some of the key features of global HRM include the following:
- Recruitment Process
requires an understanding of the job market in the target region as education systems, languages and culture vary across countries. - Training and Development
e.g. education around legal and cultural differences in employees new environments can be crucial and can reduce miscommunications that may arise. As well as ensuring new international staff are familiar with the company’s processes.
- Maintaining compliance with employment laws and regulations
It is possible that the host country has different mandates regarding working hours of employees, tax allowances, required break times, minimum wage amounts and policies on discrimination.
- Salary and benefits
When operating globally, non-traditional benefits such as flexible working hours, paternity leave, extended vacation time and telecommuting are ways to motivate existing employees and to attract and retain new skilled employees