Market opportunities drive international expansion
Three in four organisations say access to market opportunities is the key driver for their international expansion initiatives. Businesses also named specialist skills as one of the main factors that influence their global growth ambition alongside proximity to suppliers and affordable labour. This is according to the HR Challenges of International Expansion report by the Economist Intelligence Unit (EIU), commissioned by ADP, an international payroll company.
The report surveyed 1,000 C-Suite and HR executives globally, across a range of different sectors to explore the motivations, priorities, and challenges of international expansion. The study revealed that businesses grow their operations for various reasons, and showed that strengthening their workforce plays an important role in driving international expansion.
According to the survey, 55% of respondents say that access to affordable labour compels them to expand into new territories while 66% of organisations say that their search for specialist skills makes them look beyond their home country. The focus on these areas reflects a push to draw on global experience and capabilities at multiple levels within companies, creating a truly international workforce that has the ability to compete at a global scale.
Commenting on the findings, ADP UK’s Managing Director Jeff Phipps said, “In an increasingly connected world, it is no surprise that international expansion is a significant focus for many growth-minded organisations. However, businesses must understand that international expansion is a marathon and not a sprint.
Business expansion requires deep cultural and market understanding, therefore the ability to plan, manage, and oversee the international workforce will make the difference between failure and success. This is particularly true for businesses that move into new markets to attract new and specialist workforce.
Phipps continued, “While global growth offers a multitude of extensive benefits – from access to market opportunities to proximity to global suppliers – it also confronts businesses with a number of challenges. When companies have expanded across borders, for example, gaining a single view of employees can seem nearly impossible, leaving employers without a clear picture of their workforce.
Therefore, organisations expanding across the globe must utilise technological tools that provide a single view of their growing workforce and streamline their work life, or risk losing touch with their best employees. With the right technology and software in place, expansion can become much easier to manage, leaving businesses to enjoy the benefits of operating internationally.”