Employees are at the heart of any organization.
Globalization is under scrutiny after over three decades of a highly successful run that has generated windfall gains for enterprises worldwide. As we continue toward the post-Covid world, enterprises are cautiously optimistic and are choosing a somewhat isolationist approach, reflecting the broader global trend among governments, businesses and commerce. Some experts even claim that globalization may be dead altogether.
Nevertheless, leaders and strategists must not resist the global nature of business; instead, embrace its challenges and master it. Writing epitaphs for globalization, or simply wishing it away, are counterproductive.
Digital transformation has created new challenges.
Enterprises across the board have undergone an unprecedented digital transformation in the past two years, eyeing operational continuity and a desire to disruption-proof their businesses. This rapid infusion of technology has helped drive growth for enterprises across business verticals, with employees working across time zones and countries in remote and hybrid work environments.
But there is a flip side to this sweet music. Enterprises are confronting a variety of complicated challenges such as:
1. Adherence To Compliances
Accurate tracking and reporting of employee hours, including paid time off (PTO) and overtime, is critical for financial compliance. Plus, a globalized workforce means enterprises now must adhere to often transient and diverse labor laws and payroll legislation at different levels, such as counties and states. They must also undertake time and attendance-related tracking and supervision, and administer varying working hours, leave policies and employee payrolls in multiple currencies.
Enterprises looking to improve or maintain their level of compliance when it comes to the tracking and reporting of these critical metrics can look either internally or externally for a solution. Building a team to create and own these processes is feasible for those seeking an internal solution. A benefit of an external vendor is that they can offer a pre-built automated solution that manages time-tracking, compliance, payroll and other business-critical requirements all in one solution.
In addition, companies can choose solutions that auto-update policies continuously. This way, they can avoid compliance-related challenges and trust their vendors to provide that information in real-time, rather than having to task their internal team with learning about changes firsthand.
2. Resource Management And Utilization
Traditional office setups allowed managers to track and manage their teams’ resources more efficiently. However, in the absence of in-person meetings and with scattered teams working in silos, inefficient resource allocation is highly probable which can dent revenue and even trigger employee burnout, leading to increased attrition.
Understanding how to re-allocate resources using traditional methodologies in a now-hybrid world can be achieved using traditional methods of resource tracking, though these may cut further into time and human capital resource allocations to accomplish.
Enterprises might consider technology-based tools that meet them on the digital edge to help manage their resources better and locate the best resources for tasks to enhance productivity and employee engagement equally.
3. Creating A Connected Experience
The organizational ability to analyze data accurately and at speed and act on it in real time can help managers and teams respond nimbly to business challenges and better manage uncertainties and risks. Moreover, project managers and team members require real-time insight into their project details to identify potential areas of concern before they assume a more serious character.
The most critical challenge facing enterprises is offering a seamless and connected experience to their employees, clients and vendors while managing projects, which mandates a single source of truth. In the absence of such a source, harnessing and managing data is a tedious process that escalates costs.
Enterprises may benefit from using a tool that leverages artificial intelligence (AI) to offer real-time visibility into crucial business metrics, streamlining their resourcing, financials and project information, giving an up-to-date live view of their businesses. A single source of truth presents a more unified version of data across disparate systems, which enhances business processes, accelerates the speed at which work is done and elevates the overall experience across the organization. It also helps leverage globalization and creates modern-day and future-ready enterprises.
4. Data Privacy
Storing data safely and following the highest privacy standards can be as important as collecting and harnessing it. As enterprises increasingly take to multiple working setups, including hybrid and remote environments, access to real-time data in the cloud has become critical for their survival and success. For example, enterprises need data to process employee payroll, ensure seamless collaboration among teams and make informed decisions quickly and efficiently.
The U.S. legislation also mandates companies to store employee data for at least three years after moving on to other assignments. Governments create such legislation to make enterprises accountable for labor compliance as they must furnish auditable data when needed. Thus, they must choose their vendors based on their ability to store and manage data following the best global practices related to data privacy.
Enterprises can benefit from globalization, but…
Globalization has several advantages, especially when enterprises operate in new workplace models. For instance, it can help homogenous enterprises embrace diversity. Building an organization of employees with different backgrounds, lived experiences and world views creates a richer school of thought and enables better business decision making. However, it requires judicious use of technology and data-driven insights.
Globalization works because it fosters interconnectedness, opening up vistas for enterprises to expand their search and onboard talent that was previously unavailable to them. Technology can address real and perceived gaps that exist for enterprises. While businesses have grown exponentially in the past two years, their existing solutions and technology have not been able to keep pace with their growth.
When considering solutions, it is important that enterprises consider an option that will allow them to scale at will while ensuring that they do not need to change it frequently. In addition, the solution must not outgrow the user and offer out-of-the-box integrations.
Disruptions are great catalysts of change. How companies leverage the disruption and use globalization to their benefit to create genuinely disruption-proof entities will help determine their standing in the future.