A NewYork headquartered multinational with 20,000 employees worldwide and you are worrying about the only two employees you have in Thailand?
According to International Labour Organization, today, some 50,000 multinational enterprises and their 450,000 affiliates employ over 200 million people throughout the world. According to a survey carried out by Neeyamo Inc., MNCs on average have close to 60% of their workforce within their home countries and the balance placed internationally. Half of these or close to 20% of the population are scattered across a Long Tail of countries. That is more than 40 million employees!
The anatomy of the Long Tail is characterized by a catastrophic combination of low employee headcount scattered across long tail of countries, broken processes and very limited access to the HR technology infrastructure. It is a nightmare for HR leaders across the globe to keep these employees engaged and have visibility & control over these geographies. Not to mention that the local compliance requirements galore and a large number of vendors to manage.
Well, Long Tail is indeed a looooong problem for those managing HR in multinational companies.
So here are the 5 Long Tail HR strategies that should help you effectively manage your talents in “small countries”.
1. No bees, no honey; no work, no money. GET YOUR GLOBAL PAYROLL STRATEGY RIGHT.
A critical aspect of payroll is its impact on the morale of the employees. They need to feel assured that they can be paid on a consistent and timely basis. This expectation becomes more accentuated for an employee working out of a remote location.
2. Garbage in; garbage out. ENSURE YOUR HR AND PAYROLL DATA ARE RIGHT.
A multinational had a shock of its life when they learned of a highly compensated employee, who had actually stopped reporting to work for 3 months, was continued to be paid. Inadequate data, inaccurate data, and inconsistent data inputs can have significant repercussions in your Long Tail HR operations.
3. Think compliance is expensive? Try non-compliance. ENSURE YOU ARE AWARE OF LOCAL COMPLIANCE FIRST AND THEN COMPLY NEXT.
Well, payroll does play a vital role in protecting the company’s reputation by ensuring compliance with various legislations. But HR compliance is more than just payroll compliance. In 2013, for example, there were 20 changes to California employment laws alone. There are close to 200 countries, around 320 legal jurisdictions that can translate to thousands of HR laws/ regulations and millions of compliance transactions!
4.In technology we trust. LEVERAGE RIGHT TECHNOLOGY/ PARTNERS TO DRIVE YOUR LONG TAIL HR.
Servicing Long Tail HR effectively and efficiently is only possible as a result of the following equations: platform = productivity and platform = predictability. The productivity ensures that you are able to service your Long Tail employees in a sustainable manner with a sound business case and predictability ensures you have the required transparency and control over your HR and payroll operations in these long tail of countries.
5.Too many moving parts? Move now. CONSOLIDATE YOUR LONG TAIL VENDOR NETWORK.
One vendor for payroll, another one for records, and yet another one for time, expense, mobility, and what not! That’s not just it – you also need to ensure that these vendors are appropriately empaneled and comply with your organization’s standards – like ISO, ISMS, and SSAE. The lesser the number of vendors you have to manage the better and if this vendor can bring along the right credentials to give you that confidence – then even better!
So well, 2 employees are all that you may have in Thailand but you may now have a world-class solution to support these employees you only wished you had! Write to firstname.lastname@example.org to know how?