By Allan David, 05 June 2018
Multinationals across the globe are now starting to acknowledge their long tail problem. What exactly is an organization’s long tail? Global companies have an uneven employee distribution across countries. You may have 5000+ employees in the united states and 3000+ employees in China and India. But what about those 70 employees in Israel or 10 to 50 workers scattered across Europe? If you carefully analyze the pattern of employee distribution in many multinational firms, you can visualize the long tail of countries with double-digit or even single digit workforce. The graph below paints a picture of the typical employee population across the primary, secondary, and long tail countries for global organizations (10%-30% of the employee population is distributed throughout 70% – 90% of the countries)
Now that we’ve established what long tail countries are let’s look at the various challenges faced by multinational firms with a long tail population.
- Fragmented HR Processes and Poor Employee Experience: It is not practical to set up an in-house HR function to manage a handful of employees in specific countries. Without a proper HR department, your long-tail workforce will have a poor employee experience. Personnel in your home and secondary countries will benefit from a highly standardized HR process. But employees in the long tail countries will be treated like second cousins without proper policies to govern them, acknowledge them and appraise their efforts.
- The Problem of Managing Multiple Vendors: Your global organization can resort to local human resource providers to manage your long tail workforce. But this strategy to handle your sparse employee population gives rise to many complexities in the long run. The foremost challenge is hiring and managing multiple vendors. You need a vendor for each long tail country. And worse if the vendor is not a holistic provider of HR services, you have to hire different vendors for every HR function such as payroll, background screening, onboarding, , You need to exert a tremendous amount of effort and investment to manage this complex network of vendors. Furthermore, consolidating HR data from various vendor systems is another effort intensive and burdensome task for your HR team that partially negates the purpose of outsourcing.
- Obsolete Technology in the Long Tail Countries: Your global firm may invest in setting up a technological infrastructure in countries with huge employee population to streamline your HR process. Providing the same technology to your long tail countries with few employees is a challenge. In this scenario, your employees in the long tail countries will be forced to use obsolete technology such as excel sheets for their HR activities. But, their colleagues in other countries will benefit from a highly efficient human resource information system.
- Risk of Non-Compliance: Human resource laws and regulations across the world are erratic and subject to constant changes. You need to comply with the legislative changes (such as tax laws) in every nation you operate including your long tail countries. Without a proper HR process in these countries, it is extremely difficult to track and implement changes in the HR laws and regulations. Non-compliance with the country-specific laws will cost your company a small fortune and will also tarnish the reputation of your firm.
Many global HR providers are reluctant to deliver services in the long tail countries due to the lack of a strong business case. Neeyamo, over the years, has positioned itself as a leader in providing services to global company’s long tail countries. Neeyamo has done a profound study on the long tail problems and has formulated strategies to address them effectively.
Neeyamo’s long-tail strategies:
- Single HRO Provider Model: Neeyamo’s proficiency in the human resource domain enables it to be your single provider for all your HR needs in the long tail countries. Neeyamo offers complete HRO services from hire to retire thereby eliminating the need for multiple HR providers to handle different HR functions. The single provider model ensures a streamlined and standardized HR process and the best experience for your sparse employee population in various countries.
- Centralized Technology: Neeyamo’s suite of HR technology rests on a centralized cloud infrastructure. Your employees across the globe (including those in the long tail countries) will have access to modern HR technology irrespective of the location and employee population. Your global organization will have a centralized view and better control of your HR operations in the long tail countries. Also, Neeyamo will be your single source of truth for all your employee records promoting easy access to consolidated human resource data.
- Wide Spread Global Presence: Neeyamo has its footprint in 200+ countries and territories through a combination of delivery centers, proximity (offshore) centers, and in-country network. Neeyamo can provide a localized service in any of your long tail country owing to its extensive global presence and local expertise. Hence, you will have a single provider who can streamline and improve the HR process in all your long tail countries as opposed to the complicated multiple vendor strategy.
- Impeccable Compliance Framework: Neeyamo’s extensive global reach and its dedicated compliance team will ensure you are 100% compliant with the changing local laws in your long tail countries. Neeyamo keeps track of the changing HR legislation and updates you about the same to completely eradicate the risk of non-compliance.
With Neeyamo as your sole HR provider, you don’t have to worry about the human resource process for your small employee population across countries. Your long tail employees will no longer feel like second cousins. They will have the best HR process, technology, and employee experience that will boost their morale and enable them to contribute more efficiently towards your organizational growth.