The state of work has changed as many companies are now embracing remote work, giving employees the opportunity to work and collaborate with team members all around the world. Gartner reports that remote work was at 30% before the pandemic and has now risen to 48%, with continued growth expected. Although building global teams brings about many benefits, it is not without its challenges.
If you’re looking to build global teams that work, it’ll take time, effort, and commitment. This guide will make the process smoother by providing you with the essential information on building global teams and how effectively managing distributed teams can help you empower employees and achieve business success.
Understanding Global Teams
The concept of building global teams is to have a workforce across countries and cultures, combining diverse skills and perspectives in pursuit of mutual objectives. It is a process that enables businesses to draw upon a large talent pool, fostering workplace efficiency and competitiveness in the global marketplace.
When building global teams, you have to learn to deal with cultural differences, communication styles, and time zones to ensure collaboration. That also means knowing how to navigate complicated international employment law, payroll systems, and compliance requirements.
This is where an Employer of Record (EOR) can come into play, offering administrative and legal support for hiring across borders, helping companies to focus resources on the integration and management of teams.
Benefits of Building Global Teams
Building global teams is more than just workforce growth; it's an enrichment of workplace culture and strategy with a wealth of diverse perspectives and skills. Here's why embracing global teams can be helpful for your business:
Access to diverse talent
Building global teams meant that there’s a higher chance of finding the perfect fit for your team, as you are not limited by geographical boundaries. With diversity in the background come new ideas and innovative solutions, which enhance the creativity and problem-solving skills within your team.
Increase market reach
When you have team members across different regions, you get insight into the local market and consumer behaviors. This first-hand knowledge can help you expand your market reach and customize your product or services to meet the requirements of diverse customer needs accordingly.
Cost efficient
Building a global team can also be a strategic move for cost management. You can optimize your resources in regions with lower costs without compromising quality. This translates to proper budgeting across operations.
Improve employee engagement and retention
Global teams that work lead to rich cultural exchange that can contribute to job satisfaction and employee engagement. Employees who feel valued and understood are more likely to stay longer with your company, reducing turnover and preserving valuable institutional knowledge.
Greater adaptability and resilience
Building global teams means your operations run seamlessly across time zones, with work happening around the clock. This strengthens your ability to swiftly respond to immediate changes. Global teams that work also provide your business with a global outlook and increased resilience towards the navigation of uncertainties that beset long-term success.
Challenges of Building Global Teams
Building global teams is, in itself, fraught with a set of other challenges that can be bettered into opportunities for growth and learning if well understood and addressed. Here's a closer look at the challenges of building global teams and how to manage them:
Language differences
Communication across multiple languages is not easy; however, it is an opportunity towards multilingualism. The encouragement of language learning and translation tools can help bridge the communication gap, setting a path towards clear and more effective interactions while managing global teams.
Cultural nuances
Every culture carries its own set of norms and values. Being sensitive to these differences is paramount for effective collaboration. It is helpful to provide cultural awareness training that encourages team members to value and respect each other's diverse backgrounds.
Scheduling conflicts
Coordinating meetings with people in different time zones can be a logistical nightmare for many growing teams. Technology can be used in scheduling meeting times to accommodate for clashes or public holidays, making sure no team member gets left behind.
Response delays
When managing distributed teams, time zone differences can lead to ineffective communication, like delayed responses. Setting clear expectations about when one can respond, using asynchronous means of communication, can keep the workflow continuous on any given project.
Relationship building
When it comes to managing distributed teams, it could be difficult to foster strong relationships. However, regular virtual team-building activities and encouragement of informal chats can help in encouraging trust and building a connection among the team members.
Employment laws
It is overwhelming to take note of all the different legal requirements in every other country. You can consider partnering up with an EOR or PEO, making it much easier to ensure compliance with local employment laws.
Tax implications
Dealing with different countries will always involve taxes that should be planned properly. International taxation consultants can help you understand and meet the obligations on tax issues that come with building global teams.
Performance monitoring
Sometimes, performance monitoring can be challenging when you work remotely and are managing distributed teams. Setting up certain KPI metrics and regular 1-on-1 meetings might be effective in monitoring the progress while providing support and feedback to team members whenever necessary.
Relevant reading: How to Write a Performance Review in a Remote Work Environment
Guide on Building Global Teams
As an HR manager, building global teams is often an exciting but daunting journey. We created this step-by-step guide to help make it a smoother journey and build global teams that work.
Step 1: Define your business objectives and goals
Before delving into the details, you start by defining precisely what you want to achieve. Ask yourself these questions:
- What exactly is the skill and expertise we need?
- How can this distributed team align with our long-term business strategy?
These questions help set clear objectives and goals, creating a roadmap for decisions and measuring success. This clarity will ensure that every team member knows how they can help add value to the big picture.
Step 2: Choose the right EOR partner
Finding the right EOR is critical to making your global operations easy. Find an EOR partner who understands not only the complexity of international employment laws but also shares a great fit for your company culture.
If you’re looking to build global teams that work, a reliable EOR can help handle the administrative burden, such as global payroll and global HR compliance, so you can focus on building global teams. Do your research, interview possible partners, and ask for recommendations from other HR professionals who have been in your shoes.
Step 3: Onboard your new team members
Onboarding is the time to make a great first impression and set a positive tone for work. You can create a solid employee onboarding plan that includes all the necessary paperwork and a proper introduction to your culture and values. Consider a welcome kit, including personal notes and useful resources, that will make your new hire feel valued and connected from day one. You can also encourage existing team members to reach out and introduce themselves, fostering a sense of community and belonging.
Read next: 8 Key Onboarding Documents for Your New Hire Journey
Step 4: Manage your global team effectively
Managing global teams requires a combination of strategic and people skills. Practice frequent check-ins and team meetings to encourage employee feedback and collaboration. Take advantage of HR software to create a seamless collaboration atmosphere; importantly, leave room for informal interactions that help build trust.
Be mindful about your employees’ cultural values and allow open communication to avoid misunderstandings, especially during onboarding. Periodically assess the team’s performance, provide constructive feedback, celebrate achievements, and address emerging challenges.
Building and managing global teams is not just about forming a team of individuals who will work effectively but also creating a space for them to genuinely connect and engage in the tasks at hand. It should be top of mind when it comes to finding balance between the distance and making sure you truly understand and support your employees. This will help move the company forward and also encourage a work environment in which talents will want to work.
Building Strong Global Teams with Omni
Omni makes it easy for organizations to build global teams across multiple countries, time zones, and currencies.
Affordable, functional, and suitable for modern, growing businesses—Omni is the payroll provider that your business can rely on. With a comprehensive payroll solution tailored to various countries specific requirements with features like support for HKD, SGD, and MYR, automated tax calculations, and managed contributions, HR teams can simplify their payroll processes while ensuring adherence to regulatory standards.
Our centralized document management solution makes gathering the necessary data required to apply for employment passes, rental schemes, and other country-specific initiatives seamless and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for applications. And centralized documents and real-time data make it easy for your distributed team to access salary information and produce reports and documents necessary for verification.
Additionally, Omni’s customizable dashboard allows global teams to set and manage calendars pre-loaded with country- or region-specific holidays and timezones, seamlessly onboarding individuals in various locations.
Start your free trial today or book a demo to learn more about how Omni can help you build global teams that work.