Question

What are some HRM challenges that arise when a U.S company expands from domestic markets by exporting? When it changes from simply exporting to operating as an international company? When an international company becomes a global company?

Answer 1

The challenges faced when exporting are the language requirements of the employees to communicate with the people in the international market. The HR team will also need to create an awareness of the cultural differences in the new market for the employees to perform efficiently. The HR team will have to identify the right candidates who can be a perfect point of contact for the company in the international market. They also need to change the mindset of the employees and prepare them for an international exposure.

The challenges when operating as an international company are hiring the local talent to meet the business needs. Creating a communication plan that can help the knowledge and information sharing among the employees in the US and the international market. The employees in the international market need to embrace the local culture and the language to perform efficiently. The HR team will have to create programs to teach the language and create an awareness of the local culture.

The challenges when the company becomes global are the local employment regulations. The HR team needs to follow the local employment rules suggested by the local government. They need to create a new salary structure according to the market needs. They need to hire the local talent that can adjust the company culture. They need provide new perks and benefits according to the local market needs. The job agreement will change the customer retention policy might also change in the international market. The HR team will have to invest more time in organizing the employee engagement activities and professional development programs.