A global mobility strategy offers several advantages to businesses invested in the benefits of remote work.
Building a global team allows businesses to access international talent, draw from broader perspectives, and — with talent working across different time zones — effectively operate around the clock, lowering costs while supporting employees’ work-life balance.
With virtual management tools like Slack and Zoom now standard in the workplace, going global has never been easier. In this article we will cover the top reasons and advantages to build a global team.
Table of contents
1. The main advantages of building a global team
2.Top reasons companies choose to expand globally
3. How Employer of Record can simplify the global expansion
The main advantages of building a global team
Access to a diverse talent pool
By hiring globally, companies are no longer limited to local talent. Businesses can recruit the best candidates, regardless of location, ensuring access to top-tier professionals. According to a report by McKinsey, diverse teams are 35% more likely to outperform their competitors due to the variety of perspectives and problem-solving approaches.
For example, Google actively hires globally, enabling them to tap into the best engineers, designers, and marketers worldwide. This diversity fosters creativity and innovation, helping Google maintain its position as an industry leader.
24/7 Productivity across time zones
A global team allows companies to provide round-the-clock service, leading to faster project completion and enhanced customer support. This continuous workflow helps businesses operate more efficiently without requiring overtime from local employees.
For instance, IBM leverages a global workforce to ensure their customer support and IT services are available 24/7, reducing downtime and improving client satisfaction.
A real-world example of 24/7 operations can be seen in customer support teams. Amazon, with its global workforce, ensures that customer inquiries are handled efficiently at all hours, improving response times and customer satisfaction levels.
Cost savings on salaries and operations
Hiring internationally can be a cost-effective solution. In some regions, top-tier talent comes at a lower salary compared to Western markets. Additionally, remote work reduces expenses related to office space, utilities, and other overhead costs.
Companies like Trello and Zapier, which operate with fully remote teams, have significantly cut overhead costs while maintaining productivity and engagement.
Beyond salaries, businesses save on relocation costs when hiring remotely instead of sponsoring work visas. According to SHRM, visa sponsorships can cost companies anywhere from $4,000 to $10,000 per employee.
Increased innovation and market expansion
Different cultural backgrounds lead to fresh ideas and innovative solutions. A global team also provides valuable market insights, helping businesses expand into new regions with a better understanding of local consumer behavior.
For example, Netflix customizes content for different regions by utilizing insights from its global workforce, allowing them to create localized programming that resonates with international audiences.
Similarly, Coca-Cola employs diverse teams worldwide to tailor its marketing strategies based on cultural preferences, ensuring strong customer engagement in various markets.
Improved employee satisfaction and retention
Global hiring often leads to higher job satisfaction due to increased work-life balance and flexibility. A 2022 Owl Labs study found that 71% of employees prefer remote work, with many stating it reduces stress and increases productivity.
Companies that offer remote and flexible work options, like Dropbox and Spotify, report higher retention rates and improved employee morale.
Top reasons companies choose to expand globally
Overcoming talent shortages in local markets
Scaling business operations efficiently
Global expansion enables companies to scale at a faster rate by hiring talent where demand is growing. Instead of being restricted by local labor markets, businesses can quickly set up teams in new regions, ensuring that they have the right expertise to support their growth.
Successful startups like Airbnb and Stripe expanded internationally early in their journeys, allowing them to access new customers and highly skilled professionals. Airbnb, for example, adapted its platform to suit different regional markets by hiring teams in Europe, Asia, and South America, ensuring a more personalized and locally relevant user experience.
Additionally, hiring remotely helps businesses scale efficiently by reducing operational costs. Rather than setting up expensive local offices, companies can create distributed teams, minimizing overhead while maintaining global reach. This model has been embraced by companies like Zapier and GitLab, both of which operate fully remote teams while maintaining strong growth trajectories.
Gaining competitive advantage in industry
In today’s fast-changing business landscape, companies that embrace global hiring gain a significant competitive edge. A diverse workforce brings fresh perspectives, cultural insights, and adaptability, enabling businesses to stay ahead of industry shifts and evolving market trends.
For instance, Spotify’s international expansion strategy relied on hiring local teams to refine its music curation for different markets. By employing professionals familiar with regional music trends and consumer preferences, Spotify was able to dominate the streaming industry globally.
Additionally, multinational companies like Tesla and Apple rely on global talent to drive innovation and product development. By assembling diverse teams of engineers, designers, and strategists, these companies continuously push the boundaries of their respective industries.
Moreover, businesses that expand globally are better positioned to mitigate risks. If one market experiences economic downturns or regulatory challenges, companies with international teams can shift resources and focus on more stable regions. This level of adaptability is crucial for maintaining long-term growth and sustainability.
How an Employer of Record (EOR) simplifies global expansion
Handling legal and compliance complexities
Navigating labor laws, tax regulations, and compliance requirements in multiple countries is complex. An Employer of Record (EOR) manages these aspects, ensuring businesses remain compliant without establishing local entities.
Streamlining payroll and tax management
EORs handle payroll, benefits, and taxation, reducing administrative burdens for businesses.
Managing employee onboarding and HR administration
An EOR facilitates smooth onboarding, contracts, and HR support, making global hiring seamless.
Reducing risks and administrative burdens for employers
With an EOR, companies mitigate risks such as misclassification of employees, tax issues, and compliance violations.
Expanding your business with a global team provides access to top talent, increased productivity, cost savings, and market expansion opportunities. However, navigating international employment laws, payroll, and compliance can be challenging without the right support.
TechRemote is a trusted Employer of Record (EOR) provider, helping businesses hire and manage employees worldwide. We work with companies across industries, ensuring seamless global expansion while handling compliance, payroll, and HR administration.
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