Unlocking Growth in the New World of Work: Insights from Atlas' 2023 Global HR Study
No matter where you operate, the sector you operate in, or the size of the business you work for, the last 5 years have brought transformational change to the way we work. From adapting to remote work, navigating geographic expansion, or tackling efficiency in an inflationary market, these changes will be felt for many years to come.
Today, we published our first global study of over 500 HR decision-makers in large and SME companies across the U.K., UAE, Singapore, Australia, and the USA, to explore the impact of technology, evolving skills, talent shortages, and regulations on businesses’ growth strategies globally.
Interestingly, the study found that the search for talent is on the top of many businesses’ agendas and one of the leading reasons businesses are looking to expand internally. In fact, 82% of companies are currently considering expanding into new markets to find the right talent.
However, despite the high appetite to enter new markets, expanding is a financial and compliance risk. Of those surveyed at large companies, over half (54%) are willing to allocate over 25% of annual turnover to expanding into new markets. Our modelling shows this as at least $204k – which, if done unsuccessfully, creates an expensive mistake.
Further, 3 in 5 (60%) find it particularly challenging to ensure compliance with local regulations. This is a potential risk to a successful expansion as businesses might be unable to remain compliant with local and international employment laws.
Therefore, effectively accessing talent and successfully venturing into new markets necessitates a nimble and adaptable partner capable of navigating local laws and regulations, both domestically and internationally.
Two key solutions are emerging to address the new ways that we work.
Invest in HR technology: The use of HR technology is already becoming a mainstay for competitive organisations, as 54% of the companies currently use HR technology for hiring and compliance; 66% use it for payroll and accounting, and a further 60% use HR technology in training and development. The uptick in HR technology continues as 89% of companies plan to increase their investment in HR technology over the next 12 months.
Partner with an Employer of Record (EOR): EOR service providers, like Atlas, are one of the pioneering forces of this new world as they enable the fast expansion of people ops into new regions for just a fraction of the cost of setting up entities, allowing businesses to operate and hire talent internationally. An EOR can play a pivotal role in helping businesses harness the full potential of HR technology while minimising the barriers presented.
Organizations that are nimble enough to adapt to the changing landscape will be the ones that will benefit the most in the next decade.
Atlas’ 2023 Global HR Study is released following The Global Employer of Record Report 2023 which explores the emerging labour force trends and how EOR solutions are playing an important part in that, including facilitating global expansion and the hiring of international talent, retaining employees, digital nomad visas and supporting DEI initiatives.