How to Create a Global HRIS System for Your Business
No longer are companies staying in one place or solely expanding domestically. To get ahead, it is the global connections and networking a company must create that will give them the upper hand within national and international markets. However, expansion is not always easy, especially with the abundance of complications that can arise during the process. Globalizing a company or continuing to achieve success in a global market is a daunting task. Now more than ever, despite the challenges, it is imperative to have a solid, centralized, and fluent global HRIS system within your HR department.
We saw this through the Covid-19 pandemic, a phenomenon no organization was ready for, including the HR personnel. Traveling and accessing other countries and locations was arduous, and for a while, it was even difficult to communicate virtually. Companies that prevailed through those setbacks, were those that had a stellar global HRIS system that allowed them to notwithstanding transmit HR data to all locations and employees efficiently. Regardless of international diseases establishing barriers for enterprises, successfully running those businesses globally can be very difficult to automate and approve.
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Through a study by Harvard Business Law, it was found that:
Companies selling abroad had an average Return on Assets of minus 1% as long as five years after their move. It takes 10 years to reach a modest +1% and only 40% of companies turn more than 3%.Harvard Business Law
Now, that is not to say that copious amounts of companies do not see success, just that the journey there can be somewhat convoluted. To simplify those complications, it is vital that a company has a strong global HRIS system established to have better competency in the many management-tools needed to create an environment that employees can feel that the management solutions put into place align well with how they want their regular workday and future to be like.
But first, let’s start from the beginning. We need to understand what an HRIS is, the aspects that comprise it, and how it needs to be structured in a global market.
HRIS is a Human Resource Information System: an operating system that comprises all the HR data of a company in one central location. This data is composed of talent acquisition records, recruiting software, HR employee management and employee records, compensation, benefits, resource-management, performance management, etc.
The majority of companies understand the cruciality of having a centralized software system that combines and integrates all of these aspects. In the 2022 HRIS report by softwarepath,
98% of companies were considering a cloud-based HRIS.Softwarepath
That staggeringly high statistic indicates the known need for fast, reliable, and easily accessible data. Domestically, we are seeing success in the HRIS departments, and it is time to implement these same patterns and more in our global locations.
When dealing with multi-country locations, an article by Matchr found that:
Since about 80% of the business processes are the same across countries, 20% are different.Matchr
The inconsistencies arise in areas such as rules and guidelines, disclosures, professional accessibility, and time.
Through a Global HRIS, companies can effortlessly manage these HR sources across multiple time zones, regions, and countries at the same time without a decrease in employee performance. It will allow consistency across communication lines to all employees and managers, payroll, documentation and record-keeping. Especially with different laws and rules changing and multiple inconsistencies among those rules arising in different countries, utilizing a solid HRIS that will update and comply with these changes is so important. Giving not just American-based employees this access, but also allowing employees abroad the simplicity of HR data all in one place.
The global HRIS would be multifunctional not just in terms of its global HR sources, but in the different languages it could translate and provide, and in the customization of the different needs of different countries. Companies can stay adaptable by being present in all of these locations and by utilizing the different proficiencies of those areas. Through the facilitation of translation of these integrated systems, workforce management can keep track of the global workforce in different headquarters or subsidiaries.
Why You Need a Successful Global HRIS System
Imagine, your company wants to expand, and establish a basis globally. To begin, you wish to take on 4 small teams, and look into the hiring process to be in charge of human-capital through applicant tracking systems. It is going to take four different application processes, differing regulations and data acquisition for each location, and a manual review of each new team member because of the differences in management systems. If your business was to incorporate a global HRIS system, all of these aspects would be easily funneled into one central repository, that could effectively distribute useful and relevant data from each country or location into one central hub to better compare and understand the information.
Let us say you go through with the hire, and decide to conduct four new global teams. The most valuable way to start, is to start with a consistent workflow. With a global HRIS, your company immediately has access to some of the top talent and skill wells because you have decided to engage in a new network of employees. Through this universal, worldwide system, there will be strong, constant communication between these global experts – allowing for further adroit acquisition.
Operating employee records, contracts, and compensation from trusted and universally intelligent data software will be simpler and more efficient to not just the company but for employee development. Managers and employees abroad can stay current with a domestic company’s operations and allow them to engage in international data distribution techniques that work.
Payroll systems can be centralized and processed in one platform but in all different countries. Performance reviews and advancements can be noted and recognized across nations, so that no matter where they are, employees and managers feel heard and appreciated.
By using a global HRIS system, redundancies are eliminated because the data is verified and kept safe in a central network, workflows are improved, and collaboration is intensified.
Of course by mentioning the benefits, it is important to also compare the systems and identify the areas where it falls short.
How to Create a Global HRIS System
To successfully establish domains in other countries and locations, one’s global HRIS has to be pristine. There are key aspects of the global HRIS that will set your company above others, and that will make the international transition more attainable.
Allow for International Transparency
In order to properly manage multiple different sites abroad, the language, domestic capabilities, and international compliance regulations must be considered. Knowing the inner workings of each location your company is in, and how to avoid issues at these locations will save time, money, and worry.
Keeping that constant communication open between parties will allow for those relationships to strengthen, and no lines to be crossed.
Create Separate Workflows
Handling different workflows for every country and region will clear up confusion and allow for a clean cut understanding of what each job site needs and wants. These workflows can include personalized jobs, goals, and stages for each employee or manager to easily access and follow.
These differing workflows will be important when selecting specific data per location, accessing information worldwide, and customizing them to complement your unique business needs. The process of completing a job will quicken if the domestic company can easily administer solutions and directions abroad through these global workflows.
Implement a Universal Data Processing System
It is imperative that this data can effectively work its way across the globe, and that can only happen if time zones, languages, and transparency across countries are accurate and up to date. Visibility at home and abroad needs to be clear, to ensure reliable and informed decisions are being made.
This cross-continental data is very unique and needs to be transmitted depending on time zones, and it needs to be correct. The global HRIS will ensure every language is accounted for, data is translated, delivered at the correct time per each location, is updated consistently, and that the data is processed in a safe, and trustworthy manner. This is incredibly important as misinformation and misorganization can lead to high costs and losses.
Customize Your HR Features per Global Location
Different features of HR need to be globalized through the HRIS. This could entail connecting employee contracts, multiple payroll systems, benefits, cost planning regulations, multiple management processing systems, and self–service systems to one centralized platform that allows all of these aspects to be processed in different countries.
Independent of whatever country an organization is in, they need to be able to control and regulate these HRIS processes. For example, this unification and globalization of multiple payroll systems can benefit employees greatly. It would ensure they are paid equally, fairly, and adequately for their work, all while abiding by different laws and contracts they must follow per location – which would be deciphered per the global HRIS.
Get Started with Global HRIS Analytics
Fragmented human-resources is something of the past along with paperwork. With technology developing at the rapid pace it is and additional HR processes convoluting the cloud every day, a unified, single source of information that combines and distributes your most necessary HR data is crucial as part of your management system.
When crossing borders, it is even more important to see compliance in each location and see how human resource management differs in different countries. With each new place comes different tax and benefit rules, sector specific events and policies, and differing currencies. If the logistical side of things can get sorted cross continental – and data can be ensured that it is processed through safe systems, customized to each country – it will be easier to then experience the benefits of efficient global HR software. Professional talent can be optimized, cultural knowledge and collaboration can foster, and innovation can strengthen.
Through this global data centralization, we see profitability, happier clients, less stress, and efficiency advance among employees. Making the informed business decision to go global can transform your end-to-end HRIS and leverage your company above the rest. Our solution is to use PeopleSpheres to consolidate all your data into one HR platform. Through this information-technology, all your HR database will be accessible at any time and will be ready to observe any insights or trends that may be happening. This can be done as all your HR payroll, onboarding documentation, time & attendance, tracking system, performance review, workforce planning and any other business-process will be under the customizable platform to keep adding or getting rid of any software you don’t use.