Global - Skills, Costs, Supply

Human Resources departments in firms that expand / operate globally must consider the increased complexity, levels of core firm control, and the cost and skill of global labour forces. Global strategies for staffing can be utilised to lift performance and profitability by emphasising various levels of host-nation labour.

There are strong cost incentives for firms to utilise labour from other nations for repetitive tasks (ethics, CSR issues…). 

Customer expectations include both cheaper products and ethical behaviour; global HR must consider these factors.

Utilising global labour opens the firm to the complexities of Global Financial Management - fluctuating exchange rates can alter the cost structure of global contracting / outsourcing decisions.

Additionally, utilising global labour forces entails compliance with the laws and regulations of each nation; this increases compliance costs for global firms.

• Skills: Where do the specific skills reside globally? Is there a skills shortage domestically driving you to look globally?

• Costs: What is a projected cost of obtaining skilled labour from the global market? Contracting? Outsourcing? What model?

• Supply: Is there enough of this skilled labour available to meet your needs?