The potential benefits of having employees all round the world are considerable – but so too is the HR challenge of ensuring regulatory compliance across a diverse range of jurisdictions
Ever since Covid enforced the hasty adoption of remote working throughout the UK, there has been a huge increase in the number of firms hiring internationally and letting employees operate from anywhere in the world. Such policies, which have proved particularly attractive to gen Zers, have enabled these employers to trawl a broader talent pool and better serve customers located in different time zones.
But managing a widely distributed workforce presents several logistical challenges, especially the task of complying with a host of differing tax and labour laws. Applying consistent HR policies across borders is rarely straightforward either.
Lorna Ferrie is global compliance and HR manager at Mauve Group, a consultancy that helps employers to solve such problems. She reports that some firms have found that having a presence in certain countries is outweighed by the complexities and costs associated with employing people there, prompting them to curb or even scrap distributed working.
She cites the recent example of a medtech company that was operating in Australia and Europe but thinking about quitting several other jurisdictions. The business was “facing challenges managing local workers” because it didn’t have enough HR expertise in those territories.
“The management team’s concerns...
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