How Workforce Strategy Should Evolve During Regional Business Expansion

When a company starts its operation in a new area, it usually marks quite significant progress. Besides being a big success story for you, it definitely is an immense effort. Opening up to a foreign territory such as the Middle East, Europe, or Asia simply won't allow you to just reproduce your current operating pattern.

Most importantly, you have to rethink your staffing policy. If you continue recruiting, managing, and developing your team the same way you have in the past, without making any modifications, your international expansion could easily get off track from the very beginning. 

Now, you might want to see below how exactly you can reshape your human resource plan when you enter the new local markets.

1. Know & Master the Local Regulations

There is no way you will be able to hire people unless you first become completely familiar with the regulations of the country or region you want to enter. There are no two ways about it: every nation has strict regulations governing matters like employment, dismissal, working time, and even providing benefits. Take as an illustration the scenario when you decide on launching your business in the UAE. 

2. Mix Expatriates and Local Residents in Right Proportions

When setting up a new office in a foreign territory, you will need the right composition of personnel.

• Expats (Internal Transfers): Sending a few staff members of the headquarters will definitely help to preserve and carry forward the cultural essence of the main business to the new location. These staff members will be able to share your company's business way of running with the other employees at the new location.
• Local Hires: While expatriates may take time to understand the local culture and business practices, local employees naturally have a better understanding of both. 

That said, a great model is to use your existing team for establishing the company in your new market but also make the most of local talent to manage day-to-day operations. 

3. Use Contract Staffing to Test the Waters

Setting up a large team right away is a high-risk activity if you're not sure that you will be successful in the chosen location. Instead, many smart businesses look at contract hiring companies. With contract or temporary workers, you can easily expand or reduce your workforce based on business needs. 

This approach allows you to hold down your expenses until you determine the level of demand in the market. Of course, a few of those hired as temporary staff might later become permanent employees if that is what the job needs.

4. Tune in to Employee Motivators That Are Local

Employee incentives and motivation strategies that work well in New York may not be as effective in Riyadh or London. Different geographical areas have different cultures and norms, so employee benefits and compensation should be adjusted accordingly. 

For example, in some countries, housing allowances, annual home travel tickets, and private health insurance are standard parts of an employment package. If you only offer a base salary, the best talent will leave for your competitors.

5. Tap into the Services of Local Hiring Experts

It is extremely challenging for a company new to the market to find quality hires in a city where the brand has zero visibility. Potential employers might receive hundreds of resumes as a result of job postings; nonetheless, manually filtering them can be extremely time-consuming.

This is where a specialised recruitment agency can be extremely helpful. For instance, if you are expanding into the UAE, partnering with a top staffing agency Abu Dhabi trusts can save you months of work. In addition to that, they may be able to help you shorten the duration of your recruitment cycle.

Ready to Expand Your Business Smarter?

Expanding to a new region is a daunting challenge, but you don't have to go through it alone. Let us at TASC Outsourcing give you complete regional expansion support. From contract staffing and recruitment to legal compliance, TASC Outsourcing handles the complexities of local workforce management, allowing your leadership team to focus on business growth. Don't hesitate and get in touch with us today for regional team formation support!

Frequently Asked Questions 

1. What do firms do the most often that causes issues with the local workforce during their expansion?

The most common issue is assuming that what works at headquarters will work equally well in the new market Often, they do not prepare for and adapt to the differences in legislation, culture, and compensation, which ends up with delays in employment and legal challenges.

2. What are the advantages of working with temporary staffing agencies rather than full-time hires?

Working with a staffing agency makes it very easy if the situation suddenly turns against you. By using temporary staff, you can launch your business smoothly with a capable workforce, even if the investment has not yet paid off. It also minimizes your risk of making an expensive wrong decision while the new market is being assessed.

3. How do we preserve our company culture when opening a new regional office?

Send over a team of culture champions, employees with lots of experience from the main office who can help establish the new one. You also have to rely on the expertise of employees from the local office, and, on top of that, you must communicate regularly between offices via video calls and by sharing goals.

4. What kind of assistance do staffing agencies in Abu Dhabi help with when a company is expanding?

Staffing agencies can help with talent sourcing, resume screening, visa guidance, and legal compliance. They assist you in avoiding legal errors and locating qualified people significantly quicker.

5. How long does it take to assemble a workforce in a new region?

The exact duration of time it takes to build a workforce in a given region will depend greatly on the region as well as the industry. If you handle legal compliance and hiring on your own, building a workforce may take anywhere from six months to a year. On the other hand, if you team up with a staffing or an outsourcing firm, you can get a team ready on the ground in just a few weeks.