Benefits of Global Expansion: How an EOR Can Help

The future of work is global. This is why companies of all sizes are embracing today’s global mindset to seize new opportunities by expanding beyond borders and boundaries. 

Access to global markets, high returns on investment, and new revenue streams are just a few of the benefits of global expansion and global hiring. 

Let’s explore how a reliable Employer of Record (EOR) partner can help your business grow internationally — without the hassle of local entity setup. 

What is global expansion?

Global expansion is a business growth strategy that involves growing a company’s operations, products, or services to new target markets. Global expansion can help businesses grow beyond their home market and local customer base to build new revenue streams. 

Why do businesses expand globally in 2024? The exact reason businesses seek international growth depends on a few key factors, such as business goals and brand identity. By expanding your business beyond borders and boundaries, you can connect with new customers, bring products or services to new markets, and increase revenue. 

With a reliable global expansion strategy and efficient resource allocation, growth also becomes more sustainable.

What are the benefits of global business expansion?

Global expansion benefits include risk mitigation, cost reduction, increased revenue, and workforce diversity. G-P’s 2023 Global Growth Report found that 4 out of 5 employees are ready to work for global organizations. Yet, executives are not always prepared to lead global teams. 

Within the next year, 73% of C-suite executives are focused on growing their organization. Yet, growth requires skilled talent that may not be available locally. As a result, leaders are exploring beyond borders to source success and reap the key benefits of expansion.  

1. Access new markets.

Seizing new, promising markets is at the core of any strong global expansion strategy. Expanding globally helps businesses diversify their customer base across multiple markets and regions. By reducing dependency on a single market, businesses are better positioned to handle market fluctuations and expand their revenue opportunities.

2. Tap into the best global talent.

Our Global Growth Report also revealed that for many executives,  access to a larger talent pool (35%) is a top benefit of hiring globally. In fact, 42% of executives recognize that global companies are better at attracting top talent, and 47% of employees agree. Global expansion provides access to diverse skills, which is invaluable for both innovation and productivity. 

Whether you need 1099 workers or full-time employees, sourcing talent from different regions can promote innovation from day one. 

Increased employee mobility can also drive your global growth strategy. If you’re not sure where to start, G-P can help. We enable companies to hire anyone, anywhere — without setting up new entities. And as an extension of our industry-leading G-P Meridian Platform™, G-P Meridian Contractor™ allows you to hire, manage, and pay contractors in 180+ countries. Thanks to our comprehensive offering, companies can now manage both employees and contractors from a single dashboard.  

3. Take advantage of economies of scale.

Companies can benefit from emerging economies by operating at a larger scale at a lower cost. Across markets, companies can reduce the cost of production, distribution, and even procurement, and take advantage of more efficient distribution networks. 

4. Diversify company culture.

Building a diverse company culture is key to any effective talent management strategy. After all, the business case for diversity, equity, and inclusion (DEI) is stronger than ever in the modern business landscape. Companies can benefit from their employees’ wide range of expertise and skills to develop better business strategies. 

Data shows that leaning on local experts across cultures can even increase your bottom line. According to 2023 McKinsey data, companies in the top quartile for ethnic diversity show an average 27% financial advantage over others. Companies with representation of women exceeding 30% are significantly more likely to financially outperform those with lower representation. 

5. Connect with new customers.

Global expansion also creates opportunities to reach new customer segments with unique needs, preferences, or purchasing behaviors. When building out market research, be sure to focus on predicting how customers will receive your product or service in a specific market. 

6. Diversify your long-term revenue streams.

Businesses can increase revenue growth by tapping into new markets and customer segments that might not be available in mature domestic markets or more saturated environments. Expanding internationally helps any company find new customers while lowering operational costs and saving money in a new country. 

7. Mitigate market risk.

Expanding operations across multiple markets makes any business more resilient to market challenges, including volatile economic conditions, government policy changes, or changes to legal environments across countries. 

8. Enhance brand recognition and adaptation.

Building and maintaining a consistent brand across borders can be challenging. Localizing your branding, marketing messaging, and promotional strategies to different markets can help you connect with a new customer base to improve your brand recognition. 

Establishing a presence in multiple countries can enhance both brand visibility and credibility on a global scale. A global presence can also improve both customer perception and loyalty. 

9. Gain a competitive advantage.

Organizations that want to thrive and expand must stay ahead of the curve. By being among the first to expand in an emerging international market, you can establish a strong presence ahead of competitors who may be slower to enter international markets. 

10. Build strategic partnerships.

Global expansion can also facilitate strategic alliances and partnerships with international companies. By entering new markets, your business can access new resources, advanced technologies, or valuable distribution channels. 

Yet, global expansion also comes with challenges. From cultural differences to regulatory complexities and unexpected costs, there are many obstacles to seamless expansion. Successful growth requires detailed market research, careful  planning, and an in-depth strategy to capitalize on benefits while mitigating risks.