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Globalization Partners and SHRM Release Report Revealing that Companies Struggle to Manage Global Teams



94 percent of HR professionals report that their organizations face challenges

Boston—June 24, 2019—Globalization Partners Inc., whose Global Expansion Platform enables companies to hire talent in more than 170 countries without having to navigate the complex legal, tax, and HR matters traditionally associated with global expansion, today announced the findings of a new survey conducted in conjunction with SHRM (Society for Human Resource Management) about managing and working on global teams.

Growing globally is an essential part of doing business today for almost all professionally managed companies. Having access to new markets can provide a competitive edge, attract new customers, and drive new opportunities.  Companies also expand to enable access to great talent everywhere they find it.  This past winter, Globalization Partners conducted their 2019 Global Employee Survey across eight countries, and this spring, partnered with SHRM to better understand the opposite side of the equation — how employers and human resources practitioners in particular – view both the challenges and benefits of having employees distributed around the globe.

Here’s what we found:

The challenges:

  • 94 percent of HR practitioners report that their organizations struggle to manage global teams either sometimes, most of the time, half of the time, or always
  • Global teams feel a lack of equal influence in the organization, with 62 percent of companies saying people in headquarters have most of the authority
  • More than half (56 percent) of those surveyed said collaborating across time zones is an issue and 33 percent reported limitations due to cultural differences
  • 40 percent of HR professionals are struggling to find candidates for global teams

The benefits:

  • 81 percent of global HR professionals say the global perspectives brought by these teams are a big benefit, along with the resulting diversity (72 percent)
  • They also cited increased creativity (54 percent), followed very closely by access to talent anywhere (53 percent) — unsurprising given the growing war for talent
  • Global teams have higher employee retention rates: their levels of voluntary turnover being lower than their U.S. based counterparts (12 percent vs. 24 percent)

“The survey data is extremely valuable in helping to frame the realities of managing today’s global teams,” said Nicole Sahin, CEO of Globalization Partners. “We see the unquestionable positive impact that having access to the brightest people, without regard to jurisdiction, brings to our clients. As international expansion increasingly becomes a requirement for growth, this report provides valuable insight for companies adding employees in new markets.”

“As technology has delivered an increasingly connected world, organizations have found it easier to turn to globally distributed teams as a solution to their talent needs,” responded Liz Supinski, Director of Data Science in SHRM’s Research group. “This study reminds us that, as stewards of communications and organizational culture, HR is key to helping organizations succeed in global growth.”

The Global Teams Survey was conducted by the Society for Human Resource Management® and Globalization Partners® from February 6-March 20, 2019. The respondents to this survey were 464 global human resources professionals randomly selected from SHRM membership. It has a margin of error of plus or minus 4.5 percentage points.

For the full report, please visit: 2019 Challenges and Benefits of Global Teams—an HR Perspective

Globalization Partners will be at the 2019 SHRM Annual Conference & Exposition in Las Vegas from June 23-26. Attendees are invited to visit us at booth 1537 in the Exposition Hall. In addition, the following sessions will be presented by Chief Operating Officer Debbie Millin and Chief Administrative Officer and General Counsel Nancy Cremins:

Session: 10 Things Your HR Team Must Know Before Greenlighting Global Expansion

Presented by Debbie Millin, Chief Operating Officer, Globalization Partners
Tuesday, 6/25 at 3:30 pm

Session: Managing Risk for Global Teams in the Era of Data Privacy

Presented by Nancy Cremins, Chief Administrative Officer and General Counsel, Globalization Partners
Wednesday, 6/26 at 10:00 am

About Globalization Partners
Pioneer of the Global Employer of Record model, Globalization Partners enables companies to quickly and easily expand internationally across six continents and into more than 170 countries without the hassle of setting up local branch offices or subsidiaries. Its technology-powered Global Expansion Platform allows companies to hire employees throughout the world without having to navigate complex international legal, tax and HR issues. You identify the talent, and we put your team member on our payroll. Whether it’s to test a new market or expand your talent pool, Globalization Partners is the most trustworthy solution in the market. We have dual U.S. headquarters to serve you in Boston and San Diego, and regional hub offices located worldwide in Germany, the UAE, India, Brazil, Mexico, Singapore and the UK. Globalization Partners is also the only global employer of record that is Privacy Shield certified for HR Data.

About SHRM
SHRM, the Society for Human Resource Management, creates better workplaces where employers and employees thrive together. As the voice of all things work, workers and the workplace, SHRM is the foremost expert, convener and thought leader on issues impacting today’s evolving workplaces. With 300,000+ HR and business executive members in 165 counties, SHRM impacts the lives of more than 115 million workers and families globally. Learn more at SHRM.org and on Twitter @SHRM.

Karen Pantinas

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