Workforce Planning with an Employer of Record

Is Employer of Record the future of strategic workforce planning?

Around the world, supply chain shortages have characterised the most recent phase of the pandemic. Companies are having to scale up rapidly in response to global labour shortages, often without the local resources they previously had access to.

Earlier this year, we explored the “perfect storm” of reasons behind Britain’s supply chain troubles, but as even more talent gaps and supply chain disruptions reveal themselves across the globe, the current issues look likely to grow on an international scale.

Why are so many national workforces crumbling under the current strains and why aren’t national governments prepared for this? Previously, a ‘workforce planning’ department was commonly found in many companies, but strategic workforce planning has largely fallen out of fashion since the Second World War. Britain’s hasty U-turn on visas for HGV drivers is an example of the lack of workforce planning that goes on, even at national levels.

Labour resourcing is an important part of the supply chain, and planning and placing this labour effectively ensures that supply chains run smoothly across borders. In our current crisis, labour shortages and national skills gaps are reported to be some of the most dominant reasons for the global supply chain issues. With many companies now running global operations with largely remote teams – how do you get the right people where you need them to be?

What is strategic workforce planning?

Strategic workforce planning is the practice of auditing your workforce as it currently stands and identifying gaps. During the war, the British WWII Manpower Commission required businesses to report on expected staffing levels and requirements to prevent shortfalls in skilled workers that would derail production and affect the war effort. However, since then, the number of global city workers grew as those in manual labour roles depleted.

Since the pandemic rocked national workforces around the world, workplace planning has started to return to the business world. Internationally, staff turnover is so high, some critics are calling it the “great resignation”. Prompted by an abundance of vacant roles and a new desire for remote or contingent working, staff are leaving their current jobs for inflated salaries or flexible roles elsewhere. The temptation of remote work has also made it hard to get people back into manual labour jobs as the incentives for these roles have not yet matched up to workers’ new priorities.

Planning for the future of a workforce can not only help companies scale up effectively but also help businesses to retain, retrain, or promote staff they already have and want to keep in a competitive market.

How can Employer of Record help?

As many companies now operate globally in at least some sense, getting workers physically in the right locations can be an issue when strategically planning a global workforce. Additionally, getting the right type of skills in the place they are needed can be difficult as local talent gaps are growing around the world. Finding workers to fill international positions quickly can also be difficult – especially when being mindful of costs or trying to optimise company budgets. Ultimately, strategic workforce planning is usually carried out ahead of need, in anticipation of skills and resource gaps – but in the current climate, a new, agile type of workforce strategising is required.

An Employer of Record is a solution that employs workers on behalf of organisations in countries where their own local entity is lacking. When talent is needed overseas or is not available to companies locally, incorporating an Employer of Record into strategic workforce planning can not only speed up the international employment process, but ensure this is done compliantly. Consulting those with expert knowledge of global employment will also ensure all international workers will have access to the local employment benefits they need to succeed.

Strategic workforce planning can boost a company’s productivity as a whole as it identifies current or future gaps in the workforce, and ensures there are no weak or failing areas. Combining this with an Employer of Record solution ensures that hiring and international onboarding timescales are also sped up and workers are placed quickly and efficiently.

A reputable Employer of Record must work 100% compliantly. This can minimise the chance of unsustainable, unethical practices elsewhere in the supply chain, such as forced labour. Generally speaking, the more complicated the supply chain, the less sight a business has over its practices. Engaging workers through a legitimate Employer of Record can simplify the supply chain and move labour quickly and compliantly across borders.

Long term planning

Having the ability to hire talent outside of certain locations can be extremely beneficial to companies going forward. Long-term planning will help companies avoid the pitfalls of future skills gaps and ensure they are well placed to succeed in an increasingly competitive market.

When strategically planning global operations, an Employer of Record can work as a contingency plan when or where local labour is lacking. Engaging these kinds of solutions will allow companies to broaden their global horizons while feeling secure that their workforces are protected from any future shortages.

Interested in incorporating Employer of Record into your workforce planning? Speak to our global experts today: Contact us | Mauve Group – Experts in Expansion

Read how one of Mauve’s clients is strategically planning their workforce using a Mauve Group Employer of Record solution.

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