What is Global Human Resource Management?
Global Human Resource Management, also known as Global HR is the discipline of managing employees in a public or private corporation, for businesses that operate across multiple countries or even continents. It entails managing, motivating, and assisting staff members all around the world while implementing global standards while also taking into account local laws, traditions, and cultures. There is a large number of corporations that operate in the UAE for which HR outsourcing in UAE is commonly in practice. Global HR services are also a part of HR outsourcing in UAE that large and multinational corporations choose for their International Human Resource Management.
What is the Importance of Global Human Resource Management?
Global human resource management is a crucial task that aids in developing and rewarding employees to bring out the best in them. Global HR meets all workforce needs while taking into account the various local structures where the team operates and cultural influences.
What Are the Main Functions of Global Human Resource Management?
Just like a regular Human Resource Department or team, a Global HR is also responsible for getting new employees on board, training them, working towards their professional development, and managing benefits and other compliance matters against their role in the company. The only difference is that they do all of this on a global level. Various multinational companies appoint third-party HR outsourcing in UAE for global HR solutions. Having an international HR enables large corporations to minimize the effort and cost of getting new human resources from different parts of the world recruited into their company along with the management of legal and employment compliance required in the region they work.
The five main functions of an International Human Resource Management are:
- Recruitment of employees
- Work Training
- Professional Development
- Compensation and Benefits
- Assurance of Legal Compliance
What Kind of Data Shall a Global HR Outsourcing Company Track and Manage?
When it comes to global HR services, there can be a number of tasks that a company shall expect from the appointed global HR outsourcing firm. The main intent of a company that partners with a third-party HR outsourcing entity are to simplify, arrange and manage the complex tasks of employee management. One of the most complex tasks for the Global HR team is to manage and track the data of hundreds of employees from over the world.
What kind of data needs to be tracked and managed by a Global HR team? Monitoring employee and employer data, or using human resources metrics, is essential for efficient international human resource management. Many types of data must be kept by employers in accordance with the law, while other types of data are useful for measuring how well HR personnel can fulfill workforce demands and for providing effective services to employees.
Here are the kinds of data that global human resource management shall essentially track and manage:
The employment base, or total workforce, is crucial information that a global HR department must monitor. The number of employees affects everything, including the HR staff-to-employee ratio and the company’s capacity to negotiate group health insurance costs. For instance, according to global HR outsourcing best practices, there should be one full-time HR employee for every 100 workers. To establish how many HR personnel to hire, businesses in the expansion stage should keep track of their employee bases.
Global HR should keep track of both recent and old compensation information. Tracking historical data on the company’s wages is equally crucial to effective payroll processing as it is to tracking current salaries and wages. Historical compensation information is necessary for record-keeping purposes, such as when the business is asked to defend its wage-setting policies or when the Ministry of Human Resources and Emiratisation (MOHRE) of the United Arab Emirates (UAE) is looking into minimum wage and overtime pay practices. In order to assess whether the company is paying competitive rates, compensation data is also crucial for conducting salary surveys and comparisons with businesses in a comparable industry.
EEO (Equal Employment Opportunity)
UAE is well known for its diversity-oriented work culture in the world. People from all parts of the world come to UAE for business and employment, therefore EEO or Equal Employment Opportunity in UAE is considered an essential practice. In order to analyze the diversity representation of their companies, international HR is expected to keep track of applicant and employee data such as race, age, sex, handicap, and veteran status. This data is voluntarily provided by applicants and workers, but some organizations report the data based on observation. Whatever the approach, HR monitors this data to demonstrate equal employment opportunity policies and to assess whether the business should implement particular outreach initiatives to draw in a wide pool of suitable candidates.
Cost of Training
The ROI in employees’ professional development can be demonstrated by tracking statistics about employee training. The ratio of employees who take benefit from opportunities for professional growth to those who apply what they have learned to their existing positions or use the training to progress within the company can be used to calculate a return on investment. Many companies keep track of this information based on average annual HR department spending or average annual spending per employee. Data on training costs can also be helpful in deciding whether to perform internal training or contract it out.
Recruitment and Retention Data
In order to assess the success of the company’s recruiting and selection processes, recruitment statistics may include applicant numbers, the number of interviews conducted, and the results of the hiring process. This information is necessary for cost-per-hire metrics, and in some circumstances, reviewing selection data can show if recruiting managers are conducting proper and efficient interviews. Data on turnover and retention, specifically the percentage of employees that remain with the company, are useful for figuring out the cost per hire.
Go for Global HR Solutions
To manage the complexity of human resources in a global organization, companies tend to go for global HR solutions. Considering the diversity and logistics of employment in different countries, it somehow becomes essential for large multinational corporations to partner with global HR companies for a number of tasks, especially for data management and tracking. If you are looking for HR outsourcing in UAE for your multinational organization, Payroll Middle East is where you should consult. We have a diversified team of experts in legal, HR, Tax, and other domains to facilitate clients with the best practices of international human resource management in UAE.
With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.