NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
An Expansion Dream spreading over Generations
Submission Date & Time: 2021-11-25 11:34:55
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Sahil Dhamgaye
Assignment Taken
Develop a Hiring & Incentive strategy for Human resources working on international expansion to enable a speedy growth.Case Understanding
It is understood that Ramalingam Foods needs to expand internationally and the problem it faces is of making a hiring and incentive strategy that consists of all the rights and benefits that an employee of the international business will need. Also, proper compensation and international payroll strategies and difficulties have been identified and some solutions are provided.BCS Solution Summary
The hiring plan and incentive plan are proposed. Identified the basic necessities needed by the employees and all the difficulties that are faced while trying to internationalize a business.Solution
- Hiring Plan:-
With an international expansion scheme the first thing which comes to the mind is the staff that’s going to work there. International expansion gives a good opportunity to strengthen and diversifying the team. A company’s employee represents their culture and though some core values remain the same, culture on the other hand, changes with geography, technology and contact with other societies. There are some important aspects to keep in mind if you want to expand internationally, some of the aspects are discussed below.
- Recruiting and Hiring Employees:
You cannot run a company without employees, even if you’re opening warehouses like in our case, you still need employees to work there. Finding a correct fit can be a tedious job and it gets even messy when you have to keep in mind the factors mentioned below.
- Talent Pool
The talent pool is different throughout the globe and though some places are exceptionally gifted with talents, some are not, and depending on where to expand we have you need to do a thorough research.
- Labor Market
Unemployment rate and labor market should be familiarized before entering an international market as they may require a change of approach.
- Recruitment Method
Job portals and advertising also vary with the places and so the recruitment strategy must fit the market you’re aiming for.
- Legal Parameters
Local laws had to be followed which may consist of legal age of working and anti-discriminatory laws different that the home market.
- Employment Regulations:
Employees must receive all the rights they’re entitled to in any company and so must be followed during expansion along with some more regulations as:
- Fixed and regular working time and timely breaks
- Compensation for overtime
- Entitlement to sick leaves, vacation leaves and paid leaves.
- Employee benefits provided by the company
- Good working environment
- Proper procedure of hiring and termination
- Proper system to roll out Payrolls:
While expansion rolling out payrolls becomes a difficulty as the currency changes while moving to a different location. For remotely paying the employees, you’ll either need to have a business entity there or you have to outsource the payroll.
Some challenges of paying international employees remotely are:
- Tax issues
- Local customs
- Legal concerns
- Accurate Timekeeping
- Employee compensation and Benefits:
Already included in the regulations but it is an important factor as hiring international employees comes with providing them with a fair compensation as-
- Legal requirements
To begin, double-check that your compensation offers fulfil minimum wage standards and that your benefits packages meet legal requirements for paid time off, pensions, and anything else covered by the country's labour laws. You might be compelled to provide benefits like transportation credits that you wouldn't normally provide in your native nation.
- Cost of living
It's important to think about more than just the minimum wage when determining a fair compensation. The cost of living in the area where employees live is an important factor to consider. You should pay enough remuneration for them to be able to live comfortably in that region.
- Customary benefits
HR practitioners must be aware of what types of perks employees would expect based on local culture in addition to regulatory obligations. In certain nations, for example, an extra month's pay as a bonus is not legally necessary, but it is expected. Even if businesses aren't required to give these days as holidays, employees may expect to receive time off for religious or cultural reasons.
- Industry Norms
Even if you're aware with a country's compensation and benefits rules and practises, you can overlook other industry-specific norms. It's critical to be informed of these industry standards. Are company cars, phones, or other equipment commonplace among employees in your industry? Is there any more time off or other benefits included in a CBA?
- Overcoming cultural differences
While working in cross-cultural team misunderstandings can easily happen and one of the major reason is the lack of the local cultural knowledge. So, if you want to create effective cross-cultural connections with multinational personnel, you must understand a culture's underlying standards of politeness and normal communication methods.
- Incentive Plan:-
Incentives are a good way to keep motivating the employees to perform better. Incentives can be both monetary and non-monetary in nature. While monetary benefit involve direct money to the employees, non-monetary benefit recognition through performance and awards.
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Monetory Incentives |
Non-monetory Incentives |
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Monetary rewards are the incentives which involve direct money to the employees. |
Non-Monetary rewards are the incentives which do not involve direct money to the employees. |
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Given to |
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Monetary rewards are given to the employees who are extremely performing or extremely talented. |
Non-Monetary rewards are usually given to all the employees of a certain level to offer them convenience and security. |
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Nature |
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Monetary rewards can work as a negative force to the organization because the people of the organization who are getting monetary rewards only concentrates on money by leaving the morality. |
Non-Monetary rewards always act as a positive force because the people who are getting non- monetary rewards usually don't get attracted to money and focus on the emotional and psychological benefits. |
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Perceived as |
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Monetary rewards are considered as an expense to the organization because it is an additional payment to the employees. |
Non-Monetary rewards are also considered as an expense to the organization but there is no direct money given to the employee. |
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Conflicts |
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Sometimes monetary rewards given to one employee may arise conflict in the other employee and there would be a problem of disturbed relationships among the employees in the organization. |
Non-Monetary rewards do not arise any kind of conflicts within the employees besides they encourage healthy relationships among them. |
Conclusion
It is concluded that the international expansion is feasible but the strategies needed to apply along with the problems of rolling payroll for international employees are difficult to implement.Attached File Details
View Attachment file (NMO.pdf)Video
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Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
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