Technology and the era of globalization have opened up much of the world for businesses seeking growth in new markets. But these dynamics also bring formidable challenges: attracting, incentivizing and retaining talent in far-off places.
These three elements are crucial for any company expanding internationally. And they must be undertaken amid a daunting patchwork of local laws and regulations, increased scrutiny of compliance and ethical practices, and during a time when lines between employees, contractors and other workers are increasingly blurred.
How do in-house counsel and human resources professionals find practical, effective approaches for managing a global workforce while minimizing administrative burdens and legal risk? That was the key question posed to a panel of experts at the 2016 DLA Piper Global Technology Summit.
The session entitled "International Employment and Equity Challenges and Opportunities in the Evolving Global Talent Marketplace," was arranged and introduced by DLA Piper partners Ute Krudewagen and Dean Fealk, and moderated by Kelly Mandish, Director of Global Employment Law at Netflix. The panelists were: Lisa Borgeson, Senior Director, Legal, Worldwide Employment and Compliance, NetApp; Nancy Paik Lowenkron, Senior Corporate Counsel, Employment Law, Cisco Systems; Lexi Rhorer, Associate General Counsel, Twilio; and Adelmise Rosemé Warner, Lead Employment Counsel, Pandora.
With regard to other employment challenges faced by global companies, the panel noted managing equal pay and diversity issues and that they have made extensive efforts to examine their compensation structures, as well as put forth processes and policies to prevent inequality. "Pay equity becomes a more complex issue as you go global," said Rhorer. "You must ensure you're treating people fairly across markets and jurisdictions with varying standards on everything from pay to equality."
Another panelist described equity compensation as "a tricky issue" noting that "in California and Silicon Valley, and on the East Coast, it is obviously a critical part of what attracts and keeps employees." On the other hand, it's a less attractive in other part of the world as a result of administrative and regulatory costs, among other factors.
The specific details and challenges of entering new global markets was also an ongoing subtext of the discussion. One common headache: getting your operation up and running in the local market and aligning with an M&A event or other hires.
One panelist lamented, "The hurdles usually are financial services and banking – simply setting up the accounts. Often you can't finish corporate registration until you have the accounts set up. There are layers upon layers of processes and approvals to iron out. Oftentimes you're navigating a few different government agencies simultaneously. I make a strong recommendation that you get your tax folks involved early."
Entering new markets presents a number of talent integration issues and, again, a few common themes emerged from the panel, particularly those of transparency and engagement and dealing with potential conflicts between local laws and customs while promoting a consistent employee culture
"We want all global employees to have the same experience and relationship with the company regardless of country and jurisdiction," said Borgeson. "Sometimes local regulations are in contradiction with other jurisdictions, or with the US. It's a matter of balancing consistency and compliance, but it's worth the effort to harmonize our corporate culture."