How HR leaders can embrace global-centric future of work practices in a remote working era

The rise of remote work is no longer a fringe trend – it’s a core component of the future of work, reshaping how Australian companies operate, manage talent, and drive productivity, writes Nick Martin.

Australian businesses are faced with the double-edged sword of the rise of remote work and the race to embrace the future of work. It’s a scenario rife with challenges and opportunities: namely, it opens up new possibilities to hire globally and maximise efficiencies, but it also introduces complexities around compliance, culture, technology, and cross-departmental collaboration.

Indeed, some 83 per cent of Australian organisations surveyed are planning on hiring more than 60 per cent of their workforce as remote, full-time employees in the next 12 months, according to IDC InfoBrief, sponsored by Remote, “The Future State of Hiring and Talent Management of the International Workforce in Asia/Pacific”, IDC #AP242493IB, September 2024. This is above the Asia-Pacific average of 78 per cent.

HR, payroll, and talent management software too often operate under an outdated presumption that organisations are still exclusively working in an office, or only work best for companies based in a single geography. As workforces globalise and work options become increasingly flexible, this is less and less often the case.

To foster better engagement with their employees – no matter where they are in the world – HR leaders need technology underpinning their practices that is as cross-functional and adaptive as their working policies.

Embracing a flexible, globally distributed workforce

The demand for flexible work arrangements has grown dramatically. Employees now expect options that offer flexibility in both location and hours – and that includes the ability for white-collar workers to work for one company even from another country. In response, companies are tapping into global talent pools, enabling them to recruit the best talent, regardless of geography.

For Australian companies, specifically, this is an opportunity to enhance their workforce without being constrained by local limitations.

However, with international hiring comes a need to understand and comply with various local labour laws, tax regulations, and cultural norms – an area where HR’s role becomes pivotal.

Australian HR leaders, therefore, must broaden their scope beyond traditional practices and become strategic advisers on global workforce management. By doing so, they will not only ensure compliance and streamline operations but will also help optimise costs associated with international hiring.

An example of an obstacle HR leaders may encounter when expanding internationally is payroll management. The September 2024 IDC InfoBrief, sponsored by Remote, “The Future State of Hiring and Talent Management of the International Workforce in Asia/Pacific”, also revealed that this was, in fact, the top challenge for Australian companies looking to hire internationally, above other challenges like a lack of understanding of local policies, tax, and compliance and finding the right mix of skills in the target countries.

Prioritising cross-departmental collaboration

HR leaders intent on a remote work strategy within a globalising workforce need a cohesive strategy that aligns HR, IT, finance, and procurement departments. Heads of these departments must work together to establish a comprehensive roadmap for human capital management that aligns with broader business goals. This roadmap should define clear short-, mid-, and long-term objectives, outlining how to recruit, retain, and manage a diverse workforce. This kind of interdepartmental planning allows companies to anticipate challenges and identify the best tools and systems for sustainable growth in a remote-first environment.

One example might include selecting a unified human resources information system (HRIS) that can consolidate and align all critical information, manage payroll, track productivity, and support compliance with global labour laws. CIOs and IT leaders play an essential role here in assessing the data security and privacy implications of new software. By choosing the right technology solutions, Australian companies can seamlessly support a distributed workforce while safeguarding employee data.

Cultivating a global-ready culture

In the IDC InfoBrief, Australia ranked first of the seven surveyed Asian-Pacific countries when it came to hiring maturity regarding an international workforce, with some 52 per cent of companies already using a single HR platform for HR functions such as onboarding and staff management. But what this means is that almost half of all Australian organisations are using disparate solutions, or outsourcing this work to third parties.

With Australian organisations already hiring talent from diverse locations at a fast clip, nurturing a cohesive culture becomes a challenge, particularly when employees may never meet in person. Building a remote-friendly culture isn’t merely about promoting collaboration; it’s about acknowledging and respecting cultural diversity and work practices across geographies. Leaders need to shift their approach from a one-size-fits-all model to a more adaptable framework that reflects the realities of global workforces.

Culture change management, driven from the top down, is critical. Leaders need to champion values that promote inclusivity and respect for diverse perspectives. To facilitate this, technology that enables effective communication, regardless of time zone, should be a priority. Regular virtual team-building activities, workshops on cultural competency, and alternative working tools can help foster a unified sense of purpose. Australian HR and business leaders should lead by example, adopting behaviours that reflect the values they wish to instil across their distributed teams.

Navigating compliance and legal challenges in new markets

Hiring internationally introduces complex compliance and regulatory requirements. For companies without a physical presence or legal entity in a particular country, navigating local labour laws, tax obligations, and employee rights can be daunting. In Australia, where businesses are often already navigating a complex regulatory environment, the additional layer of international compliance can strain resources and increase risk.

To address this, HR, legal, procurement, and finance leaders need to work closely to assess all possibilities and outcomes associated with international hiring. By collaborating on risk assessments and ensuring adherence to local policies, they can prevent legal pitfalls that might harm the company’s reputation or incur financial penalties. Additionally, tapping into external expertise or partnering with global employment platforms can be beneficial for those without in-house global compliance teams.

Investing in technology that will support a globally distributed workforce

Technology is the lynchpin that makes remote and distributed work possible. For Australian companies, investing in the right technology stack is essential to support a global workforce while maintaining productivity and security. The rapid pace of technological development presents both opportunities and challenges: while companies have access to powerful collaboration and productivity tools, choosing the wrong solutions can expose them to security vulnerabilities and inefficiencies.

As Australian business leaders embrace the future of work, they must be ready to navigate the challenges of a diverse workforce while staying true to their company’s values and culture. Flexibility, strategic planning, and a willingness to adopt new technologies and work cultures.

Nick Martin is the GTM lead (APAC) at Remote.