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Building Your Own HR & Ops Playbook - Strategy for Global Accounting Operations
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Building Your Own HR & Ops Playbook - Strategy for Global Accounting Operations
Accounting and CPA firms decided to expand their operations into countries like India and the Philippines, but now the big challenge they are going to face is adapting their HR and operational policies to fit diverse cultural and legal landscapes. It is such a complex issue, but it seems to be easily resolved if you can replicate policies that may have worked well in your home country or adopt those already established by offshore providers like MYCPE ONE. It is much more than this.
This blog further explores the importance of building a customized HR and Operational playbook that not only ensures compliance but also drives operational effectiveness in new cultural contexts.
The Pitfall of Policy Replication
Venturing operations into new markets is a good idea, but there is no doubt that it comes with many challenges. While doing so, many firms assume that their existing policies can be directly applied in the same way they are. However, the nuances of local cultures, legal frameworks, and work environments mean that a one-size-fits-all approach is rarely effective. Simply following the approach of copy-paste can create unintended consequences, ranging from legal complications to employee dissatisfaction and reduced productivity.
The Need for Localization The Need for Localization
While offshoring your operations into other countries, you need to gain a deep understanding of the local context. With this, you can redesign policies and practices to that new culture and environment. This process is crucial not just for legal compliance but for ensuring that policies are culturally and operationally effective.
Key Areas Requiring Localization
1. Employment Terms and Conditions:One of the most significant areas requiring adaptation is employment terms. Let’s take an example: at-will employment is much more common in the United States. As per this, employers can terminate employees without any prior notice and without any reason. It is completely legal. And the same thing is opposite in India. In India, labor laws mandate a minimum notice period for termination of employment.
2. Compensation and Incentive Structures: Not all countries have the same compensation strategies. The reasons may be differences in work culture and motivational factors. In countries like the US, hourly productivity-based bonuses are effective, but it might not be the same in India. The Indian work culture often emphasizes teamwork and the leadership of immediate managers. In this context, team-based incentives or group performance bonuses could be more aligned with the local work culture and potentially more successful in driving overall productivity.
3. Performance Management: In some countries or cultures, direct feedback is given utmost importance, and it is valued much, while in others, a more indirect approach is preferred. So, when you are designing performance management systems, consider how feedback is typically given and received in the local context.
4. Work Hours and Leave Policies: Working hours, overtime, and leave entitlements are different in different countries. For example, the US has a standard set of federal holidays, while India has several religious and cultural holidays. Developing a flexible holiday policy that respects local traditions while ensuring operational continuity is crucial.
5. Training and Development: Learning and development programs may need to be adapted to local learning styles and career progression expectations. In some cultures, there's a strong emphasis on hierarchy and clear career progression paths. Training programs might need to be structured to reflect these expectations, potentially incorporating more formal mentorship programs or clearly defined skill development tracks that align with local career advancement norms.
6. Recruitment and Onboarding: It is not necessary that certain recruitment channels and onboarding processes that are effective in one country have a significant impact on another country. Just take an example: background checks and reference verifications are standard in the US, and they can also be applied globally. However, the process and depth of these checks may need to be adjusted based on local privacy laws and cultural norms.
7. Communication and Collaboration: Communication styles and collaboration tools may need to be adapted to suit local preferences and technological infrastructure. In high-context cultures like many Asian countries, communication often relies heavily on implicit understanding and non-verbal cues. In contrast, low-context cultures like the U.S. tend to value explicit, direct communication.
8. Employee Benefits and Wellness Programs: Employee benefits are different in different countries. It varies across cultures, local healthcare systems, and social norms. It should also be managed accordingly.
9. Diversity and Inclusion Policies: To address local demographics and cultural sensitivities, D&I initiatives need to be tailored accordingly. Emphasis may be placed on different policies in different countries. In some countries, safe transportation for women employees working late is a great responsibility, and in some countries, the high emphasis might be on parental leave policies that encourage fathers to take an active role in childcare.
10. Technology and Data Privacy: Laws on data protection and technology adoption may vary widely between countries. While GDPR is an EU regulation, its impact is global. Firms operating in India or the Philippines need to ensure that their data handling practices comply with GDPR if they handle data from EU citizens, even if local laws are less stringent.
Steps to Build Your Localized HR & Ops Playbook
1. Conduct a Comprehensive Cultural and Legal Assessment: When you are entering a new market, make sure to invest your time in thorough research of the local culture, labor laws, and business practices.
2. Identify Key Policy Areas for Adaptation: Based on your assessment, identify which policies are most likely to require significant adaptation.
3. Engage Local Stakeholders: Involve local employees, managers, and HR professionals in the policy development process.
4. Develop Flexible Frameworks: Create policy frameworks that allow for some degree of local customization while maintaining core company values and standards.
5. Pilot and Iterate: Implement new policies on a trial basis, gather feedback, and be prepared to make adjustments.
6. Provide Cross-Cultural Training: Include it as a crucial step to offer training to both in-house (home country) staff and local employees to bridge cultural gaps and facilitate smoother policy implementation.
7. Regular Review and Update: Regular review of policies to ensure ongoing relevance and effectiveness as the local business environment evolves.
Implementing Your Localized Playbook
1. Phased Implementation: Consider a phased approach to implementing your new policies.
2. Communication Strategy: Develop a comprehensive communication plan to introduce new policies.
3. Leadership Buy-In: Ensure that local leadership fully understands and supports the new policies.
4. Continuous Learning: Establish a system for continuous learning about local cultures and business practices.
5. Legal Compliance Checks: Implement regular legal audits to ensure ongoing compliance with local laws.
Final Thoughts
Building a localized HR and Ops playbook is highly crucial when you are venturing your operations in India or the Philippines. It is an ongoing journey that demands your patience, cultural sensitivity, and a willingness to adapt. Check properly on policies with a thoughtful research-based approach. With this, accounting firms can create work environments that are not only compliant with local laws but also resonate with local employees' values and expectations.
You should remember that your main goal is to create an organization that globally leverages its diversity and strength. And you can achieve your goal with a well-crafted, locally sensitive HR and Ops playbook. It enables your firm to navigate the complexities of global expansion while building a cohesive, motivated, and high-performing global team.
While you refine your playbook, stay open to new ideas. Be ready to challenge your assumptions, and always keep the lines of communication open with your global teams. In doing so, you'll not only adapt to the diverse markets you operate in but thrive in them, creating a truly global organization that's greater than the sum of its parts.
Shawn Parikh is the CEO and Co-Founder of MYCPE ONE. A Chartered Accountant by qualification, he has over 15 years of experience of being a problem solver for small to mid-size firms and over time he has given consultation to thousands of CPAs, accountants and tax pros. Shawn has always been a big believer and advocate of social enterprises and small accounting firms & businesses. He consults and speaks on several topics ranging from Building Remote Team - Remote Working, Offshore Staffing, strategic planning, Scalability of Accounting Practice, cloud accounting, practice management, LinkedIn marketing, etc.
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