Amritpal Singh, the President of Field Operations at Multiplier, discusses the increasing need for companies to find the right talent to fill specific roles. A 2024 report found that 48% of HR leaders view skills shortages as a top threat to their businesses. As a result of these talent shortages, leaders are no longer limited to sourcing talent within their own countries.
The global talent shortage is a pressing issue, with a study by Korn Ferry predicting a shortage of over 85 million people by 2030. If left unchecked, this shortage could result in $8.5 trillion in unrealized annual revenues. Industries such as cybersecurity and semiconductors are particularly affected, with millions of professionals needed globally in these fields. Employers must consider hiring from abroad in addition to within their countries to address these shortages and ensure their long-term success.
The complexities of hiring internationally in the midst of changing regulatory frameworks pose challenges for employers. Companies need to adopt a politically agnostic view of talent acquisition and have a flexible mindset towards finding the talent they need. While expanding the talent pool beyond their own countries can be beneficial, employers must also continue to hire domestically to safeguard their businesses. Changes in immigration, employment, and taxation laws can impact workforce dynamics and business competitiveness.
The long-term cost of hiring workers abroad may end up being similar to hiring domestically, as wages in countries such as India continue to rise. Setting up a legal entity in another country is an expensive and complex process that requires a significant commitment from employers. It is essential for companies to deliberately approach global talent acquisition and only establish legal entities in foreign countries when they are confident that the talent they need is available there, and that they have the resources to navigate the regulatory and operational challenges long term.
Forbes Business Council is a leading organization for business owners and leaders focused on growth and networking. Amritpal Singh’s insights highlight the importance of strategic thinking when it comes to global talent acquisition, balancing the benefits of hiring internationally with the potential risks and costs involved. As companies continue to navigate talent shortages and complex regulatory frameworks, deliberate and informed decision-making will be crucial for long-term success in today’s global marketplace.
