Is Managing a Global Workforce the Next Big Challenge for Manufacturers?

Global Trade is growing at twice the pace of Global GDP. What does this actually mean and is it a good thing? Well, simply put, it means that manufacturers must increase production in order to satisfy the increase in demand – which sounds like a really great opportunity for growth and the expansion of trade into the international marketplace. But what are the challenges organisations are facing when meeting this increase in global demand?

Global Trade

Governments around the world are ‘wising up’ and putting pressure on manufacturers to establish production sites in their countries should they wish to have trade agreements. For example, in the US, Bombardier won a contract to supply subway carriages but the proviso was that they agreed to build the carriages locally. Whilst in China any company wanting to set up domestic production has to partner with a local business – providing local jobs and also teaching the local labour force new skills.

When it comes to managing a global workforce, outsourcing is no longer an excuse for not knowing how labour is managed or non-compliance. As labour forces have become more informed the instances of companies being sued for breaches of labour regulations has rocketed.

Luckily manufacturers are responding to these pressures and many are realising that having a global workforce means that they need a global workforce management solution that can help track labour hours, control costs and address language, cultural and compliance issues. Kronos is one of the few workforce management solution providers with a global presence, local labour knowledge and an understanding of the needs of global manufacturers when it comes to reporting locally, regionally and globally.

If you know of examples where international organisations have fallen foul of local labour laws or have overcome challenges associated with a global workforce I would be keen to hear from you.