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5 Admin Challenges Facing Multinational Businesses

admin-challenges-for-multinationals

Multinationals are any business that cross nations. This doesn’t necessarily mean huge staff numbers, it just means you operate in more than one country.

Operating across time zones and under multiple legislative bodies comes with its own host of red tape and admin challenges, never more so than in the current climate.

The effects of lockdown and COVID-19 are running on, and those who thought (or hoped) it would be a short blip are understanding now the long term implications of working from home and the economic impact of an unfortunate multitude of redundancies and closures across the globe. If you're interested in finding out more about the economic impact of COVID-19, read our report here.

The rate at which this has affected different countries offers another hurdle for multinationals, as one country may fare much better than another - making it very difficult to forecast and plan. So what are the main administrative challenges facing international companies at the moment?

This article includes

International cultural challenges

When you’re in another country for a meeting or preliminary talks - literally or figuratively, thanks to Zoom - there are always cultural sensitivities to pay attention to. Whether it’s understanding the superstitions and preference of a strongly religious country, to learning what is expected in public in terms of appearance and behaviour, it can be a bit of a minefield but oh so crucial if you’re looking to succeed.

The answer here is research, plain and simple. If you have recently joined an organisation well established in a certain region, then ask your local colleagues to give you a few pointers. If you’re expanding into a new country, ask around, call on your existing network and see what Google can offer you.

As we’ve discussed in a previous blog, the importance of a good first impression is paramount, so don’t blow an opportunity by not knowing how to exchange business cards with the correct amount of respect and care. A good support function could produce a dossier/brief for your team, educating and reminding them of the rules to follow and what you, as a brand, expect from international representatives.

Speaking different languages

Speaking across languages comes with a host of challenges across the business, but mostly in written documents. Whether you need contracts translating or minute taking in multiple languages, dealing with two (or more) different dialects can double the time taken on a simple, but crucial task.

The trick here is to make sure your support is flexible and has access to a wide variety of spoken languages - this is where SmartPA’s talent pool comes in useful; even if your particular virtual assistant only speaks French and English, they can dip into the wider community to find the Japanese/German/Malay speaker you require without any effort on your part.

Having a local speaker can also help offer cultural advice and nuances you may not have recognised in the language. Even from American to English; yes the words may look the same on paper but certain words mean very different things. Getting the right advice here is crucial to success.

Different time zones

This can be an obstacle when trying to schedule meetings and organising business travel. Understanding time differences is important to try and find times that actually work for everyone on the call and for them to be the best version of themselves.

There is no point summoning an American counterpart onto a call at 3am their time, they’ll be sleepy and the meeting will likely be fruitless. Likewise, if organising a business trip that may include multiple layovers in quick succession, understanding that you will need some time between flight and meeting to change, shower and catch your breath is crucial to make the time spent there a success.

No one is any use if they’re exhausted, uncomfortable or hungry. So this is all about diary and time management. Learn the time zone differences, decide what you need to make the trip a success and plan meticulously, including built in time in case of delays, traffic or navigation issues if it's your first time in a new region. It’s also worth noting in the current climate, certain countries have very different rules as to access via air, quarantine laws and travel guidance. Keeping up to date with new rules and regulations will avoid costly cancellations and rescheduling.

Knowing international legislation

Every country, and indeed nearly every region, has different rules and regulations that cover everything from company registration and legal requirements to import/export restrictions and tax percentages.

Knowing the differences is a challenge all of its own, not to mention reconciling all the differences from an admin and accounting perspective. Again, research is crucial here, as is knowledge. You need a reliable team who know their markets and their restrictions inside out. Whether it’s managing data effectively or keeping extra copies of courier documents, knowledge really is power here.

Our advice; seek advice from experts who have representatives and knowledge from in and around your target markets. Getting localised expertise will save you time and potentially costly mistakes from tax mistakes or even worse, law infringements. This is one area you can’t afford to make errors in, as the penalties for doing so are so much worse.

Technology challenges

Certain parts of the globe restrict internet access and even ban certain programmes that we take for granted, like Google, Zoom or Facebook. Whether you’re looking to enter these areas or are looking to expand your reach, knowing how the locals operate and the platforms they use will help reach new potential customers in a way they’re most comfortable with.

You may assume that a Facebook targeting social media campaign worked in Europe so it will work everywhere else in the globe, but if your market isn't able to access this social channel, you are simply wasting money.

Explore local platforms like Wechat, for example, to understand how other brands, and even competitors, communicate with your target market and then follow suit. Again, local advice here is vital; just as it’s useful to have a local guide when visiting a new place on holiday, so the same principle applies when entering a new business market.

If you’re expanding your global efforts or looking to reduce the costs of existing infrastructure, SmartPA operates in 14 countries across the globe, speaking 15 languages, and can advise and support efforts for any size and sector of multinational. Head to our Trustpilot to see how we’ve helped other businesses increase efficiency and productivity in their support and admin functions!