A Member Firm of Andersen Global

Contact Us
IMC Logo

Blog

The Pulse of 2023: Mid-Year M&A Dynamics in Financial Services
  • NEWSLETTER, GLOBAL

The Pulse of 2023: Mid-Year M&A Dynamics in Financial Services

Global financial services continue to navigate turbulent waters in 2023. Across the world, this has a significant impact on M&A activities. Even though the ongoing uncertainties loom heavily on financial organizations, M&A continues to be a critical tool for transformation in the industry.

This mid-year update on the ever-evolving M&A landscape in the financial services sector brings you a comprehensive insight into global trends. This edition delves into the key dynamics shaping the financial services industry during the first half of 2023.

Navigating Choppy Waters: A Turbulent Start to 2023

The financial services sector has been struggling amidst a challenging start to the year. Central banks around the world, including the Bank of England, the European Central Bank, and the US Federal Reserve, spiked interest rates in an effort to combat soaring inflation. A series of bank failures added to the woes, intensifying the disturbed waters in the market. These events had their implications beyond the banking sector, affecting the financial services industry as a whole.

Naturally, organizations in the financial services domain find themselves at a crossroads, encountering a plethora of challenges in the macroeconomic environment. In the first half of 2023, they seemed to grapple with stringent regulatory pressures.

Besides, there were mounting concerns about environmental, social, and governance (ESG) factors. Then the disruptive forces in the fintech domain, including embedded finance continued to be a concern. Generative AI further introduced several new use cases, further complicating the scenario.

Amidst such a situation, the urgency of these companies to transform their ESG, digitization, and portfolio optimization has never been more pressing.

M&A Serves as a Catalyst for Transformation

As global businesses in the financial services sector brace up for a transformation, mergers and acquisitions continue to act as a catalyst. The heavily regulated nature of the financial service sector presents organizations with unique challenges. Even successful efforts for transformation turn out to be demanding.

This justifies why companies in this vertical look forward to leveraging smaller acquisitions to bolster their capabilities. This way, they can find themselves on the growth trajectory once again. Considering the current economic environment, their organic growth faces formidable hurdles.

Naturally, companies are seeking M&A transaction advisory services to streamline their operations and get their business models recalibrated.

Banking and Capital Markets in Focus

Prioritizing M&A in the banking and capital markets sector, recent developments in the industry have some far-reaching implications in the US and other countries. The broader macroeconomic challenges that accompany the failures of three banks in the US further mount pressure on small and medium-sized banks. This brings about the scope for further consolidation in the coming months.

While spikes in interest rates fetch them more income through interest, they remain exposed to the risk of valuation loss. This justifies the pressing need for banks to continually evaluate their liquidity and adjust the interest rate to manage risks.

The overall resilience of the banking sector comes under question with low liquidity levels, mismatches in the balance sheet, loss of confidence among consumers, and capital vulnerabilities.

With regulatory measures intensifying about risk management, further consolidation is on the cards. This is particularly applicable for regional banks looking forward to scaling up and manages operational risks.

A New Era of Due Diligence

Recent trends reveal that financial service providers would be more focused on due diligence to encompass better risk management and governance. Thus, these businesses are likely to grow their resilience against external factors. So, one can expect them to draw their line of defense within a third-party ecosystem. With multifaceted analysis in place, expect more intricate and lengthier deal processes in the future.

Expect More Restructurings

Banks have been prompted by the current market environment to check their lending volumes. This can ease the financial challenges they have been facing. Commercial real estate and other sectors are already under stress. This has been adversely affecting the credit quality on the balance sheets of financial institutions.

As a response, we anticipate that banks will explore portfolio transactions to divest non-performing loans and non-core assets. This can go a long way in strengthening their balance sheets and improving capital ratios.

This newsletter brings you a practical insight into the key trends in the M&A activities of financial organizations in the first half of 2023. Mergers and acquisitions continue to be a driving force for transformation for these organizations in uncertain times. With strategic and well-informed decisions, businesses can navigate uncharted waters in the coming months.

Read More

Middle-Market Tech M&A: Navigating Uncertain Times
  • NEWSLETTER, GLOBAL

Middle-Market Tech M&A: Navigating Uncertain Times

In today’s dynamic economic landscape, middle-market buyers and sellers in the tech sector are proactively seeking new avenues for growth and innovation. The past year has seen some fluctuations in M&A activity. However, it’s essential to focus on the promising opportunities that lie ahead.

The tech industry, like any other vertical, has experienced changes. Prominent tech giants such as Google, Amazon, Microsoft, and Zoom have adjusted their strategies, reflecting the adaptability of the industry. Factors like inflation and rising interest rates have brought new dimensions to the market, encouraging businesses to explore creative solutions.

We will explore how middle-market tech players are embracing change. By leveraging their strengths, they can strategize a positive course forward.

The Roller-Coaster Ride for Middle-Market Tech Sectors

The middle-market tech sector has not been immune to the ongoing challenges. The number of tech deals has significantly dropped between January 2022 and 2023. In January 2023, there were only 11 middle-market tech deals, a stark contrast to the 48 deals as of January 2022. While some signs of recovery are emerging, it’s unlikely that the sector will return to the same levels as of 2021 and early 2022.

Despite the challenges, strategic investors are leaving no stone unturned in reviving M&A activity. They are leveraging their cash reserves to finance deals without relying heavily on debt financing as it is currently more challenging to secure the same. Besides, strategic buyers are adopting a long-term perspective. Forward-thinking players are also partnering with established organizations for Mergers & Acquisitions Advisory Services. They are relying on bets that extend 10 to 25 years into the future.

Private Equity Investors Focus on Add-Ons

Private equity investors are also adopting a strategic stance to thrive in the current environment. These investors are largely focussing on add-on acquisitions to boost the value of their existing portfolio companies. They are also capitalizing on situations when valuation expectations align, particularly in cases where struggling companies can be integrated into existing platforms considering mutual benefit.

Due Diligence and Risk Mitigation

While global organizations operate in a riskier environment, due diligence proves to be paramount. Investors are stepping on their cybersecurity stance to strengthen the line of defense for their sales pipelines and organizational structures.

Considering the rising instances of cyber threats and the associated costs resulting from these breaches, evaluating the organization’s security stance is crucial. Successful organizations are seeking due diligence services from established players to strengthen their cybersecurity posture.

Investors are also delving into organizational charts to understand the dynamics of employees. Thus, they are evaluating the viability of sales projections.

Valuation Expectations in Flux

With the market conditions rapidly changing, valuation expectations are also evolving. Visibly, buyers tend to be more cautious and conservative. They are relying on the figures of 2022 and that of the last 12 months rather than banking on 2023 projections. Gradually, the gap is narrowing down between the expectations of buyers and sellers. A higher number of sellers are making adjustments to suit their expectations of the current market conditions.

Looking Ahead: Opportunities in Select Sectors

While domestic and international players are still cautious of their move, selected sectors present opportunities to businesses performing well in high-growth tech-oriented industries. For instance, sectors such as pharma services, digital transformation services, and CFO software tend to hold steady valuations.

Although the tech sector is encountering a multiplicity of challenges, it continues to be an integral part of the global economy. To mitigate these woes, investors are focussing on driving profitability within their existing portfolio companies as they continue to explore fresh opportunities to navigate the evolving landscape.

It’s evident that the tech sector in the middle market has demonstrated signs of resilience and adaptability amidst uncertainty looming around. Professional experts at the IMC Group continue to assist global organizations with M&A advisory and due diligence services to sail through the disturbed waters.

Read More

The Rise of HR Outsourcing Among Small Businesses
  • NEWSLETTER, GLOBAL

The Rise of HR Outsourcing Among Small Businesses

In today’s dynamic business landscape, small enterprises are increasingly embracing a transformative strategy: outsourcing their human resources (HR) functions and Payroll outsourcing services to external specialists. This strategic shift is driven by the multitude of benefits HR outsourcing offers growing organisations looking to maximise efficiency, reduce costs and focus on their core business goals.

Access Specialised Expertise

One of the biggest advantages of HR outsourcing for small businesses is access to specialised expertise and experience. HR outsourcing providers employ professionals specifically trained in key HR disciplines like recruitment, compensation, payroll processing, performance management, employee relations and more.

This expertise allows small businesses to efficiently handle essential HR tasks that may be challenging for in-house teams lacking specific knowledge. Outsourcing providers stay updated on the latest HR best practices, technologies and compliance requirements – expertise that small business owners often lack the time and resources to develop internally.

Boost Efficiency and Productivity

By delegating HR activities to external teams, small businesses can dedicate more time and resources to core business functions central to their success and growth. Outsourcing administrative and transactional HR tasks like payroll, benefits administration and record keeping eliminates the need to manage these time-consuming activities in-house.

The increased efficiency and productivity benefits allow small business leaders to focus their efforts on key priorities like developing new products and services, enhancing customer experiences and identifying growth opportunities. Their time is freed up to work more strategically.

Access Advanced HR Technologies

Leveraging the advanced technologies utilised by HR outsourcing providers is a key benefit for small businesses seeking to work more efficiently. Outsourcing partners invest in HR software, analytics tools, automated platforms and other innovations designed to streamline essential workforce management processes.

Small firms gain access to technology capabilities that would often be costly and complex to implement alone. Advanced solutions like cloud-based HR platforms, real-time workforce analytics and self-service employee portals help drive productivity, engagement and data-driven decision making.

Control Costs

For budget-conscious small enterprises, outsourcing provides compelling cost reduction advantages. Maintaining extensive in-house HR teams requires substantial investments in personnel, software, tools and related infrastructure. HR outsourcing transfers many of these costs to specialised providers.

Rather than large upfront technology costs, outsourcing allows small businesses to pay only for the specific services and solutions utilised – providing flexibility and optimising cash flow. By converting fixed HR expenses into variable operating costs, small firms gain financial flexibility and efficiency.

Ensure Legal and Regulatory Compliance

Navigating the complex and constantly evolving landscape of employment laws and regulations can be an immense challenge for small HR teams lacking specialised legal and compliance expertise. However, non-compliance exposes small businesses to significant legal risks and penalties.

Outsourcing providers have extensive experience interpreting laws and regulations across functions like payroll, health and safety, discrimination, family leave and more. Their guidance and oversight minimise compliance missteps that small in-house teams may inadvertently make due to lack of expertise – providing crucial risk reduction.

Enhance Scalability

As small businesses grow and evolve, HR outsourcing provides the agility and scalability needed to flexibly adapt. Partners can quickly add or adjust HR services and technology solutions to match changing business needs. This scalability allows small firms to pursue growth and expansion without being limited by internal HR constraints.

Whether a small business needs to rapidly onboard new employees, expand to new locations or implement a new HR initiative, outsourcing provides the scalability required to smoothly support these transitions and growth.

Gain Strategic Insights

Beyond handling administrative HR tasks, outsourcing partners increasingly provide strategic insights to support smarter workforce planning and decision making. Analytics, metrics and HR data help identify opportunities to improve productivity, retention, employee satisfaction and other aspects of workforce management.

These insights allow small business leaders to make more informed, evidence-based decisions about their people strategies and optimise human capital – a key competitive advantage.

The Way Forward
Given the multitude of benefits, it’s evident why HR outsourcing has become an increasingly popular strategy embraced by forward-thinking small enterprises. It empowers these agile businesses to optimise efficiency, reduce costs, access specialised expertise, leverage advanced technologies and gain strategic advantages. For small business owners exploring outsourcing, IMC Group can act as a guide to outsourcing for entrepreneurs looking to scale and provides expert insights on maximising the value of outsourcing.

Read More

Outsourcing Payroll A Smart Strategy for Growing SMEs
  • NEWSLETTER, GLOBAL

Outsourcing Payroll: A Smart Strategy for Growing SMEs

For ambitious small and medium enterprises (SMEs), growth comes with its fair share of complexities. As headcounts expand, managing payroll and HR in-house can become an unwieldy burden that drains resources better spent on core business priorities.

Yet many SME leaders hesitate to outsource these functions, fearing loss of control or lacking awareness of the value proposition. Join us as we explore how modern payroll outsourcing solutions have evolved into an indispensable growth strategy for forward-thinking SMEs.

The Old Model vs. Today’s Solutions

Traditionally, payroll outsourcing meant handing off the workload to an external provider and losing visibility into the process. But thanks to cloud computing, today’s solutions offer far greater transparency, control and configuration options.

Rather than installing on-premise software and servers, cloud-based payroll systems allow access from anywhere via intuitive web and mobile interfaces. This gives SMEs real-time visibility into payroll data and flexibility to tailor the system to their needs.

Integration with other business software is seamless, enabling easy data sharing across finance, HR and other functions. The combination of cloud platforms and managed service providers creates a new paradigm for payroll outsourcing.

Saving Time and Money

For growing SMEs, time is a precious resource and cash flow must be optimised. Outsourced payroll solutions deliver compelling advantages here.

Streamlining manual tasks, reducing errors, providing self-service options for employees and automating compliance allow SME leaders and finance teams to focus on higher-value priorities rather than administrative burdens.

The economies of scale leveraged by outsourcing partners keep costs variable and scalable rather than saddling SMEs with expensive legacy systems requiring significant IT investment and maintenance.

These advantages have made outsourced payroll solutions highly cost-effective even for smaller SMEs while generating major efficiency gains.

Access to Expertise

Navigating ever-evolving payroll laws, tax codes and HR regulations poses challenges for in-house SME teams, exposing them to compliance risks. But for outsourcing partners, this is their sole focus.

Their teams have specialised expertise and experience optimising payroll workflows and staying compliant as requirements change. This reduces liability while ensuring accuracy.

Strategic providers also offer guidance on minimising tax exposure, enhancing benefits packages to attract talent and developing competitive compensation strategies. Their insights strengthen SMEs’ human capital management.

Rethinking Control

With the right provider, outsourced payroll enhances rather than minimises SME oversight. Web and mobile access offers real-time visibility into payroll data, processing status and compliance documentation.

Configurable dashboards, self-service reporting and transparency into provider workflows reinforce control while eliminating manual monitoring. And integration with complementary business software centralises data for a holistic view across HR, finance and operations.

The New Solution for Growth

As SMEs evolve from startups to scale-ups, managing payroll in-house ceases to be viable. But modern outsourced solutions flip the script on traditional models to empower fast-growing companies. By partnering with specialists like IMC Group, SMEs can leverage tailored solutions that relieve administrative burdens, provide valuable expertise, drive efficiencies and support the flexibility needed to scale successfully. By leveraging IMC Group’s expertise in maximizing profits through outsourcing for small businesses, SMEs can implement customized outsourcing strategies to enhance productivity and cash flow. This provides the fuel for profitability and strategic growth.

Read More

GRC The Importance of an Integrated Approach
  • NEWSLETTER, GLOBAL

Governance, Risk Management and Compliance: The Importance of an Integrated Approach

In today’s complex and rapidly changing business environment, organizations face an array of governance, risk management and compliance (GRC) challenges that can significantly impact their performance, reputation and sustainability if not adequately addressed. To tackle these challenges, more and more organizations are recognizing the importance of taking an integrated approach to GRC.

What is GRC?

GRC refers to the integrated management of governance, risk and compliance activities within an organization. Governance deals with the organizational structure, policies and processes that ensure effective and ethical leadership, accountability and transparency. Risk management involves identifying, assessing and mitigating risks that may impact the achievement of strategic, operational and compliance objectives. Compliance focuses on adhering to relevant laws, regulations, policies and contractual obligations.

Historically, governance, risk and compliance activities were managed in silos within organizations. However, this fragmented approach has major drawbacks. It can lead to duplicative efforts, gaps in coverage, inefficient resource utilization and lack of visibility into organizational risks. This is where an integrated GRC approach brings immense value.

The Benefits of an Integrated GRC Approach

Adopting an integrated approach to managing GRC activities provides numerous benefits, including the below:

  • Enhanced risk management through a centralized view of risks across the organization and improved coordination of risk activities
  • Increased efficiency through eliminating redundancies and optimizing the use of resources
  • Improved compliance through consistent interpretation and implementation of compliance requirements
  • Strengthened governance and ethics by ensuring accountability and transparency across the organization
  • Better informed strategic planning and decision making with a holistic view of risks and compliance obligations
  • Reduced costs through streamlining of overlapping GRC processes and technology integration

By breaking down silos and taking a coordinated approach to managing governance, risk and compliance activities, organizations can enhance their resiliency, agility and performance.

Key Components of an Effective GRC Program

Implementing an integrated GRC approach requires bringing together various components to create a comprehensive and cohesive program. The key components include the below.

Leadership Commitment

Success requires buy-in and active participation from organizational leaders. Leadership must communicate the importance of GRC and allocate sufficient resources to support its implementation.

Risk Management Framework

A framework for consistently identifying, analyzing and addressing risks across the organization is essential. This includes processes like risk assessments, risk reporting and ongoing monitoring of risk mitigation efforts.

Compliance Management System

A structured approach is needed to monitor regulatory obligations, assess compliance, implement controls and track compliance activities across the organization.

Policies and Controls

Robust policies and internal controls reinforce expectations and govern activities in areas like financial reporting, information security, procurement and business ethics.

Training and Awareness

Ongoing training and awareness building ensures employees understand their GRC responsibilities. This contributes to a culture of accountability and integrity.

Technology Enablement

GRC technologies provide automation, streamline processes like risk assessments and compliance tracking, and enable data analysis to support better decision making.

Reporting and Monitoring

Key performance indicators, risk reports, compliance dashboards and internal audits provide visibility into the effectiveness of the GRC program.

Continuous Improvement

Regular assessments, benchmarking and stakeholder feedback identify opportunities to strengthen and enhance the organization’s GRC activities.

By integrating these components into their strategy and operations, organizations create a robust foundation for managing risk, meeting compliance obligations, and fostering an ethical culture.

Conclusion

A properly designed and implemented integrated GRC program provides numerous benefits, from enhanced risk management to improved compliance and governance. As organizations pursue their objectives in an increasingly disruptive world, an integrated approach to GRC is no longer just a best practice – it is an organizational imperative. With Enterprise Risk Management solutions from IMC Group, organizations can build a GRC program tailored to their unique needs and priorities to fulfil this imperative, while strengthening their posture for long-term success.

Read More

The Importance of Transaction Advisory Lessons from Business Successes and Failures
  • NEWSLETTER, GLOBAL

The Importance of Transaction Advisory: Lessons from Business Successes and Failures

Transaction advisory is essential for major business deals, as evidenced by both triumphs and disasters. Advisors help guide strategic decisions and avoid costly mistakes through services like valuation, due diligence and M&A counsel.

Consider Disney acquiring Pixar in 2006 for $7.4 billion. Pixar made blockbusters like Toy Story and became Disney’s most successful film studio. Disney likely relied on advisors to value Pixar, conduct due diligence and negotiate the deal. The result was a massive success, demonstrating the value of expert transaction advisory.

Conversely, Time Warner acquiring AOL in 2000 for $182 billion failed spectacularly. Within a year, the combined company lost $99 billion in value as the tech bubble burst. Lack of advisors contributed to overpaying and botching the risky, ill-conceived deal. 

In 2005, Procter & Gamble acquired Gillette for $57 billion, gaining brands like Braun, Duracell and Gillette. Valued at nearly 2x Gillette’s market cap, the deal was risky but rewarding long-term. Advisors probably assessed the strategic rationale, growth opportunities and cultural fit to convince P&G to go ahead. Fifteen years on, it seems an inspired move demonstrating advisory’s long view.

Compare this to Kraft Heinz buying Unilever in 2017 for $143 billion, unsuccessfully attempting a hostile takeover. If accomplished, it may have burdened Kraft Heinz with massive debt, as Unilever rejected the offer. However, with extensive due diligence advisors could have objectively evaluated the deal and avoided this failure.

In 2000, eBay bought PayPal for $1.5 billion, gaining a payments arm and fuelling its growth into a $36 billion company. EBay likely relied on advisors to spot PayPal’s potential, negotiate the deal and develop an expansion strategy. This showcase success proves great advisory adds exponential value.

Finally, consider WeWork’s failed 2019 IPO that lost SoftBank billions and ousted CEO Adam Neumann. Had WeWork employed advisors, they may have assessed the company as overvalued, lacking viability for public markets. The risky deal may have been restructured or avoided, sparing stakeholders significant losses.

The examples underscore the benefits of Transaction Advisory Services and the risks of not having them. For significant deals, expert counsel from firms like IMC Group offers essential long-term perspectives, objective assessments, and Due Diligence Services that can mean the difference between success and failure. By balancing opportunities and viability, advisors guide businesses to structurally sound, value-generating transactions.

Read More

The 6 Attributes to Look for in a Modern GRC Platform
  • NEWSLETTER, GLOBAL

The 6 Attributes to Look for in a Modern GRC Platform

Cybersecurity and compliance are two of the biggest challenges facing today’s organisations. There are several reasons for this.

  • Cybersecurity threats and regulations are constantly evolving. Cybercriminals are continuously developing new methods to attack businesses, while regulators regularly modify existing rules and introduce new ones.
  • Compliance requires a lot of repetitive, manual work to gather evidence and fill in forms. There is also an overwhelming amount of information to monitor and analyse, yet a shortage of skilled professionals to do so.
  • Most large organisations work with thousands of suppliers, making vendor risk management an enormous task.

Although governance, risk and compliance (GRC) tools have been available for some time, many are cumbersome and outdated. Organisations need an automated, unified approach to risk management that improves compliance and boosts cybersecurity.

If your organisation is looking to replace traditional GRC tools, consider the following attributes:

Everything in one place

If risk, vendor, contract and IT asset data are stored in separate systems, it’s difficult to analyse and report on. An integrated GRC platform provides a ‘single source of truth’ by automatically updating data from various sources.

Support for Automation

Essential tasks like penetration testing, risk monitoring, vendor assessments and security event analysis should be automated. Manual processes are inefficient, error-prone and unable to keep up with the pace of business.

Available Integrations

Integrations with systems like single sign-on, SIEM, SOAR and business software enable the automatic collection and analysis of compliance evidence. Without them, demonstrating adherence to standards is challenging.

Simple to Use

Exporting data in an easy-to-understand format is key for demonstrating progress to auditors, management and employees. Templates and intuitive interfaces also help stakeholders without technical backgrounds gain insights.

Streamlined Data Input

While risk input requires human judgement and can’t be fully automated, the process should be as simple as possible. Time spent manually entering risks into the GRC platform reduces that available for strategic work.

Augmented with AI

Modern GRC tools apply AI to detect anomalies in data, identify cyber threats and streamline repetitive tasks like report generation. This reduces the burden on cybersecurity and compliance teams while improving effectiveness.

100% security isn’t possible, so organisations must accept and manage risk. An automated, integrated GRC platform with AI helps demonstrate your value and instils confidence in stakeholders that the organisation is compliant and secure.

To find out more about modern governance, risk and compliance solutions, contact IMC Group. IMC Group’s GRC platform integrates all your systems into a central solution augmented by AI to provide a new level of risk visibility and control. IMC Group also offers cutting-edge Enterprise Risk Management (ERM) solutions to help organizations effectively identify, assess, and manage risks. By incorporating ERM into their suite of services, IMC Group ensures that companies can proactively address potential threats, maintain regulatory compliance, and make informed decisions. With these Enterprise Risk Management solutions, businesses can achieve a comprehensive approach to GRC and drive sustainable growth in today’s dynamic and uncertain environment.

Read More

The Intersection of HR and Global Mobility: Essential Considerations
  • NEWSLETTER, GLOBAL

The Intersection of HR and Global Mobility: Essential Considerations

Global mobility has become a key business strategy for companies looking to expand into new markets. Allowing employees to relocate internationally can benefit both businesses and staff, but also presents challenges for HR in managing the process.

What is Global Mobility?

Global mobility refers to companies moving employees from one country to another, either short or long-term. This approach is increasingly common as businesses become more global and workforces more flexible. For companies, it aids expansion into new markets. For employees, it provides career and cultural opportunities. However, it requires comprehensive management from HR to handle immigration, taxation, recruitment and employee wellbeing.

How global mobility drives business strategy

Expanding into new countries is crucial for business growth, and global mobility enables this in several ways:

Access to Talent

Relocation opportunities attract candidates willing to move abroad for work. This gives companies a larger talent pool to recruit from.

Cultural Understanding

Employees with experience of different cultures and markets can help companies adapt products, services and strategies to suit local needs.

Productivity

The right employees will settle well into new roles and surroundings, maintaining or improving productivity. Regular check-ins from HR help achieve this.

Development

Global mobility programmes provide progression opportunities for high-potential employees, which aids staff retention and motivation.

Considerations for HR

While global mobility benefits business strategy, it also presents challenges for HR:

Employee Contracts

Contracts must cover immigration, tax, compensation and relocation terms. Relocation clauses allowing companies to move staff can be controversial.

Performance Management

HR must monitor employee performance during and after relocation to ensure productivity and wellbeing. Targets and regular contact are important.

Recruitment

Advertising relocation opportunities attracts certain candidates but deters others. Discussing mobility in the interview process and offering relocation packages helps.

Progression

HR must determine who is eligible for global mobility based on seniority and business needs. A structured programme is required.

Global mobility is crucial for companies expanding internationally, enabling access to new talent, cultural insight, productivity and development opportunities. However, it also brings responsibilities for HR in managing employee mobility. IMC Group offers Global payroll solutions and HR consulting services to support companies implementing global mobility programmes. Contact us to discuss your requirements.

Read More

8 Key Global Talent Acquisition Trends for 2023
  • NEWSLETTER, GLOBAL

8 Key Global Talent Acquisition Trends for 2023

Forward-thinking organizations thriving in an ever-evolving global landscape are habitually strategic with their talent acquisition tactics. To stay competitive, business owners and HR managers have been exploring the latest talent acquisition trends. Embracing cutting-edge technology and adopting best practices can help you navigate the complexities of global talent acquisition.

At IMC Group, we specialize in designing customized payroll management solutions and offer global mobility services.

If you are planning to go international with your workforce, we bring you some of the most dominating global talent acquisition trends that you might consider.

Top global talent acquisition trends to follow in 2023

Explore the key global talent acquisition trends that can set your organization apart in the competitive business scape.

1. Shifting the Focus from Local to Global

The most remarkable recruiting trend in 2023 reveals that organizations are likely to prioritize global talent acquisition. As a strategic approach to diversify and adapt to the evolving market demands, brands are increasingly pooling in talent from other countries.

The evolving trend of working remotely enables brands to attract and hire talent regardless of their geographical boundaries. Thus, businesses are focussing on expanding their pool of potential candidates and recruiting beyond local demographics.

2. Tapping Emerging Talent Hubs

Businesses are consistently exploring emerging talent hubs to tap valuable human resources in 2023. Often, traditional recruitment processes overlook locations that produce highly skilled professionals capable of addressing local skills shortages. By tapping into these emerging talent pools, your business can gain a competitive edge as you hunt for top-notch talent.

Tech giants, for instance, are exploring talent hubs like Uruguay and Poland to find specialized professionals.

A report reveals that 77% of HR professionals consider skill shortage to be the prime hurdle while hiring. As this problem persists, talent shortage in home countries has prompted some organizations to explore further to find the right talent.

According to Oxford Economics, countries such as South Africa, Colombia, India, and Indonesia are expected to experience economic growth as well as talent surplus in the coming years. Naturally, organizations need to tap into emerging markets to fulfill their workforce needs.

3. Flexibility in Qualifications

Recent recruitment trends reveal that hiring practices will place greater emphasis on soft skills and a flexible approach to qualifications. Emerging talent markets have already witnessed remarkable increases in national education levels. In these markets, skilled professionals may lack the practical exposure that businesses typically seek. Recruiters are expanding their criteria beyond job experience and academic qualifications. Currently, they are prioritizing traits like critical thinking, problem-solving, effective communication, and emotional intelligence. Thus, recruiters have come up with new parameters to evaluate the skills of the most suitable candidates.

4. Focus on Reskilling and Upskilling

Besides prioritizing soft skills, recruiters need to take adequate measures to reskill and upskill candidates to prepare a future-ready workforce. The global economy is ever-changing. With rapid digitization, businesses need to remain agile and flexible to challenges.

One of the notable trends in 2023 reveals that businesses are increasingly investing in upskilling and reskilling programs. As a result, employees can overcome fresh challenges and seamlessly blend into new digital trends.

5. Promoting Diversity and Inclusion

In 2023, inclusion and diversity will continue to mould global recruiting trends. A diverse workforce enjoys a plethora of benefits, 2.5 times higher cash flow for each employee. Organizations need to address potential biases in their application processes to foster diversity. It’s imperative for them to explore new strategies and integrate both local and international teams. Businesses can create a rich and inclusive work environment by recognizing the value of different cultures and backgrounds in their workforce.

6. Strategic Workforce Planning

In 2023, talent managers need to adapt their strategies as global recruitment trends continue to evolve, moving beyond their conventional success formulas. A mindful approach is the need of the hour that should shape workforce planning. HR managers also need to leverage tools such as predictive analytics and AI to make data-driven hiring decisions.

Through strategic planning, organizations can identify necessary skill sets for critical roles and market trends. This way, they can align their talent acquisition efforts and future growth objectives together.

7. Exploring the Power of Recruitment Technology

Recruitment technology is set to play a pivotal role in global hiring trends for 2023. Surveys reveal that 59% of HR decision-makers, talent professionals, and recruiters expect to spend more in adopting new recruitment technologies. Technology goes a long way in shaping global recruitment trends. While many employers are using the traditional process, forward-thinking organizations are making the most of available tools.

Reviewing applications manually turn out to be a time-intensive affair. Organizations are automating their recruitment processes through various digital tools. Applicant tracking Systems (ATS) can streamline the onboarding process. One of the core functions of AI-backed ATS is to filter applicants based on keywords and specific criteria. Some companies are already using chatbots to interact with potential employees. Using ATS, chatbots, and other sophisticated tools, organizations can streamline their international hiring processes. This goes a long way in mitigating manual effort and time in reviewing applications.

8. The Focus on Employer Branding

Among other aspects, employer branding will be phenomenal in attracting and retaining global talent. An employer brand conveys greater credibility as a recruiter and helps potential candidates visualize the work culture and environment.

Businesses are expected to redefine their Employee Value Proposition (EVP) and thereby showcase their commitment to fostering an exceptional work environment.

Simplifying International Workforce Mobility with IMC Group

When expanding globally and onboarding employees internationally, IMC Group offers comprehensive solutions tailored to meet the unique needs of businesses. We seamlessly integrate identified talent, streamline processes, and ensure compliance with local regulations. With our expertise in global workforce management, trust IMC Group as your reliable partner for a smooth transition and efficient international operations.

Read More

Driving Growth through Outsourcing: Understanding the Key Benefits of Back Office Operations in 2023
  • NEWSLETTER, GLOBAL

Driving Growth through Outsourcing: Understanding the Key Benefits of Back Office Operations in 2023

As business operations become, more complex and wage costs increase, outsourcing non-core back office functions can provide many advantages. Here are the top 5 benefits of outsourcing back-office operations in 2023:

Cost savings

Outsourcing back office functions like accounting, HR, IT support and facilities management can significantly reduce operating expenses. An outsourcing partner can provide the same services at a lower cost due to economies of scale, experience and specialized resources. You pay a fixed fee for a defined set of services rather than having higher overhead costs related to in-house staff.

Access to expertise

Outsourcing providers have deep expertise in providing specific back-office functions that your in-house staff may lack. They stay up to date on the latest technology, processes and best practices that allow them to provide a higher level of service. You gain access to this specialized expertise without having to invest in building it internally.

Flexibility and scalability

Outsourcing back-office operations gives you the flexibility to scale services up or down according to your needs. If your business starts to grow rapidly, you can easily increase the volume and types of outsourced services. Conversely, if business slows, you only pay for the services you require at that time, allowing you to reduce costs.

Focus on core business

When back-office tasks are handled externally, your in-house staff can focus all their energy on your core operational and revenue-generating activities. Outsourcing non-essential functions allows you to optimize resources and boost productivity related to your key objectives.

Risk mitigation

Outsourcing distributes responsibility for providing services and reduces risk exposure for your company. Outsourcing providers assume liability for errors, compliance issues and security breaches related to their scope of work. They also implement best practices, quality control measures and disaster recovery plans that would be costly for you to implement on your own.

Conclusion

Outsourcing back office operations allows businesses to reduce costs, gain expertise, increase flexibility, optimize resources and mitigate risk while staying focused on their core mission. With business environments constantly shifting and the ever-evolving nature of business environments becoming more challenging than ever, companies that choose strategic outsourcing partnerships such as IMC Group’s to outsource your finance & accounting services ensure they can stay competitive by harnessing accessing expertise and resources needed for survival in today’s fast-paced environment.

Read More

Follow Us

Recent Posts

Get updated by Signup
to our Newsletter!



IMC Logo

Get Started

About

Locations

© 2024 IMC Group. All Rights Reserved.

IMC Logo

Get Started

About

Locations

© 2024 IMC Group. All Rights Reserved.

IMC Logo

Get Started

About

Locations

© 2024 IMC Group. All Rights Reserved.