As a hiring manager, have you ever struggled to find the right candidates for your team? If so, you’re in the right place.
At BGC group, we understand that hiring the right people is one of the biggest challenges companies face and there’s a lot more to hiring than just filling vacancies. The way you staff your employees shapes everything from your company culture and employee productivity to long-term success.
So, if you’re thinking about expanding into new regions, having a well-defined staffing policy isn’t just important– it’s necessary. A clear staffing policy helps you ensure the right talent is in the right place at the right time. But how do you choose the best staffing policy for your business? In this blog, we’ll break down the four main types of staffing policies, why they matter, and how to select the right approach for your business.
What is a Staffing Policy?
A staffing policy is a strategic framework that guides how an organization hires, manages and places its employees. It basically defines the approach a company takes to fill vacant positions both locally and globally as per their culture, goals, and operational needs. From recruiting the best candidates to managing global teams, a well-defined staffing policy is key to building a strong workforce.
Why Are Staffing Policies Important?
A detailed staffing strategy not only keeps your business running seamlessly, but also ensures regulatory compliance, operational efficiency, and workforce consistency.
Here’s why it matters:
- It aligns talent acquisition with your business strategy (helps you hire top talent as per your business goals).
- Helps businesses adhere to local labour laws and regulations, especially when hiring across borders.
- Improves employee retention and productivity.
- Streamlines the entire recruitment process, and saves you a lot of time and effort.
For companies looking to tap into the APAC region, having a solid staffing policy isn’t just helpful– it’s essential to keep your operations running smoothly.
4 Types of Staffing Policy
When it comes to staffing policies, there are four main categories– ethnocentric, polycentric, geocentric, and regiocentric. Each of these policies come with its own strengths and challenges. It all depends on your organization’s hiring objectives.
Let’s take a closer look at each one to help you find the best approach for your business:
1. Ethnocentric Staffing Policy
An ethnocentric staffing approach hires people from the organization’s parent country to fill key managerial vacancies across the globe. This approach keeps the overseas business operations in line with the headquarters’ culture and strategies. For example: A U.S. based tech company expanding into Singapore sends their top managers to run the Singapore branch instead of hiring locally.
2. Polycentric Staffing Policy
A polycentric staffing approach hires local people to manage operations in a host country. This helps companies get a better understanding of the local market and build stronger connections with the consumers. For example: A European fashion brand launching stores in India hires local people who understand Indian fashion trends, and customer preferences.
3. Geocentric Staffing Policy
A geocentric staffing approach hires the best candidates regardless of nationality. This staffing policy not only promotes diverse perspectives but also drives innovation. For example: A leading multinational pharmaceutical company recruits the best minds from various countries to lead their research and development projects.
4. Regiocentric Staffing Policy
The regiocentric staffing approach is somewhat of a middle ground between local and international hiring. Instead of hiring people from just one country or going fully global, you hire talent within a specific region. For example: An Indian electronics company wanting to expand into Southeast Asia will hire regional managers from ASEAN countries like Malaysia, Thailand, and Indonesia instead of sending executives from the HQ.
How to Choose the Right Staffing Policy for Your Business?
Now that you understand the various types of staffing policies and how they impact your long-term growth, let’s explore some key factors that can help you decide the right approach for your organization:
- Business goals: Do you want the local teams to have more control or will a centralized approach where HQ takes major decisions work for you?
- Cost considerations: Factor in costs like relocation, training, and staying compliant with labour laws then decide if you can afford international hiring or not.
- Cultural fit: Make sure the chosen staffing policy aligns with your company’s core values and existing work culture.
- Legal requirements: Every country has different labour laws and regulations– make sure your staffing policy complies with the rules in your target markets.
Conclusion
Choosing the right type of staffing policy is a major decision– it determines the growth of your business, especially if you’re expanding into the APAC market. Whether you go for an ethnocentric, polycentric, geocentric, or regiocentric approach, the key to success is to align your policy with your business goals, budget, and legal requirements.
At BGC Group, we understand the various challenges of recruitment in the APAC region. That’s why we provide expert guidance, reliable hiring solutions, and innovative workforce services to help businesses like yours implement the right type of staffing policy with ease. From permanent recruitment to contract staffing, we’re here to guide you through it all.
Need a tailored hiring solution? Get in touch with us today to see how we can help!
