The results of an EY study, “Challenges of Polish companies expanding abroad”, show that 86% of domestic companies currently in foreign markets plan further expansion. These growth plans involve both new regions and countries where they are already present. Human capital plays a key role in this process, with 84% of organizations considering labor market conditions when identifying potential areas for development.
For 58% of the companies surveyed, a key development advantage arising from expansion in human capital is the high quality of workers in Poland, allowing for export of products and services. For 52% of them, it is the access to the international labor market made possible by remote work. Companies most commonly focused on training (47%), equipment purchases (45%), and IT infrastructure (43%) as part of their new market entry process.
The funds used for these efforts mostly came from profits (49%) but an impressive 44% of organizations relied on their existing resources.
The study results clearly indicate that Polish companies that have decided to start operations in foreign markets do not plan to stop. As many as 86% of them plan further development, with 47% aiming for new markets and 43% looking to grow in the markets where they are already present.
Human resources strategy is a crucial part of the analysis for these organizations. Only 13% of companies admit that the labor market situation does not influence the direction of their international expansion.
According to the results, the availability of talented staff often defines the scale and direction of expansion. The employees themselves, their skills, and their level of engagement play at least as important a role as the product or service offered by the specific company.
Moreover, the study also suggests the important influence of human capital not only on the business success of foreign expansion but also on the potential for implementing deep organizational changes.
However, the study also highlighted the importance of managerial competency (51%), understanding of specific business area (46%) and digital proficiency (43%). The challenges faced by the companies included cultural differences leading to misunderstandings (26%), and regulatory area relating to employment law (32%).
As a result, companies allocated significant resources towards employee training and development (47%), hardware purchases (45%) and investment into IT infrastructure (43%). The activities were funded through organizational profits (49%) or relied on existing resources without additional costs (44%).
The research was conducted by CubeResearch for EY Poland in the fourth quarter of 2023, surveying 314 medium and large companies actively expanding into foreign markets.
Source: https://managerplus.pl/polskie-firmy-planuja-ekspansje-zagraniczna-kluczowa-rola-kapitalu-ludzkiego-w-procesie-rozwoju-68356
