This story originally appeared in the Winter 2021 print edition of the Middle Market GrowthOutlook Special Report. Read the full report in the archive.
Teams with distributed geographies have proven benefits for business resilience. Whether part of an expansion or to test demand further afield, hiring internationally enables companies and private equity portfolios to increase returns faster.
Even before the start of the pandemic, global teams were struggling to feel connected to their company headquarters, Globalization Partners’ 2020 Global Employee Survey found. International employers have long grappled with the challenges associated with building strong teams, such as relying on technology for meetings and day-to-day communication. This year’s limitation on travel, office use and socializing made the disconnect even more poignant. We asked the experts: Should this be a deterrent to going global in 2021?
In the current economic climate, it is easy to be pessimistic, but the International Monetary Fund projects global growth in 2021 to hit 5.4%. In comparison to global growth of 2.3% in pre-pandemic 2019, these numbers are extremely encouraging. In fact, only 5% of private equity firms reported that their portfolio companies will not be hiring in 2021; 77% fully expect hiring to continue as we emerge from the global lockdown.