How Well Do You Understand Your Work Culture? The Risks of Expanding Without Adapting
Expanding globally without adapting to local work culture can lead to turnover, conflict, and lost revenue. Learn how EORs help you localize your approach and stay compliant.
Introduction: Cultural Fit Isn’t Just for People—It’s for Companies Too
When companies expand to new countries, they often focus on legal, financial, or operational matters. But what about culture? Not understanding or adapting to a local work culture can lead to major business challenges—from employee disengagement to failed expansion efforts.
Whether you’re hiring in Mexico, Brazil, or across LATAM, ignoring workplace culture is a silent but powerful risk.
Why Work Culture Matters More Than Ever
Every country has its own workplace norms. In Mexico, personal relationships and hierarchy often play a more significant role than in countries like the U.S. or Germany. Misalignments like these can cause:
- Miscommunication and internal conflict
- Poor employee performance
- High turnover
- Legal challenges tied to expectations around benefits, hours, and work style
According to a PwC report, 72% of leaders said that culture helps successful change initiatives, but only 32% believed their company culture aligns with their business strategy.
Examples of Cultural Mismatches in Expansion
- U.S. Tech Startup Expanding to Mexico:
Tries to impose a flat hierarchy model where employees are encouraged to speak up. Local hires, used to traditional management structures, interpret it as lack of direction. - German Manufacturer in LATAM:
Applies rigid punctuality and process rules. Local workers see it as inflexible and demotivating, leading to disengagement. - Remote-first Team in a Relationship-Driven Culture:
Avoids face-to-face interactions. In cultures like Mexico’s, this can erode trust and reduce collaboration.
How EORs Help Companies Adapt to Local Work Culture
An Employer of Record (EOR) isn’t just a legal employer—they’re a cultural bridge. By partnering with a local EOR like Global Touch, companies gain insights that prevent cultural missteps. Here’s how:
✅ Local Onboarding Practices
From welcome kits to communication styles, EORs guide you on onboarding that resonates locally.
✅ Culturally Relevant HR Policies
EORs help you customize benefits, leave policies, and work schedules that reflect local values and expectations.
✅ Navigating Holidays and Time Off
Mexico, for example, has specific national holidays and mandatory vacation laws. An EOR ensures compliance without misunderstanding local norms.
✅ Training and Communication
Need to coach your HQ team on local etiquette? A good EOR can provide cultural onboarding for your managers, too.
The Hidden Cost of Cultural Ignorance
Failing to align with cultural expectations doesn’t just affect morale—it costs real money. Turnover, rehiring, and low productivity can drain budgets fast. That’s why culture should be part of your global workforce strategy, not an afterthought.
Explore more: The Hidden Cost of a Bad Hire
Local Culture Isn’t Optional—It’s Strategic
Expanding internationally without adapting to local work culture is like sailing without a compass. You might move forward, but you’ll likely drift off course.
EORs in Mexico and across LATAM help ensure your company adapts and integrates—not imposes. They’re not just about compliance—they’re about fit.
