CHAPTER 5: Global Talent Management and Staffing

1. CHAPTER 5: Global Talent Management and Staffing

2. Learning objectives (chapter 5) • Describe the process of global workforce forecasting • Explain the difficulties associated with global workforce forecasting and planning • Describe the globalization of talent management • Outline a successful international assignee selection process • Describe the characteristics of successful IAs • Describe the nature and causes of IA failure • Identify and explain the many challenges that IHR confronts in global talent management

3. Overview chapter 5: • Global workforce planning and forecasting • Staffing the MNE: An introduction • Staffing with international assignees • Host country nationals • Third country nationals • Immigration law

4. Global workforce planning and forecasting • Estimate employment needs of the MNE • Develop plans for meeting those needs.

5. Availability of data • Lack of accurate data about labor forces in many countries • HR must develop data from independent sources

6. Population characteristics: shortages and surpluses • Aging population • Male/female participation rates • Geographic location

7. Increasing diversity of labor forces and workforces • Labor markets are increasingly global and diverse

8. Labor mobility: Emigration and immigration • Increase global labor mobility: • Large scale migration • Expatriation • Effect of trade agreements and treaties

9. Brain drain and job exporting • A transfer between emerging and developed countries • Offshoring and outsourcing • Global workforce planning and talent management are critical to the success of organizations

10. Staffing the MNE: An introduction • Staffing options: • Ethnocentric • Polycentric • Regiocentric • Geocentric

11. International assignees and local nationals • Purposes of international assignment: • Learning driven • Demand driven • Types of assignees: • PCN • HCN • TCN

12. International staffing options • Local hires or nationals • Domestic internationalists • International commuters • Frequent business trips • Short-term international assignees • International assignees • Localized employees • Permanent cadre or globalists • Stealth assignees • Immigrants • Internships • Returnees • Boomerangs • Second-generation expatriates • Just-In-Time expatriates • Reward or Punishment assignees • Outsourced employees • Virtual IEs • Self-initiated foreign workers • Retirees:

13. Global staffing choices: Implications for MNEs • Increased needs of the firm as they internationalize • Problems they experience as they cope with these increased needs

14. Staffing with international assignees

15. Traditional international assignees • Traditional expatriates: • Three to five years • Mid- to higher level managerial positions • International assignee: • Managerial and technical positions • Short-term (less than one year) • Long-term (one or more years)

16. Developing a pool of IA candidates • Early assessment • Self-identification • Self assessment readiness • Preparation

17. Selection • Be able to perform specific tasks in a different national culture • Thorough job analysis

18. Box 5.1: The twenty first century expatriate manager profile Core skills Managerial implications______________________ Multidimensional Perspective Extensive multi-product, multi-industry, multifunctional, multi-company, multi-country, and multi-environment experience. Resourcefulness Skillful in getting him/herself known and accepted in the host country’s political hierarchy. . Ability as a team builder Adept in bringing a culturally diverse working group together to accomplish the major global mission and objectives of the enterprise Curiosity and learning Constant interest in learning about all aspects of international cultures, foreign countries, and global business Augmented skills Managerial implications______________________ Computer literacy Comfortable exchanging strategic information electronically Ability as a change agent Proven track record in successfully initiating and implementing strategic and global organizational changes Visionary skills Quick to recognize and respond to strategic business opportunities and potential political and economic upheavals in the host country International business skills Proven track record in conducting business in the global environment

19. Factors for selection • Maturity of candidate • Ability to handle foreign language • Favorable outlook on international assignment • Personal characteristics

20. Alignment of selection decisions • Link global staffing decisions to global business goals • Consider receiving manager and location

21. Criteria for selection • Job suitability • Cultural adaptability • Desire for foreign assignment

22. Selection methods • Interviews • Formal assessment • Committee decision • Career planning • Self selection • Internal job posting and individual bid • Recommendations • Assessment centers

23. Mistakes and failures • Overlook cultural adaptation • Choosing employees for technical competencies only • Three types of assignment failures • Factors that influence failure rates

24. Box 5.2: Definition of expatriate failure • Usually defined in terms of early return home or termination • But could also be defined in terms of: • Poor quality of performance in foreign assignment • Employee not fully utilized during assignment • Personal dissatisfaction with experience (by expatriate or family) • Lack of adjustment to local conditions • No acceptance by local nationals • Damage to overseas business relationships • Not recognizing or missing overseas business opportunities • Inability to identify and/or train a local successor • Leave soon after repatriation • Not use foreign experience in assignment after repatriation • Compounding factors • Length of assignment • Degree of concern about repatriation • Overemphasis in selection on technical competence to disregard of other necessary attributes • Degree of training for overseas assignment • Degree of support while onassignment

25. Family influence on expatriate success • Most important success factor • Lack of preparation • Adjustment difficulties

26. Box 5.3: Reasons for expatriate failure • Inability of spouse/partner to adjust or spouse/partner dissatisfaction • Inability of expatriate to adjust • Other family-related problems • Mistake in candidate/expatriate selection or just does not meet expectations • Expatriate’s personality or lack of emotional maturity • Expatriate’s inability to cope with larger responsibilities of overseas work • Expatriate’s lack of technical competence • Expatriate’s lack of motivation to work overseas • Dissatisfaction with quality of life in foreign assignment • Dissatisfaction with compensation and benefits • Inadequate cultural and language preparation • Inadequate support for IA and family while on overseas assignment

27. IA mistakes • Too little lead time • Inadequate training • Not involving spouse/partner and children

28. Trailing spouses or partners • Dual career couples • Support programs and services

29. Language • Working knowledge of language in the relocated country • Training

30. Families • Dual careers • Non-married partners • Education • Health

31. Women expatriates • Increasing but still limited • Acceptance by foreign counterparts • Home country stereotyping

32. Other considerations • Lifestyle • Localization or “going native” • Career development • Cost of international assignments • Repatriation

33. Repatriation and Inpatriation • Repatriation • Cultural adjustments • Compensation considerations • Career implications • Preparation • Inpatriation • Relocation to HQ

34. Successful expatriation and “best practice” • Completion of foreign assignment • Cross cultural adjustment • Good performance on assignment

35. Host country nationals • Ethnocentric staffing • Local talent pool with requited competencies not available

36. Relying on local managerial talent • Polycentric staffing using local nationals • Benefits • Challenges • Staffing needs • Usage

37. Third country nationals • Neither from home nor host

38. The need for TCNs • Labor and talent shortages or surpluses • Demographic shifts • Supplement local and expatriate workforces

39. Staffing options • Central to global talent management • Every country has varying policies and laws • Cultural factors may influence suitability of type of employee • Immigration issues