CHAPTER 5: Global Talent Management and Staffing

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

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

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

Availability of data

Lack of accurate data about labor forces in many countries

HR must develop data from independent sources

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

Increasing diversity of labor forces and workforces Labor markets are increasingly global and

diverse

Labor mobility: Emigration and immigration Increase global labor mobility:

Large scale migration Expatriation

Effect of trade agreements and treaties

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

Staffing the MNE: An introduction Staffing options:

Ethnocentric Polycentric Regiocentric Geocentric

International assignees and local nationals Purposes of international assignment:

Learning driven Demand driven

Types of assignees: PCN HCN TCN

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:

Global staffing choices: Implications for MNEs Increased needs of the firm as they

internationalize Problems they experience as they cope with

these increased needs

Staffing with international assignees

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)

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

Selection

Be able to perform specific tasks in a different national culture

Thorough job analysis

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 hostcountry’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 theenterprise

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 implementingstrategic and global organizational changes

Visionary skills Quick to recognize and respond to strategic business opportunitiesand potential political and economic upheavals in the host country

International business skills Proven track record in conducting business in the globalenvironment

Factors for selection

Maturity of candidate Ability to handle foreign language Favorable outlook on international

assignment Personal characteristics

Alignment of selection decisions Link global staffing decisions to global

business goals Consider receiving manager and location

Criteria for selection

Job suitability Cultural adaptability Desire for foreign assignment

Selection methods

Interviews Formal assessment Committee decision Career planning Self selection Internal job posting and individual bid Recommendations Assessment centers

Mistakes and failures

Overlook cultural adaptation Choosing employees for technical

competencies only Three types of assignment failures Factors that influence failure rates

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 on assignment

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

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

IA mistakes

Too little lead time Inadequate training Not involving spouse/partner and children

Trailing spouses or partners

Dual career couples Support programs and services

Language

Working knowledge of language in the relocated country

Training

Families

Dual careers Non-married partners Education Health

Women expatriates

Increasing but still limited Acceptance by foreign counterparts Home country stereotyping

Other considerations

Lifestyle Localization or “going native” Career development Cost of international assignments Repatriation

Repatriation and Inpatriation

Repatriation Cultural adjustments Compensation considerations Career implications Preparation

Inpatriation Relocation to HQ

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

Host country nationals

Ethnocentric staffing Local talent pool with requited competencies

not available

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

Third country nationals

Neither from home nor host

The need for TCNs

Labor and talent shortages or surpluses Demographic shifts Supplement local and expatriate workforces

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