CHAPTER 5: Global Talent Management and Staffing

Learning objectives (chapter 5)Describe the process of global workforce forecastingExplain the difficulties associated with global workforce forecasting and planningDescribe the globalization of talent managementOutline a successful international assignee selection processDescribe the characteristics of successful IAsDescribe the nature and causes of IA failureIdentify and explain the many challenges that IHR confronts in global talent management

Overview chapter 5: Global workforce planning and forecastingStaffing the MNE: An introductionStaffing with international assigneesHost country nationalsThird country nationalsImmigration law

Global workforce planning and forecastingEstimate employment needs of the MNEDevelop plans for meeting those needs.

Availability of dataLack of accurate data about labor forces in many countriesHR must develop data from independent sources

Population characteristics: shortages and surplusesAging population Male/female participation ratesGeographic location

Increasing diversity of labor forces and workforcesLabor markets are increasingly global and diverse

Labor mobility: Emigration and immigrationIncrease global labor mobility:Large scale migrationExpatriationEffect of trade agreements and treaties

Brain drain and job exportingA transfer between emerging and developed countriesOffshoring and outsourcingGlobal workforce planning and talent management are critical to the success of organizations

Staffing the MNE: An introductionStaffing options:EthnocentricPolycentricRegiocentricGeocentric

International assignees and local nationalsPurposes of international assignment:Learning drivenDemand drivenTypes of assignees:PCNHCNTCN

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 MNEsIncreased needs of the firm as they internationalizeProblems they experience as they cope with these increased needs

Staffing with international assignees

Traditional international assigneesTraditional expatriates:Three to five yearsMid- to higher level managerial positions International assignee:Managerial and technical positionsShort-term (less than one year)Long-term (one or more years)

Developing a pool of IA candidatesEarly assessmentSelf-identificationSelf assessment readinessPreparation

SelectionBe able to perform specific tasks in a different national cultureThorough job analysis

Box 5.1: The twenty first century expatriate manager profile Core skills Managerial implications______________________Multidimensional PerspectiveExtensive multi-product, multi-industry, multifunctional,multi-company, multi-country, and multi-environment experience.

Resourcefulness Skillful in getting him/herself known and accepted in the hostcountrys political hierarchy..Ability as a team builderAdept in bringing a culturally diverse working group together to accomplish the major global mission and objectives of theenterprise

Curiosity and learningConstant interest in learning about all aspects of international cultures, foreign countries, and global business

Augmented skills Managerial implications______________________Computer literacyComfortable exchanging strategic information electronically

Ability as a change agentProven track record in successfully initiating and implementingstrategic and global organizational changes

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

International business skillsProven track record in conducting business in the globalenvironment

Factors for selectionMaturity of candidateAbility to handle foreign languageFavorable outlook on international assignmentPersonal characteristics

Alignment of selection decisionsLink global staffing decisions to global business goalsConsider receiving manager and location

Criteria for selectionJob suitabilityCultural adaptabilityDesire for foreign assignment

Selection methodsInterviews Formal assessmentCommittee decisionCareer planningSelf selectionInternal job posting and individual bidRecommendations Assessment centers

Mistakes and failuresOverlook cultural adaptationChoosing employees for technical competencies onlyThree types of assignment failuresFactors that influence failure rates

Box 5.2: Definition of expatriate failureUsually defined in terms of early return home or terminationBut 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 conditionsNo acceptance by local nationalsDamage to overseas business relationshipsNot recognizing or missing overseas business opportunitiesInability to identify and/or train a local successorLeave soon after repatriationNot use foreign experience in assignment after repatriationCompounding factorsLength of assignmentDegree of concern about repatriationOveremphasis in selection on technical competence to disregard of other necessary attributesDegree of training for overseas assignmentDegree of support while on assignment

Family influence on expatriate successMost important success factorLack of preparationAdjustment difficulties

Box 5.3: Reasons for expatriate failureInability of spouse/partner to adjust or spouse/partner dissatisfactionInability of expatriate to adjustOther family-related problemsMistake in candidate/expatriate selection or just does not meet expectationsExpatriates personality or lack of emotional maturityExpatriates inability to cope with larger responsibilities of overseas workExpatriates lack of technical competenceExpatriates lack of motivation to work overseasDissatisfaction with quality of life in foreign assignmentDissatisfaction with compensation and benefitsInadequate cultural and language preparationInadequate support for IA and family while on overseas assignment

IA mistakesToo little lead timeInadequate trainingNot involving spouse/partner and children

Trailing spouses or partnersDual career couplesSupport programs and services

LanguageWorking knowledge of language in the relocated countryTraining

Families

Dual careersNon-married partnersEducationHealth

Women expatriatesIncreasing but still limitedAcceptance by foreign counterpartsHome country stereotyping

Other considerationsLifestyleLocalization or going nativeCareer developmentCost of international assignmentsRepatriation

Repatriation and InpatriationRepatriationCultural adjustmentsCompensation considerationsCareer implicationsPreparationInpatriationRelocation to HQ

Successful expatriation and best practiceCompletion of foreign assignmentCross cultural adjustmentGood performance on assignment

Host country nationalsEthnocentric staffingLocal talent pool with requited competencies not available

Relying on local managerial talentPolycentric staffing using local nationalsBenefitsChallengesStaffing needsUsage

Third country nationalsNeither from home nor host

The need for TCNsLabor and talent shortages or surplusesDemographic shiftsSupplement local and expatriate workforces

Staffing options Central to global talent managementEvery country has varying policies and lawsCultural factors may influence suitability of type of employeeImmigration issues