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 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 host country’s political hierarchy.. Ability as a team builderAdept in bringing a culturally diverse working group together to accomplish the major global mission and objectives of the enterprise 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 implementing strategic and global organizational changes Visionary skillsQuick to recognize and respond to strategic business opportunities and potential political and economic upheavals in the host country International business skillsProven track record in conducting business in the global environment

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