Multinational companies struggle with international talent management
A July survey from Ernst & Young found that business executives felt there were weak spots in their company's international talent management strategy especially in cultural awareness training and talent retention.
The poll found that just 20 percent of executives think their company does a satisfactory job when managing its workforce across all international markets. In addition, fewer than 30 percent think that their managers have a global view of corporate relocation decisions.
"Rapid growth market companies expanding into new markets are facing major challenges in building and executing effective talent management strategies," said Mike Cullen, a global managing partner at Ernst & Young. "The key challenge for these companies in the next decade will be to integrate talent strategies with global mobility strategies to form a top management team that has a mix of international expertise and local knowledge.
One of the largest issues highlighted by executives was that companies needed to improve their knowledge of local culture at a management level, with 51 percent of executives reporting that knowledge was lacking. Half also noted what they saw as a lack of understanding of global markets.
The report also stressed the importance of developing transfer candidates internally rather than recruiting from rival companies. While some initial investment may be needed, companies can reduce salary inflation and turnover in the long run. However, turnover remains a major issue, with just 23 percent of respondents saying that they felt their company effectively retained global talent. Just one in five felt that high performance was effectively rewarded in all markets.
"The most significant event in human capital in the past three to five years has been talent management's move to the forefront," said Bill Leisy, global talent management market leader for Ernst & Young. "Not only is it of increasing importance to the development and execution of an organization's business strategy, but it has become a unique competitive advantage."
Companies may want to consult with a corporate relocation provider to examine their mobility policies to ensure competitiveness and the inclusion of key benefits that support their talent management goals. Effective integration of the relocation program under the umbrella of talent management can improve employee productivity on assignment and increase employee retention upon repatriation.
Filed under: International Relocation Services