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HR Best Practices in managing a global workforce

February 25th, 2009

In a world that is becoming increasingly flat & globalization is the mantra for several organizations who have high growth ambitions, it is little wonder that many of them have set up an International Business team who can focus on the company’s global expansion plans. A key aspect of such plans is building a global work force.

This was the topic that I was invited to speak on in a HRM Summit organized by the ABV – Indian Institute of Technology and Management, Gwalior recently.

While the globalization bug has bitten Indian organizations till about a decade, several global MNCs have been managing a global pool of employees and have therefore implemented a number of best practices in this area.

Here are some common best practice themes in managing an international talent pool

1. Commit strongly to developing leaders with global outlook & capability

a. Set the tone from the top: Organizations betting global clearly establish that international exposure is a key ingredient for success in climbing the corporate ladder, e.g. P & G & Eli Lily ensure that their top executives have at least one international assignment. Colgate-Palmolive, PepsiCo and GE have a regular pool of Global Expatriates who build critical experiences outside their home country as part of their Leadership Development Program.

b. Invest in creating international cadre: HSBC runs a program for International Officers (IOs) that includes a 9-week residential training with emphasis on core values, five-year rotation through five areas of commercial banking in several countries and new postings every 2-3 years in an increasingly challenging environment.

c. Access the best talent pool, regardless of source: P & G uses its HRIS to seek out internal candidates for overseas assignments and develops case studies to be used in university training programs. ABB maintains the right to transfer top talent when negotiating joint ventures and has a mini-MBA program for Polish joint venture. Motorola University runs a China Accelerated Management Program.

2. Ensure rapid deployment of international managers to seize opportunities

a. Build mobility explicitly into value proposition: HSBC sets mobility expectations with their IOs from Day 1 and are managed as a corporate resource pool. ABB creates cross-border teams to solve problems.

b. Remove barriers to mobility: Colgate Palmolive has a spouse assistance program. Shell has programs like Spousal Employment Program and education allowance for children

c. Use bundled skills approach: Carrefour, the French retail giant develops stores in new emerging markets by sending in a team that stays on site till the operation is on its feet and then moves to a new site. P & G dispatched a high potential cross functional team to spend 3 years setting up operations in China.

3. Allay fears

a. Balance tenure with motivation: Coca Cola does not repatriate managers until they’ve had a chance to show impact. Several organizations maintain motivation through frequent senior leaders’ interaction.

b. Build connectivity with broader organization: Samsung assigns a senior home office mentor who periodically touches base to provide news about events in home country and offers career advice. Eli Lilly uses the corporate intranet to stimulate communication among expatriates

c. Ensure smooth and transparent repatriation: Komatsu has a ‘return ticket’ policy – an assurance that the company views international assignments as a broadening experience and that returning expats have a job waiting for them in Japan.

I am sure there are several best practices you’d have come across. So inviting you to share them, including from your own organization!

International HRM

  1. Shivangi
    March 17th, 2009 at 11:22 | #1

    Globalisation has also lead to an increased necessity for “global Managers’ here the need is not only the technical and professional skills but also a repertoire of soft skills and culture sensitivity training.

  2. tanvi
    March 18th, 2009 at 02:32 | #2

    in times of recession when talent management becomes imperative for survival, only companies without of the box thinking when it comes to HR practices will survive.

  3. tanvi
    March 18th, 2009 at 02:33 | #3

    read the above as ‘with’- out of the box thinking!
    Tanvi

  4. vandana
    March 18th, 2009 at 02:39 | #4

    with the advent of technology, HR can no longer confine itself to routine trasactional tasks. Therefore in order to maintain its position within the organization HR will necessarily have to switch to a more strategic role.

  5. kiera carvalho
    March 18th, 2009 at 02:40 | #5

    I doubt in the times of recession much focus is going to be on human resource ‘development’. instead most firms are going to be looking for more efficient human resource ‘management’. hence, HR practices would have to be tweaked to meet these new challenges.

  6. Pooja Grover
    March 18th, 2009 at 03:37 | #6

    International trade has been of great importance to economies sinces ancient times. Today, with increasing globalisation the creating global managers is of great importance. It is worthwhile to invest in personnel to ensure that the workforce of an org.n is globally compatible!

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