Turning the Global Mobility Function On Its Head

Global talent management strategy

"Ask any CEO of a globally focused company for the most critical influences in their growth and success and you'll certainly hear 'talent mobility' as a part of their answer"

Peggy Smith, Worldwide ERC, President and Chief Executive Officer.

The war for global talent is on.  As companies develop their international reach, often into developing countries, so the demand will grow for international global talent to head and support those expansion plans. Several business trends and demographic factors will intensify the challenge they face.
  • The predicted 50% growth in global mobility by 2020 (PWC 2013).
  • An ageing population as 80 million baby boomers being replaced by only 40 million generation Xers. (PWC 2013)
  • The changing nature of the employer/employee relationship. The new generation Y are often referred to as the "me" generation whose "goal is not to secure lifetime employment but lifetime employability, through the building of career skills that are not organisation or location specific." McNulty and Inkson.
  • The changing nature of expatriation. The traditional expatriate who comes from the parent company with a fully expensed home-based assignment package is decreasing. PWC report predicted that the number of assignees originating from Head Offices of Multinational organisations will decrease from 80% to 40% by 2020.

The million dollar question (literally) becomes: How will organisations recruit and retain  global talent?

This raises the urgency for clearly thought out strategic talent management policies that are aligned to international business development plans.

This strategy will need to reflect the changing nature of the employer-employee relationship. There is a growing “dual dependency” between the employer and the employee, replacing the single one directional dependency of old (McNulty and Inkson). Reciprocity between employer and employee is key to developing an engaged and motivated global talent pool. The organization must focus not only on its own corporate strategic return on investment but it must also work to ensure that the employee sees a good return on their personal investment, so ensuring their engagement and loyalty. Whilst income is important it is not the only mediating factor. Employees will want to feel supported and that their intrinsic needs are also being met such as their need for personal development, a good standard of living and lifestyle. This extends to the support given to partners and families which will become even more important for global talent in developing countries.

At the HEART of this strategy is an engaged relationship between employer and employee.

However, as supporters of accompanying partners we often see that rather than well thought through strategic relocation policies and implementation, pressurized human resource professionals are often reacting to “emergency” requirements for assignees to be dispatched to locations around the world - yesterday.

Consequently assignments often happen without adequate consideration being given to the fit of the employee or the accompanying partner and family, and with inadequate preparation for the family.

Of course some business needs are urgent, but many are not and the lack of planning leads to a game of Russian roulette with the lives of assigned families and the resources of the company.

When there is only limited focus on the rationale for and objectives of the assignment, the driving force all too often becomes one of cost cutting.  We’re not saying that cost control is unimportant, but cutting costs without considering the strategic impact on the assignment objectives can mean companies shoot themselves in the foot before a relocation has even begun.  Invest efficiently in assignments that have a clear purpose and are aligned to corporate goals instead of spending on more ad-hoc assignments while at the same time trying to cut costs at the margin.  What may seem like a small cut in an assignment package can have an inordinately large effect on the assignee’s perception of the company (spoiler alert – anything that affects the family, particularly children, is especially toxic) and can send the employee to the door of the nearest head-hunter.

The challenge.

The challenge for the Global Mobility function will be to find a way to move from a reactive, cost-driven focus on tactical issues to a strategic focus where it is part of a global talent management sitting at a strategic level within an organization. For this to happen companies need to recognise that international assignments are an investment in the organisation’s human capital.

By sourcing global talent with strategic intent, organisations can understand the costs AND the benefits of an assignment and appropriate support programmes become part of the relationship and the investment decision.

This brings us on to the subject of support for the partner and the family. These are not marginal issues, particularly for Gen Y who are known to have a dual focus on family and work and whose views about gender roles are significantly different from preceding generations (Families and Work Institute – Generation and Gender). If the goal of global talent management is the creation of an engaged mobile workforce, then understanding the intrinsic needs of the employee is fundamentally important. The welfare and happiness of partners and families will be critical to employee’s positive engagement in the assignment process and outcomes.

As our research “Career Choice and the Accompanying Partner” showed, the accompanying partner can be a huge asset in a relocation process when engaged and supported by the employer. Providing support that empowers the partner to be self-sufficient and find fulfillment in life abroad pays dividends to the organisation.

A strategy that incorporates the following support steps for partners will create a committed and engaged asset in the relocation process and in your global talent management strategy.  It will also mitigate a potentially significant risk to assignment success.
  • Encourage and engage the employee and their partner in the decision making process. They have a choice to make and it is better that they make it in a well-informed and non-pressurized way. Then they will be more committed and engaged and with realistic expectations of the assignment objectives, benefits, challenges and process.
  • Support the assignee and their partner through the preparation process. Help them to prepare in an organized and informed way. Support them with the information they need to make the right plans and decisions about the relocation process.
  • Remember that arrival is just the start of the transition process for the partner/family. This is when support is most needed, to cope with the new culture and its impact on the day-to-day life. Think about ways to support them to make friends and build critical important networks. Read this article for our low cost/no cost ideas.
  • Provide on-going support for the partner that empowers them to create their fulfilled life abroad. This is especially important in developing countries where it is often difficult for partners to work in the traditional sense due to work permit restrictions.
References: Managing Expatriates: A Return on Investment Approach: Yvonne McNulty and Kerr Inkson

9 comments

John Nichols
 

I am assuming that you are talking about the reduction of resources in the traditional home countries. There are brilliant opportunities for developing new talent in the emerging markets and the opportunity for travel and training with career development will help make you an employer of choice. The company will also have to learn and utilise cultural differences across the new markets.
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Lindaajanssen
 

EXCELLENT!! You have captured the changing landscape, challenges of retaining global talent and the opportunity to forge a solution in one cogent, well written, succinct post, Evelyn and Louise. Let's get this conversation going across the world.
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Evelyn Simpson
 

Thanks for your comment and for sharing our article Linda! There's a lot of talk right now about making the role of global mobility a strategic one but in practice it seems that the focus is very much on the tactical. We can sense frustration on the part of many Global Mobility professionals as many understand that both organisations and expat families would benefit from a more strategic process but they are hamstrung by pressure to reduce expenses. Change won't happen until mobility is viewed differently at the highest level of companies.
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Jennifer Bradley
 

Here's another part of the conversation: What's lost when assignees return? Lack of opportunities to integrate what has been learned during the assignment is a loss for everyone concerned. http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2013/10/29/employers-missing-opportunity-to-link-talent-with-global-mobility.aspx
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Louise Wiles
 

Hi Jennifer thanks for that link and a valuable discussion regarding another vital of the global mobility resource puzzle - capitalising on the skills of the assigned/mobile workforce. It occurred to me as I read the article - the challenge seems to be that international expansion is hugely important to organisations at a strategic level but in terms of percentage of workforce/human capital involved it involves a minority. Therefore resources are not invested - as there are more pressing HR needs back home. It's almost a dichotomy of corporate interests - strategic international development at odds with day to day management of resources/challenges back home. Hence our suggestion of the need to turn things on their head....What do you think?
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Louise Wiles
 

Hi John, we're talking about both but absolutely recognise that there are huge opportunities for companies in the developing countries... in terms of support for accompanying partners/families this is where we believe that more rather than less support is required in developing countries, and that support definitely needs to include cross cultural training as you say. Thanks for your comment. Louise
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Barbara Parry
 

I agree Evelyn, having worked in the corporate environment for a company that grew incredibly fast into 22 countries over 10 years, I saw that the executive suite were less and less interested in the expatriates. They were only interested in the bottom line. This is not possible when you have 500 families in 22 countries and they are all emerging countries.
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Louise Wiles
 

Thanks for your comment Barbara. It is interesting that as companies expand into new markets the expats that often head and support that expansion become the accepted norm - with expectations about their continuing commitment that is "assumed" rather than carefully nurtured. Distance without support, care, management and mentoring can lead to disengagement with the organisation and the creation of a desire to move on elsehwere - rather than the engagement and commitment that is really sought. Families are a part of the bottom line...
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Warren Heaps
 

Interesting article. The fundamentals of mobility are changing dramatically. We believe that the focus of typical expatriate policies emphasize the wrong elements. Instead of keeping people whole financially, as is the current practice, companies should focus on helping families adjust and assimilate into their assignment locations. Support, financial and otherwise, is needed to ensure families are comfortable in the new environment. This in turn will drive higher success rates. As far as talent is concerned, John nailed it. A McKinsey study from July 2010 predicts that by 2040, 25% of the working age of the world will reside on the African continent. We know that companies will not move the people to the jobs in large numbers, which only means that the jobs will move to the people. More and more employers will be moving into Africa and there will be increasing pressure on the local labor markets. Companies should be packing for this now.
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