Global Talent Management: 9 Strategies Implemented by the Market Leaders

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Talent Management is the practice of realizing human capital requirements and fulfilling them (Carpenter et al 2012). More comprehensively, Talent Management is the ability of an organisation to attract, recruit, retain, develop, and produce with employees (or potential employees) available in the required field/s. Going a step further, Global Talent management spreads this idea into the open world market.
With increased globalization, interest in Global Talent Management is on the rise. Companies are in search of a more diverse pool of options, to further strengthen their businesses and bring a wider perspective. Some companies, e.g. Reuters (information provider on professional markets), consider their talent management practices a source of competitive advantage. On the other hand, some companies have gone global; in terms of talent; as a marketing stunt with little to no effort of integrating these new employees. Common sense should dictate that the formal system is more sustainable than the later, and changes need to be made strategically for the companies jumping on the band wagon.
Like many other sectors, research in the field of Global Talent Management has tried to throw in a magic number to cap the best practices in the field. Some of these works are more credible than others, but the bottom-line stays the same: “One can always pick, choose and adapt according to their own needs, but inaction is the recipe for disaster”. The overwhelming human tendency to act only on the brink of disaster will not stand well against organisations who take these measures more seriously. A short survey of the industry shows that market leaders, such as General Electric, IKEA and IBM have long standing practices to manage their global talent more effectively. I am not implying that Global Talent Management is the only source of their market leadership, but it cannot be disproven that their efforts in this sector are adding to the overall well-being of the companies.
Following are some suggestions (an unsolid nine) regarding Global Talent Management, with examples from market leaders:
1. Start from the Start: Alignment of Talent Inquisition with Organisation Strategies
There are three schools of thought on the combination of Organisational Strategy and Talent Management.
a. Talent that drives business strategy (Korn Ferry Institute):
Companies working with this idea consider strategy no more than a road map that is fluid in nature, run by talent that will not break down along the way. This strategy sounds encouraging to the individualistic type, but the whole concept of an organisation is to combine the talents of a group of people, and produce the best results possible. This leaves some room for individual brilliance, but the whole structure cannot be balanced on this thought (or wishful thinking to be honest).
The line starts to get dimmer at some point, because the advocates of this strategy start talking about alignment and collaboration of business strategy and talent management. This sounds like a last-ditch effort to gain some credibility and cover all bases, with a miss-match of opposite thinking camps.
b. A collaborative partnership of talent management and business strategy (Applied by Philips)
Philips, the Dutch technology giant, claims to successfully integrate talent management and business strategy. The company claims further that this helped in linking leadership and innovation in the organisation. The claim would have held more ground if the company had not scaled down Philips Natuurkundig Laboratorium (Translation: Philips Physical Laboratory), from 2000 employees in 1972 to 200 in 2016. The scaling down was reported by the Dutch Newspaper NRC Handelsblad and the online source IT World, among others. Major companies do not refrain from throwing in big terms and this sounds like one of those situations.
This does not mean that Philips, or other companies, applying a collaboration strategy on this front are struggling. As of May 2017, Philips is listed as the 313th most valuable company in the world by Forbes. Using Jevons’ (1975) Terminology of Dragons (Knowledge that cannot be challenged) and Pussy Cats (Knowledge that needs to evolve), we need many Pussy Cats and a few Dragons to gain a balance between Talent Management and Business Strategy. In other words, Business Strategy holds the top tier of an organisation’s performance, where talent is acquired based on it. Later, organisations should not be afraid of making changes to these strategies to accommodate the talent better. This brings us to the next school of thought.
c. Talent acquiring based on business strategy (Applied by General Electric)
Hiring for the sake of hiring (or hiring globally for the sake of hiring globally), without an alignment policy with the corporate strategy, sounds like a headless chicken situation. Sadly, this happens more regularly than we care to admit. A more defined path, leads to a more defined hiring process, leading to acquiring the right talents.
A good example here is GE’s growth strategy, defined by five key elements: “Technical Leadership, Service Acceleration, Commercial Excellence, Globalization and Growth Platforms.” To fulfill these elements, the company focuses on attracting the right talent, especially in the engineering department, to satisfy the technological needs of the present and the future (Stahl et al 2012). In the first year of its implementation (2006), the strategy change resulted in sales revenue increase of 11%. Nasdaq has predicted a healthy growth rate of 10% a year for the company for the next five years.
As discussed before, strategic flexibility is also vital, and companies must revamp their approaches when the market conditions change. Companies that want to increase their market penetration in the developing world (arguably with higher potentials), need to re-access the new forces at hand and change accordingly.
2. Organisation/Corporate Culture
Needle (2004) defines organisational culture as the set of values, beliefs, and principles of members working in an establishment. It is a product of history, market conditions, technology, management styles, strategies, organisational ciphers, language, expectations, environment, beliefs and customs.
There are two ways to look at organisational culture from global talent management point of view:
a. Establishing an Exemplary Organisational Culture: Prerequisite
b. Placing new talent into the Organisational Culture
The awareness of companies in the field of organisational culture has improved dramatically during this century. With the rise of people centricity in some fields e.g. Lean Management, companies have started to recognize that an enjoyable working environment produces better results from the employees. Companies like Twitter, Google, and Adobe advertise their corporate/organisational culture to attract new talent.
Starting with the example of Twitter, the company offers a friendly and team oriented environment. As an employee at the San Francisco Headquarters, you may join a Yoga class or be sent on a vacation through the company. This has led to a working environment where employees do not leave until all problems are solved, sharing the vision of the company at the individual level.
Similarly, Google provides its employees free meals, financial bonuses and a dog friendly environment (among many other perks), while Adobe believes in promoting employee trust and creativity.
There are also similar examples outside the tech world. Chevron (energy corporation) promotes a culture of looking out for your co-worker, offers the chance to join health clubs, and surrounds its strategies around worker safety. Similarly, there are documentaries available about the employee happiness of Southwest Airline, which breaks all stereotypes of the grumpiness of airline workers.
Looking at these examples, it is not hard to believe that talent will be attracted to such environments. The next step in the cycle is to then help them integrate into the system. This can be done in two ways:
a. Hiring the right fit for the environment
This point is on the same line as the first argument: hiring talent according to the strategy of the company. The application of the idea though, does not require the same level of applicability, because a 100% organisational fit should never be expected.
Some companies, such as IKEA, include a compatibility test in their hiring process. Interestingly, the company openly advertises that skills, experience, and credentials are secondary to the values and beliefs of the applicants. IKEA has been able to create a competitive advantage in the furniture industry because of the rigorous application of this phenomenon.
b. Training the talent to fit in
The second method; more widely applied in the industry; is training and learning courses. There are numerous examples of this technique in the industry, including
· Samsung — courses on company philosophy, ethics and values for worldwide employees
· Intel — matching new employees with mentors to help settle in more easily
· KPMG (Legal Services Company) — connecting new employees with a support community to help with Certified Public Accountant (CPA) programs.
3. Succession Planning / Talent Development
Succession Planning is the process of identifying and grooming existing talent to take on bigger roles in the future, leading to a continuation in the work place. This can help in improving employee commitment, develop careers and reduce the cost of hiring on emergency basis.
There are many ways of looking at Succession Planning, including:
a. Career Path Defining
Talent is more attracted to a position if it provides a dynamic path of future success. New employees should know how their contribution will be rewarded by the company.
A good example here is the career path practices of supermarket giant, Walmart. In November 2016, the company declared its vision for 2025, including new targets, opportunities and goals for the community.
Companies can adopt the practice of defining general progression of a job e.g.
· Teacher at high school → Subject Head → Curriculum Designer … → Assistant Principal → Principal
· Sales Person → Sales Manager → Department Manager → Store Manager → Regional Manager
b. Learning and Development
It is generally said that humans never stop learning. Sadly, this principle is missing from the strategy of numerous corporations, who stagnate the development of their talent when they could be doing more and adding more value to the system.
An example of a learning and development program is the “learn @HBO”, providing a wider selection of courses for their full-time employees. The company also supports members that want to go back to school, by offering partial tuition fee contributions.
c. Cross-fitting / Job Rotation
Companies should offer a cross movement system for employees, where they can spend time in different departments and learn new skills. Sometimes, the employees are a better fit in another department, which can benefit both the parties equally.
An example of cross-fitting is the Rotation Program of Intel, providing opportunities in Finance, HR, and Sales and Marketing divisions. Intel calls it “a test drive for your career”.
d. Open Communication
The company should openly communicate with their employees and declare what are the goals of the company. This can help them realize where they can fit better in the puzzle and produce better results.
An example of this is the “Open Door” policy of many companies (It is better not to start listing all here). A more elaborate example is the “Unify” program of Siemens International (Engineering and Technology giants). The platform converts daily conversations into organised dialogue for better action.
4. Flexible Working Conditions
Flexible Working is a way of working that suits the needs of an employee. This can be in the form of flexible start and finish times, the option to work from home, swapping shifts with a colleague and so on. The initial interest in the field came from recognizing the needs of parents and carers.
In the UK, every employee holds the right to request flexible working. The employer is required to handle the application “reasonably”. European Commission also recognizes this practice as “an important element of the European Employment Strategy”, currently applied in at least 30 European countries.
There are many benefits of flexible working conditions, including but not limited to:
a. Higher Employee Satisfaction
b. Reduction in Employee Turnover
c. Lower Levels of Reported Stress
d. Reduction of Accommodation Costs
e. Reduction of Travelling Costs
f. Improved Customer Service and Productivity
g. Positive Impact on Working Environment
h. Improved Employee Morale
It is understandable that in some jobs (or some industries), the concept of flexible working cannot be implemented in full flow. A level of compromise, e.g. working from home on some days, can still be offered, showing a level of care for the employees.
One of the biggest believers of flexible working is Microsoft. The Chief Envisioning Officer of the company in 2007, Dave Coplin, stated that: “Instead of automatically assuming that work can only happen in the office, employers should focus on the work at hand, where it makes the most sense to complete it and then give employees the freedom and tools to empower them to be productive anytime, anywhere,”
5. Accept Differences / Understand Needs
In a broader point of view, no two people think or act in an exact manner. In a global talent market, these differences are multiplied and could create conflicts in the workplace. Management of these differences is what creates the benefits for the organisation.
Some people tend to take the term “acceptance” in a negative manner. It simply means acknowledging that another individual is different from you, taking him for who he is, and moving forward together. It does not mean that the existing work force should change all their values and systems.
Giving an example from my own community, one employee fasting does not mean that the organisation should remove all visible food from the area. A basic understand of why the person is fasting is enough.
The organisation could create an environment where employees take interest in each other’s personal life, e.g. through colleague meet-ups or arranging days out. A little training on cultural management or listening skills can also go a long way. The organisation should also put in place measures to tackle bad behavior and promote good examples.
Accepting differences can be the basis of accepting different opinions and viewpoints. There are clear advantages of such practices for an organisation, including:
a. Attraction from diversity (and hence a diverse pool of talent)
b. More open communication between workforce
c. Better decision making
d. A more positive environment
e. Higher retention of talent
f. Lower stress levels
Taking the example of Dell (Computer Technologies Company), the company offers cultural awareness training to its employees, teaching them on manners that are productive and counter-productive in creating an all-encompassing workplace.
6. Control Organisational Politics
Brandon and Seldman (2004) define organisational politics as behind the scene efforts to affect an organisation, increase control, or achieve other targeted objectives. Examples of such behavior may include providing special favors for promotions, bypassing the correct manner to get authorization for a project, lobbying for unfair decisions and so on.
All humans carry some individual objectives (not always negative to be clear), but any actions should not adversely affect the colleagues. Such actions can lead to discontent or resentment of the employees, and a general sense of unfair distribution of resources.
Taking the example of the academic world, different departments usually face a tug of war for resources (funding and tools usually), without realizing that a wholistic approach of the departments will produce more applicable results for the society. This was recognized by the University of Gothenburg in the early 1970s, leading to the creation of the Center for interdisciplinary Studies of Human Conditions. Reports and recommendations from the center have been considered by the Swedish Parliament and have resulted in policy changes in the past.
Organisations can deal with internal politics by applying the following methods:
a. Emphasis on Data: Numbers never lie
b. Foster Relationships
c. Define Common Ground
d. Act as a peacemaker / Solve issues before escalation
7. Performance Reviews / Talent Management Program
A Performance Review is a balanced assessment and documentation method of an employee’s performance. It may contain data on an employee’s routines against some pre-defined objectives of an organisation. It is conducted to materialize the individual efforts of an employee and hence define the organisational levels as a collection. It also forms the basis of employment decisions, such as promotions, terminations or transfers.
Performance Reviews are a key component of employee development. In most cases, organisations prefer a yearly review, which is usually too late for any performance amendments. For better talent management, managers (or any authority) should provide feedback on a regular basis, and help employees perform better for the organisation. Companies could also include the practice of personal and peer reviews. Techniques, such as sandwich feedback (listing positives and negatives), could be helpful to fulfill these needs.
A few benefits of Performance Reviews are listed below:
a. Understanding common ground
b. Defining new goals
c. Refocusing for future
d. Assessing training needs
An example here is the talent transformation program conducted by Cisco (Technology Conglomerate), called “Talent Cloud”. The company aims to collect data on all its employees (more than 70,000) and let them create a profile on their server, enlisting their skills and experiences. This will not only help the employees seek options to improve themselves, but also reward them by offering new opportunities to the matching candidates.
8. Manage Expectations
Employee Expectations are a combination of explicit (salary, duties and compensations) and implicit/psychological expectations. The issue here is the later part.
Generally, organisations emphasize greatly on what is expected of the employees without understand the expectations from the other side. Some of these expectations are quite universal, including:
a. Training and Development
b. Providing Guidance
c. Fairness
d. Respect
e. Opportunities to grow
There are also some individual expectations. Problems occur when the employer and employee are not on the same page, e.g. an employee may expect clear directions for a new job while the employer may want individual action to fulfill the job. Some of these issues are down to individual working styles, but room for confusion should be eliminated through open dialogue and communication.
Mitsubishi (Japanese multi-industry company) offers an elegant solution to manage employee expectations, by offering the chance to fill anonymous Employee Awareness Surveys. The company states that the aim of this practice is to balance the employer-employee expectations.
9. Reward Loyalty
A loyalty program can be defined as a rewarding system that encourages long term dedication to an organisation. Sometimes, the term is also interchanged with loyalty recognition. In most cases, understanding that the basis for the two are the same, companies combine the two concepts.
A good loyalty rewarding program can have the following benefits:
a. Retaining top talent
b. Inspiring employees
c. Driving results
d. Effective communication of corporate values
e. Higher employee satisfaction rates
Many companies have clearly defined loyalty schemes for customers, while they actively ignore their own workforce. These rewards are in the form of coupons, special offers, and sometimes (even) free merchandise. Such programs are well understood marketing strategies, but so can be a loyalty rewarding program for the employees, more so now because of the high turnover problem in many organisations.
Loyalty rewards do not have to be in the form of promotions only (I have seen some bad promotions). Any financial reward or recognition, e.g. posting the contribution of an employee on the official website as an example, can fulfill this requirement.
Gazprom (Natural Gas Sales Company) provides an “Employee Motivation System” aiming at attracting new talent, as well as increasing employee commitment to the organization. The promised rewards are both financial (bonuses) and non-financial (subsidizing qualifications and professional aptitudes).
Concluding Remarks:
Organisations generally emphasize on technical qualities, while the human section takes the back seat. In this era of globalization and intense competition, companies need to adapt a more dynamic approach, to manage its global talent more efficiently.
I have put together a list of suggestions that could help with the global talent management, but at the end, it comes down to learning and adapting. Companies should not be afraid of change; to observe their own environment and act accordingly. We can learn a lot from the leading companies and how they have conquered the business world, but their success is more about application than the strategies themselves.
The topic of internal consistency (only for positive practices) can also be addressed here. Companies that adopt a talent management program should insert all their efforts and see it through. Some of these programs may require financial commitment, along with the obvious senior management commitment, but the results from the market speak for themselves. In the long run, such practices can provide a form of market differentiation from the competitors, attracting better talent.
Global Talent Management is a small piece in the puzzle of competitiveness and business success, but the sustainable future of your corporation stems deep into it. “Happy Employee, Happy Business” if I may say.
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