10 Global HR Trends
- 1- The importance of globalization and integrating markets: Companies will become larger and more global in the next 10 years, handling operations in more countries than they do today; we’re living in an increasingly border-less world.
- 2- Talent management: Finding and retaining quality talent continues to be essential to business sustainability. Finding and retaining quality talent continues to be essential to business sustainability, though its importance in relation to other challenges differs by location-There are more contingent workers, and the rationale behind work force investment is changing and moving in multiple directions-Most industries and countries are to experience a widening talent gap, notably for highly skilled positions and for next generation of mid and senior leaders.
- 3- Working virtually across functions and geographies will intensify, with implications for intercultural communication, business ethics and organizational effectiveness.
Localizing management of overseas operations is key, but a global outlook is just as important as local knowledge.
Businesses need to find new ways to connect people to each other and to information, both internally and externally; the expectation of having an “always-available” employee varies around the world.
- 4- Global employee engagement is tentative; companies that have implemented multiple layoffs have eroded a sense of security in the global work force.
There is a disconnect between what companies currently have to offer employees and what employees really value; Retaining valued talent is more important, but the drivers to retain that talent are different depending on the type of market (growth opportunity is paramount in growth markets; new or challenging responsibilities is paramount in mature markets).
The gap in creative leadership, executing for speed, and managing ‘collective intelligence’ must be addressed.
- 5- The economic crisis and fewer existing business opportunities create a high demand on the global HR function to demonstrate greater adaptability.
HR will be an important link between corporate headquarters and overseas operations; HR is conducting too many initiatives, with mediocre outcomes. Companies need to reboot their HR function and boost resources devoted to HR.
- 6- Economic uncertainties fundamentally change motivators that attract and retain employees.
There is a disconnect between what companies have to offer employees and what employees really value.
- 7- Human capital protectionism may continue to increase in many countries in non-tariff, nationalistic forms.
- 8- Global mobility of high-value workers continues as multinational companies restrict new hires and relocate talented employees from within their existing work force.
- 9- Companies that originate in emerging economies will continue to succeed in the global marketplace.
- 10-Increased demand for HR metrics may bring about a widely accepted set of analytic measures and methods (global standards) to describe predict and evaluate the quality and impact of HR practices and the productivity of the work force. However, globalization is also driving impetus toward the use of more metrics with greater cultural sensitivity.
- A “global mindset” is often defined as a way of seeing the world and the globalization of markets, organizations and individuals. Developing a more global mindset enables your organization to be more effectively tackled functional, organizational, and cross-cultural boundaries and move forward.
How can HR do more to manage these trends?
Some ideas to help organizations adopt a more global mindset:
- Global mobility: Deepen your employees’ knowledge pool by offering short-term, focused opportunities for individuals to work in new markets and geographies.
- Develop global leadership pipelines: There is a growing expectation for leaders to have work experience outside one’s country of origin; simply having an education that includes global topics is no longer enough. Travel is a strategic management development tool.
- Get involved in efforts to create global HR standards.
- As there is a higher demand on the global HR function to demonstrate greater adaptability, provide HR managers more exposure to and rotations in global business that they need to be effective internationally. Make HR the link between corporate headquarters and overseas operations.
- As far as talent management: Include nationalities and experience in your efforts to diversify talent in other functions and other industries. Increase the span of responsibilities and decision-making of employees.