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Managing Talent is Key HR challenge All Round the World

By Anna Reynolds,2014-06-17 19:49
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Managing Talent is Key HR challenge All Round the World

    ‘Managing Talent’ is Key HR challenge All Round the World

The competition for critical talent continues to intensify and many companies are re-evaluating their

    global talent management practices. As business objectives continue to focus on growth in emerging and

    other non-traditional markets and companies search globally for new workforces, the global mobility

    function has become a critical tool to develop and deploy key talent. The organizations that master global

    talent mobility will dominate markets in the 21st century. In response to this imperative, the global

    mobility function must redefine itself from a transaction-based employee service provider to a strategic

    and innovative business partner.

FINDING and nurturing the right people is the most critical HR challenge both for fast-growing

    companies in rapidly developing countries and market leaders in established economies, according to a

    new survey to be unveiled at the World HR Congress in London this month. Conducted by the Boston

    Consulting Group (BCG) in co-operation with the World Federation of Personnel Management

    Associations, the study of more than 4,700 executives in 83 countries shows that ‘managing talent’ is at

    or near the top of the agenda in every region and every industry.

This issue ranked as the most important HR topic in nine of 17 countries analysed in depth generally the

    largest economies in seven different regions around the world, including the United States, Australia,

    Singapore, Japan and the United Kingdom, and was one of the top three topics in 14 of these countries.

    Executives from Latin America and the emerging markets in Asia claimed they expect their companies to

    move businesses to new locations to find talent, which, say BCG, is a reflection of more globalisation and

    competition.

The survey follows on from a Europe-only study of 27 countries conducted last year in association

    with the European Association for Personnel Management (see article by Michael Leicht

    et al in WorldLink, July 2007). The final report, ‘Creating people advantage: how to address HR challenges worldwide through 2015’, incorporates the findings from an additional 56 countries and

    provides detailed analysis of the most important HR issues in the 17 ‘focus’ countries and a quick

    overview of HR conditions in 29 other nations. It also develops profiles of key HR priorities for seven

    regions. The survey was complemented by over 200 interviews with senior executives.

The three most important HR challenges to emerge from the survey were managing talent, improving

    leadership development and managing work-life balance. Interviews with executives uncovered a strong

    connection between these three topics, which the report categorises as ‘developing and retaining the best

    employees’. Executives in Argentina and Chile, Brazil, Canada, India and Japan all said that managing

    work-life balance would be one of their key future HR challenges. About three quarters of Canadian

    executives said that they expect their companies to offer both flexible and part-time working by 2015,

    while India, which has a young workforce, is focused on managing work-life balance for its young

    professionals, who have many career options. Many executives expected their companies to respond

    by offering sabbaticals and teleworking options. Another key strategic category, defined as

    ‘Anticipating change’, encompasses ‘managing demographics’ – the fourth most important HR challenge, plus ‘managing change and cultural transformation’ and ‘managing globalisation’. In

    North America, and many European countries, say BCG, companies are trying to prepare for the loss

    of productivity, capacity and knowledge as employees age and retire. In North America and the Pacific

    region executives expect semi-retired and retired employees to close the capacity gap.

One of the surprising findings of the survey, according to BCG, is that executives in Japan and China do

    not recognise that their countries will face a major challenge in replacing retiring employees. Japan is

    already feeling the effects of an aging workforce, while China’s day of reckoning, a direct consequence of

    the one-child policy implemented in 1979, is still in the future.

Other key findings include the following:

    - Improving leadership development is critical in China and India, where companies often lack skilled

    and experienced leaders to match their ambitious growth plans;

    - Corporate social responsibility ranks as a top issue in Russia, where companies acquiring assets in Western Europe are using it to reduce skepticism about their motives and create goodwill;

    - Becoming a learning organisation is one of the top four issues in Germany, Japan, South Korea and Spain, all countries facing competition from challengers in rapidly developing economies that are

    moving into their key markets;

    - Managing globalisation is the most critical future HR challenge in South Korea, where the country’s

    economy is increasingly buoyed by export-led growth.

As with the earlier European study, one of the key findings of the survey is that non-HR executives are

    much more likely to approve of the performance of their HR department if they are able to demonstrate

    mastery of basic, traditional HR processes and activities, restructuring the organisation and not least

    recruiting and staffing.

The report identifies ways of enhancing capabilities in each of the highlighted areas of challenge. For

    access to the report, contact: marketing.de@bcg.com

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