Talent management and global mobility need to be fully integrated.
Rapid-growth market companies are not confident that their organization has or can build an effective international management team.
Top management teams lack awareness of local cultures and understanding of global markets, according to our survey results.
Without the ability to develop a core of experienced managers and leaders for a newly global workforce, firms based in rapid-growth markets face difficulties ahead as they look to grow beyond their borders. Most respondents are not confident that their organization has an effective international management team and do not feel they can build one.
Less than a third of the respondents polled are strongly confident about their top management teams' international outlook on decision-making. C-suite executives are even less sure than their line managers - only one in four were confident, compared with one in three of the managers.
Overall, just one in five executives believes that their company achieves the right balance between local talent and expatriate managers in international markets.
International experience of top management team
To what extent do you agree with the following statements?
Note: Overall base = 810; C-suite = 371; manager = 162;
scores shown = percentage of respondents who strongly agree
The two main knowledge gaps in top management teams are an awareness of local culture and an understanding of global markets. China, for example, while clearly a major global market, has nuances that can only managers with hands-on local experience can address.
Knowledge gaps in top management teams
Where does your organization's top management team need more knowledge and insight to be successful in today's global marketplace?
Note: Base = 810; scores shown = percentage of respondents
A big hurdle for all global businesses is that the skills they need to expand geographically are not readily available in rapid-growth markets. Even though there are large numbers of graduates coming from business schools and other tertiary institutions in places such as China and India, the quality is not high enough yet.
Response: integrate talent management and global mobility strategies
Develop leaders from within and mandate global experience for staff members who aspire to future management positions. An integrated approach to talent management and global mobility will be an important factor in striking this balance.
“Talent management and global mobility need to be fully integrated,” says Bill Leisy, Global Talent Management Market Leader in the Human Capital practice of EY.
“This does not happen overnight. Companies need a formal process of determining which job requires what type and level of international experiences, embedding these experiences within career paths and employee development, and then selecting and mobilizing the right talent.”
“In my view, you should try as a company to create local leadership as soon as possible, and it will take a couple of years, obviously,” says Ben Noteboom, CEO of the Dutch firm Randstad, a global staffing organization.
“Then you will have local senior management managing that operation in that specific country and that to me is the ultimate, because they are the people that best understand the local environment.”
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