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Growing pains: Challenge 4 - EY - Global

Growing pains: 4 human resource challenges for expanding businesses in rapid-growth markets

Challenge 4 - C-suite leaders and lower-level managers hold conflicting views on talent management

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Building an international management team

In building your international management team, which approach will you most emphasize over the next three years?
Building an international management team

Note: Overall base = 810; C-suite = 371; manager = 162;
scores shown = percentage of respondents who strongly agree

Effectiveness of talent management: C-suite vs. managers

How effective is your company at the following aspects of talent management?


Effectiveness of talent management: C-suite vs. managers

Note: Overall base = 810; C-suite = 371; manager = 162;
scores shown = percentage of respondents who strongly agree ranking “very effective”

For many emerging multinationals, the retention of talent is a persistent challenge.

The gap in priorities across C-suite and managers presents an additional challenge to talent management. In particular, our survey found significant differences in viewpoints around:

  • Recruiting locally from new markets
  • Effectiveness in rewarding high performance
  • Aligning business strategies with an individual’s performance objectives

As companies expand into new markets, it becomes harder for the corporate office to align with satellite operations and for C-suite leaders to be in harmony with rank-and- file employees. Managers and senior executives are rather far apart in their perceptions about talent management.

The widest gap is in their priorities with regard to building an international management team: C-suite respondents give a very low priority to recruiting locally from new international markets, compared with managers (16% as opposed to 33%).

Building an international management team
In building your international management team, which approach will you most emphasize over the next three years?

Building an international management team

Note: Overall base = 810; C-suite = 371; manager = 162;
scores shown = percentage of respondents who strongly agree

Compared with managers, C-level respondents have a much lower opinion of their companies’ effectiveness in rewarding high performance across different markets (19% vs. 26%) and aligning business strategies with an individual’s performance objectives (13% vs. 25%).

Effectiveness of talent management: C-suite vs. managers
How effective is your company at the following aspects of talent management?

Effectiveness of talent management: C-suite vs. managers

Note: Overall base = 810; C-suite = 371; manager = 162;
scores shown = percentage of respondents who strongly agree ranking “very effective”

Responses - Establish uniform metrics for managerial performance

In addition to traditional performance measures, developing talent has become an important metric. Foster employee engagement by

  • Promoting from within
  • Investing in learning and development
  • Aligning an individual’s goals with those of the business

For many emerging multinationals, the retention of talent is a persistent challenge. If these companies do not try to align individual employees’ goals with business objectives, talented people will feel they have no stake in the future of the company and will quit.

Jeff Joerres, the Chairman and CEO of Manpower Group, says “There’s really no substitute for rewarding local employees by promoting them to more senior positions if the turnover rate is to be reduced,” he says. “If they feel as if they’re growing and contributing to the overall success and vision of the company, they’re going to stay longer.”

The pendulum can also swing too far toward local autonomy. Instead, Leisy sees a shift toward a blend of company metrics with business unit, sector and functional metrics. In his view, the common metrics for measuring managerial performance will continue to be growth, quality of customer service, efficiency of operations and financial performance, but with a new and maybe the most important measure: the development of talent.

Response: create an inclusive people culture with clear communication across all levels

Effective communication and an appreciation for diversity are increasingly important as organizations become more global. However, a single company mission must connect all levels and regions.

Ideally, the best-run companies would achieve a perfect balance between autonomy and centralization and between global and local, and would have efficient communications between the top of the company and the bottom. These companies would be led by individuals who are sensitive to the nuances of different markets, communicate effectively with their teams as well as with employees across the company, and understand the value of diverse perspectives in producing better outcomes – all while keeping the overall mission and values of the company in mind. In reality, not many such companies exist.



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Contact us to find out more

  • Email Bill LeisyGlobal Talent Management Market Leader
    +1 404 817 5370
  • Email NS RajanGlobal Leader, People & Organization
    +91 124 671 4810
  • Email Dina A. PyronGlobal Director, Human Capital
    +1 212 773 7667
 
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