Emerging multinationals face several challenges as they build and execute their global talent strategy
Getting the talent equation right has never been easy for businesses, but as they globalize, it is proving exceptionally difficult.
In a recent EY survey, 42% of respondents identified talent management as the second most challenging function to manage globally.
According to the global staffing organization Manpower Group, between 2010 and 2011, employers reported a dramatic surge in difficulty filling positions. In India, for example, difficulty jumped to 67% in 2011 from only 16% in 2010.
In the US, it rose to 52% from just 14%. The talent gap is especially problematic for companies from rapid-growth markets that are seeking to expand beyond their borders, regardless of destination.
Our new survey reveals that these emerging multinationals face several challenges as they build and execute their global talent strategy, these include:
- Cultural differences
- Conflicting internal perceptions of talent management
- Difficulties in balancing global and local talent
- Lack of a reliable leadership pipeline
Although Western companies deal with similar challenges, they have been internationalizing for decades. Globalization is a more recent and more sudden experience for their rapid-growth market counterparts. As a result, human resources strategies of rapid-growth market companies often lag behind their widening operations.
Our research identified four major challenges that affect rapid-growth market companies. We also make recommendations that offer effective responses to these challenges.