Acquiring Global Talent: Challenges and Strategies in Talent Management

1. Chapter 6 Acquiring Global Talent

2. The Next Big Talent at Infosys • Infosys today • Revenues are close to $9 billion with over 176,000 employees • Global provider of software services, shrinking geographic distances • Born Global—heavy investment in talent pools • Attracting and selecting the “right” 1 percent • Globalizing the employment brand, recruiting top talent in key markets • Expanding and improving talent pool, campus visits, internships • Intranet system to manage internal talent market, increasing retention

3. The Challenges of Talent Management • What is talent management? Why is it so important? And what are the key challenges? • How to managekeyhuman capital in an integrated manner: • Recruitment • Selection and assessment • Performance management • Development • Retention

4. What is Talent Management? • Talent is everyone?... or… Talent is the critical few? • Focus on A-positions: • Those with a direct impact on company strategy • Positions with wide variation in performance • Those that involve firm-specific skills • Does this means that B and C positions don’t count?

5. Which Jobs Make the Most Difference? SOURCE: Adapted from M.A. Huselid, R.W.Beatty, & B.E.Becker, « A Players or A Positions? »Harvard Business Review, December 2005.

6. Why is Talent Management so Important? • Shifting Demographics • Shortage of qualified staff are among the top concerns of CEOs today • Local educational systems may not foster necessary skills • Shifting Globalization Trends • Staffing strategic functions with local talent, e.g. Bangalore, São Paolo • Local talent leaving multinationals to join or start local firms • Shifting Individual Mobility • Access to informationaboutemployers, jobs, potentialemployees • Increased need to manage retention • Shifting to a Learning Economy • Upskilling: company performance dependent on skills of employees

7. Demographic Changes:GermanDemographic Profile 2014 6-7

8. Demographic Changes:China Demographic Profile 2010 vs. 2050 6-8

9. The Challenge of Emerging Skill Gaps • Imbalance between skills needed and skills available in specific countries and industry sectors • Education system does not facilitate development of needed talent • Impediments to migration of talent from abroad • Sectors of population remainoutside the talent pool • Labor laws—employersmaybecautiousabout hiring • Firmsreluctant to invest in talent—fear of talent poaching 6-9

10. Global Talent Competitiveness Index

11. Internal Labor Markets: Advantages & Disadvantages 6-11

12. Towards a Mix of Build and Buy:Four Key Questions to Ask • For how long will the talent be needed? • Is there a career hierarchy of skills and jobs that facilitates internal development? • Is the culture of the firm part of its competitive advantage? • How accurately can one forecast demand? • See P.Cappelli Talent on demand. Boston: Harvard Business Press, 2008. 6-12

13. Balancing Acts in Talent Management • Local adaptation or global consistency? TM is traditionally a local matter … … but there may be strong arguments for global consistency • Finding and developing the best people in local markets • The ability to deploy talent across borders • Access to a global talent database • Facilitation of global workforceforecasting • Avoiding the herdeffect—utilizing talent in second tier locations • How do you react when local managers say—Weare different? 6-13

14. Managing Recruitment:Identifying and Attracting Potential Employees • Forecasting the Need for Recruitment • Workforce planning, competency-gap analysis, simulations • Reaching Out to Attract Talent • Relationships with universities, business schools, and technicalschools • Internships • Contests, competitions, and fellowships • Employee referrals • Internet (e.g. targeting passive job seekers) • Advertising • Professional recruitingfirms and agencies 6-14

15. Global Employer Branding • Marketing the firm to recruits • Branding techniques derived from marketing and customer analysis • Thinking of recruits as customers • Segmenting the talent market • Analyzing effectiveness of brand image • Need to line up brand image with internal branding • Firms must ensure that employees are attitudinally and behaviorally ready to deliver on the brand

16. The Employee Value Proposition Company Values Culture Strong Results Exciting Challenges Leaders Affiliation Work Content Career Financial Benefits Compensation Integrity Focus on People Career Development Respected Boss Freedom Autonomy Exciting Tasks Growth/Development Job Rewards 6-16

17. Managing Selection • Identifying the mostsuitableperson from a pool of candidates • Assessing fit between the candidates and the job • Closelylinked to the management of diversity • Four Issues: • Logicused for selecting talent • Selectionmethodsacrosscontexts • Management of diversity • Challenges of internalselection 6-17

18. ThreeCompetencyLogicsGuiding Talent Management 6-18 SOURCE: AdaptedfromJ.P.Briscoe & D.T.Hall, « Grooming and picking leaders usingcompetencyframeworks », Organizational Dynamics, Autumn 1999.

19. Selection Methods: Context • The use of different selection methods vary from country to country: • Interviewing • Testing • Assessment Centers • Key questions: • Evidence of thevalidity of theselectionmethodsused? • Necessaryadaptation to thecontext?

20. Selection and Diversity Management • Diversity and selection are closelyinterwoven • Selection bias is a significant factor in discrimination • Open-job resourcingsystems tend to belessbiased • Systemswhereselectioncriteria are informal and closed tend to have more bias • How multinational firms manage diversity • Inclusiveness scores • Emphasizing the business case for diversity • Global strategy or more local approach • Nationalityremains a challenging issue 6-20

21. Schlumberger’sDiversity Initiatives • Special programs to identify high potentialminorities • Recruitment targets for minorities • Minorityrecruiters acting as rolemodels • Becoming an employer of choice for dual-career people • Encouraging the joining and developing of networking groups • Measuring INCLUSIVENESS • Long-standing principle that recruitmentshouldbroadlyparallel geographic distribution of revenues 6-21

22. The Challenges of Internal Selection • How do global companies identify leadership potential? • The Elite Cohort Approach – Japanese firms • recruiting from target universities for long-term careers • not easily modified, and incompatible with localization • The Elite Political Approach – Latin European firms • Recruits from elite universities and MBA programs are identified at entry and immediately given a position of managerial responsibility • The Functional Approach – German firms • Apprenticeship style develops in-depth expertise but slow decision-making • The Do-It-Yourself Approach • Finding talent internally by providing self-guided tools to help employees move onto bigger and better positions within the organization

23. The Transnational Approach to Assessment of Potential • Transnational Approach of Multinationals • Decentralizing responsibility for recruitment to local units • “Locally managed functional trials” • How to Identify Potential • Local general managers submit names of potentials annually • Developing key performance indicators of high-potential local talent • Expatriates identify local high potentials

24. Balancing Short and Long Termin Talent Management • The danger of a vicious cycle of boom-and-bust in TM • Managing countercycle : • Askingoneself in the good times the Shell question: « What will wefight to preserve when the cold windblows? » • Rigorous performance management in the good times • Recruiting and developing for the future in the hard times • When no-one else is recruiting, that’s the time to get the best! vs 6-24