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New KPMG Report Examines HRD's Role in the Global War for Talent

Wednesday, March 20, 2013
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Amid current worldwide economic difficulties, the globalization of business continues apace. Companies from developed countries are seeking greener pastures, while those from emerging markets have acquired sufficient scale to start taking on the world. At the same time, cost-conscious businesses are turning to technology to become increasingly flexible and virtual. In 2012, KPMG International commissioned the Economist Intelligence Unit to conduct a global study of 418 executives to investigate the global forces influencing the human resources (HR) function. The results from the study were recently released in the report, Rethinking Human Resources in a Changing World. Here are some highlights from the executive summary.  

Training Can Help Balance the Global and Local Issues

Unsurprisingly, globalization is affecting today’s workforce. According to the survey, 71 percent of respondents believe that working across borders (e.g., collaboration among teams in different geographies) has increased over the past three years, while at more than half of companies polled, international reporting lines and talent flows have also become more common. 

Survey respondents believe that expanding workforces in new markets, including the identification and hiring of talent across borders, has been the second-biggest concern for HR departments (after talent retention) in recent years and they expect it to remain so. Nevertheless, only one-quarter of respondents say that their HR departments excel at sourcing key talent globally and 24 percent say the same of their ability to support the company’s globalization strategies.  

One of the ways in which HR executives can better manage a globalizing workforce is to devote more attention to issues such as coaching, training, and staff development, as well as by changing remuneration and incentive schemes. But in so doing, companies need to work out just how globally consistent or locally customized these strategies should be. Dave Ulrich, a professor at the University of Michigan’s Ross School of Business, has conducted the largest global study on Hr competencies, surveying over 20,000 executives, half of whom work in HR. He says his research indicates that “HR has truly become a global profession with global standards for HR competencies.” He adds that efforts to develop purely local Hr solutions should be framed in the context of these global standards. 

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Mix of Mentoring and Technology Can Help Manage a Flexible and Virtual Workforce

Survey respondents are embracing the concept of a wider range of flexible work arrangements, which can reduce labor costs and allow greater access to talent. Sixty percent of businesses have increased their use of virtual workspaces while 48 percent reduced their reliance on physical office premises, shifting to hot-desking. These trends are set to continue, according to our respondents, with 72 percent maintaining that their companies should increase the use of both virtual and flexible workers. 

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However, survey respondents are less than satisfied with how well they are doing in meeting such challenges: only 24 percent of respondents believe their Hr department excels at supporting an increasingly virtual/ flexible workforce. 

The solution is often to balance the use of traditional tools, like in-person meetings and mentoring, with technological tools, such as instant messaging and videoconferencing. “You have to invest money and face-time with people initially,” says Mr. Westcott. “But once you’ve got the basic working relationships in place, it’s easy to use the technology to build connectivity and deeper relationships.” 

About the Study 

More than one-third (37 percent) of respondents identified themselves as C-level executives; the remainder are at the management level up to senior vice-president. More than one-half of respondents (58 percent) primarily serve an Hr function; the remainder (42 percent) represents a wide range of other functions. The respondents are based in Asia-Pacific (32 percent), Europe (30 percent), North America (28 percent), and Latin America (10 percent). A wide range of industries is represented, including manufacturing and energy & natural resources (both at 12 percent), IT, financial services, and healthcare & pharmaceuticals (all at 11 percent). More than one-half of the companies surveyed (53 percent) boast more than 10,000 employees; 22 percent have over 50,000; and the remaining 47 percent have between 1,000 and 10,000 employees. 

To learn more, download the full report.

About the Author

The Association for Talent Development (ATD) is a professional membership organization supporting those who develop the knowledge and skills of employees in organizations around the world. The ATD Staff, along with a worldwide network of volunteers work to empower professionals to develop talent in the workplace.

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