GLOBAL TALENT CHALLENGES

Global Talent Challenges 

in today's competitive and uncertain business environment, organizations are experiencing many global talent challenges. According to Schuler, Jackson and Tharique, 2011, global talent challenges are substantial HR issues which emphasis on managing a business to ensure that; an adequate number of talents and motivation, are at right place, at the right price, through all economic and financial situations in a very competitive world. 

Major forces and shapers of the global talent challenge

According to Beechler and Woodward 2009, Global talent challenges arise in the context of a dynamic environment. As shown in figure 1, among the many factors which shape the talent challenges, globalization has a great impact. Development of world trade, increased competition, availability of customers and markets are the elements which affect the talent distribution globally.

(Schuler, Jackson and Tharique, 2011)

Demographics are another key factor of global talent challenges. Companies must consider demographic characteristics (age/region) when locating their operations internationally. As mentioned in The Economist 2006,   by 2025 the number of people aged 15-64 is projected to fall by 7% in Germany, 9% in Italy and 14% in Japan While the populations of many developed economies are aging and shrinking in size, the populations of developing and emerging economies are expanding and getting younger.

 Another factor which shapes the global talent challenge is demand for workers with competencies and motivation. According to National Commissions on adult literacy 2008, there is a high need for advanced skills and abilities to operate technologically advanced types of machinery, to interact with more challenging and knowledge customers and to deal with technological enhancement. Moreover, there is an increased demand for ‘’ knowledge workers’’ who often work together in teams that cross-cultural and geographical borders. (Grove 2010) Further, highly motivated employees are the strongest pillar for any organization. Motivated employees are dedicated, highly productive and they work with focus and energy. (Strack, Baier and Fahlander, 2008).Silzer and Dowell(2010) from their McKinsey global study (2009) found that only 29% of employees were “highly” motivated, while 62% were moderately motivated.

At the same time, the supply of workers with competencies and motivation also a factor which influences talent challenges globally. In developed economies, such as North America, Western Europe, and Japan, there also is an expected shortage of managerial competencies especially as the economy recovers. According to a report from the U.S. National Commission on Adult Literacy (2008), between 80 and 90 million American adults do not have the basic communication skills to function well in the global economy or to earn family-sustaining wages. Alone among other advanced industrial countries, American 25–35-year olds are not as well educated as their parents. 

These major forces and shapers poses numerous global talent challenges that firms need to manage as effectively as possible, including; talent surplus, talent shortage, talents available in the wrong place and talents available at the wrong price. As a result of this conditions, businesses may need to reduce/add workers and positions in their home country or move to another country and establish new operations at lower cost levels or outsource existing operations or add/remove workers in other countries. 

REFERENCES

Schuler, R., Jackson, S. and Tarique, I. (2011). Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business, [online] 46(4), pp.506-516. Available at:

https://www.researchgate.net/publication/288833178_Global_Talent_Management_and_Global_Talent_Challenges_Strategic_Opportunities_for_IHRM [Accessed 19 Jun. 2018].

Beechler, S., & Woodward, I. C. (2009). Global talent management. Journal of International Management, 15: 273–285.

The Economist. (2006). The CEO’s role in talent management: How top executives from

ten countries are nurturing the leaders of tomorrow. The Economist (London: The

Economist Intelligence Unit)

The Economist. (2008, June). Reach higher America: Overcoming crisis in the U.S.

workforce. Washington, D.C. National Commission on Adult Literacy.

Grove, A. (2010). How to make an American job before it’s too late. Bloomberg Business Week, July 1: 43–47.

Strack, R., Baier, J., & Fahlander, A. (2008). Managing demographic risk. Harvard Business Review, February: 2–11.

Silzer, R., & Dowell, B. E. (2010). Strategy-Driven Talent Management. New York: Wiley. Stephenson, E., & Pandit, A. (2008). How companies act on global trends: A McKinsey global survey. Boston: McKinsey.