By Nicole D. Le Maire
“80% of the world’s employees work in emerging markets, and by 2030, new markets are expected to produce 70% of world GDP growth” (How the Emerging Markets are Changing the Global HR Agenda)
The trade globalization stemming from the impact of the developing economies of China, India, the Philippines and the like, make the #GlobalHR function a vital business component.
As countries like China move from the sidelines of the world’s financial market to the center stage, international business requires strict organization and policy planning, multi-cultural leaders and the right technology to communicate with their team based thousands of miles away. Different locations call for a fresh approach to people management.
One of the biggest challenges facing HR in a global market is acquiring the right talent for your organization. The World Economic Forum’s study on Financing Demographic Shifts reports that while the world’s population continues to grow “rapid population ageing around the world and a decline in the labor force in mainly developed countries will challenge the financial sustainability of most public pensions and healthcare systems.”
An older working population brings its own challenges, such as increasing medical expenses for businesses that offer a healthcare benefit.
Establishing culture-wide policy across the board and assessing the needs of international employees can prepare your #GlobalHR function to cope with the influx of an emerging market.
The World Economic Forum report also warns that there simply may not be enough skilled workers to fill roles within the next few decades – estimating that for example Europe must add 46 million workers to its economy by 2030 to sustain a 1 – 4% GDP growth. This leaves the western HR arena with a very shallow talent pool!
As emerging markets bring greater challenges, organizations must begin to nurture their future leaders to secure a stable future. The people function can do this by assessing their best talents and encouraging further training for those in entry level roles.
The Society of Human Resource Management’ Future Insights report states that “organizations operating in multinational, multicultural environments will need to adapt to managing a workforce made up of unique ethical perspectives while remaining compliant with applicable local laws, regulations and customs.”
The importance of being culture-sensitive while remaining profit-driven and commercial is paramount when considering HR in new markets. As the world market develops so must the people function, and this means creating creative and innovative solutions to emerging market people issues!
Nicole is the founder of The People Engine Ltd with the brands Human Resources Global and New To HR. Join Nicole at the HR Summit & Expo in Dubai this November, where she will be facilitating a complimentary workshop on this topic.
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