The HR guide to the galaxy (or at least most of Earth)
In the business universe, change is happening at warp speed, especially when it comes to Human Capital Management. If you’re not ahead of the game, you’ve already fallen behind. Here is an expert field guide to help you succeed as a global corporation and conquer the corporate cosmos.
While more than two-thirds of multinational companies see talent acquisition as the workforce management strategy with the greatest impact, nearly half identify talent management as their top business challenge.
An overwhelming majority (93%) of CEOs around the globe admit they need to change their talent strategy, yet only 1/3 will actually attempt to do so. That’s quite a disconnect, one that can hurt a global company’s ability to expand.
Is your Human Capital Management (HCM) capable of recognising trends as they develop?
It should be. For example, the No. 1 global business objective for many organisations is to continue growing by expanding into new markets.
How prevalent is this trend?
A majority of HR executives expect to up headcount outside their headquarter country in the next couple of years. This “new market expansion” is representative of a rapidly changing global footprint, as the number of international and foreign employees is on the rise.
On average global companies are trying to measure 33 payroll systems and 31 HR systems and counting. That’s a lot of systems! It also creates a lot of potential challenges. For real global agility, a company should be trying to simplify via system consolidation. This allows them to focus on the outcomes instead of the process. After all, you can’t see where you are going if you are always staring at the steering wheel.
A recent study revealed that only 14% of companies have any analytics capabilities in HR. Knowing that, it should not come as a surprise that only 15% of senior business leaders say they changed a business decision in response to a HR insight in the past year.
This is a major opportunity missed. By streamlining infrastructure, your HCM can hone in on more strategic contributions like predicting skills shortages, managing global talent mobility and developing the next leadership team. Is this the way HR can become a resource – a kind of a secret weapon – that supports overall business initiatives by prioritising areas if greatest impact, makes data-driven workforce management decisions, and helps with risk mitigation and compliance.