The Chartered Management Institute predicts in Management Futures The World in 2018 that the workforce of the future will be more diverse and the talent market will be more complex. Global operations, mobile workers and emerging markets all have an impact upon business and HR processes. The performance management process has to be flexible enough to cross international boundaries and meet the needs of a diverse workforce.

As Deloitte Development LLC suggests in Smart Moves, there are a number of factors driving “the new requirements for global mobility.” These factors include the “business environment, international expectations, compliance environment and talent environment.”

For example:

1) Many experts anticipate that China will have a huge influence on the future of business. A Global Futures/Foresight/Fast Future survey consisting of 723 responses from around the world showed that:

•       Over half (55%) of respondents expect that “China will increasingly become the launch market for new products and services”

And

•       Slightly fewer (45%) of respondents “believe Chinese management styles will gradually influence global corporate cultures and business practices.”


2) A shortage of skilled workers in any location will impact employee mobility. To help ease shortages of skilled workers in Canada, the Government of Canada has a Temporary Foreign Worker program in place. How commonplace this type of program will become in the future remains to be seen, but as mentioned in Lost in Translation: Moving Compensation Abroad, a Deloitte and Touche Tohmatsu and Economist Intelligence Unit survey showed that “senior business executives rate recruitment abroad over the next three to five years as 10 percent more valuable as a source of talent than do their HR counterparts.” Voicing a similar sentiment, David Smith writes in The Future of Companies “whether you like it or not, whatever business you’re in you’re just as likely to be competing with Dubai, India and Kazakhstan for your new employees as with the firm down the street.”

Once employees are hired, the performance management process has a direct impact upon the satisfaction and thus the retention of employees. Yet, certain challenges exist. Regulations and compliance measures may vary between countries. Privacy laws can restrict the sharing of information that is critical to tracking performance and supporting basic performance management dialogue. Employee expectations and values can impact how rewards are delivered and the type of workplace flexibility that is required. Language differences need to be accommodated and differences in compensation rates may need to be addressed. In Going Global, Robert Mattson discusses these challenges and provides practical suggestions and solutions.

All in all, certain elements of the process will remain consistent. Each employee has a need for feedback, respect, clear communication and the opportunity to contribute. The following results of a survey conducted by Kenexa with over 400,000 workers from China and the U.S. provides a snapshot of the perception of some of the basic factors that influence employee satisfaction, engagement and performance management.

According to the survey, favorability rankings did not vary significantly based upon geography for the questions related to managers meeting commitments, co-workers putting in their best effort, trust in leadership and recommending the “company as a great place to work.” Survey results also showed that a larger percentage of Chinese workers than U.S. workers rated issues related to trust in senior leadership, interdepartmental cooperation and teamwork, communication about “important activities” within the company and encouragement of “different ideas and opinions.”


References:
Chartered Management Institute. Management Futures The World in 2018. London, UK: Chartered Management Institute, March 2008.

Deloitte Development LLC. Smart Moves. Deloitte Development LLC, 2008.

Human Resources and Social Development Canada. “Temporary Foreign Worker Program.” [www.hrsdc.gc.ca]. Obtained April 4, 2008.

Kenexa Research Institute. Kenexa Research Institute Uncovers Contrasting Perceptions of U.S. and Chinese Workers in Multi-National Organizations. Employee Insight Report, Executive Summary, No. 6, 2007.

Margolis, Daniel. “Lost in Translation: Moving Compensation Abroad.” Talent Management Magazine, August 2007, p 28.

Mattson, Robert. “Going Global.” Talent Management Magazine, August 2007, pp. 26-31.

Smith, David A. The Future of Companies. Global Futures and Foresight and Shirlaws, 2007.

Talwar, Rohit. The Future of China’s Economy. UK: Global Futures and Foresight and Fast Future, March 2007.