Forty-Two Percent of Companies Struggle to Build Teams in Rapid-Growth Markets: Ernst & Young
TORONTO, ONTARIO--(Marketwire - Oct. 31, 2012) - Getting the right people in place is a linchpin to success in large, rapid-growth markets, but 42% of global organizations are struggling with it, an Ernst & Young survey finds.
Growing pains: companies in rapid-growth markets face talent challenges as they expand finds that a mere 20% of executives believe their company manages talent effectively across all markets, and less than one-third agree their top management team has an international outlook on decision making.
"This issue is increasingly important to companies here. Especially as Canada's recent invitation to join the Trans-Pacific Partnership could translate into incredible future opportunities in many emerging growth markets," says Jeff Charriere, Ernst & Young's Canadian Managing Partner for Accounts and Markets. "But getting a leg up on the competition means getting the right labour mix in place. That's the crucial piece of the puzzle, and something many companies are still wrestling with."
And it's not just how companies are managing people - it's who they're recruiting, too. Growing pains found only 17% of executives say their companies are doing an effective job of attracting people with the right skills to align with their business strategies.
Overall, the report finds that tackling four key talent management issues can go a long way to supporting the future success of multinational organizations:
1. Top management teams lack international experience. Develop leaders from
within, and mandate global experience for staff to broaden your
company's international footprint.
2. Lack of an internal management pipeline forces companies to recruit from
rivals. Avoid recruiting from competition, which can lead to high
turnover and salary inflation. Instead, focus on building internal
pipelines early on that develop local talent.
3. Companies are unable to retain and reward high performers in different
markets. Align employees' goals with business objectives and promote
incentives that reward high performers.
4. C-suite leaders and lower-level managers hold conflicting views on
talent management. Establish uniform metrics that enable your company to
compare talent management processes across regions.
"There's no one-size-fits-all style of management," Charriere concludes. "But the most effective mobile management teams will demonstrate sensitivity to local markets while being adept at harnessing diverse perspectives, producing better results and making their global mobility strategy more sustainable."
About the survey
Growing pains: companies in rapid-growth markets face talent challenges as they expand draws on a survey of 810 business executives from all major rapid-growth markets conducted for Ernst & Young by the Economist Intelligence Unit during March and April 2012. Respondents included companies from 35 rapid-growth markets and 21 sectors. Fifty-three percent of the respondents were CEOs, CFOs or other C-level executives. Forty-four percent of the companies surveyed reported revenues of US$1 billion or more.
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