Culture & Business Transformation
Global HR Leaders Meet in on the U.S. East Coast to Discuss Emerging Markets HR and Talent Trends
- Date:
- 29 May 2012
The Chapman Consulting Group co-hosted discussion groups on the U.S. East Coast for global HR Leaders last week. Sessions were held at the offices of GlaxoSmithKline (Philadelphia); Thomson Reuters (New York) and Credit Suisse (New York). These discussions focused on the latest HR and talent trends in Asia Pacific and other Emerging Markets, with China and India featuring heavily. Key topics were as follows:
Increased Levels of Global Mobility of HR Talent
HR Leaders reported that they are experiencing (and driving) a greater flow of talent around the world particularly to and from major emerging markets. It was noted that companies are endeavouring to provide top talent from key emerging/growth markets with short-term and long-term mature market and headquarters working experience. Participants cited an increase in ‘returnee’ talent, especially to India and other emerging global centers where a growing number of regional and global roles are being located and salary packages are becoming progressively more attractive. Another observation of the group was the need for global HR Leaders to have international (in-market) working experience, preferably including some time spent in major emerging geographies. It was agreed that in future global HR Leaders will increasingly be expected to have geographically diverse resumes.
The Erosion of the Value-for-Money Equation in Emerging Markets
The importance of making the right long-term investment in people was noted by the group. At the same time, the rapidly increasing cost of doing business in emerging markets was highlighted as a concern, particularly in larger, rapid growth markets such as China, India, Brazil and Argentina where talent shortages and spiralling salaries are most evident. There was some lively discussion around the high cost of local talent as well as the strategies that companies are employing to address hefty expatriate costs. There was some variation between companies in terms of the extent to which companies feel compelled to pay full expat package vs. offering 'local plus' packages in non-hardship geographies. It was generally acknowledged that the incidence of foreigners being employed on local or local plus terms is definitely trending upwards.
Retention and Development of Top HR Talent
Some spirited discussion revolved around the difficulty of retaining top talent in key emerging markets. Concern was expressed about the ongoing cost of doing this, particularly in geographies where salary increases can be as high as 20%-30% for elite HR (and other) talent who are on the move. As a result, there was keen interest expressed in sharing ideas on non-financial retention measures. Largely these measures were development oriented. Ideas discussed included short and long-term international assignments and ‘double hatting’ roles in order to fast track high potentials.







