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HR Globalization Trends

This is a debrief of a recent webinar I attended. A link to the webinar is attached below. This is based on a recent study on HR Globalization trends conducted by The HR Executive magazine and the Hackett Group. The sample size of this study initiated in Jun 2008, was 80 Globally spread out companies ranging from 1000 to 10,000+ employees worldwide. Many of the companies surveyed were between 10,000+ employees I have summarized below a quick debrief of the study findings (from the webinar ):

#1 The number 1 driver for HR to globalize appears to be "enabling Company's global growth and expansion strategy" and then "Cost savings". The study also cites that HR Globalization is a key differentiator between companies that have successfully become global companies from those that are struggling to do so.

#2 Companies surveyed surprisingly experienced not only a decrease in HR transaction costs (Efficiency) but an increase in the impact of their HR / Talent Management initiatives (Effectiveness).
- The transaction cost reduction experience ranged from 86% in top decile companies to 26% in other organizations.
- The HR cost per employee was reduced from a max of 86% ! in top decile companies to 38% in other companies.
- Service response time reduced by an average of 38% and error rate dropped on average by 32%.
- Companies that did this also found their HR function better aligned with business and experienced higher employee retention .

#3 The Top Decile companies (I assume these are the HPs, GEs & P&Gs of the world) that have done this better than the others and have reaped the maximum benefits, have done this, by:
- Re-engineering their HR Processes (HR Service Delivery Model) to better align with global needs
- Upgrading Technology (such as a Global Employee HR Portal, Call Mgmt System, Success Factors, Taleo etc)
- Leveraging global synergies and labor arbitrage opportunities
- Introducing transparent and rigorous measures for successful globalization


In summary, as you can see the differentiator between companies that benefited the most from their HR Globalization efforts and the ones that did not was really 2 fold:

1) The Top Decile companies took a more holistic / comprehensive approach to globalization by consolidating Re-engineering their entire HR Service Delivery Model, and upgrading technology versus just a "Lift and Shift" of their existing processes

2) The Top Decile companies were more rigorous in exploiting global synergies and putting in place rigorous metrics to track the benefits of globalization (Better Governance).

I hope you find this a useful read.

Warm regards, Ranu


https://lrp.webex.com/lrp/lsr.php?AT=pb&SP=EC&rID=27509757&rKey=DF5E1B540C95BA3E

Comments

  1. Planet LibraApril 18, 2010 at 10:26 PM

    Hi Ranu

    Nitin here from Tagore Park, ur bro's friend, jus 2 rewind doz memreez.

    Jus read ur article, pretty nice.

    Well all these centuries tech dev has have to happen, its a natural on-going process. And the flip side is business, money, ecnomics, and bla bla.
    I wud cite the latest tech contribution to humanity is the big bang theory, it was a major achievement.
    And this earth desparately needs some more Greenovulitions......
    Well anyways, will keep u posted, as and wen some thots creep-in to my mind

    ReplyDelete
  2. Ranu GuptaMay 31, 2010 at 9:12 AM

    Thanks Nitin

    ReplyDelete

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