a long day of reviewing and
i4cp's newest study, High-Performance
Global Staffing: Shifting Labor
Supplies and Strategies, I
happened to notice the iconic bumper
on the car in front of me as I drove home: Think Global, Act Local.
on our research, I suggest we
flip that phrase in corporations today.
it's clear that global
is alive and well. Among the many findings from this report, one of the
more intriguing is that 93% of respondents say that their company will
maintain or increase its global staffing within the next three years.
This is quite dramatic considering the current political climate that
alternately seeks to paint a picture of unbridled economic expansion or
quickly impending doom.
that the question asked
about the global workforce in the next three years. If the question was
asking about the next three months, we might possibly see some very
different answers. As opposed to just maintaining global staffing, 60%
of all companies polled indicated they expect some expansion of their
global workforce in the next three years. For high-performance
organizations, this number jumps to 74%.
results raise the question:
an increase in global staffing simply be a reflection on an expected
decrease in local or national staffing? In short, are more jobs moving
to the Bureau of Labors
Statistics' (BLS) employment forecasts for the U.S., in this
(2010-2020) overall job growth is expected to be around 0.7% annually.
This is a fairly low number in comparison with past decades (0.8%
annual growth in 2000-2010, and 1.3% in 1990-2000), but it is still in
line with the concept of staffing expansion contained in
the sectors that
account for a quarter of these jobs are in industries that are
logistically very hard to outsource. According to the BLS report, about
5.0 million new jobs - which represents 25% of all new jobs
expected in three specific industries not known for outsourcing:
construction, retail trade and the offices of health practitioners.
Seven of the 20 industries gaining the most jobs are in the health and
social assistance sector, and five are in the professional and business
to the very nature of these
jobs, it would seem that these are industries that would not be
increasing their global staffing, but the opposite is true. Of all of
the companies surveyed by i4cp that fall into these categories, not one
is cutting back on their global staffing efforts, and 44% are planning
on increasing their global staffing in some measure.
would suggest that even
industries that are typically tied to a local workforce are expecting a
heightened need to increase the size of their global workforce, and
they expect to have the ability to fulfill that need.
fulfilling the leadership
is a question that seems to perplex most i4cp member companies that are
expanding globally. "Should we source locally or rely on
provide that leadership?" is a common question we hear from
answer appears to be somewhere
importance of having a
management team is often emphasized in business literature, and all
sorts of positive outcomes are meant to be derived from that practice.
Better communication, a quicker response to business needs and greater
protection from liability are often cited as beneficial results of
having a multi-cultural management group.
study supports this
found that nearly 48% of high-performing companies prefer to use a mix
of expatriates from their headquarters and locally hired people. Very
few high-performing companies relied solely on expatriates to provide
that leadership. Indeed, the movement toward hiring more leaders
locally appears to be on the rise among most global organizations.
the trend of cultural
when looking below the leadership line there is a fairly large
disparity between high- and low-performing organizations in how they
deal with technically skilled employees. Forty-one percent of high-performance organizations (HPOs) prefer to assign technically skilled employees regardless of where they
were recruited, while a mere 18% of lower-performing organizations (LPOs) say the same. Also, HPOs are
much less likely to move people from their home country to a foreign
headquarters (or some other hub). Only 10% of HPOs say they
compared to 24% of LPOs.
this global expansion is
revealed a difference in expectations between HPOs and LPOs, primarily
in the following regions: China (HPOs are 50% more likely to expand
into China); Korea (340% more likely); and Western Europe (no LPOs
polled said that they expect to expand into this area, compared to 48
multinational HPOs). By comparison, HPOs are less likely to go into
Eastern Europe (42% less likely) than LPOs.
global expansion is
these organizations to remain robust, the data suggests that
actually an improvement in the U.S. economy and workforce that is
driving the growth of global staffing efforts. Whether those global
staffing efforts are in China, India or some other country, it appears
that more and more organizations will rely on local leadership to make
that expansion successful.
global, think local. Anyone
know a good custom bumper sticker website?