Collaborative international talent management strategies are needed to stem rising HR costs
Global talent acquisition and management firm, Alexander Mann Solutions, has highlighted the need for multinational organisations to take a more collaborative approach to sourcing and retaining talent, in view of increasing HR costs.
According to benchmarking data from professional services firm PwC, HR costs for multinational organisations can be up to 50% higher than non-multinational operators in the same sector. Figures from PwC also revealed that a highly decentralised HR function typically has a one third cost premium to an equivalent organisations’ centralised HR model.
In response to these figures Alexander Mann Solutions has advised HR managers to first analyse existing data, and secondly utilise resources to work collaboratively with peers across the globe to create global talent management strategies which promote internal mobility, increase efficacy and, ultimately, reduce costs.
Paul Modley, client services director, at Alexander Mann Solutions, commented on the need for a more global focus: “It would be remiss to suggest that rising HR costs are driven by one factor alone; the ‘gig’ effect, national and regional complexities, the need for more levels of management and the availability of talent all contribute to the higher HR costs associated with operating multinational organisations. However in light of rising cost pressures, HR professionals need to embrace more collaborative approaches to talent management, ensure they are promoting internal mobility, and assess how they can effectively manage skills gaps by hiring from within their organisation.
“Many organisations already have significant amounts of data, not just from human resources records, but also from third-party platforms such as LinkedIn, which can be leveraged to create tailored platforms to match existing employees with current vacancies. For example, we recently partnered with Santander to create a personalised and intuitive internal deployment platform to ensure that its team members remain interested, engaged and inspired by opportunities available in-house. The global banking group found that internal hires in the UK increased by over a third in just over ten months.
“Not only can global talent management strategies increase engagement and help to fill internal skills shortages, but they can also help to significantly reduce the costs associated with recruiting and on boarding new employees, particularly at the senior end of the scale.”
Image courtesy of Pixabay