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  1. 1. HR Leaders Forum and Awards Dubai, March 05 & 06, 2012 Global Growth Strategies: Winning the race for talent in emerging markets (facilitated by Celine Heinrich)Copyright © 2005 Deloitte Development LLC. All rights reserved. 0
  2. 2. Global Growth Strategies:Winning the race for talent in emergingmarkets1. Anticipating and proactively working with Business Leaders to support & accelerate Growth in Emerging Markets2. Expanding your understanding of Emerging Markets & developing Talent Management Strategies3. Importance of HR’s active participation & involvement in market entry and expansion
  3. 3. DUFRY PROCESS AND PROCEDURES WORKSHOPPart 1;Anticipating and proactively working withBusiness Leaders to support & accelerateGrowth in Emerging Markets
  4. 4. Role of the Business Leader is EssentialEvolving role of “Management”:• From jobs, to skills and outcomes – rethinking the nature of work, adapt to the local and cultural environment• Implement ―Best Places to Work‖ highly correlated to management practices  P&L management or P&L-like work  Executive talent management focused on replicating high-quality leaders• Develop Employee engagement and attitudes key to performance through top management. Employee engagement drivers are : 1. Challenging and exciting work 2. Career growth 3. Learning and development opportunities 4. Good boss• From ―30 years at hard labor‖, to using flexibility as a business advantage: Creates genuine opportunities and exhibits desirable cultural conditions Create a company culture from the top down: A company’s culture will play a vital role in emerging markets. 1. Brand promise has to feel authentic. 2. Employees must be rewarded for reasons of merit; 3. Although employees want to be recognized for individual achievements, they also want to feel a connection with their teams. 4. The culture has to be truly ―talent-centric,‖ so that people know they’re critical to the company’s success.Copyright © 2005 Deloitte Development LLC. All rights reserved. 3
  5. 5. DUFRY PROCESS AND PROCEDURES WORKSHOPPart 2:Expanding your understanding of Emerging Markets& Developing Talent Management Strategiesa) Booming markets in China, India, Russia with shortage of talentb) Developing talent strategies that leverage skills and capabilities across markets
  6. 6. a. The Talent Market in Emerging MarketsThe Talent Market in Russia, China, IndiaAlthough the talent gap between supply and demand is pervasive in the developing world,the particulars vary by country. Below some information on Russia, India, and China . China • Deficit in middle, country, regional leadership • Only 50% of Asian executives believe the supply of skilled labor is adequate Russia • The cultural revolution created a “missing • The supply of senior talent is limited owing to generation” of talent aged 45 to 55- so the legacy of a planned economy expats fill most jobs at the top • Most deficits stem from fast growth, labor • Limited experience working in a multi- shortage, and heavy foreign direct investment national organization • Difficulty fielding critical talent due to cultural assimilation into the business India • Limited experience working in a multi-national • India is notable for exporting talent on the organization regional and global levels • Inadequate people management and • Less deficit in country and middle management communication skills • Salaries for supervisory positions raised 20% in 2005 • Indian companies are increasingly focused on developing employees to drive retention as the war for talent grows increasingly competitiveCopyright © 2005 Deloitte Development LLC. All rights reserved. 5
  7. 7. b. A new model focuses on develop, deploy, connectIn an environment of skills shortages and limited resources,the focus must shift from managing “A” players to “A” positions From “A” Players To “A” Positions How do we How do we support support our most our top performers? critical positions? A Critical Workforce Segment- Based Talent StrategyCopyright © 2006 Deloitte Development LLC. All rights reserved. 6
  8. 8. Building a critical workforce segment strategy: example Business Unit Strategic Plan Build new Market - Grow Asia Sales and HR, Finance, IT Retail Operation Marketing HR Business Commercial Commercial Operation Retail Logistic SAP Analyst Partner Director Analyst Mgr Mgr Strategic Core Critical Strategic Critical Core Support Support Position Support Position Support For Core Support Positions For Critical Positions – Regardless of Level • Reduce talent investments or outsource • Increase access to investments and For Strategic Support Positions build talent by feeding from strategic • Maintain investments and buy talent support positions Copyright © 2006 Deloitte Development LLC. All rights reserved. 7
  9. 9. A new model focuses on develop, deploy, connect 1. Develop 2. Deploy Acquire Retain 3. Connect Develop Deploy Build capability Broaden and through on-the-job deepen capability learning through stretch Connect assignments Create networks and high-quality relationships that maximize performanceAdvantages • Focused on productivity of critical talent • Creates dividends for acquisition and retention • Potential to maximize existing talentCopyright © 2006 Deloitte Development LLC. All rights reserved. 8
  10. 10. Develop: Ensuring that critical workforce segments areacquiring cutting edge skills to drive innovation • Formal training helpful for meeting specific requirements • Learning is social in nature - people learn through their interactions with others, especially when tasked with real- Capability life issues Develop Deploy Performance • People are more committed to the learning that occurs when Commitment Alignment they are ―tested‖ in ways that matter, especially when they Connect collaborate with or are accountable to othersCopyright © 2006 Deloitte Development LLC. All rights reserved. 9
  11. 11. Deploy: Strategic deployment of critical workforce segmentswill enable intensified growth • People learn the most in jobs that stretch them to grow, tap their unique skills, and fuel their imaginations • The best organizations avoid Capability pigeonholing people based on Develop Deploy the confines of their resumes Performance • They also employ formal Commitment Alignment systems to manage performance - And they offer Connect frequent dialogue and feedbackCopyright © 2006 Deloitte Development LLC. All rights reserved. 10
  12. 12. Connect: Connecting talent in critical workforce segmentsconverts knowledge into productive action • People-to-People: Cultivate high-performance networks of high-quality relationships (i.e., CoPs, knowledge management programs) • People-to-Purpose: Build and Capability sustain a sense of personal and Develop Deploy organizational mission Performance • People-to-Resources: Commitment Alignment Manage knowledge, technology, tools, capital, time, and Connect physical space to achieve professional and business goalsCopyright © 2006 Deloitte Development LLC. All rights reserved. 11
  13. 13. DUFRY PROCESS AND PROCEDURES WORKSHOPPart 3:Importance of HR’s active participation &involvement in market entry and expansion
  14. 14. HR plays a vital role in Emerging MarketsOrganization looking to expand into emerging markets need an HR strategy that reconcilesdifferences in Economic Structure, labor laws and staffing expectationsMany emerging countries are seeing both business expansion and strong merger andacquisition activity on the local level. When dealing in these markets, the skill andaggressiveness of a company’s human resources team can make the difference betweensuccess and failure, as each market has unique operational challenges in terms of economicstructure, access to capital, consumption patterns, educational achievementand cultural expectations.Bringing HR to the table as early as possible can help avoid potential missteps and producebetter long-term results, as HR can address specific issues at every step of the startup oracquisition process, from site selection to recruitment and retention.Involving HR professional with specialties in local labor lawLow-wage countries generally present a consistent human capital challenge. Only a smallpercentage of university graduates with general degrees are equipped to work in amultinational company, and graduates with technical degrees can be similarly unpreparedCopyright © 2005 Deloitte Development LLC. All rights reserved. 13
  15. 15. HR involvement in market entry and expansionHR steps to expand in emerging markets:1. Site Selection (evaluating the Talent Pool)2. Labor laws and regulations (visa/work permit; employment conditions)3. Staffing determination (Expat vs Local / cost on PEX)4. Recruitment & retention. (Salary & Benefits)Site Selection• How large is the potential pool of talent? Does the education system consistently replenish that pool?• How much flexibility is there for future growth? how easy is it to shut down operations in the future, if it is necessary?• Are there special country-unique considerations that may come into play?Labor Law• Labor laws in many emerging markets are protective of employees and, as a result, pose a potentially significant strain on a company’s budget. (i.e wrong assumption on social Tax in china is 45% ). Organizations may not be permitted to terminate employees, for example, without incurring government-mandated costs.• Health care, pension benefits and unemployment compensation must all be considered in light of the eventual possibility of terminating individual employees or shutting down or downsizing an entire operationCopyright © 2005 Deloitte Development LLC. All rights reserved. 14
  16. 16. HR involvement in market entry and expansionStaffing Determination• The local talent pool in an emerging market often lacks the experience to meet startup staffing needs or plans for future growth.• Expatriate employees are costly, both in terms of direct compensation and infrastructure. They will inevitably have higher salaries than local talent, a discrepancy that should be properly managed in order to avoid disgruntled local employees.• One method that works well in bringing local employees up to speed involves selecting potential local managerial talent at the outset and sending that team abroad —often to headquarters — for six to nine months. There the local talent learns global business norms in preparation for return to the home country. Then, when it is time for the startup expatriates to leave, there is a local team• Be flexible, allow for early ―non-obvious‖ moves. Dow also enables employees to move freely between functions and businesses, specifically allowing—and encouraging—non- traditional and ―non-obvious‖ moves.Recruitment & Selection• In order to recruit and retain good professionals, organizations should develop an attractive and well-designed remuneration package for each category of employee.• HR will also have responsibility for developing local HR and benefits policy documents, producing a mandatory staff handbook and documenting disciplinary procedures.• Makes plans to support operational growth in emerging markets. Growth won’t support itselfCopyright © 2005 Deloitte Development LLC. All rights reserved. 15
  17. 17. Emphasize on Training & Development• Begin career planning early in an employee’s tenure. introducing career paths as part of employee on-boarding — several years earlier than most competitors.