The business press release belongs to Bersin by Deloite and was released on January 8, 2013 in Oakland, California. The press release was entitled: “Predictions for 2013: Corporate Talent, Leadership and HR – Nexus of Global Forces Drives New Models for Talent.” Bersin by Deloite is a primary provider of research-based membership programs designed for human resources (HR), learning, and talent. The firm announced on the above date that their new research speculates expansion of business globally in 2013 and that they will experience an increasing shortage of leadership and talent. This implies that the event will demand the need for career development, business agility, talent mobility programs, re-engagement of the employees, and leadership development. The news highlights the fact that despite the aspect of compliance and principal HR programs increasing and becoming business-critical, they have become in most cases less important in adding value to the current volatile business environment (Bersin by Deloite 2013).
The news points out the fact that almost every main business is confronted with an immense shifting of talent and business towards emerging markets whilst grappling with talent shortages internationally. This is influenced by such factors as promoting the participation, development, and retention of the personnel through the strategies of the HR. Therefore, this business environment makes the high-performing HRMs to offer a laser-like concentration on high-value parts, which gives power to and promotes teamwork in such areas as constant learning of programs that support business dexterity and innovation, novel models of leadership and management, and personnel planning and aptitude.
The news further observes that contributing to this move is the HR technology industry constantly experiencing noteworthy changes. For example, cloud-based HR systems now accessible from several biggest vendors in the market incorporate human resource management systems (HRMS), payroll, talent management, and analytics processing into a distinct service. Worldwide spending on these multifarious systems is projected to develop 22 % to almost $4 billion in 2012-2013 – approximately double the growth rate of 12 % in 2011-2012. In 2013, technology innovation is expected to go faster as mobile technologies and social hiring systems make outdated HR systems existing currently in many companies globally. New tools will allow the workforce of a given company to uncover experts, manage their careers, share information, and become more interconnected than ever (Bersin by Deloite 2013).
The news stresses the fact that because of the ever-changing business environment, there is a need for companies globally through the HRM to have performance recognition, employee development and management, and leadership strategies that aim at equipping teams with relevant skills and not only at standardizing the behaviours. This means that the HRM should promote continuous assessment practices and training that will define the most responsive model for HRM. In addition, the press release points out that there is a need for the companies to develop a vivacious talent mobility program and career development, which establishes talents internally (Bersin by Deloite 2013). For instance, an effectual technology firm currently has a vibrant career model, which allows the changing of jobs after only a year in their present position.
Implications to HRM
Career Development and Talent Mobility
Human Resource Management (HRM) is one of the important divisions in a company. Exclusive of this division, lots of work, which comprises organizing, planning, staffing, leading, and controlling, cannot be done appropriately in a company. The ever-increasing pace of globalization has constantly made the expansion of company’s international footprint into new and emerging markets an essential business reaction. Such growth hinges on how efficiently main HRMs are deployed to global locations to sustain overall business goals. To keep these individuals, firms should identify the significance of both international mobility and talent management programs that boost the performance of the company. The HRM modules assist in the career development among various employees in the company. The training assists to increase exposure to the job that is related. It promotes computing skills, communication skills, and responsiveness in safety. It also promises good health and practice of security. It further promotes employment skills and offers enticement to move up within one’s own career ladder (Wofford 2002).
Furthermore, career development is a strategy to development, which tries to match the individual goals of a worker with the organization's requirements. The task for career development is mutually shared, preferably between the HR department and the individual. In addition, career development is predestined to promote the employee's output, performance, job satisfaction, and development. Career development can occur via work assignments, training, and education. Education and training might be state-sponsored or attained through individual employee's efforts. All career development should be reliable and compliant with the requirements and responsibilities of the state and its employers. Therefore, HRM has the role of balancing the needs of the company and expectations of the employees. This implies that employee training and development remains as the main process of analytically developing proficiency in individuals for the use in promoting the element of performance. The HRM has the role of integrating various elements in the company in order to assess the impact of career development and training in the current economy. The HRM should ensure that the training and career developing strategies benefit the company in supporting main business operations and contributing to the bottom-line of the company (Cascio 2003).
On the other hand, talent mobility plays a leading role in ensuring that the HRM gets the most productive personnel in the company to meet the diverse needs. Mobility policies should be sustainable, comprehensive, and cost-effective to meet the instant short-term goals of the business as well as the longer-term objectives. Sustainability presumes there will be changes to the present strategies, diverse assignment lengths, and assignment responsibilities. The requirements for the HRM strategies should be simple to appreciate and manage employees. The process consequently needs to be rapid and responsive despite home and host areas or assignment form. Global mobility programs are offering career management-related services, which are in line with their firm’s talent management programs by ensuring the aspect of precision in the assignment of goals pre-departure, offering repatriation support during the post-assignment, enhancing career planning for assignees, and establishing recognized links between the aspects of mobility and talent management (Noe et al. 2003).
Therefore, the HRM should ensure that talents in the company are productive. In addition, once a firm acknowledges its diverse kinds of assignee talent, it may opt for a policy plan to observe if its policies sustain the strategic goals of the program and the foundation of the project. Just simply put, organization’s requirements to mobile personnel are allied with the firm’s business approach even as they concentrate on the reduction of costs. In most cases, through their HRM firms require the right people in the right places at the right time, however, currently we can add “at the right cost” to this statement (Cascio 2003).
In addition, through the talent mobility policy structure, firms through the HRM can offer diverse assignment packages that will balance with business goals evaluated via the level of investments coupled with individual developmental opportunities for all categories of assignees. After establishing a talent mobility structure, companies may tailor an international policy structure that will be employed by the HRM to address all the policy categories – long-term, short-term, and permanent transfers. The structure can comprise variations or tiers within the long-term assignment policy to deal with diverse assignee demographics, like leadership or developmental prospects and employee-initiated assignments (Ulrich & Beatty 2001).
Nonetheless, developing a more incorporated global mobility plan may look like an overpowering task. As it is frequently hard to execute several organizational changes, for global mobility the move in most cases depends on impacting other parts of the company to adopt the change, which probably increases the global mobility’s responsibility and visibility. Being more premeditated also needs a global mobility team to be composed of more tactically minded team members that will support the HR’s activities, hence the objectives of the company. Some organizations are more prepared for this change than others. In a perfect situation, positioning global mobility as a component of the talent management team might be the finest way to move the frame of mind and behaviours around global assignments to a more premeditated place. Conversely, this is not the standard for the majority of firms and, consequently, must not be seen as the only mode to partner. Where an organization’s global mobility program is placed and with whatsoever the phase, which a particular company is at in terms of willingness for change, there are small and large strategies, which may be taken to make the global mobility program a more effectual talent management partner (Swanson 2001).
Performance management systems make clear to workers what is required of them and guarantee to HR managers and strategic planners that worker behaviours will be in line with the organization’s objectives. Several companies still depend on the performance assessment perceived as a yearly custom and principally the task of the HR function. In the current economy with the greatest managing performance to generate a competitive advantage, performance management is grouped into three types of measuring performance, defining performance, and the feedback feature of performance (Noe et al. 2003).
Performance management systems in various organizations are directed towards ensuring that every employee in the company, founded on the previous job analyzes, is performing the duties assigned at the estimated level to enhance the strategic goals and objectives of the company. The reasoning of the HR managers and other business leaders in the company that the yearly performance assessment is performance management should become outdated. Efficient and effective performance comprises a procedure whereby each worker is completely aware of his/her role in the company, what kind of output is anticipated as well as how the outcome will be appraised.
The question of how one ascertains the efficiency of the performance management system in developing a competitive advantage for the company is essential. In providing a solution to this question, the following aspects must be addressed:
Job descriptions are restructured on a standard basis to mirror the ever-changing business environment (Ulrich & Beatty 2001).
Responses are shared constantly among all stakeholders.
Making sure that job descriptions are established via well-timed and efficient job analyses.
Each worker is completely responsive of his or her position in the organization that may effortlessly be realized in the performance planning phase of the development (Noe et al. 2003).
There should be congruency and constancy in performance measures across the whole company and performance standards must be in most cases appraised constantly.
There are quantifiable outputs assigned to each job reflecting the task of the position and incumbent in attaining the objectives and goals of the company (Ulrich & Beatty 2001).
The procedure and the system should be seen as plausible, fair, legitimate, and consistent.
A study with statistical ratings may be utilized by workers and HR managers to evaluate if one’s job and responsibilities are completely allied with the objectives of the company, fulfilment with the real procedure, and fulfilment with the supervisor’s management of the performance management procedure. There should be a combination of the feedback mechanism, an appraisal of the performance management system, and its efficiency in enhancing personal and organizational performance (Swanson 2001).
Therefore, one of the crucial approaches in the performance management is for the HR manager to comprehend the central role of every employee in attaining goals and objectives of the company. By mapping a procedure via the identification of the rationale and the responsibility of every incumbent, it will be easier for the HR manager to identify where the weakness might exist, to establish appropriate remedies, and to identify possible strengths of every personnel capacity. This will allow tapping their contribution to financial aspects and productivity of the organization (Swanson 2001).
Does HRM add to the bottom-lime of a company? Provided that numerous large-scale studies have established that HRM is a vital driver in the company’s financial performance, it is very important for HR and other management leaders to comprehend the significant nature and highest significance of understanding the efficiency of all HR roles in generating value for the organization. It is only through appraising of HRM that one may actually understand the benefits of HR approaches in attaining the company’s business strategy and in the procedure to improve the reliability of the HR occupation (Ulrich & Beatty 2001).