Global Talent Management:

Fostering Global Workforce Practices That

Are Scalable, Sustainable and Ethical
8 Principles & 7 Field Lessons for Success in Global Talent Management

}
“We are at a crossroads in Global Workforce Management – in
particular as it relates to the developing world where, due to
economic power shifts and global demographics, intense workforce
management efforts must occur in the coming years.

At this crossroads we find culture, localization, technology and

leadership as the key challenges along the path to achieving the
transformational objective of becoming an organization capable of
true global talent management.”

Sponsored by

A Human Capital Institute

Position Paper - June, 2004

By John Chaisson and Allan Schweyer

Building and Managing an INTERNATIONAL WORKFORCE

1
Table of
CONTENTS
Summary of Key Themes and Arguments
Introduction: Back to the Future of a Global Workforce
Preface: The Reality of Global Talent Management
Prologue: A Tale of Two Workforces (a fictional case study)

Part I: Getting Local for Global Success –

8 Principles for Building the Global Workforce
Principle 1: Understand The “Real” Global Workforce Paradigm
Principle 2: Reactive “People Costs” Approach is Not a Long-Term Solution
to Global Talent Requirements
Principle 3: People Are Not Fungible
Principle 4: Find a Culturally Relevant, Strategically Broad Formula for Global
Workforce Success
Principle 5: Define a Specific Operational Formula for Global Workforce Advantage
Principle 6: There is an Imperative to Adopt GTM at the Operations Level
Principle 7: MNEs Must Utilize “State of the Art” Global Workforce Technology Solutions
Principle 8: Global Workforce Success and GTM Hinge On Building Local Workforce Leadership

Part II: Seven GTM Field Lessons

Lesson #1: Get Local with the Global Workforce
Lesson #2: Focus on Long Term Global Talent Management & Global
Workforce Advantage Rather than Short-Term Labor Costs
Lesson #3: Adopt a Balanced Approach to Global Outsourcing
Lesson #4: Build Talent Leadership Instead of Workforce Management
Lesson #5: Build a Global Workforce Brand
Lesson #6: Build Advantage By Working with Governments to Drive Down
Talent Costs and Build Global Productivity
Lesson #7: Global Workforce Technology Matters

Conclusions and Summary

Acknowledgements

Building and Managing an INTERNATIONAL WORKFORCE

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Summary of Key Themes and Arguments
1. The use of “offshore” workforces is expanding significantly
to include small and mid-sized organizations. It will continue
to grow such that the “global workforce” will become more
and more a reality;

2. Much of the recent globalization of the labor force has

been enabled by Internet technology and driven by a
desire to cut costs. This is starting to balance with other
objectives, such as continuous production and access to
wider talent pools;

3. The majority of multi-nationals and new international

players operate under a “double standard” with
respect to workforces in the developed and developing world.
Workforces in the developing world are often treated as
fungible, or as commodities. This is evidenced by the
burgeoning practice of offshore outsourcing;

4. Due to a rapidly changing economic and demographic global

landscape, with labor force and consumer power steadily
shifting to future powerhouses such as China and India,
employers will need to adjust their practices and begin to
apply the principles of long-term talent management across
their global operations;

5. Effective, long-term global talent management requires

cultural sensitivity, localization, strong leadership
and state of the art technology.

Building and Managing an INTERNATIONAL WORKFORCE

3
Transnational commercial interests are as old as nations themselves and the
use of offshore labor has been part of the world’s economic landscape just
as long. Admittedly, we’ve made considerable (though far from complete)
progress from the days when exploitation of global human resources included
kidnapping, indentured servitude and forced labor. We’ve also moved past
the era when wealthy industrial barons like Cornelius Vanderbilt and Cecil
Rhodes, financed and fomented foreign wars to suppress workers’ rights
movement and/or expand business interests abroad.

I. Introduction: Back to the Future of a Global Workforce

However, the power of the transnational corporation has Given the fact that corporations are
been on the rise since efforts to restrict its momentum came into assuming and exerting more power
place at the turn of the last century and continued through the New around the world, there is legitimate
Deal of the 1930’s. As late as the 1950’s, for example, thousands of concern that they do so with the explicit
workers and their leaders were killed in Guatemala after a CIA backed “corporate social responsibility”1 for
coup to protect the interests of The United Fruit Company (of New wielding it fairly and sustain-ably.
York). Today, we witness the global dominance of corporations that, Today, organizations with interests
in many cases, are bigger and more powerful than most countries. To abroad, work within more circumscribed
illustrate, consider these examples: boundaries than they did a century ago
and face greater local and international
General Motors has annual sales larger than Israel’s Gross Domestic scrutiny. However, international brand
Product; Exxon’s annual sales are larger than Poland’s GDP. One considerations and more enlightened
hundred sixty-one countries have smaller annual revenues than Wal- workforce practices often compete with
Mart’s. General Electric has hundreds of subsidiaries, giant companies profit motives, competitive concerns and
such as GE Capital, which are themselves bigger than most nations. shareholder pressure to constantly seek
Even the relative newcomer eBay controls a market larger than all but lower costs or at least gain competitive
72 of the world’s biggest economies (based on value of transactions). advantage.
In 1996, the two hundred largest U.S. corporations had combined
sales larger than the combined gross national product of all but the
nine largest nations.

1 Much has been written lately of the need for expanded and enforceable corporate “social responsibility” for multi-nationals. This
paper extensively explores definitions for workforce-related social responsibility. One of the most prominent standard builders for these
responsibilities has been the ILO – International Labor Organization – which has promulgated standards and investigated infractions. In the
future we would expect to see these standards enforced through formal self-auditing and even external procedures.
2 In this paper, we adopt the definition provided in Global Human Resource Metrics, John Boudreau and Helen De Cieri, published by the
Center for Advanced Human Resource Studies- Cornell University page 26, for multi-national enterprise or MNE: “ We define multinational
enterprise (MNE) as: any enterprise that carries out transactions in or between two sovereign entities, operating under a system of decision
making that permits influence over resources and capabilities, where the transactions are subject to influence by factors exogenous to the

Building and Managing an INTERNATIONAL WORKFORCE

4
At the same time, evolving options for offshoring white many aspects of an operation. Rather,
collar work; growing middle class consumer bases in China, it is our finding, based on analysis
India and Eastern Europe; political considerations, and laws and of today’s Multi-National Enterprise
regulations at home and abroad are creating a multi-layered, and (MNE) operating globally (particularly
constantly changing challenge for transnational organizations. Social in the developing world) that the
considerations aside, the world is changing such that highly skilled balance is far too skewed toward a
and sophisticated workers, while in short supply, are found worldwide. centralized, “one size fits all” approach
The game has changed in that corporations can no longer look at the to the global workforce. And, that
world as a two-sided global workforce coin – a developed side (where organizations positioned this way, will
workers’ rights are reasonably entrenched) and a developing side be at an increasing disadvantage both
(where the goal is to find the lowest cost of labor to perform routine in the worldwide competition for talent,
tasks). and in achieving the transformational
competitive advantages possible with a
The good news is that forward-thinking transnational organizations global workforce.
are already adhering to workforce standards in developing countries
that more closely approximate those found in the developed world. This paper may, in
This is due only in small part to laws, regulations and moral censure.
The movement is sustained and will grow largely due to shifting
economic power from the developed to the developing world , the
ultimate summary,
narrowing of the skills and talent gap, and workforce demographics,
all of which will make workforce management in developing regions,
be a lengthy
most urgently China and India, a continuing priority for
multinational corporations, transnationals and even smaller companies argument for
making their first international forays.
applying the same
Given the social, political and economic consequences for people,
nations and corporations, the time for true global talent management talent management
(GTM) has arrived. To remain competitive, organizations have to
expand their search for the best talent globally and must nurture their principles globally
brands and reputations in countries that were once viewed as cheap
suppliers of labor. As the world shifts due to changes in population as are practiced
and power, corporations must evolve. It can be argued that a
substantial part of that evolution depends on effective relationships
with local talent and their communities.
(by enlightened
In this paper we emphasize the local, cultural components of
organizations)
globalization, not to ignore the need for organizations to develop
unified corporate culture, vision and objectives, nor to suggest that locally.
centralized decision-making and standards aren’t appropriate in
home country environment of the enterprise (adapted from Sundaram & Black (1992, p. 733)).
3 Much of the work has centered on the development of Global workforce metrics and processes. Excellent work has been done in these areas
– particularly on the topics of metrics. While metrics is not a focus of this paper, we recommend “Global Human Resource Metrics, by Helen De Cieri and
John W. Boudreau, working paper 03-07 published by the Center for Advanced Human Resource Studies – Cornell University. In this work the authors
aptly present both a model for Global HR Metrics and illustrative factors and measures for benchmarking the global workforce. Our focus in this paper is
in establishing the catalysts and strategic foundation for GTM and principles for its adoption within the corporate structure of technology MNEs.
4 One of the major goals of this paper is to begin to set a foundation for long-term standards for developing “sustainable global workforces” – which are
stable, cost-effective, competent, flexible and committed (loyal, satisfied, etc.). Many of the recent errors in global workforce development are tied to

Building and Managing an INTERNATIONAL WORKFORCE

5
To illustrate this changing workforce world, we begin with tough reality and
then a harsher tale. The tough reality is that there is a dearth of tangible
GTM guidance to the global community of multi-national enterprises
(MNEs)2on managing the accelerating expansion of the global workforce.3
Yet, the operational GTM pressures have been substantial.

Preface: The Reality of Global Talent Management

Under pressure by competitors to cut operating costs, employers deal with local, national
minimize labor costs by moving jobs offshore into emerging markets and supranational levels of laws and
and to diversify and tap the workforce internationally, “Global Talent regulations on top of overt and subtle
Management” (once merely a concept) has become an exceedingly cultural nuances. In volatile regions such
real business problem for multi-nationals without the corollary benefit as the Middle East, security concerns
of established GTM best practices and better balanced approaches for overshadow everything else. At the
development of a “sustainable”4 multi-national talent base. As global same time, the stratified international
workforce challenges mount, there is a growing urgency for multi- playing field is being levelled by new
nationals to leverage global talent more strategically and effectively technologies and networks. New
balance issues of workforce flexibility, access to skills and operational strategic advantages are emerging, and
and labor costs management – issues which have perennially the human attributes of intellectual
dominated global workforce decision making. The relatively recent curiosity, flexibility, creativity and action
availability of technology options to facilitate GTM adds almost as are becoming the new competitive
much additional complexity to the task as it offers solutions to make levers of the knowledge age, not only
it easier. in developed economies, but almost
everywhere.
Already we find strategic “cries in the economic wilderness” for
improved regional workforce building and optimized global people The issue of the “global workforce”
management. Not surprisingly, there is significant agreement among is more than high-economics – it is
governments, economists, global workforce managers and global also highly politicized. Worldwide,
talent experts that MNEs are generally ill-prepared to build the stable, geopolitical events are moving faster
flexible and committed global workforces these enterprises desperately than ever, making it more difficult
need to remain productive and competitive. Building a “sustainable” for organizations to make predictable
global workforce requires significant local and regional savvy. assumptions about the future and plan
workforces accordingly. In America,
Moreover, numerous regional factors exacerbate the workforce for example, politicians, unions and
headaches for multi-national organizations – ranging from the media are already hammering
the mundane to the life-threatening. In Europe, for example, at U.S. based organizations that are
perceived to be “Exporting America” by

Building and Managing an INTERNATIONAL WORKFORCE

6
employing overseas workers.
The Lou Dobbs program (CNN), for
example, provides a list of about 1000
U.S. companies on its website, that
are, according to Dobb’s inference,
unpatriotic and worthy of our scorn:
“Here is a list of companies we’ve
confirmed are “Exporting America.”
These are U.S. companies are either
sending American jobs overseas, or
choosing to employ cheap overseas
labor, instead of American workers”.6
Often the political debate is one-sided
and the debaters often fail to present
the true complexity and pervasiveness
of the issue – or admit the fact that
almost all significant commercial
enterprises are already global employers.
There are currently more than 10 bills
being pursued by Congress to “restrict
workforce-deployment decisions”,
according to Fay Hansen of Workforce
Management Magazine and thirty-one
states are considering legislation to
restrict offshoring.6 This despite the fact
that most U.S. workers are employed
by organizations with global business
interests (according to Hansen) and are
therefore benefiting from the status quo.
In trade meetings in Seattle (WTO,
1999) and Quebec City (Summit of
the Americas, 2001) loud and violent
anti-globalization protests diverted
and held the media’s attention around
the world – but failed to change the
reality that transnational workforces are
now a required part of doing business,
and failed to acknowledge the benefits
international trade in goods, services and
labor have produced globally.
ignoring issues of long-term sustainability – employers focused solely on shorter-term management objectives.
5 Workforce expert, global executive and software industry veteran Rudy Karsan of Kenexa summarizes the historical views of competing
drivers of cost and quality of the workforce as follows: “The key current drivers of workforce globalization are cost, quality, expanded service
hours, proximity to customers and access to talent pools. The historical driver for workforce globalization has been either cost or closeness
Meanwhile, even economic regions in which we take stability for
granted may soon become more difficult places to do business in.
Consider this remarkable statement by a senior U.S. government
official made in February this year on the PBS show “Nova”:
“We’re going to see the decline of Europe and Japan as economic
and political powers. They will become cauldrons of permanent
and economic fiscal crisis. This financial crisis will become more
consequential for America as far into the future as we can project,
because we know that our key trading partners, for all intents and
purposes, are finished as economic and military powers. The locus of
global growth and dynamism will shift to the emerging markets, like
China and India. For the US, this creates a series of huge challenges.
How do we bring along these countries, which by necessity must be
our principal allies as we go forward, to create world stability? How
do we transform them from the defensive mindset of the Third World
to a more expansive role of taking responsibility for global events?
Because we’re certainly going to need them …” ~ Paul Hewitt, deputy
commissioner for policy at the Social Security Administration and
former director of the Center for Strategic and International Studies. 7
Hewitt is speaking in the context of questions about demographics in
Western Europe and Japan. Data suggests both regions will soon face
debilitating worker shortages concurrent with potentially crippling
transfer payments to retirees.8 His comments and those from many
others, point out the need to bring countries with much brighter
demographic prospects, such as India and China, into the “fold” for
the sake of worldwide stability. This belief is echoed by Global HR
guru, Row Henson: “I believe it is critical for those of us dealing
with a global workforce to understand these demographics and their
implications. In the knowledge economy of the 21st century it is
our ability to attract and retain this human capital that keeps us in
business and makes us competitive. If we aren’t already, in the future
we will be looking for talent wherever we can find it. Global or not, it
is the global workforce – populated by workers in various phases of a
contingent relationship – that will supply this demand. Many critical
questions will arise regarding boundary management, privacy, and
the depth of long-term relationships. Our ability to understand the
demographics and the cultural differences associated with where these
resources live and how they work will be the differentiating factor
between those global organizations that survive and those that fail”.9

Building and Managing an INTERNATIONAL WORKFORCE

7
Demographic predictions are often highly accurate been particularly proud of its “global”
because the numbers demographers use are reasonably “locked in”. In perspectives – being first in its industry
other words, they have a very good knowledge of current population, to open international offices and
ages, birth rates and trends, so their projections can be made more develop “international” versions of
precisely. Despite this looming crisis in global talent management, its software.
much more of what we hear about globalization comes from those
who rail against it – especially as it concerns workers and jobs. The company has also prided itself for
its workforce and talent management
It is within this convoluted and contradictory landscape that MNEs practices – hiring a Chief Talent Officer
must rewrite portions of the traditional global workforce management and adopting best workforce practices
textbooks – and begin to develop a more regionally informed, faster than many of its competitors.
more financially balanced, more people centric and more culturally In fact, the company’s U.S. operation
aware Global Talent Management (GTM) approach. The urgency is had recently been singled out as an
heightened in some industries, such as the technology realm, where “Employer of Choice” by a major
time is of the essence. To the chagrin of some market and financial business magazine and had received
analysts and CFOs who supported rapid techforce internationalization multiple awards for worker satisfaction
the past few years, GTM is proving to be far more complex than and employee development. GTPC was
simply outsourcing and/or offshoring a few hundred workers or considered in the U.S. as a role model
jobs. Local culture and workforce environment matter universally for employment and labor practices.
in building a productive and stable global workforce. Technology
workforce managers are now called to do what only a short while ago Bob never thought the situation was any
seemed impractical and counterintuitive – manage people as valuable, different on the global front. In 1991,
culturally driven talent resources in diverse parts of the globe – and four years after, successfully expanding
build a sustainable, decentralized, flexible yet predictable and low-risk domestic operations to include all of
global workforce and support system. North Ameica, GTPC began its initial
forays overseas. It began in a highly
So what does this global techforce reality look like from the inside? decentralized pattern with local leaders
Ask Bob Profit. more or less running their own show
with the temporary assistance of mid-
I. PROLOGUE: A TALE OF TWO WORKFORCES level managers from headquarters.
Bob Profit is the CEO of GTPC, Global Technology Product Gradually, GTPC’s global operations
Conglomeration Inc., a $2.2 billion per year multi-national grew more sophisticated, and, with cost
technology giant headquartered in Denver, Colorado with sales and control taking center stage in about
development operations in 32 countries. The company was founded 1994, Bob sponsored a global standards
in 1985 in Bob’s garage and launched by building some of the initiative, which centralized most aspects
earliest computer and software products for financial businesses of the operation, including HR. While
– and later for businesses in all key industry sectors. The company some of these initiatives failed and the
has always prided itself as forward thinking and cutting edge. It has pendulum swung back in several areas, a
balance seemed to have been

to customers. This wave probably began from the time Ford or GM built its first factory in Ontario, Canada in order to take advantage of the
lower costs of the Canadian labor force and the ability to access the Canadian marketplace. The quality element has been more important in
recent years, by that I mean the last two to three decades. This driver is here to stay.” Karsan also believes that cost and quality historically
been of equivalent importance – and will continue to be the dominant drivers of workforce globalization.
6 See: http://www.cnn.com/CNN/Programs/lou.dobbs.tonight/
7 See: http://www.pbs.org/wgbh/nova/worldbalance/voic-hewi.html
8 For facts and figures representing worldwide population and demographics, please see: United Nations Population Division http://www.
popin.org/pop1998/8.htm

Building and Managing an INTERNATIONAL WORKFORCE

8
reached and profits were strong. GTPC’s global HR concerned, the situation threatened the
efforts, modeled after the success of its award winning U.S. people very survival of the firm.
management practices, appeared to have been quite successful.
As he assembled his Executive Team
That is why he was genuinely shocked to receive a letter from the for an Emergency Global Workforce
(fictitious) Pan African Labor Union informing the company that Summit, the situation only became
it was being publicly singled out as a “Worst Global Employer” more dire. Global Tech Products (facing
for its numerous violations of workforce responsibility rules, union pressure from Wall Street and its own
collective bargaining and worker privacy issues (release of prior institutional shareholders) had decided
employment information to third parties etc.). Bob called the two years previously, to cut labor costs
company’s General Counsel, Reggie Legs, to further inquire into by rapidly shifting an additional 30% of
the situation and was shocked to discover that the company had its technology workforce overseas. 80
received similar international workforce citations, which had not yet percent of the new overseas jobs were
reached litigation, for a slew of infractions. To make things worse, being “outsourced” to third parties in
the company’s political affairs department was reporting that GTPC Northern Africa (one of the lowest tech
was being investigated by 10 international labor entities in 8 different worker cost centers in the world), the
countries for various local labor or business practice violations by its Philippines, India and Bangladesh. At
managers. Bob had only been told that “there was grumbling with the time of the shift, Bob and the Board
some international labor groups who were making a big fuss over had been assured by the CTO, the VP
nothing.” He had no idea that it was this serious. of HR and the outsourcing firms that
the business risk was exceedingly low
The following week GTPC was mentioned in an article in The and that their competitors were gaining
Wall Street Journal as a “global tech sweat shop” with the article competitive ground by outsourcing
quoting ex-employees and outsourced workers in Bangladesh and faster than GTPC. The Chief Talent
St. Petersburg, Russia as saying that the company was a good place Officer had initially objected to the idea
for international workers to learn the ‘shortcomings’ of Western that strategic jobs could be successfully
capitalism.” One worker was quoted in the article as saying, “They managed by third parties overseas – but
treat foreigner workers as cheap, expendable widgets.” eventually conceded to the idea that
costs needed to be trimmed. Bob had
Bob realized the global talent situation represented a strategic crisis been reluctant to contract out engineers
–arguably a total breakdown in GTPC’s global people management in unfamiliar regions – he’d always said
program, which threatened the company’s integrity, brand, and meant that, “Our People are our
international relations and competitive advantage. He knew that No. 1 asset, IP is our No. 2 asset, and
the company’s future depended on loyal workers (and customers) in guess who makes the IP?” Despite his
the U.S. and abroad – and he needed those workers (and customers) reservations, he eventually accepted the
to commit, cooperate and support the company. He also knew that idea that these overseas jobs and the
he couldn’t afford to lose those workers to competitors or lose the overseas workforce could be “contracted
respect and trust of local foreign governments and communities out” and that the “IP” risk was
whose support he had worked so hard to build. As far as Bob was minimized by the pre-qualification of
the outsourcing company (after all, the
outsourcer had experienced immediate
9 Globalizing Your Human Resource System (John Wiley & Sons - projected publish date, summer 2004) by Row Henson
10 The case study is loosely modeled after Professor Nancy Adler’s (McGill University School of Management) “Four stages of corporate
evolution from domestic to global orientation” (see: http://www.cic.sfu.ca/forum/adler.html )
11 Many analysts rightly explain that “cost” is not the sole or in many cases primary driver of global workforce expansion – but rather access
to markets and a flexible skilled labor force. David Creelman, for example, points out that “low labor costs are one competitive factor, but

Building and Managing an INTERNATIONAL WORKFORCE

9
cost cutting success for dozens of other multi-national tech
firms over the last 3 years – with little identifiable human capital risk
or quantifiable problems).
As it turned out, GTPC’s Global Workforce restructuring had been
problematic. In India, where the company had outsourced nearly
2000 highly skilled jobs, the short- term profitability goals of cutting
labor costs by 30% had been only four-fifths achieved. Moreover,
the teams were behind development cycle schedules by an average of
35% as compared to productivity before outsourcing had occurred.
Worse, the company had experienced an alarming number of IP theft
incidents – and as a result, had discovered as a corollary that while
offshore IP protection laws seemed on the surface to be comparable
to the U.S., in practice, courts and judges in some regions, rarely sided
with U.S. companies and many other court systems were backlogged
and chaotic in comparison to U.S. courts. These were issues that were
never raised when the outsourcing decisions were being considered.
The problems did not stop there. Globally, even among its core
workforce, the company had experienced an alarming number of
racially, politically and religiously charged worker-to-worker and
worker-to-manager verbal and physical altercations. As a result, per
worker litigation, sensitivity training and facility security costs were
rising rapidly. Additionally, in these locations, worker morale and
productivity had suffered greatly. Upon reflection, Bob realized that,
while mainly profitable, GTPC’s subsidiaries were not gelling with
each other and headquarters. He couldn’t think of the last time a new
product idea or innovation came from outside North America. He also
realized that few of his promising executives were located abroad and
fewer still expressed any interest in overseas opportunities.
Even the advanced Global e-HR solution GTPC had spent millions of
dollars on and almost two years implementing was a failure. GTPC
implemented their solution in the U.S. first. Only after it was being
used successfully across the country did they roll it out globally. Bob
agreed with his Chief Talent Officer that this was a sensible approach.
However, having paid little regard local needs or to legacy processes
in place throughout its regions, and having failed to stay abreast of
local privacy laws, the new solution was being ignored or undermined
in some locations and was exacerbating GTPC’s compliance problems
in several others. Where it was being used, there appeared to be no
consistency of data available on which corporate HR could identify
trends, conduct global HR planning or base decisions.
Building and Managing an INTERNATIONAL WORKFORCE
10
As Bob listened to his executives recount
the problems and challenges being faced
by his business managers across the globe,
it occurred to him how wrong the team’s
assumption had been regarding the ease
by which the company could “globalize”
its workforce. He realized that intertwined
issues like politics, race, religion, business
practices, culture and language are
central to workforce productivity and
commitment and how clear it is that as
these factors change from country to
country, the workforce environment and
paradigm shifts. How could the company
have so callously made the mistake of
assuming that what had worked so well
in the U.S. would simply translate into a
different business environment, culture
and a different set of business rules?
Bob stopped his team and made the
following declaration: “We have claimed
to be globally minded – but we’ve treated
our global workforce like a subsidiary to
the U.S. workforce. We cannot afford to
destroy our global business reputation
by building the reputation in global
markets of being a callous and abusive
global business employer – while trying
to maintain our position as a market
leader. We need this entire team to
make managing the global workforce
a core competency of the organization
– and we need to do it quickly. Our
profitability depends on productivity – our
productivity depends on our people – our
people are defined by their local workforce
culture. We will not make another global
workforce strategic decision until we’ve
invested the time to understand and
assess our strategy, analyze the global
workforce cultures we operate in and
digest the global workforce lessons
we’ve experienced to date based on our
successes and failures in the field.”
Part I: Getting Local for Global Success – 8 Principles for
Building the Global Workforce

}
Global Tech Products is not a real company – but the
global workforce issues explored in our hypothetical
example are very real and very immediate for major
technology firms and other organizations across the
U.S. and around the globe (some of whom are profiled
in this paper)10. Bob faces the same situation faced
by many real CEOs (facing workforce restructures,
reorganizations, mergers and layoffs) - having to
prematurely tap into the global workforce on a large
scale without adequate preparation or expertise. GTPC
was at the stage in its worldwide operations in which
it needed to be a truly “global” organization and Bob
made the mistake of believing it was in every respect.
In reality its workforce practices had not matured to
that level in step with the rest of the organization.

Building and Managing an INTERNATIONAL WORKFORCE

11
Like so many real CEOs, Bob paid the price of short spent on U.S. labor alone in 2003 was
sighted workforce decision-making based on operating cost approximately $6.2 trillion, or 56 percent
management, access to flexible skilled talent and pressures from of total gross domestic product. With
Wall Street – without alignment with longer term GTM objectives labor comprising a highly significant
of sustainable workforce development, managed productivity and percentage of corporate cost structures,
strategic people management. A partial path to solving these Global organizations are compelled to increase
Workforce dilemmas is in understanding GTM and establishing the return on this valuable asset”.
the proper balance between productivity, profit and people. That
balancing act has been a particularly difficult one for the technology But another challenge, competition,
sector, in particular, in recent years. has been particularly daunting. Global
competition in all technology sectors is
With recent economic conditions, financial market uncertainty, accelerating at unprecedented rates. U.S.
and occasionally flagrant profit-driven globalization, it is easy and other developed economy leaders,
to understand how the traditionally balanced (even conservative) long comfortable with traditional
MNE perspective on managing and developing regional workforces capital resource advantages (access to
(especially within technology enterprises where human capital prior technology, expertise, education,
management is so established) could be thrown out of balance. In knowledge, financial capital, etc.)
recent years, multi-national technology companies have struggled are finding themselves facing greater
in the face of a triad of unprecedented global business challenges sustained foreign competition (and
– a combination of slow global economic growth, an unrelenting tighter margins). Traditional leading
global stock market demanding higher profits, and increased global economy advantages in technology
competition leading to shrinking margins. innovation and manufacturing wane
as strong market innovators and even
When asked what are the key drivers of workforce globalization and stronger price competitors emerge
how dominant the issue of labor cost is in determining where to offshore (in part due to labor and
expand the global workforce, Professor Peter Cappelli, Director of other operating cost advantages) in a
the Center for Human Resources at the Wharton School of Business slew of technology product categories
remarked: “… labor costs are the most important factor because you (consumer electronic, semiconductors
can easily document costs and not many other benefits. CEOs are and niche business process software, for
saying that they have to start thinking about India and China because example).
of the cost savings. Until we get hard value on some of the other
benefits, this will be the main driver…” In an attempt to rebalance this
unfavorable competitive equation,
To reinforce the point, Louis Tetu, Chairman, CEO and President of many companies in the last few years
Taleo (formerly Recruitsoft), a U.S. based human capital management have scrambled to adopt a variety of
software and services firm with operations globally, says: “The key aggressive measures to cut operating
driver for workforce globalization is ROW, or Return on Workforce; costs, reduce permanent workforces
that is, increasing the value provided for the investment made in the
workforce. According to the Bureau of Economic Analysis, the amount

(that) wouldn’t matter without skilled management” and that “development, immigration and acceptance” have become major factors.
(Interview with Schweyer for HCI, May 2004). The depth of impact of cost as the predominant factor may be more pronounced however than
is readily visible on the management surface. For many tech firms where permanent ranks have been dramatically reduced to create a more
flexible project based workforce model, the need for “highly-skilled, flexible workforces” is cited as the catalyst. In fact, the catalyst for the
flexibility was workforce cost cutting – again, putting the labor cost issue front and center. Building a flexible workforce is most assuredly a
best practice, unless jobs and positions are better suited to permanent staff and flexibility becomes the excuse for cost-shifting.

Building and Managing an INTERNATIONAL WORKFORCE

12
and create a global flexible workforce (including global
workforce offshoring, outsourcing and relocation).11 With the need to Performed correctly, global workforce
maintain flexible productivity, many firms have opted to aggressively advantage translates into a productive,
offshore positions to low cost centers or aggressively “outsource” even stable and predictable global workforce,
high-level jobs through offshore third parties - firms who contract to one capable of flexibly capturing
hire and manage workers directly. regional labor cost and regional skills
and innovation advantages. Performed
The resulting tech force “global scramble” has pros and cons. The poorly, a company like Global Tech
internationalization of the tech force, in particular, has not been Products experiences short term cost
without advantage and merit. Certainly, firms have trimmed labor gains – but over the longer-term
costs and, as a result, buoyed profitability and reduced the cost encounters workforce denigration,
of their goods to consumers - even while revenues have flattened. decline in the economic value of the
Moreover, this approach has led to workforce breakthroughs and workforce and the company’s brand, and
renewed understanding of the strategic financial importance of in the worst cases, productivity losses
maintaining access to flexible, highly-skilled, globalized talent pools and global worker crises.
of contract and permanent workers.
To manage this complex workforce
While many firms may have entered the global workforce market scenario, MNEs, especially tech firms
initially as a short-term cost measure, the global workforce is now a and others entering the global workforce
permanent fixture of these companies. As thousands of small, mid- markets for the first time, need a
sized and large firms learn how to gain or increase their competitive good compass for guidance.12 Below
advantage, they are simultaneously learning the importance of we provide basic principles of Global
capturing “global workforce advantage” – increasing global workforce Talent Management which can aid firms
productivity (usually a combination of lowering workforce costs and that are early in the GTM adoption
increasing worker results) while minimizing global workforce risks. cycle, establish better global workforce
practices.
Row Henson of PeopleSoft has been assisting organizations with their
global HR efforts for more than ten years: “A lot of organizations are
going global for the first time due to economics and demographics.
Lots are going global for reasons other than why Dow, HP or similar
giants would have decades ago. The offshoring phenomena is a huge
part of it and makes a big difference today. The big question with
most of these firms is: What is the talent I need today and what do
I have to pay? But eventually you need to look at talent as an entire
workforce globally. This is a huge challenge even for the largest
organizations who may have had offices throughout the world for
decades”.

12 Techforce globalization has impacted the entire technology business community and even some small tech enterprises are now required
to build GTM capabilities. In an interview for this paper, Rudy Karsan notes: “I believe that the workforces of today’s technology firms are
extremely global and by that I mean, a certain percentage of their people do not work in the country of primary operations….The size of
companies that have global operations has been dropping year over year. It is not uncommon to find a company with less than $10M of
annual sales having one or more offshore business locations.”
13 About 9th or 10th in the world according to U.S. Federal Government “Country Studies”.
14 For the full text of the speech, please see: http://www.number-10.gov.uk/output/Page5555.asp
15 The idea that a dynamic asset like a workforce can be managed like inventory should also be eradicated. Inventory cannot achieve the

Building and Managing an INTERNATIONAL WORKFORCE

13
PRINCIPLE 1: of them women academics that had
UNDERSTAND THE “REAL” GLOBAL branched out into business, confidently
WORKFORCE PARADIGM predicting they would beat Europe
One would be tempted to describe the emerging complexities of hands-down in the biotech business
contemporary global workforce management as a “new” or an within a few years. And they weren’t
evolving paradigm. In fact, there is little new about the people issues alone. India, as a whole now turns out
multi-nationals are struggling to manage. What is new is the growing 220,000 science and IT graduates every
MNE acceptance and understanding that the “global corporate single year13. When I returned home,
culture” is not a ready substitute for that of the local workforce people asked me about the poverty of
environment (labor expectations, social and business practices, and the country, how shocking it was and so
the local culture) on workforce productivity and behavior. on. There is indeed still much poverty
in a nation of 1 billion. But what
In our case study, GTPC’s first and foundational error was to had shocked me was how fast it was
assume that what worked in North America would work overseas. It changing.
compounded that error by centralizing decision-making while failing
to engage its subsidiaries in a meaningful way. What it thought was Then last summer I visited China. I had
a “world class” HR environment was really an exemplary U.S. model the same experience. But I noticed
superimposed on a global workforce without much regard to local something else. Whereas ten years
differences. before on a visit, I had also seen new
buildings in Shanghai, the same
GTPC and organizations like it are learning another lesson at the determination to get into the western
same time. There is an emerging workforce assertiveness in much of way of business, but had found it a little
the developing world. The individuals and groups of individuals that like people wanting to learn a new
constitute the global workforce are discovering their leverage and language but not quite sure how to do
importance, embracing their local workforce culture and receiving it; this time, there was an assertiveness,
political and institutional support from multi-lateral groups like the again, as in India, a confidence that
UN and the ILO; and, in many cases, from their own governments and showed they were now not just speaking
institutions. This is evidenced in the growing number of organizations the language but doing so with a
that articulate “corporate social responsibilities” in public documents fluency and comfort equal to any first
(ostensibly to build and protect their brand) and in covenants such world nation. More than that, a
as the United Nations Global Compact that already counts more than readiness to push it further, expand its
1600 subscribing companies worldwide (see page 31). possibilities, that stood in sharp contrast
with what we see in parts of Europe.
In a speech made to corporate leaders in London on March 22 this
year, British Prime Minister Tony Blair said the following: “In the Above all, in both countries I was
last two years, I have made reasonably extensive visits to India and acutely aware that if I returned this year,
China. Both made a profound impression on me. I remember sitting I would be surprised at the change from
in a brand new state-of-the-art university complex in Bangalore last year. What is happening is very
in southern India, talking to leading biotech entrepreneurs, many clear. Globalization is transforming the
world economy; not just because
objectives set for people – it is never loyal, dedicated, committed or innovative.
16 Please see: www.7d.culture.nl
17 The relevance and impact of culture on workforces in the global arena is an urgent and heated topic. There continues to be significant
debate around the subject of the role and relative impact of local and national culture on workforces and its balance with corporate culture.
Peter Cappelli explained in our interview for this paper a perspective that fully embraces the “global” enterprise culture as predominant and
controlling and argues skillfully that “local cultural differences are so far not really a barrier, especially in multinational companies that build
their own culture and emphasize it, as opposed to the national or local culture.” He further explains that unlike labor cost issues “culture
is less a stumbling block – companies are not paying any attention to how they make use of cultural differences.” We, in fact, agree with

Building and Managing an INTERNATIONAL WORKFORCE

14
of changes in methods of production and technology but (the advantages of tapping the global
because mass popular culture, communication, customer preferences labor markets are obvious), but rather,
mean a perpetual revolution in new business opportunities and many MNEs have erred by ignoring,
challenges. It is not the scale of change alone that is remarkable; but rather than understanding, the local
its pace.”14 workforce and the communities,
attributes and cultures that define
To better understand the cultural realities Mr. Blair speaks to, we it. Local and corporate considerations
might look more closely at the corporate culture versus local culture must be properly balanced and factored
struggle that has played itself out in MNEs for decades – a two- into any planned adoption of corporate
sided MNE workforce “cultural coin.” Despite rising workforce culture.17
automation, standardization of workforce and business practices, and
international workforce training – all part of the reasonable effort To manage people globally, we must
to establish a predictable “global corporate culture” (in many cases understand the intricacies of the local
a proffered substitute or challenger to the local culture) – people foreign workforce paradigm faced by the
simply do not adopt the corporate culture intact, or automatically adventurous global employer.
abandon local culture, norms and values to behave like transnational
inventory.15 Nor should they – for their sake, or the benefit of the We must also
MNE. Fons Trompenaars, a noted global workforce cultural expert
states: “Foreign cultures have an integrity, which only some of its understand what
members will abandon. People who abandon their culture become
weakened and corrupt. We need others to be themselves if partnership
motivates people
is to work. This is why we need to reconcile differences, that is, to be
ourselves, but yet see and understand how the others’ perspectives
and what inspires
can help our own.”16
and concerns
Put differently, the cultural people factors (or regional workforce
differences as influenced by the local workforce environment and
them.18 Gaining
culture) are precisely what make people the greatest corporate that local knowledge
asset – the generators of loyalty, dedication, creativity, innovation
and productivity. Blair witnessed this creative energy in his visits to is arguably the first
India and China, the goal for global organizations is to harness, not
obstruct it. tangible step to
Simultaneously, these variables make people the most difficult asset to gaining“sustainable”
manage. Workforce culture can be legitimately managed only through
leadership and building personal (personnel) relationships. When we competitive work-
internationalize workforces, across cultural boundaries and national
borders, the complexity of people management grows exponentially. force advantage
The mistake has not been in the rapid globalization of the workforce
offshore.
Mr. Cappelli that multinationals are “emphasizing corporate culture” and not “paying attention” to local workforce environment. The main
question examined in this paper is whether this “informal” strategy has been effective in the past, and, moreover, whether it can be effective
in the future. Cappelli alludes to another key theme in this paper – whether multinationals are “missing” a key opportunity to “make use
of cultural differences” rather than ignore them. We will suggest that local culture attributes and differences are key strategic assets when
managed effectively through effective leadership, and key inhibiters to workforce goals when ignored or mismanaged. The reluctance, as
explained later in this paper, to attempt to “manage” culture is understandable, but the failure to use GTM and “workforce leadership” to
bridge cultural differences and work environment disruptions is not. Moreover, the suggestion that because culture seems to be flexible or
transplantable to some global workers it must be flexible to all global workers – or that cash compensation is the predominate interest of all

Building and Managing an INTERNATIONAL WORKFORCE

15
Yet, despite growing acknowledgement that the bandwagon for the same reasons. Cost
two-sided cultural coin is the real global workforce paradigm, MNEs cutting led the charge, exacerbated
seem to be moving backwards in their adoption of culturally- by a sense of urgency as competitors
informed GTM.19 Culturally-centered GTM adoption is a key step, as moved jobs overseas and cut costs. It
explained in more detail below, to ultimately leveraging the global was also lured by the promise of 24
talent base – not merely efficiently, but more effectively. Even where hour production, access to new markets
organizations outsource parts of the global workforce, cultural and talent, and the illusory convenience
understanding is critical, a point driven home to us in our interview of managing a vendor/ service level
with Row Henson:“Even in offshoring you can’t ignore culture, it is agreement rather than a workforce.
the most important thing in the whole GTM environment. You have GTPC moved quickly – in this instance,
to develop for a global culture. I can’t just go and open a call center without regard to long-term global
in India. If I am Harley Davidson with a great customer service workforce strategy.
reputation, for example, the customer service representatives had
better understand my culture and I had better understand theirs. The Offshoring and outsourcing options
smart companies are doing extensive training in this respect. If three have proven particularly alluring,
Indian workers cost the same as one American, I should split the especially for tech firms whose centers
difference, take the cost of one and use that for cultural awareness of operations are based in the most-
and training – it’s that important.” expensive tech labor market – North
America.20 Yet, this unexpected and
PRINCIPLE 2: urgent “global labor” shift is entirely
REACTIVE “PEOPLE COSTS” APPROACH IS understandable if not recommendable.
NOT A LONG-TERM SOLUTION TO GLOBAL In difficult times, companies must do
TALENT REQUIREMENTS
(within reason) what is necessary to
The year 2000 marked the beginning of a new millennium and,
survive. Companies are or were facing
simultaneously, marked a quiet but profound workforce crisis,
unprecedented workforce management
particularly in the United States. That year, the global tech economy
issues and global competition. In these
screeched to a halt at the same time Wall Street began demanding
circumstances, managing “people costs”
higher returns (which translated into cutting operating costs). Since
often becomes a temporary panacea to
then, with workforce costs representing an aggregate 80+% of the
immediate financial and competitive
operating costs of a large business, workforce managers have been
crisis. Moreover, according to Karsan,
scrambling to find solutions to “globalize” the workforce in part, to
there may be additional pressures
create a cost efficient, flexible and accessible workforce.
facing organizations and tech firms in
particular: “Anecdotally, I know that
The reaction has been an abrupt temporal shift in Global Workforce
various VC firms refuse to fund a new
strategy for more than a few MNEs – from a focus on longer-
venture or an existing company unless
term cyclical strategic talent development to shorter-term reactive
they are aware that the development is
objectives linked to cutting people costs, restructuring workforces
taking place in either India, China or
and leveraging labor abroad. In our example, despite the gut
elsewhere in the Far East”.
level objections of Bob and his CIO, GTPC got on the offshoring

workers – is simply not reality. Even where workers are shown to be quickly adapting to the corporate culture, a similarly troubling question
arises as to whether employers should be comfortable with hiring the workers who trade their culture so easily.

18 The quest to understand the people, their culture and the workforce environment is not “touchy, feely” – but bottom-line business.
Productivity, work quality and intellectual property creation are all directly linked to workforce satisfaction and workforce satisfaction is
directly tied to worker perceptions of employer support and respect. A negative employer image (negative brand, poor relationships and low
leadership) can generate worker dissatisfaction leading to slow-downs, employee IP theft, software embezzlement, and even shut-downs and
work stoppages.

Building and Managing an INTERNATIONAL WORKFORCE

16
“Globalization” of the techforce continues to be driven by
the combination of factors – access to flexibility, skills, lower costs,
(perhaps even capital) - already discussed. Yet, at a higher level, the
trans-nationalization of these firms is primarily a result of the need
to simply become more competitive overall. Globally, companies are
facing higher competition with shrinking opportunities for entering
new high growth, high profit markets – in other words, most well-
established enterprises, particularly in high-tech, have successfully
entered and penetrated the well-developed international sales markets
already. As a result, the goal of higher margins and new emerging
markets becomes a principal focus, and with the workforce being a
primary cost center (a factor of cost versus productivity), management
of “people costs” and global labor force restructuring has become a
major multi-national initiative.

Even well-planned efforts to “globalize” the workforce do not address

the equally critical need to internationalize in a balanced way in order
to build strategic value and develop a stable, reliable and productive
offshore workforce. Well into the globalization process, many
multi-nationals are only now questioning the myopic, centralized
approach and beginning to assess the importance of localizing people
management and building manager sensitivity to the local workforce
environment. David Creelman, a human capital management
researcher with clients in North America, Europe and Asia notes that
sensitive issues like local politics, racial issues and societal concerns
exist, and that managers of “these sensitive issues need experienced
people on-site who understand the subtleties of the situation; I don’t
think it is possible to deal with these issues centrally.” In other words,
simply addressing the issues from headquarters and without local
sensitivity, is unlikely to produce the results sought by management.

19 Cappelli further explained that some MNEs may be moving backwards in GTM rather than forward: “Twenty years ago versus now, we are
(arguably) making steps against GTM. Back then companies were teaching languages, moving people around to give them international skills
etc. Now companies are reconsidering international management….pharmaceuticals, for example, have a big need for long term development
and so do the oil companies. Overall, companies are starting to talk about doing the same things they did 20 years ago….but less.”
20 Although North American firms are referenced as an example of this phenomena –ethnocentrism it is not a North American phenomena.
Indeed, the “globalization” of Japanese automakers into the United States in the 80’s evidenced many of the ethnocentric myths and mono-
cultural workforce assumptions regarding workforce adaptation and environment explored in this paper. The Japanese giants like so many
multi-nationals today wrongly presumed that the new workforce would simply bend to fit their “enforced” corporate culture. The strategy

Building and Managing an INTERNATIONAL WORKFORCE

17
PRINCIPLE 3: THE CULTURAL CLUES
PEOPLE ARE NOT FUNGIBLE It is, in fact, very difficult to decipher
In some respects, multi-national techs may have accelerated the foreign culture correctly, but it is
level of competitiveness in their own markets by buying into the necessary to at least map the culture
common strategic assumption that “efficiency”, which is a cost order to define the workforces
measure, is more important than differentiation or competitive multinationals seek to leverage.
strength. We see this reflected in the aggressive adoption by many Understanding foreign cultures and
companies of systems, tools and software designed to “standardize” idiosyncrasies will almost certainly
business processes within their industry – even in business functions bring strategic workforce advantage
where just a few years ago, companies sought differentiation and to the companies that undertake the
innovation (the best solutions maintain at least some level of business effort successfully. Not surprisingly,
differentiation within the critical business functions). This trend has however, given the highly regulated
arguably infiltrated corporate thinking around people as well, perhaps climate around workforce issues in
reviving to some degree, the old idea of a “fungibility” of people and the West, multi-nationals largely
workforces – the idea that people are virtually the same everywhere refuse to conduct any analysis of
and that the real business decision is a simple quantitative comparison the impact of the “collective” local
of competing labor pools. Cost versus skills. workforce environment beyond legal
and regulatory environments, thereby
A corollary and equally dangerous concept has been the notion that ignoring the impact of local religious
somehow a “global” mindset and a formalized corporate culture (a climate and the local social, political
set of corporate practices and rules) erase people differences and local and business cultures on the predictable
culture. Yet, that very idea of “people sameness” is antithetical to our performance of workers and their
understanding of the uniqueness of people as a source of competitive resulting productivity.21
strength within any business enterprise – and ultimately the source
of corporate wealth. It is ultimately (at the end of workforce As a corollary, firms have also been
analysis) the knowledge, core competencies, skills, know-how, ideas, slow to investigate the need to invest
innovations etc. – all born out of the individual and collective minds beyond the actual workforce and make
of our people – which define our corporate difference, our product investments in the local workforce
concepts, our innovative processes, and our business relationships. It community. Today, despite a market
is in the difference, not the sameness, that business advantage is born littered with examples (including ones
– and those differences are defined by people. covered in this paper) that understanding
and investing in the local workforce
Put simply, the people are not fungible. Any global workforce environment is a key advantage to
management concept or restructuring plan that claims otherwise is successful long term global workforce
prima facie flawed. Indeed, any outsourcing initiative constructed on development, most multi-nationals
the idea that people are fungible, giving little consideration to local continue to execute strategies that are
workforce environment or culture (particularly within a technology almost devoid of local environment
enterprise), should be considered suspect, or at least risk laden, until strategies, investments, knowledge or
proven otherwise. data – in other words, the global plans

failed (very publicly) forcing them to adapt their workforce cultures to North American realities.
21 This refusal to culturally assess the collective workforce environment is particularly odd given that it is a long-standing global workforce
practice to perform “cultural assessments” of individuals – especially expatriate executives – for fit with new workforce regions.
22 This, in fact, presents a very suitable analogy. When one considers the most successful colonial power of the era, England, versus one of the
least successful, Belgium, for example, the differences in approach and results are telling. Where one would build only the local infrastructure
necessary to efficiently remove assets and value from a colony, the other tended to build lasting infrastructure to support local economic,
institutional and workforce growth. Neither were altruistic and neither is a complete model (by any means) for today’s MNE, but the longer-
term investments England made in its colonies formed the basis for benefits that last to this day – for England, but much more so for many of

Building and Managing an INTERNATIONAL WORKFORCE

18
are non-cultural and non-local. This can be compared the employer, its
to the behaviors of most colonial powers in the 1700’s-1900’s (the
MNE’s forerunners in many respects) a form of plundering in which a
region is valued only for its raw resources, including people.22
corporate culture
Cracking the local culture code is not a mystic exercise. For some it
and the target
may be as simple as a commitment to actually use and fully leverage
the assessment tools, tests and data already available to analyze workforce region
cultural idiosyncrasies and then roll up the data to build a local
profile, eventually applying the data to build a localized plan. The beforehand.
overall global workforce problem may be born of strategic resistance
but it is also exacerbated by the tactical failure of MNEs to make
use of complete cultural assessments23 for the entire workforce
– executive and non-executive, employees and contract labor, onshore
workers selected for offshore assignments and new hires (in-sourced
and outsourced) selected in new foreign operations.

Even where assessment tools have

been used, the criteria selected
for assessment purposes has been
systematically limited – seeking
to determine the cultural fit of
a “worker” with the established
corporate culture rather than
collectively assessing the workforce
environment and the local culture
to determine the “fit” between
its former colonies.
23 Of note, Hoffman’s Cultural Adaptability Inventory
24 Global Talent Management can provide a strategic workforce foundation for all global workforce executives. For these purposes, “global
workforce executive” should be defined more broadly to include not only the traditional Human Resource executive supporting the multi-
national workforce but also any executive whose primary responsibilities including the hiring and development of a portion of the enterprise’s
global workforce.
25 In many respects the corporations are walled into this myopic approach through labor regulations, legal claims and business risk factors. In
North America, in particular, the landmine of issues associated with workforce and employee management has led the corporate community

Building and Managing an INTERNATIONAL WORKFORCE

19
PRINCIPLE 4: critical assets to a third party tied to
FIND A CULTURALLY RELEVANT, STRATEGICALLY the enterprise through a service level
BROAD FORMULA FOR GLOBAL WORKFORCE SUCCESS agreement, and;
The Financial Formula Needs to Be Balanced With Broad Corporate
Objectives and People Factors (2) Offshoring: Moving low-level, mid-
level and high-level jobs to foreign labor
While most Global Workforce executives24 are fully cognizant of markets.
the strategic need to achieve “Global Workforce Success” - few
have managed to fully define or execute global worker success at While alluring and popular, companies
even a modest tangible operations level (measurable benefits on are adopting these approaches without
productivity, relations, loyalty, etc.). Unfortunately, the focus of the adequate consideration of the regulatory,
efforts has again largely been restricted – focused primarily on hot legal, policy or cultural variables, and
spot HR issues like labor cost reduction, workforce flexibility and skills often without adequate preparation,
access and management. investigation and investment in the
local culture, workforce environment
In the tech sector for instance, many executives, CFOs and others or business practice. For example, with
charged with rapidly cutting labor costs and/or creating flexibility offshoring, some companies are leaping
turned (smartly if too quickly) to more flexible, cost-efficient global in with ill-formed illusions of something
labor options - offshoring and outsourcing. The initial catalyst for akin to a global “free trading” zone in
adoption of the options was to ameliorate the financial burdens. But people. Many experts and commentators
solving the immediate labor cost issues was not necessarily a real are supporting this view by encouraging
panacea for the underlying competitive and labor factors or even the the notion that any regulatory
global workforce challenges created by globalization itself. Similarly, restrictions on offshoring will impair U.S.
outsourcing as a management tool, masked for some companies, corporations’ ability to compete, and
the sublimated intent to transfer the “global people” management therefore weaken the economy. Other
burden on to the shoulders of a “reliable” third party outsourcer. As experts suggest moderation by pointing
workforce executives are now quickly discovering, even when jobs are out the current realities of “free trade”.
appropriately migrated across borders, global workforce success and Cappelli reminds us: “We’ve sort of
GTM cannot be “outsourced” or “offshored” – these remain strategic approached off-shoring with a view that
internal issues. policies and restrictions would be wrong,
but the world of international trade
With that background, let’s examine the first GTM step – the is filled with them, trade barriers exist
operational imperative of defining “global workforce success” more everywhere, there is no real free trade.”
broadly – to encompass the complete strategic people picture. That Of course, barriers to free trade in people
imperative forces corporations to look beyond short-term financial are real – national borders, limits to
impacts and urgent skills needs, and to assess the long-term work visas, etc., but where offshoring is
workforce effects of the two, now-common, global people practices: concerned, few, if any appear to be in
(1) Global Outsourcing: Outsourcing jobs (and the associated place.
knowledge, skills and innovation resources) and entrusting those

to substantially abandon investigation or discussion into the workplace areas not “required” or mandated by law and associated with a “safe
harbor.” This approach creates the dangerous illusion of business safety and good management through omission and avoidance.
26 Globalization and Human Resource Management: Strategic International Human Resource Development: Summary by Dr. Nancy Adler,
McGill University Faculty of Management. Excerpt p.2 “Unfortunately, over 50 percent of expatriates sent by international firms find that their
foreign experience hurts their career”
27 “Global human capitalists” is a term recently coined by the Human Capital Institute to describe a workforce executive or professional that
manages a global or multi-national workforce, understanding that the people are unique, dynamic, strategic capital assets. This concept is a
perfect compliment to GTM principles – and aids our understanding as managers of the strategic relevance of people management.

Building and Managing an INTERNATIONAL WORKFORCE

20
Global workforce restructures (offshoring and outsourcing) CULTURE = PEOPLE8
adopted by so many firms in such a carefree manner over the past 4 It is axiomatic that people are defined
years, have revealed that, while the concept of building a “culture- by their culture and, as workers, by their
blind,” flexible, global workforce in cheap labor markets is enticing, local business environment. Perhaps
it is hardly an instantaneous business endeavor even for low-level to reduce workforce management
technical positions. It would be foolhardy to suggest that a generic complexity and risk, many MNEs adopt
formula of any sort could address the complexities and idiosyncratic the rather conservative workforce
issues surrounding the recruitment, development and management principle that culture is not an issue
of a multi-country, multi-culture, multi-region workforce – for even appropriately managed or even
a modest global enterprise. Even so, to improve our approach to investigated as part of Global Workforce
both offshoring and outsourcing, there are several basic GTM Management. This approach puts
principles that can form the starting point for balancing a global limits on their potential “adaptation”
workforce restructuring plan, and for anchoring the global workforce to language, currency, compensation
reinvention process. scale, immigration laws and other more
traditional and quantifiable workplace
First and foremost, we must recognize that workforce management challenges.25
(domestic or global) is ultimately, despite well-articulated arguments
to the contrary, also a relationship and culture management issue Part of the problem has been
– and not strictly a resource capital, workforce policy and people the proliferation of debilitating
cost business conundrum. Put another way, global workforce workforce myths associated with the
management is individually and collectively “personal.” It is entirely “global economy.” While the global
understandable that enterprises can lose sight of the personal nature economy accurately references the
of workforces – especially in the global context. In times of volatility “interconnectedness of regional
and crisis, normally balanced workforce discussions can be side- economies,” the principle has given
tracked by financial and cost imperatives. Managers may be lulled into birth to the false notion that in “modern
the belief that managing labor costs will address the myriad people workforce globalization” businesses can
and culture issues surrounding successful management of people ignore differences between regional
in multiple cultures and countries. In reality, as illustrated in our workers, regional workforce cultures
case study, complex local and regional workforce environment issues and regional workforce environments.
remain and may emerge later to erode any competitive, productivity, This latter notion embraces the “multi-
cost and operational gains. Hence, to avoid the deceptive “corporate ethnocentric” myth that a “global
culture” or “culture-blind” views, GTM enterprises should consider business culture” exists which savvy
adding to the foundational layer of their traditional business workers and employers can simply adapt
relocation and workforce evaluation models, broader culturally to – a baseline “world” or transnational
relevant “global people management” principles such as: corporate business culture for all
global workers. Through this thinking,
companies are led to believe that
companies “manage” local workforce
cultural differences by ignoring them
– and by substituting a global corporate
culture. While some MNEs have
successfully built baseline business
cultures in numerous diverse regions,
lasting corporate cultures balance local
and corporate culture to

Building and Managing an INTERNATIONAL WORKFORCE

21
form a “localized” hybrid culture (which integrates managers with the impression that
local and corporate values) and thereby build the loyalty and overseas assignments might be bad for
dedication necessary for a long-term sustainable workforce. their careers – which may be the case,
in the real world, for more than half
This misleading “global” business culture theory has bred a corollary of all expatriate workers.27 Moreover,
management belief that people are portable to various global regions this de-emphasis on the regions, as far
without acclimation. In other words, enterprises are led to believe as executive involvement is concerned,
that workforces are transplantable without significant adjustment and perpetuated a situation in which not
sensitivity to the local regional culture, without adequate training only ideas and innovation were stifled
for doing business in the local community and largely without outside the U.S., but top talent was
regard to local culture at any level. In truth, organizations that not nurtured globally – both distinct
wish to nurture truly global workforces must commit trained, senior disadvantages for GTPC.
managers from the domestic operation to the task. Doing so will not
only communicate the organization’s commitment to globalization, In the real world, a plethora of woes
it will also foster an understanding of local and cultural differences (i.e., foreign workforce alienation,
across the organization’s global operations among its most senior and expatriate instability, re-integration
influential people. difficulties leading to turnover or lost
productivity when expatriates return,
This is especially true in situations where workers are sent to volatile and a dearth of willing would be
and dangerous regions. In some cases, workers are motivated by the expatriates) are linked in large part to
attractive and often tax-free salaries they can earn by volunteering fallout from the adoption of the poor
for assignments in war-torn countries and regions. Organizations are selection, preparation and deployment of
wise to choose volunteers with past experience in similarconditions expatriate workers.
(even ex-military where possible) and to carefully examine
motivations. The investment in personal security, life, kidnap, If we are to succeed in developing
evacuation and other insurance, etc. can easily amount to 70% workforces on global basis, then we
or more26 of the worker’s pay. Mistakes in hiring and deployment need to commit to being global cultural
can be devastating for all involved. experts – and while ignoring cultural
In the GTPC example, the CEO learned that very few of the company’s attributes like religious and legal
best prospects were in overseas offices. This was the result of two paradigms, political climate and local
main problems. First, GTPC failed to circulate its top U.S. executives business practices may fit the multi-
overseas in order to integrate and harmonize its global operations. national desire for common ground
Second, because it didn’t pursue this strategy, it left ambitious – it does not fit reality. The failure
to invest in not only understanding,
but complementing the workforce
environment and local culture,
squanders the opportunity to build local
allies and partnerships and reduce risk
associated with the workforce.

28 While Workforce Advantage includes financial advantages like labor cost differentials or offshoring advantages – perhaps the main focuses
of global workforce management the last few years – the real drivers of sustainable Global Workforce Advantage are the people-driven factors
like innovation and productivity – which are themselves factors of workforce satisfaction, local community support etc. Our corporate ability
to drive these advantages is directly linked to understanding the workforce as defined by workforce culture and the investments in building
support in the local workforce community (EDOs, labor associations etc.)
29Arguably, and contrary to some traditional thinking, cultural assessment of the local workforce environment is at least partially a financial
imperative – as the building of margins is dependent upon the building of competitive advantage which is defined in part by workforce
advantage.

Building and Managing an INTERNATIONAL WORKFORCE

22
PEOPLE = NOVELTY, INNOVATION & PRODUCTIVITY PEOPLE INNOVATION & PRODUCTIVITY =
At some point in the past few years, the CEO of just about every COMPETITIVE WORKFORCE ADVANTAGE
major corporation has sincerely pronounced that “Our people are Innovation and productivity are at the
the No. 1 asset of our company” and rightly so. Global talent heart of building competitive strength
management requires more than pronouncements, however. The real and advantage. While financial assets
workforce management issue is whether the employer understands and technology contribute mightily to
how complex the people management issue is – especially on a competitiveness, the workforce remains
global basis. Global human capitalists28 understand not only that the greatest contributor to these
people collectively are their No. 1 asset (which is basic) – but that advantages (particularly in knowledge
they represent a novel and precious asset of the company which must intensive industries). The workforce
be developed, maintained and nurtured – not simply managed. In contribution to competitive advantage
other words, each person is a potential talent asset, which must be can be referenced as the “Workforce
served and cared for within the reasonable confines of the corporate Advantage” or in a global context
resources. If a company treats its people as “commodities” it reduces – the Global Workforce Advantage.
its workforce to a commodity and destroys the innovation and The primary responsibility of the next
productivity that can be nurtured within the workforce. In effect, the generation of global human capitalists
business (and its value) conforms to its view of its people. will not be the administrative or
traditional process management of the
It is certainly true that there are other contributors to productivity global workforce, but the development
and innovation besides people, and that some workers are ill- of the global talent base into a realized
matched to the organization and should be moved out rather than source of dynamic Global Workforce
invested in – ultimately, however, people are the source of all value. Advantage based upon innovation and
Still, the innovation and productivity borne out of the workforce productivity.29
must be distinguished from the innovation and productivity gained
from technology. Technology has been a generator of “efficiency”
within the enterprise, and while such advancements are important
and strategic, they are always produced by people – even when that
advancement is a technological one.

30 These advantages, or capabilities are borrowed from the work of Dave Ulrich and Norm Smallwood in their June 2004 article for the
Harvard Business Review entitled “Capitalizing on Capabilities” pp. 2-4
31 Examples would include building strategic authority into the workforce decisions, giving workforce management strategic relevance, and
determining the economic value of human capital of the company on a recurring basis.
32 For example, one of the perennial issues which multi-nationals face in global workforce management is setting an appropriate balance
between allowing for decentralized local flexibility to adjust for local business practice and regulations, and the desire to control workforce
practices centrally based upon the standards and models of the enterprise. Even when autonomy is the favored approach – some central
baseline of common workforce practices and policies is necessary.

Building and Managing an INTERNATIONAL WORKFORCE

23
COMPETITIVE ADVANTAGE = SUSTAINABLE MARGINS
To the degree that American corporations (or at least their
institutional shareholders) are focused today on short-term profits
(returns) – the quest for profits can instigate short-sited global
workforce decisions to drive immediate cost reductions and margin
gains (and ultimately sought after profitability). Yet, it is
sustainable margins – not short term gains or profits that
actually build a company’s economic value and ultimately, its
shareholder wealth. Profits are accounting phenomena – not
necessarily wealth generators.

A company’s competitive edge generates its market advantage. With

that market advantage, companies are able to sustain margins and
ultimately earn repeatable profits. Workforce advantage (innovation,
productivity) is a major component of the competitive advantage
multi-nationals need to sustain margin – and this advantage must be
diligently managed and balanced through both formal and informal
GTM processes.

SUSTAINABLE MARGIN = STAKEHOLDER WEALTH

Again, sustainable margins are the real builders of corporate wealth
– not fast profits

In sum, people are products of their local culture and the regional
workforce culture defines the global workforce advantage realizable
from a region. To leverage that workforce advantage (and the
competitive advantage that leads to sustainable margins and
ultimate wealth) multi-nationals must invest in understanding, then
leveraging the local workforce culture and workforce community. Put
differently, shareholder wealth is the ultimate outcome of human
capital investment and those investments must be based in part on a
deep cultural assessment of the global regional workforces and their
local workforce environments.30

33 A good primer for understanding the foundational underpinnings of Talent Management can be found in the 2001 report by TMG, “Top
Ten Challenges of Corporate Recruiting” – where the authors and TMG founders, John Chaisson and Connie Pascal, tracked the tangible
challenges facing 100 leading and fast growth companies and introduced the concept of the Talent Management, the Talent Management
Lifecycle and the Talent Management Organization. That market based study performed in 2001 revealed that 17% of organizations could
be classified as TMOs. A study of the percentage of multi-nationals which qualify as TMOs has not been performed. One could reasonably
assume that the percentages are higher for multi-nationals.
34 In recent years, HR BPOs, such as Exult and IBM, have entered into contracts with MNEs (i.e. BP/Amoco, The Prudential - Exult, Proctor
& Gamble – IBM) to manage global workforce solutions on their customers’ behalf. This never represents a total abrogation of responsibility,

Building and Managing an INTERNATIONAL WORKFORCE

24
PRINCIPLE 5: DEFINE A SPECIFIC OPERATIONAL FORMULA FOR The conceptual definition of Global
GLOBAL WORKFORCE ADVANTAGE Workforce Advantage is wrapped
In a balanced GTM strategy, the overarching goal of managing around a relatively simple principle: To
workforces globally is to improve workforce advantage (including maintain adequate global competitive
workforce productivity and cost efficiency) and thereby wealth advantage, an enterprise must develop
and sustained profitability. For MNEs to operate effectively in the strategic advantage through the effective
current global workforce paradigm, they must define a formula for management of workforces globally.
Global Workforce Advantage for their enterprise – and that formula For a global workforce to optimize it
must be made operational and executable in workforce practices, must be managed in a manner which
procedures and policies. In this way, managing the Global Workforce breeds “competitive advantage” for the
can be simplified into a two-part strategic process. First, defining organization on a global basis and that
the company’s strategy for Global Workforce Advantage and then approach must be:
developing a Global Talent operating plan.
• Based on Global Talent Management
The first step is to understand the general concept of Global principles – the idea that talent is a
Workforce Advantage and then adapt the concept to an enterprise’s critical asset of the organization that is
specific workforce circumstances to make it operational. managed throughout a lifecycle and that
the management of people is strategic (a
“talent mindset”);

• Identified with the specific global

workforce capabilities and advantages
that the organization seeks to maintain
(i.e., leadership, innovation, speed,
efficiency, etc.)31;

• Tied to the higher level strategic goals

of the company

• Universally locally successful. – The

idea that a company can operate
worldwide but that success occurs locally
within each workforce community.

however - arrangements of this size, duration, complexity and cost (often in the hundreds of millions over several years) require careful and
active monitoring on the part of the customer.
35 At the risk of introducing yet another new concept, a “workforce value proposition” is simply the enterprise value statement and corporate
values translated into an integrated value proposition useful for workforce guidance. And to communicate its values to the workforce,
potential employees, and the broader community.”
36 Please see: http://www.publications.alcan.com/sustainability/2003/en/highlights/managing_03.html
37 “Articulating Corporate Values Through Human Resource Policies” T.M. Begley and D.P. Boyd, Business Horizons. July-August 2000. pp.
8-12

Building and Managing an INTERNATIONAL WORKFORCE

25
PRINCIPLE 6: interrelated).34 An informal audit or
THERE IS IMPERATIVE TO ADOPT GTM review for GTM would look for evidence
AT THE OPERATIONS LEVEL
of these GTM principles in the recruiting
Although there are several different baseline approaches to the
and hiring methods or in customizations
definition, Talent Management is essentially a strategically-minded
of the company’s HRMS and automated
approach to the development of “people” or the talent assets of an
recruiting solutions. One would find
organization. It fosters the management principle that talent should
evidence of GTM adoption in a global
be developed strategically within the enterprise on the basis of a
staffing solution which accommodates
lifecycle that includes phases for the maturation of talent within the
candidate relationship management,
organization (e.g., attract, recruit, hire, develop and retain). As an
or a corporate recruiting website that
extension to this principal, Global Talent Management is the adoption
is trans-cultural, globally flexible (with
of these strategic minded talent management principles into the
regard to laws, workflow, etc.) and
global workforce paradigm and applying these principles to produce
multi-lingual. Further evidence might
specific Global Workforce Advantage goals. Thus,
appear in the existence of global
corporate competencies and a means
GLOBAL TALENT MANAGEMENT = DOMESTIC TALENT
MANAGEMENT + LOCALIZATION for the MNE to see the skills and
Of course, this is a gross simplification, but it is correct at the highest competencies of its global workforce
levels and serves to pinpoint the main message. Part of the perennial in a common database. Certainly, the
adoption problem is that companies have a difficult time applying company’s articulated decision process
strategic GTM principles32 at an operational level – and even when to determine when offshoring or
there is a commitment, struggles emerge over “how” to operationalize outsourcing is appropriate and the steps
the concepts.33 Remembering that global talent management differs for preparing foreign work locations
from the principles of talent management at home in just one key would be critical flashpoints also.
respect might serve as a sanity check when complications arise.
• Strategic Embracement: Strategic
The first evidence of systemic “executable and operational” adoption Embracement: One sign of Strategic
(as opposed to conceptual adoption) of Global Talent Management GTM adoption would be formal
would be integration of the basic underpinnings of GTM into the identification of specific “Global
foundational layers of the Global Workforce system. In the earliest Workforce Advantage” management
stages, companies seeking executable and operational GTM should goals. For example, in addition to
examine at least these three critical components of systematic setting productivity goals, the company
adoption: (1) process adoption; (2) strategic embracement (policies might set strategic goals which support
and goals) and operational introduction. the local offshore workforce community
– i.e., improving workforce training
•Process Adoption: Evidence of basic adoption and integration of and development in conjunction with
GTM principles into organizational global workforce practices and local government, perhaps through its
processes, including the foundational concepts of Talent Management economic development initiatives.
(e.g., adoption of a formal lifecycle process for talent, the idea that
talent is a strategic asset, and that recruiting and retention are
38 Valuing Human Capital, Education Business Systems (EBP), PBC Publishing, San Luis Obispo, CA. 2003, pp. 127.
39 Karen V. Beaman“The New Transnational HR Model” in “Heads Count” pp296-297. PeopleSoft Publishing, 2004
40 Please see: http://www.unglobalcompact.org/
41 The lessons reviewed are applicable multi-nationals and other enterprises relocating or expanding into global offshore workforce regions.
42 Any number of relevant attributes could be used to define the “local workforce environment.” For GTM purposes, the workforce
environment generally references the workforce culture, community and conditions. The relevant profile attributes are determined by the
enterprise’s global workforce advantage goals and by which attributes are culturally important to bridge workforces and build support between
the onshore or “home” workforce environment and the target regional workforce environment. For example, the political attributes of the

Building and Managing an INTERNATIONAL WORKFORCE

26
• Operational Introduction: Operationally, GTM necessitates the HR staff through manager and employee
ability to successfully drive the recruitment, development and self-service tools. Depending again on
retention of a multi-national workforce (direct employment and local culture and the savvy of the local
contract labor (i.e., through the talent lifecycle, retaining competitive workforce, self-service tools can bolster
workforce advantage, improving productivity and driving long-term employee satisfaction, reduce turnover
profitability). Evidence of the operational introduction of GTM can and save the MNE enormous HR
be found in the training of managers on workforce and business administrative costs.
practices of the local regions – more advanced companies would train
their home country managers as well. Strategic operational GTM In the GTPC example, HR technology
might be evidenced by the sponsorship of a local public school, a job- was rolled our internationally in much
training center or a university within a global workforce expansion the same manner as the company’s
or relocation region. One might also look to the structure of the overall approach to global workforce
global compensation and incentives program for evidence that talent management – from the center, with
is being developed globally as a long-term asset and with cultural little regard for local needs. GTPC
assessments of the local region. achieved success with its e-HR solution
in North America and came to the
Of the execution components above, the operational introduction reasonable conclusion that the solution
of GTM into the enterprise is the most difficult and expansive. should be implemented globally to
Unfortunately, the scope of this paper does not allow us time to replace the hodgepodge of disparate
fully explore the operational adoption of GTM but it does afford a systems and databases in use by its
timely opportunity in Part II to explore 7 major field lessons which are subsidiaries
driving multi-nationals and high growth tech companies like GTPC,
to build better strategic approaches to global workforce success. While there is nothing wrong with this
Before we get there though, it is necessary to take a brief look at strategy, organizations cannot expect
GTM technologies and the critical role they play in global workforce to implement a successful global e-
advantage, then lastly the role of global workforce leadership. HR solution simply by transplanting a
system configured for success in North
America. In some cases, the home
PRINCIPLE 7: MNES MUST UTILIZE AN EFFECTIVE GLOBAL
country solution may be the wrong
WORKFORCE TECHNOLOGY SOLUTION
technology altogether for a global
No MNE can expect to achieve a global workforce advantage without
rollout. Numerous e-HR solutions
the effective use of technology. At a minimum, MNEs require
providers cater to North American
sophisticated workforce acquisition solutions for all types of workers,
customers only and have yet to develop
and these systems must be integrated with reporting databases.
a global capacity for their software. The
Beyond this, MNEs can gain advantages through the use of global
first step, therefore, is to ensure that the
compensation and performance, incentive and learning management
home country solution is scalable to a
solutions as well as planning tools that facilitate global succession
multi-lingual, multi-cultural and trans-
planning (at least for top employees). As much as possible, MNEs
regulatory environment.
should empower employees and reduce the administrative burden on

target region may be secondary or unimportant profiling factors for regions where the home region and offshore region are politically similar
or compatible.
43 U.S. companies in particular tend to overemphasize the relative risk and strategic importance of litigation avoidance or risk management as
opposed to people asset management. A highly dissatisfied and unproductive workforce deprived of a culturally fit workplace for the sake of
risk avoidance is nevertheless unproductive and unmotivated – even if suits, claims and litigation fees are avoided by ignoring local workforce
or cultural issues. The better GTM firms balance the strategic importance of worker satisfaction and motivation leveraging the profile of the
workforce environment with any legal or other risk associated with analysis of the workforce behavior or idiosyncrasies. Indeed, one could
argue that cultural insensitivity which can lead to a negative outcome – like political and economic blackballing by local business leaders or

Building and Managing an INTERNATIONAL WORKFORCE

27
If it is not, the organization does not necessarily have to Benoit Leclerc, Vice President of
abandon it, the following are viable options: International Sales for Taleo (a global
staffing solutions provider) and a veteran
1. Maintain the solution in North America. Allow subsidiaries to of dozens of international e-HR solution
keep the solutions they are using, if effective, while finding a implementations, points out that to
suitable solution for the others. Deploy a central data warehouse date, “with a few exceptions, global
that can receive/transfer data from all of the disparate systems. talent management is very decentralized.
Agree to standard metrics (that make sense in all locales) and require I think that tighter collaboration
all subsidiaries to transfer corresponding data to the central data between stakeholders from the vision,
warehouse. direction, and execution perspectives will
prevail in the future as organizations
2. Select one solution for global implementation. The solution need to be more agile when it comes
is calibrated for each subsidiary and operated, more or less, on a to talent management – wherever they
stand-alone basis in each region. As in example 1, all relevant data is decide to operate.”
transferred to a central analytics and reporting database.

3. Select a global solution that can be rolled out internationally as

one, unified system, configured for each region.

While conventional wisdom would recommend option three to a

mature, tech company like GTPC, each of the options is viable and
has its pros and cons. Option one requires the least upfront effort and
expense but is more restricted in pay off and will likely cost more to
operate over the long term. Option two is an effective compromise
achieving economies of scale and price discounts (by acquiring or
leasing multiple licenses of the same solutions). It offers a common
platform and even though it is only integrated at the analytics
and reporting layer, it enables staff to move from region to region,
understanding the e-HR solution throughout, and it makes transfer
of employee information, beyond that that automatically goes to the
central data warehouse, a straightforward exercise. Option three may
require the most initial effort and expense and, because it is more
centralized, it may pose the greatest risk to the regions in terms of
autonomy and access to a highly customized solution. However, done
correctly, with the right choice of software and with sensitivity to
local needs, it offers the truest integration, the lowest total cost of
ownership and the greatest opportunity to leverage HR intelligence
worldwide.

workforce associations - can be more costly and damaging to the enterprise and its workforce productivity than any potentially avoided suit or
risk.
44 Community involvement is a broad topic potentially covering philanthropic initiatives, employee volunteer programs, partnerships with
local schools and universities, even membership in local chambers of commerce. In the Gap, 2003 corporate social responsibility report
(http://65.162.110.78/ccbn/7/637/686/index.html) for example, the company highlights its “Community Corps” program, which among other
things, involves its employees in building shelter for the homeless through Habitat for Humanity International..
45 “Heads Count” p. 278. PeopleSoft Publishing, 2004
46 Please see: Dave Ulrich, A New Mandate for Human Resources, Harvard Business Review, Jan/Feb 1998, Vol. 76, No. 1, p. 124.

Building and Managing an INTERNATIONAL WORKFORCE

28
Under each of the scenarios, there is the common Jon Walker, Director of Global HRIT for
requirement for a centralized reporting database or data warehouse. Dow Chemical illustrates the point with
Using talent deployment as an example, Gerard Broussard, Vice- an example from Dow’s global workforce
President HR – Global Staffing & Workforce Management for Hewlett solution implementation: “When we
Packard underscores the baseline importance of capturing worldwide implemented out worldwide HR solution
workforce data: “The key thing here is that you have to have some at Dow, on a single platform globally, we
standardization around the way that you capture this information were one of the first companies to do so.
so that you can use it in a consistent way. It seems obvious, but it is We replaced 23 systems in HR that were
hard to do on a global scale. You think of the consultant inventory just core compensation, benefit and job
component alone, for example, in a case like Price Waterhouse data. I can’t tell you how many stand-
Coopers where it has a customer with specific needs. With a working alone databases we replaced - probably
global talent system, PWC can put the very best available consultant close to a thousand. We found that
for the assignment on the job no matter where the client is or where before the change, even to get our head
the consultant is based – but you need clear visibility across your count roll up, it took a full quarter with
workforce to understand who is best for any given position and all these different systems, and by the
whether they are available. I think for some of the basics you have to time we had our count, the number had
have some consistency so that you can look at the work required and already changed!”
your talent in the same way, regardless of where they are located. In
terms of job type, capabilities, skills, you name it. You need to have “When we implemented out worldwide
a foundation that is consistent over all your talent across the world HR solution at Dow, on a single
to really use that information from an operational standpoint – more platform globally, we were one of the
typically called Talent Management.” first companies to do so. We replaced
23 systems in HR that were just core
“HP is in the process of doing a strategic plan for the next three compensation, benefit and job data.
to five years. For the first time the business leaders have this I can’t tell you how many stand-alone
requirement, and they own it. That goes to an earlier point. Talent databases we replaced - probably close
management needs to be owned by the organization, not by a chart. to a thousand. We found that before
They have the ownership of coming up with a strategic workforce the change, even to get our head count
plan. In order to do that, they need to assess what their current roll up, it took a full quarter with all
talent is. In order to do that on a global basis, a system that is these different systems, and by the time
centralized, in terms of gathering information, allowing you to assess we had our count, the number had
your current workforce on a global basis, is necessary. If you have already changed!”
many different systems in use, with tons of different information,
gathered differently, stored differently, coded differently...how can you
manage globally in an efficient manner?”

47 According to a recent Linkage Research Model published by Gantz-Wiley, top leadership of an organization should focus on practices and
values that energize and motivate a committed workforce. Valuing Human Capital, Education Business Systems (EBP), PBC Publishing, San
Luis,
Obispo, CA. 2003, pp. 54-55. These leadership imperatives and principles are only exacerbated in the global arena.

48 “Human capital accounts for the largest percentage of resources expended by almost all major corporations”. Dave Ulrich, Human Resource
Champions: The Next Agenda For Adding Value and Delivering Results, Harvard Business School Press, Boston, MA., 1997, pp. 144-149.

Building and Managing an INTERNATIONAL WORKFORCE

29
Walker sums it up this way: “we have local as well as global Values
operating disciplines and the local supercedes the global on most In the GTM organization, workforce
occasions, otherwise we get into trouble”. leadership is defined first and foremost
by the enterprise’s workforce value
The HR technology should be seen as the foundation of the entire proposition.36 A strong workforce value
global workforce system. Think globally in terms of overall workforce proposition typically demonstrates
advantage but implement it region by region with emphasis on the strong leadership. Most companies have
particular needs of subsidiaries. Leclerc believes that the key attributes workforce value propositions – even if it
to focus on in technology projects for global workforce management is not formally recognized or reinforced.
are (local) “legalities, culture, infrastructure, communications and GTM organizations simply refine and
language - in that order”. As such, the selection and implementation formalize the proposition.
of a global e-HR solution can be seen as a microcosm of the entire
global workforce management effort (in that you can expect many The workforce value proposition is
of the same complexities and considerations to appear). Depending defined formally in numerous ways
on your configuration, i.e. HRIS with best of breed components by enterprises but for GTM purposes
for staffing, straight HRIS, or partnership with a HR Business it is defined by three components: (1)
Process Outsourcer (HR BPO)35 care must be taken in the selection the value the enterprise places on its
of an appropriate technology provider and partner. A partner with workers; (2) the values it promotes
experience and global success is clearly less risky than one just to the workforce; and (3) how the
entering the global e-HR space. enterprise values workforce results.
In building workforce leadership for
PRINCIPLE 8: GLOBAL WORKFORCE SUCCESS AND GTM HINGE ON the growing enterprise (especially for
BUILDING LOCAL WORKFORCE LEADERSHIP global development) it is vital to deliver
The lynchpin to building field based GTM is in establishing real a clear and formal “workforce value
workforce leadership in the workplace. Only through effective proposition” covering all three areas.
leadership can a corporation build the loyalty and commitment
necessary to bind workforces into a team – especially where cultural In responding to queries about Dow’s
differences are embedded. Contrary to some popular business global workforce value proposition,
principles, Workforce Leadership is distinct from and additive to Jon Walker sent us the following
general management leadership. Effective GTM-based workforce information: “More than any other
leadership is essentially “servant leadership” – leading the workforce factor, the imagination, skills and
and building loyalty through sustained service to workers and dedication of Dow people around the
their community. Workforce (servant) leadership is exhibited and world will determine our company’s
embedded in the field primarily through values, vision and visibility. ability to achieve its higher aspirations.
To realize our mission -- to constantly

49 Steven Chaisson, Co-Founder, Global Workforce Solutions, Inc. (MBA program, Maryhurst University) in unpublished paper Leveraging
Human Capital (2003), citing Valuing Human Capital, Education Business Systems (EBP), PBC Publishing, San Luis Obispo, CA. 2003, pp. 55-
70.
50 With the growing interest by EDOs, regional governments, and international and regional labor organizations (like the ILO and the UN) in
monitoring the global employment track record of multi-nationals and the correspondent press interest in the global employment and labor
practices of these organizations, it would not be surprising to see “GTM” self-administered audits or surveys emerge as a part of the “best
practices” baseline for advanced GTM global tech firms (in a manner similar to the way best practices U.S. employers self-audit their diversity

Building and Managing an INTERNATIONAL WORKFORCE

30
improve what is essential to human progress by Dow has also articulated a “People
mastering science and technology -- and to fuel our drive to Success Philosophy” as follows:
maximize long-term shareholder value, we must rely increasingly on “At Dow we believe that our people
ideas to differentiate Dow. As a result, more than ever, how we treat are the key to our success. Our values
each other, and how we define and articulate our purpose, strategy emphasize respect for people. Dow must
and the values that unite us, are critical determinants of our ultimate leverage the ability of employees and
success. Dow created a People Strategy to address key aspects of engage the creativity and capabilities
how we attract, retain, develop, recognize and lead Dow people. The of all Dow people. With this, senior
key principles embodied by the People Strategy have been crafted to management adopted these people
ensure we build a diverse team capable of meeting not only today’s principles:
needs, but the needs of Dow into the future as we accelerate our • Diversity of thought, style, etc.
journey to become a better company. The objectives of the People continues to be important for future
Strategy are part of the balanced score card of measurements.” business success. Dow needs to hire for
diversity, and also create an environment
Key Practices at Dow that promotes diversity rather than
1. Achieving recruiting and retention quality conformity.
2. Creating a total reward and accountability orientation
3. Establishing a collegial, flexible workplace • Dow emphasizes Pay for Performance.
4. Opening up communication between management and employees We reward employees based upon
5. Implementing focused HR technologies their competency development,
goal achievement and sustained job
performance.

• Dow also believes that employees

having long-term careers, support
business success. Given the complexities
of the business. Dow must maintain
consistency and capabilities that only
long-term careers can provide.

•Contributions of employees is also

critical for future business success. Dow
people are the Company's competitive
advantage and will determine how Dow
will be differentiated. It is imperative
that Dow provides an environment
where people are challenged and
enthused about their careers.”

programs).
51 In a sense, the “product” being sold or promoted is the regional talent. In order to position the talent pool as competitive and capable
of supporting expanding corporations, EDOs are learning that deep assessment of the workforce is required. Again, culture and workforce
environment are playing a key role in how EDOs are able to leverage their regions’ talent as a strategic advantage in attracting direct foreign
investment and businesses in the global expansion process.
52 Interviews with regional EDOs suggest that governments are already in the process of developing sophisticated survey and assessments of
firms measuring their ability to operate effectively as a global employer. Our expectation is two-fold. First, we would expect to see workforce
due diligence performed as part of the qualification process for economic incentives – essentially a scorecard process determining whether the

Building and Managing an INTERNATIONAL WORKFORCE

31
While not every MNE has an employee value proposition Actions (services) rather than words are
(EVP) so clearly defined as DOW’s, many, such as Royal Dutch Shell the true litmus test for how a company
and Alcan make their EVPs public in formal corporate responsibility values people. Put another way, an
style documents. Alcan’s 2002 “Managing For Sustainability” report enterprise builds its workforce leadership
states the following: “Increasingly, a company’s value is measured and demonstrates its value commitment
externally by looking at its sustainability “vital signs”. In Alcan’s to the workforce by the means through
case, these include, among others, our corporate governance which it “serves the workforce.” Service
practices, our ability to minimize environmental impacts, our efforts to the workforce extends beyond salary,
at increasing recycling both within and outside our facilities, our compensation and training measures,
cooperative efforts with the communities where we operate and our covering the entire management
ability to provide a safe and rewarding work environment for our response to the comprehensive needs
employees. It is also about maximizing the values that make up our of the workforce – individually,
corporate culture – our values of integrity, accountability, trust and collectively and communally. In order
transparency, and teamwork.”37 to understand the comprehensive
needs of a workforce, an employer
Valuing the Workforce must assess and embrace the actual
The value proposition is defined first by the value placed on the needs of the workforce as identified
workforce and how that value is measured, maintained and managed. through assessment, evaluation,
In a GTM organization, workers are viewed as strategic and mission feedback and surveying. In the global
critical. As such, the organization places a high quantitative and context, this workforce evaluation
qualitative value on people. This high people valuation manifests should be localized to encompass the
itself in different ways: qualitatively, this valuation might be unique “local community” and local
evidenced in a strategic management focus on people issues, workforce environment, rather than
managing people through a lifecycle, linking recruiting and simply reflecting non-local standardized
retention, building relationships with talent, including employees, corporate workforce programs, practices
alumni and potential candidates while profiling and surveying for and policies.
cultural responsiveness and local community branding and support.
Quantitatively, a company might demonstrate its value commitment Though corporations demonstrate
through its investments in worker satisfaction, through its community “service” to workers through a variety of
development (or training) efforts, with its level and quality of measures, the predominant (and most
compensation and rewards, and with investments in employee training effective) means by which an enterprise
and development. values and serves the workforce is

applicant enterprise seeking economic development incentives has demonstrated in the past, or is likely to demonstrate in the future, an ability
to successfully develop and manage a foreign workforce. Second, once the migrant enterprise establishes itself in the host region, we would
expect the enterprise to be subjected to various forms of “social responsibility” workforce audits and reviews – to measure the ongoing success
of the enterprise in linking its business operations, goals and practices to the region’s long-term interest in supporting sustainable growth and
well-being of the community. We expect these audits to produce enforcement mechanisms (including increasingly formal forms of public
review and scrutiny) to further incentivize global organizations to treat their global people assets in appropriate ways – whether those workers
are contract or direct labor, insourced, co-sourced or outsourced. Already, we witness a number of multi-nationals struggling to re-establish
local workforce support and establishing branding as good global employers after breaching the trust of the local workforce community.

Building and Managing an INTERNATIONAL WORKFORCE

32
through its compensation and rewards programs. business practices, culture, geo-political
Typically, the compensation and rewards programs are based on long- sensitivities, etc.), the foundation for
standing compensation analysis, workforce needs assessments and rapidly building effective workforce
incentives requirements. However, if the workforce needs profile is unification, commitment, trust and
not culturally informed nor localized, neither is the compensation loyalty is potentially compromised.
system. Multi-nationals, in many cases, have ignored the impact
which local culture, workforce practices and demographics can have Enterprises also establish the workforce
on the workforce needs profile – and as such have been remiss in value proposition through the methods
building compensation, rewards and community programs that are adopted to evaluate and value workforce
truly responsive to the local workforce environment. For example, results. Productivity is the standard
U.S. based compensation packages tend to focus on individual measure but GTM organizations typically
rewards and incentives with the emphasis on cash in base salary and seek higher forms of valuation such
at risk pay. as measuring the economic value of
human capital in an attempt to measure
Compensation packages in other parts of the world where local the true impact of the workforce on
culture more tightly intertwines community with individual, may corporate wealth.
be better received if they are balanced between individual rewards,
collective rewards and community rewards. In Europe, for example, Vision and Visibility
multi-national enterprises might be more effective building a GTM based workforce leadership does
compensation program for the local workforce that balances these not end with the articulation of a
elements – perhaps including a higher proportion of non-cash, non- workforce value proposition. A unifying
stock, individual rewards (e.g., tuition for dependents, vacations etc.) vision for the global workforce must be
and including programs for community educational development. identified and communicated. Moreover,
In some parts of the world, rewards for superior results might managers must establish a common
emphasize enhancement of the worker’s reputation and stature in the vision that unifies the workforce – even
organization and in the community. bridges the geographical and cultural
disconnectedness inherent in workforces
Shared Values & Assessing Value spread across diverse international
The other two components of the workforce value proposition are regions. This unifying vision is critical to
the values promoted to the workforce and the valuation of workforce drive all workforce goals. Northeastern
results. We’ll examine each briefly.. Human Resource Management
professors, Thomas Begley and David
The adoption of shared workforce values is fundamental for Boyd, among others, believe that, in
effective workforce management and the need for shared values is the GTM sense, employee engagement
only heightened in a cross-cultural, multi-national workforce. It absolutely requires that local values and
is, therefore, imperative that GTM companies translate corporate culture be integrated into the corporate
values into workforce values that are both meaningful and culturally vision and objectives38 – a unifying
relevant. Without a specific localized translation of values, which global vision, in other worlds.
integrates local workforce environment attributes (social values, local
53 Benoit LeClerc notes that “when you talk about global talent management, you have a local component to the word ‘global’. Global
doesn’t mean that everything is exactly the same everywhere in the world. It might be a little bit truer in the case of manufacturing products,
but in the case of talent management or workforce management, I think that when you think about and implement a global system the local
component, the ‘legs and regs’ need to be a part of your definition of ‘global’. It’s key, otherwise, yes you are going to have standardized
information, yes you are going to consistency, yes the variation is going to go away, but you are not going to be able to use that because you
are going to miss that important component that is linked to your ‘legs and regs’. So, I think that it is important that ‘local’ is part of your
definition of global, in terms of legislation and regulations, not just in terms of cultural practices.” (GTM Panel, HCI).

Building and Managing an INTERNATIONAL WORKFORCE

33
To be committed to an organization, an individual needs leadership, value, vision and visibility
to understand the corporate vision, accept its meaning, and know – as key factors in building a sustainable
how he or she fits into its success. Employees want to believe in the and valuable talent for their 250+
quality and value of a corporation’s product, image and service.39 The person project in India:
vision must be articulated to build this unity and commitment and to
advance employee engagement “The secret of our
The effectiveness of the vision is enhanced by the visibility of success in building
leadership in the organization – this is especially true for offshore
operations where leader visibility is critical to reinforcing the vision distant development
and creating cross-cultural unity and connectedness. As above,
GTPC erred in failing to develop the conditions under which senior
executives would seek overseas assignments and leaders could be
resources is tapping
developed worldwide.
professionals who
In summary, global enterprises seeking to build a stable, productive,
loyal and committed workforce in a new global region, must invest in
have worked with
establishing local workforce leadership, which is defined by the values,
vision and visibility made operational in the field – and those 3 V’s us in Silicon Valley
should be adaptive to and reflective of the local offshore workforce
environments. This is certainly true in typical, large MNEs but is and then leveraging
applicable in small firms as well.
their home base
Kurt Keilhacker, Managing Partner of investment firm Techfund
Capital, and an experienced investor in rapid growth portfolio experience offshore.
companies in Silicon Valley, with offshore workforces in several
countries, including India and Vietnam (in an interview conducted for
this paper) confirms the merits of these principles. He cites the same
The key to any such
principles in building the recent offshore development success of
one of his firm’s portfolio companies, personal digital entertainment
effort is to have
firm, PortalPlayer. While companies like PortalPlayer do not practice
highly formal GTM practices, Kurt suggested adherence to the GTM
full confidence in
concepts – familiarity with the local business environment, workforce
a locally-based
executive - one
who can flag issues
before they become
real problems.”

Building and Managing an INTERNATIONAL WORKFORCE

34
While these principles may affect all types of firms,
their approach might differ through time. As Karen V. Beaman,
Division V.P., ADP Global Services has described in a number of
publications, global leaders might be needed to enforce centralized
standards, understand and champion local differences, and facilitate
the transfer of knowledge and ideas between their region and the
rest of the organization40. Beaman recommends that organizations
grow leaders (locally and through expatriate assignments) capable
of the above and who, when they advance in their careers to senior
executive ranks, become the organization’s most vital players in global
workforce management – leaders who understand and appreciate the
organization’s global workforce challenges at the highest levels and
can therefore develop transformational competitive advantage.

For this paper, the purpose of our examination of the human

imperative is to simply acknowledge that there is a human side to
global workforce decisions and to understand that these human
factors are more pronounced in emerging economies where workforce
cultures are less sterilized by standardization, regulation and law,
and where issues of religion, society, family and politics are more
prominent in the workplace. Workforce executives need to be
trained and prepared for these pronounced human factors and in
building loyalty and commitment through workforce leadership
that is culturally sensitive, fitted to the local workforce environment
and supportive of the local community. The failure to manage
these human issues can lead not only to instability within the local
workforce, but also to the creation of a negative global employment
brand within the entire region, if not the world.

Building and Managing an INTERNATIONAL WORKFORCE

35
Part II: Seven GTM Field Lessons

}
While GTM is still being defined, the United Nations,
through its “Global Compact” initiative41 has articulated
nine principles for globally active companies. Those
impacting labor practices are as follows:

• Principle 3: Businesses should uphold the freedom

of association and the effective recognition of the right
to collective bargaining;
• Principle 4: the elimination of all forms of forced and
compulsory labour;
• Principle 5: the effective abolition of child labour;
and
• Principle 6: the elimination of discrimination in
respect of employment and occupation.

These principles are offered in this paper for

two reasons. One, because over 1600 companies
from around the world have signed on signaling
a “transnational” direction for globally managed
workforces; and conversely, to emphasize the as yet,
nascent state of agreement we have reached thus far in
global “talent” related matters

Building and Managing an INTERNATIONAL WORKFORCE

36
It is against this backdrop that we introduce our own localization steps:
seven “field lessons” that are emerging through the myriad of 1. Profiling the local workforce culture.
compiled experiences of organizations (particularly MNEs) building 2. Understanding and leveraging the
global workforce advantage through an international workforce. local workforce community.
These lessons augment the principles covered in Section I and 3. Adapting to the local workforce
illustrate the building blocks for establishing Global Workforce environment.
Advantage toward the foundation for better internal GTM.42
(a) Profiling the Local Workforce Culture
LESSON #1
Get Local with the Global Workforce
The global workforce advantages corporations seek are borne first The GTM practice of investigating
and foremost from understanding that effective global workforce (profiling) the local workforce culture
management views the global worker marketplace as universally local. of an offshore region for workforce
While there are similarities in all advanced economies, local workforce restructure, relocation or expansion
culture ultimately defines what the parameters are for building loyalty, is hardly a radical concept – multi-
satisfaction and ultimately, the productivity and innovation sought for nationals routinely invest resources
competitive advantage. into business environment profiling
for expansion to a target region or for
As Global Human Capitalists we must embrace the evolved but purposes of relocation analysis and
still intuitive notion that local culture should inform our methods business integration (and such reviews
and approaches to developing workers and building these strategic routinely include corporate cultural fit
offshore human capital assets into well-developed, well-supported assessments examining social etiquettes,
and well-managed people assets of the enterprise – whether religious beliefs, racial and social mores,
those offshore workers are in-sourced (employees), co-sourced or community requirements and legal and
outsourced. To do so may be antithetical to our traditional approach regulatory practices and infrastructure).
of the “culture-blind” workforce and workplace (no religion, race, It is, therefore, not a major leap in
politics, etc.), but it is arguably an absolute necessity in the quest to management thinking to apply GTM
gain competitive workforce advantage in diverse workforce regions. principles to expand the practice
of building “business environment
It is no accident that we’ve chosen to cover “getting local” early in profiles” to build a profile of the local
the recitation of field lessons on the globalization of the workforce. workforce culture and ultimately, the
“Getting Local” with our analysis of offshore people assets – zeroing “local workforce environment.”43 Put
in on profiling the local workforce environment – is the most more simply, multi-nationals already use
significant and oft ignored part of emerging GTM practices. It is profiling to reduce risk and to increase
difficult to adequately cover the process and approach to getting local strategic business fit within targeted
in the confines of this paper, but a familiarity with typical localization global business regions and they
steps is critical to building operational GTM within the enterprise. conduct these cultural investigations of
The three basic elements of getting local – understanding culture, a market region before investment and
community and environment – can be expanded into the following relocation. With GTM, we simply extend
this profiling into the offshore and
global workforce arenas.

Building and Managing an INTERNATIONAL WORKFORCE

37
The distinction for global workforce related cultural managing worker claims are valid,
assessment and profiling is the focus, depth and breadth of the building polices and workforce practices
analysis. For the first time, many multi-nationals are building that reinforce a locally sensitive
permanent operating workforces in remote regions of the world workplace is one of the highest level
– without the benefit of prior workforce experience or comprehensive objectives of GTM.44
work environment data. Rather than conducting a cursory review
of contemporaneous workforce demographical and administrative (b) Understanding and Leveraging the
data (e.g., compensation packages, local worker privacy laws, Local Workforce Community (political,
collective labor practices and education standards for applicable job educational, economic development and
categories), Global Talent Management raises the bar and standards business supporters)
of environmental investigation, challenging the employer to gain
a comprehensive profile of the workforce culture and integrating Beyond understanding local culture,
political, labor, business and social cultural data into the analysis (i.e., it is imperative that enterprises
understanding the political and religious sensitivities and the racial tapping the global workforce develop
complexities of the local workforce environment – mapping those better GTM practices, map the Local
attributes to the regulatory and legal requirements locally and within Workforce Community and devise a
the central corporate standards, practices, policies and boundaries plan for leveraging that community
– and then building a baseline profile of the workforce culture that for mutual sustained benefits. It is
illustrates the workforce environment managed by the multi-national not possible to provide an exhaustive
and used comparatively with the central corporate culture). list of the participants in each Local
Workforce Community - with dozens of
Perhaps the most pronounced difference between traditional categories of players including economic
profiling and the GTM approach is that the assessment is more agencies, the political apparatus, labor
proactive, worker centric and regionally sensitive than typical regional organizations, universities and trade
profiling. The idea is to truly absorb a sense of the local workforce centers, etc. It is important for these
(rather than just elicit the traditional workforce demographics and purposes only that organizations
requirements such as education, hiring trends, pay scales, benefits, building GTM recognize that a relevant
etc.). The GTM company seeks to learn substantively about the local map and plan for local community
talent – e.g., how the people work, how the workforce will react partners should be identified,
to workforce conditions, how to develop the onshore and offshore investigated and managed as a required
managers as a team, etc. For the tech sector, MNEs acknowledge that element of the long-term GTM plan for
engineering teams in different global workforce environments may the target region.45
react entirely differently to the exact same set of project conditions or
variables (i.e., a sudden change to coding deadlines or functionality
requirements for a major software program). Managers unaware of
cultural differences may inadvertently degrade workforce morale or
productivity simply by applying workforce management techniques
that are accepted in one workforce culture and not another. While
concerns about the potential of raising cultural bias or not properly

Building and Managing an INTERNATIONAL WORKFORCE

38
LESSON # 2: enterprise and ultimately competitive
Focus on Long Term Global Talent Management & Global Workforce strength, wealth and sustained
Advantage Rather than Short-Term Labor Costs
profitability.
Lesson #2 is to embrace a long-term perspective in management
of global workforces. This lesson is really a synthesis of the GTM
At the surface level, most workforce
principles covered so far in this paper and is born of the pragmatic
managers understand the importance
realization that multi-nationals cannot conduct workforce
and uniqueness of workers, but
management on a “business as usual” basis. The global workforce
applying those concepts to daily
paradigm has shifted – both regions and employers have learned the
business decisions, particularly where
downside of short-term thinking as applied to the global workforce.
financial pressures are significant, is
As a catalyst to the change, many EDOs (government development
more difficult. This is precisely the
offices) now understand the folly of investing in organizations that
conundrum that workforce managers
seek short-term advantage by relocating into regions based on
have faced with respect to recent
tax incentives, with promises of creating sustainable employment
offshoring and outsourcing decisions
opportunities. The multi-nationals are also increasingly savvy,
– where little investment has been
understanding that their global people assets are strategic keys
afforded to determine “strategic fit” and
to innovation and productivity and that workforce management
more focus has been on the financial
practices and policies cannot simply replicate the onshore approach
impacts of the workforce decisions.
to workforce management, but must be localized to be effective.
Even “best practices” employers have
Adopting the long-term perspective really means embracing two GTM
been tempted by the illusive quick gains
concepts:
of the global commodity labor market.
(2) Debunking the Commodity Market Perspective for Global Labor In the quest to gain short term cost
Despite all the diverse perspectives available on managing global advantages, many enterprises that treat
workforces, at the most basic level there are really two divergent workers as relatively strategic in the U.S.
approaches to managing offshore workers globally – inside or outside – building loyalty and commitment,
the tech sector. Global Human Capital is either viewed as: and developing their people throughout
a sustainable talent lifecycle – have
(1) A Non-Strategic Commodity – where workers are viewed (and abandoned those principles with their
treated) as transitory or entirely fungible, and, given competing pools international workforce, often because
of workers in which skills meet the job requirements, the predominant local labor laws and regulations
determinants of workforce locale and investment are almost have been more lax than the U.S.
purely associated with risk and costs (we see this in far too many requirements. Firms seeking to leverage
outsourcing contract discussions); or strategic advantage through their
global workforces are advised to adopt
(2) A Strategic Asset - A Strategic Asset - where the employer carefully practices and policies that de-bunk
attracts, nurtures and develops the offshore workforce into a strategic any notion that there is a commodity
productive, predictable, committed and loyal talent pool, which over market for workers. Especially if they
time, and at a competitive labor cost, provides the innovation and wish to protect their products, services
productivity which build competitive workforce advantage into the and company from being commoditized
as well.

Building and Managing an INTERNATIONAL WORKFORCE

39
 (3) Building Real GTM and Regional Workforce Advantage changing competitive landscape.
into the Enterprise
In addition to debunking the commoditization of the global The longer-term impacts of relying on
workforce, global tech firms must also build upon the strategic a non-integrated workforce, without
perspective of workforce management in a pragmatic way – making the investment in leveraging the
GTM and Global Workforce Advantage credible within daily workforce workforce (and its associated workforce
decisions and structure. For example, MNEs seeking strategic Global community) as part of the company’s
Workforce Advantage should resist seeking short-term gain from the human capital portfolio of people assets,
manipulation of competing workforce regions. Instead they should are just emerging. The failure to make
focus on long-term investments in local workforces and communities these investments, arguably leads to
to build sustainable competitive workforce advantage for mutual a devaluation of the human capital
gain. As we have seen from examples throughout the paper, this position by: (a) increasing risk associated
approach is not fantasy, nor even idealistic, rather it has proven to be with Intellectual Property, innovation,
the basis for global success for some of the best-known transnational knowledge and other people-generated
companies in the world. competitive strengths; (b) degradation
of the employer’s positioning with its
Yet, the adoption of GTM in a complex enterprise stretches the team own permanent workforce (breeding
skills of almost any enterprise. Often, it is the first time that MNEs disloyalty, distrust, etc.) and (c)
are challenged to tap the entire enterprise to meet a strategic human weakened leverage within the broader
capital challenge. In a June 2004 roundtable of the Global Talent global human capital marketplace
Management Panel hosted by the Human Capital Institute, Benoit (dilution of the global employment
Leclerc summarized the importance and challenges of real strategic brand, etc.).
GTM adoption this way: “For many organizations, these GTM
initiatives represent the first global projects that connect all entities Dee W. Hock, Founder of VISA
together around the world. It creates a precedent that adds inertia international has shared his management
and complexity to the planning and execution of these endeavors”. wisdom in numerous publications. Hock
left VISA in 1997 to form a non profit
Building a real global human capital team is typically the first step to called “Terra Civitas” whose mandate
initiating real GTM within the walls of the enterprise. is to link individuals and organizations
throughout the world in a concerted
LESSON #3: effort to develop, disseminate and
Adopt a Balanced Approach to Global Outsourcing
implement more effective and equitable
After years of strategic outsourcing contracts transferring engineering
and technical positions offshore, the tech multi-national community,
in particular, is increasingly cognizant of the short-term pros and cons
of global outsourcing. No doubt the development of reliable global
third party outsourcing firms for technology workers has increased
the ability of technology companies worldwide to cost-effectively and
flexibly upsize and downsize technical teams to respond to a rapidly

Building and Managing an INTERNATIONAL WORKFORCE

40
concepts of commercial, political and social organization. LESSON #4:
Build Talent Leadership Instead of
Mr. Hock has stated, “An organization’s success has enormously Workforce Management
more to do with clarity of a shared purpose, common principles and While concepts of workforce
strength of belief in them than to assets, expertise, operating ability, management and workforce leadership
or management competence, important as they may be”.46 are commonly used interchangeably in
our business culture, work leadership is
In the context of outsourcing then, organizations should be extremely a related but entirely unique component
careful in the lengths they go to achieve global workforce cost of global workforce development.
savings. While certain functions and projects might lend themselves Workforce management entails
ideally to offshore outsourcing, others, particularly those core to the managing the productivity and costs of
organization’s competencies, strategy and objectives, should be kept the labor force – whether operating in a
internal. It is hard to imagine how a company could adhere to Mr. single region or 50 regions spread across
Hock’s advice where its outsourced functions are concerned. the globe. Talent Leadership involves
building a unified vision and motivating
It would be short-sited to suggest that global tech firms (or others) practices within the workforce and
abandon outsourcing as a viable workforce model in all cases. It reinforcing both the enterprise brand
would be far more productive to encourage them to take a more as a Global Talent leader and through
balanced approach to outsourcing initiatives and workforce decisions, the building of partnerships in the local
and provide measures that can improve the balance. regions.48

One simple and arguably obvious method to create more
balanced outsourcing perspectives in the decision process, is to
take a comprehensive assessment of corporate objectives into
the outsourcing discussion. For instance, if outsourcing 10%
of the workforce is under consideration and the conversation is
dominated by the assertion of a 30% savings in labor costs, a savvy
GTM company will insist on an analysis of the possible decline in
productivity due to cultural attributes or increased risk associated with
the business climate and/or geopolitical factors . Moreover, the GTM
company will examine and measure the impact of the decision on the
human capital contribution to the wealth and competitive strength of
the company. One way to approach such an assessment would be to
determine the impact on economic value of the Human Capital and
the impact of the decision on the competitiveness of the organization
rather than focusing on pure cost/profit analysis.47
In this ever-evolving workforce
landscape where political and economic
volatility continue to erode cross-
cultural work environments, the need for
reinforcing talent “leadership” has never
been greater. The reason to advance
workforce leadership throughout the
organization is simple – it is, in fact
the leadership attributes embedded
in the organization and its workforce
(particularly managers) which will help
to maintain and sustain the workforce,
especially when unexpected and grievous
workforce disputes arise (i.e., cultural,
political or economic conditions) that
severely strain the work environment.
As discussed before, it is also the leader,
nurtured through exposure to different
regions that becomes the most valuable
GTM asset in the long term.

Building and Managing an INTERNATIONAL WORKFORCE

41
ii) Provide the Unifying Vision to the Global Workforce The point of promoting a vision is to
The starting point for Talent Leadership is to provide the anchoring build the dedication and commitment
“vision” for the workforce. Typically, the vision can be drawn directly of the workforce – locally and
from the mission statement and vision statement for the enterprise internationally – and to leverage the
– the “people” component of which “should” reflect the people values unifying vision as part of a “cultural”
of the company. Building on those elements, and as part of the bridge to unify workforces separated
development of the GTM policies and practices, the multi-national (at least to some degree) by workforce
should also develop a Global talent “vision” statement – which defines environment, culture and even pay
the strategic purposes and goals for developing talent on a global scale, projects and language. This
basis and managing its human capital. That global vision statement bridge is strategically important and
should set the plumb line for global workforce practices and reinforce becomes a saving grace to the company
the relevance of the local workforce environment. The vision should and its people assets when sensitivity
also set a foundation for the unique workforce objectives for each training, local cultural investigation and
global region (how the company will integrate language, cross- workforce planning fail to successfully
culture differences and local workforce community into the workforce predict, prevent or manage unpredictable
management system). It should also embed the approach of the or intractable global workforce issues
multi-national in developing the workforce throughout its lifecycle.
- like cultural
While much has been written on the critical importance of developing
a traditional “vision statement” to guide the strategic direction of the dissonance,
enterprise, surprisingly, very little has been written on the topic of
developing a vision statement for global talent. Yet people and labor disruptive
account for over 70 % of the average knowledge industry MNE’s
annual expense budget (and perhaps even more of its overall value) politics and
and are a major focus of budgetary realignment.49 These financial
imperatives drive the relative importance of providing all workers with miscommunication.
a clear vision statement of the company’s approach to managing
people across borders, boundaries and cultural barriers. It also facilitates
It is critical that the leadership of the company communicate the a healthy sharing
“vision” continuously with the workforce and that the workforce
be actively engaged in a vision discussion so that the importance of ideas and
of global talent to the company can be perceived by workers. The
“vision”, linked directly to corporate objectives, should become part of innovations across
the company’s day-to-day workforce dialog. Leaders should choose
“a few key messages and continuously speak about these issues at the entire enterprise.
every opportunity.” 50

Building and Managing an INTERNATIONAL WORKFORCE

42
LESSON #5: are chartered with the mandate of jobs
Build a Global Workforce Brand creation and attracting direct foreign
What’s in a brand? Some corporations, particularly those that investment. They play a lead role in
invested heavily in the 1990s in employment branding, may feel profiling their regions and regional
that branding is not particularly relevant in the global employment workers to companies interested in
arena, particularly if the workers are outsourced. Yet, branding may expanding into their jurisdictions. In
be even more imperative in new offshore regions, than in areas where the past, this profiling of the regional
the company has operated for decades. In the global arena, a multi- workforce environment was quite
national may be almost completely unknown to the local workforce limited. In years to come, the analysis
community. Moreover, if the company seeks to build local business will be increasingly sophisticated for the
community support for its relocation or expansion of operations in benefit of both the expanding employer
the local economy, its brand as an employer may be the determining as well as the host region. The reasons
factor in its success. are simple. Short-term job creation and
temporal business growth are not the
Economic Development Organizations (EDOs) and their incentives objectives of the regions. Long-term
(as well as other local industrial, political and economic support sustainable growth and job creation
mechanisms) often base support on both an objective and subjective are. Moreover, as EDOs and others
“sense” of the multi-national’s verifiable commitment to talent study the effects of investments in
development and job generation on a sustained basis. The employer’s job creation, they like multi-nationals,
comprehensive “reputation” with workers (in other words its brand) are coming to the realization that
becomes a key factor in the economic support decision. For this
additional reason (to say nothing of emergent consumer markets) it
is critical that multi-nationals invest in building a history, reputation
long-term human
and track record as an employer that can “brand” itself as a best in
class “GTM” organization.51
capital development
LESSON # 6: Build Global Leadership By Working with Governments to is the real driver
Drive Down Talent Costs and Build Global Productivity
Major players in the U.S. and elsewhere, including Microsoft, Intel of sustainable
and others, have routinely included “economic incentives” in their
location analysis for establishing international operations. This economic
relocation analysis includes an assessment of the workforce - its
skills and knowledge base. It also includes an assessment of the
workforce training and workforce development programs sponsored
development.51
by governments through instruments delivered by Economic
Development Organizations and others.

EDOs, like Invest Quebec in Montreal, and throughout the world,

Building and Managing an INTERNATIONAL WORKFORCE

43
The impact regional awareness of the strategic LESSON #7:
Global Workforce Technology Matters
importance human capital development has had, has profound
Technology is at the heart of effective
impacts for multi-nationals and other enterprises tapping into the
global workforce management.
global workforce. Regions are quickly learning that multi-nationals
Technology represents a major part of
that seek economic support for expansion which is solely motivated
the multi-national’s ability to capture
by labor cost or business operating cost differentials, seldom provide
global workforce advantages and to
the sustained job creation and economic benefits sought. Instead, as
source, recruit, hire and develop the
labor costs shift and markets dictate evolving product development
global workforce. Unfortunately, far
demands, multi-nationals that have bought only into the cost factors
too often, corporations attempt to
(rather than the regional people factors) tend to pull stakes and
apply technology as a panacea for
migrate to the next “region of cost advantage.” While flexibility is
human issues – such as the needs for
a key factor to successful business management – particularly in the
global employers to treat people as
global tech arena – commitment to long-term economic development
individuals. Our focus now shifts to the
of the host region is an absolute requirement.
role of technology in supporting the
development of the global workforce
As a result of lessons learned by regional governments and EDOs
and identification of the pre-requisite
in the last wave of techforce development, for example (with new
components of a state-of-the-art global
technology clusters and associated jobs now scattered in regions
workforce solution.
across the globe) both multinationals and EDOs have become
more sophisticated in their assessment of workforce cultures, their
This technology exploration will avoid
environments, and “strategic fit” between the expanding employers
traditional technology debates regarding
and the regional workforce and workforce environment. This
the integration of solutions (ERP versus
workforce “fit” analysis is a growing part of global relocation
HRMS versus Best of Breed technologies)
programs and is creating external pressures and incentives for firms
and instead focus on the more advanced
globally to develop better GTM programs and practices. In the future,
functional requirements for software
the economic support now conditioned on financial viability will be
solutions supporting the global
balanced with an assessment of GTM scorecards or assessments.53
workforce (GWSs – global workforce
Moreover, we will see a rise in “accountability” for organizations
solutions). Indeed, we begin this
managing global workforces, with an increasing requirement by local
discussion of technology by noting that
communities (government, labor organizations, and EDOs) that global
few, if any, currently marketed solutions
employers contribute to the long-term development and stability of
actually constitute a complete GWS – a
the workforce – not simply create temporary jobs.
system capable of adaptively supporting
the multi-national workforce. We limit
our examination to best technology
practices and a forward-view on the
components that state-of-the-art GWS
systems offer or will offer in the coming
years.

Building and Managing an INTERNATIONAL WORKFORCE

44
The field lesson for multi-nationals is simply that
technology matters and that global workforce challenges have
numerous associated information technology challenges. Multi-
national GTM organizations require the ability to share workforce
data dynamically across cultural boundaries, in multiple languages,
subject to transitory local workforce and data privacy laws and
regulations, and at an acceptable ease and speed – through flexible,
re-configurable processes that make it relevant to a fast changing
global business. This requires companies to leverage appropriate
advanced information technology. In this section, we examine some
of the more advanced and expected workforce technology horizons.
(1) Localized Solutions, Data Warehouses and System
Unification– The Next Horizon
Enterprise Resource Planning solutions (ERPs) set the standard
years ago on multi-language and multi-currency capabilities
within workforce software. Today, most “best-of-breed” solutions
support multiple languages and currencies as well. In addition,
these solutions support “global” business processes – meaning that
the systems are adaptive and integrate-able with non-compatible
solutions – in the global talent management solutions arena. This
adaptability becomes critical to the support of disparate workforce
processes and systems across regional and national workforce
boundaries.
The next horizon for global workforce solutions is the ability for
the solutions to support flexible profiling of the local workforce
environment and then to drive business decisions, processes and
policies based on the data. The development of solutions that build
cultural understanding, register local regulations and legislative
requirements and support localization of workforce systems will usher
in an era of better global workforce support.54 Tetu agrees:
“The most important attribute for successful GTM is culture.
Language barriers are easily broken, legal environments require
compliance; however it is an understanding of and a sensitivity to
a local workforce’s culture that ensures people—and that is what we
are concerned with for the global workforce—feel valued. As all HR
practitioners know, this is the first step in engaging the workforce
Building and Managing an INTERNATIONAL WORKFORCE
45
to contribute to the organization’s
success. This is why, when, for example,
staffing technology is deployed on a
global basis, it is imperative to have it
configured to do business the way the
local region does business. Translation is
easily accomplished for most enterprise
software solutions, however the ability
to change business processes and
workflows according to local culture
and regulatory environments requires
considerable design forethought and
rigor applied to ensure enterprise
staffing technologies can serve widely
varying cultures and yet continue to
provide data for the corporation as a
whole.”
While it is not realistic to expect or
depend upon software solely to expand
the multi-national understanding of
workforces regionally, it is within the
bounds of technological possibility
to imagine multi-nationals with
databases of regional workforce metrics,
benchmarks and cultural attributes. And
business application software solutions
that flexibly drive workforce decision
analysis and workforce administration
on the basis of these dynamic inputs. In
the end, the result will be solutions that
actually treat people as people – defined
by local workforce environments,
managed by software driven structures,
processes and policies that are localized
and culturally relevant.
The GTM technology challenge will also
be a data challenge. The predicted GTM
systems will require the development
of more robust global talent databases, which process track record supporting the global
the myriad of disintegrated and integrated data sources (internal and workforce solution challenges of their
external) that will be accessed and leveraged by workforce executives customers (the more complex, the better)
to manage select regional workforces - using profiles, demographics, and advancing the ideas, science and
trends, benchmarks, metrics, productivity measures and a host of “thought leadership” of global talent
other data inputs not currently part of the integrated workforce data management.
warehouse referred to in principle 7, page 27.
While the quality and advancement
2) Universal, Centralized and Flexible Solutions – The Foundation of the actual technology solution
for Workforce Advantage always matters, the vendor expertise is
Whether a software system is focused on recruiting, sourcing, required to bridge the software to the
administration or development of workers, if used in managing workforce realities encountered in the
the global techforce it must be adaptive locally and still centrally field. Whereas the software functionality
supported. With the advancement of web services and other tools is dynamic and evolving, the global
applied to automated recruiting and sourcing in the past few years, workforce expertise of the supplier,
many multi-nationals that have invested heavily in these solutions and its commitment to being a global
(including advanced recruitment web sites and candidate relationship player (both evidenced in part by its
tools) may be lulled into technological complacency. Yet, recruitment multi-national customer base and global
and sourcing is the foundation of any GTM system. Without effective workforce project record) should be a
recruiting (and redeployment of existing staff) and the ability to constant asset,
acquire and deploy the right candidates at the right time, corporations
will expend much higher costs to train, manage and develop global producing lasting
workers.

In the global arena, the recruiting solution becomes the “community

and continuous
outreach” program – tapping into unknown labor markets, building
a brand with the local workforce community, and establishing the
support to its multi-
earliest reputation of the employer. Because of the crossing of
national and cultural boundaries, even the content of the website
national customers
and the wording of the job positions become critical. Relationship
building with candidates and vendors takes on heightened complexity who are engaged
and urgency. For candidates, the recruiting solution may be the
“only” contact or knowledge the potential hire ever has with the in building new
employer. A single bad impression might not only eliminate the
chances of recruiting the candidate, but it might lay the foundation workforces globally.
for a negative brand. Similarly complex, vendor management can
become a quagmire as multi-nationals try to integrate the business
practices for local staffing firms into their corporate systems. In the
global context, normally decentralized staffing industry systems
tend to be even more unpredictable and software systems even more
diverse.

The single best approach to preparing for this complex global

recruiting challenge is to select global workforce solutions vendors
who are GTM “experts” and have proven experience and a credible

Building and Managing an INTERNATIONAL WORKFORCE

46
CONCLUSIONS AND SUMMARY
Our examination of GTM principles and field lessons for building
the global workforce is really only the beginning chapter of the
next era of global labor and talent approaches. The next decade
will define the tangible future of the global workforce and the
operational corporate definition for global workforce success. If the
last decade has taught us anything about workforces, it has taught
us that culture matters (whether we acknowledge it or not), that
compensation, however important, is only one motivator (which varies
in impact from region to region) and that workforce leadership is
borne of regional and local workforce understanding and sensitivity.
With these GTM principles and lessons, the savvy multi-national
enterprise can progressively build a GTM mindset and strategy which
leverages people globally and develops, combines and links their
skills and talents in a balanced manner using best global talent
management practices and state of the art technology.

Only in this balance can a global firm find the foundation for
sustainable global growth, strategic global workforce advantage and
the sought after long-term global benefits of competitive advantage
– high worker productivity, loyalty, commitment and innovation. If
this statement is true now, it will only become more so as workforce
behemoths including China and India bring more balance to the
world economy and begin to assert their inevitable dominance of the
global labor market.

Building and Managing an INTERNATIONAL WORKFORCE

47
ACKNOWLEDGEMENTS:
The authors would like to acknowledge the support of HCI Global
Talent Management Panel members: Gerard Broussard, Jon Walker,
Benoit Leclerc and David Creelman for their review of our research
outline and drafts and for their thoughts, ideas and first hand
examples of global talent management.

In addition, we would like to thank Louis Tetu, Peter Cappelli, Rudy

Karsan and Row Hensen for their contributions as expert interviewees.

The dozens of books, articles and white papers we relied on are listed
in the footnotes along with their authors.

The Human Capital Institute extends special thanks to Taleo (formerly

Recruitsoft) for its principle sponsorship of this paper..

We also acknowledge the support of all our Founding Partners:

• AIRS
• The Association of Executive Search Consultants
• BrassRing
• The Center for Talent Retention
• Eliyon
• Hrsmart
• Kenexa
• Monster
• Peopleclick
• Recruitmax
• Talentology
• Taleo
• TruStar Solutions
• Unicru
• Webhire

Building and Managing an INTERNATIONAL WORKFORCE

48
About The Authors

JOHN CHAISSON – CEO, Global Workforce Solutions

John Chaisson is the CEO of Global Workforce Solutions, Inc., located
in San Francisco, CA. John has been a active innovator in defining
and developing global workforce management solutions for over
a decade, and is widely sought for his advice in areas of workforce
optimization, business strategy and alliance development, John sits
on the boards of multiple high-tech ventures in the San Francisco Bay
Area. John also consults to governments on the effectiveness of their
economic development initiatives as they relate to human capital.

ALLAN SCHWEYER - Executive Director, Human Capital Institute

Allan is a noted recruitment analyst, speaker and author of
the recently published Talent Management Technologies (John
Wiley and Sons). Allan has been involved in HR Technologies since
1994, when he pioneered e-recruitment solutions for Human
Resources Development Canada. Prior to being named Executive
Director of the Human Capital Institute, he was a senior researcher,
analyst and consultant with HR.com and the editor of the HR.com
staffing vertical. Allan writes a weekly column on talent management
for Inc.com

Building and Managing an INTERNATIONAL WORKFORCE

49
About The Human Capital Institute

Recruiting, Hiring and Strategic Human Capital Management are the

most powerful levers for innovation and growth in today’s knowledge
economy. In fact, corporate market value is increasingly defined as the
sum of human intangibles - ranging from the public perception of a
company’s intellectual capacity, to it’s perceived ability to create new
solutions, enter new markets and respond to change.

In this new world, HR functions are rapidly fragmenting - and

as companies outsource traditional HR administrative functions,
a new internal leadership model is emerging. Talent acquisition,
empowerment and metrics are moving to center stage, and a new
business-driven HCM specialty is forming to drive performance-
based strategies towards new growth, better bottom-line results and
increased value.

The Human Capital Institute is a membership organization, think

tank and educational resource for professionals and executives in
recruiting, HR and talent management who are at the forefront of this
new movement.

Building and Managing an INTERNATIONAL WORKFORCE

50
About Our Sponsor

TALEO CORPORATION
Taleo Corporation (formerly known as Recruitsoft, Inc.), is a leading
provider of enterprise staffing management solutions that enable
organizations to establish, automate and manage worldwide
staffing processes for professional, hourly and temporary staff.
Taleo customers use the company’s solutions to enhance the quality,
productivity and satisfaction of their workforces. Taleo solutions
incorporate resource allocation principles similar to those employed
successfully in supply chain management automation to more
accurately match total labor demand and supply across complex
organizations. Taleo customers include Dow Chemical, Honeywell,
HP, Mercer Human Resource Consulting, P&G, Starbucks Corporation,
SUEZ, UnitedHealth Group, Washington Mutual, Yellow Corporation,
among many others. Taleo is headquartered in San Francisco, CA.

Building and Managing an INTERNATIONAL WORKFORCE

51