Many organizations in emerging economies are in a near-constant state of expansion beyond their national borders: whether developing an M&A strategy, setting up operations overseas or creating a mobile-ready workforce. In this multinational business environment, business leaders and HR need to fully understand the talent management challenges inherent in competing in global markets. This is equally necessary for organizations that have been established internationally for many years and those in the early stages of international expansion.
Advised by Mercer, a major South Korean multinational technology firm implemented a highly disciplined approach for dealing with HR issues during cross-border M&As and joint ventures. The approach enabled the company to successfully complete more than 20 cross-border deals around the world over the past five years after publicly outlining an inorganic growth strategy.
HR is a key player in the expansion, alignment and operation of a multi-country business, and is integral to an organization’s M&A strategy. To make sure the talent “engine” runs smoothly throughout periods of transition, HR functional experts must gain a broader understanding of the multinational growth process and develop coordinated approaches to each of the six talent management challenges outlined in this article.