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GPHR Module Two

Global Talent Acquisition and Mobility

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Global Professional in Human Resources (GPHR) Workbook

Module Two: Global Talent Acquisition and Mobility

2015 Edition

Copyright © 2015 by International Human Resource Certification Institute

All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means – electronic, mechanical, photocopying, recording, or otherwise – without written permission from the International Human Resource Certification Institute (IHRCI). No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of the information contained herein.

International Human Resource Certification Institute (IHRCI)

Unit 4, 7F, Bright Way Tower, No. 33 Mong Kok Road.

Kowloon, Hong Kong

www.ihrci.org

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Introduction

As a purchaser of the GPHR certification workbook serials, you have access to the www.ihrci.org learning system. The system contains Glossary that provides a search box and a description of the key terms in HR. Also, the system consists of over 1,000 practice exam questions and answers with explanations in our database including pre-test, review-test, and post-test:

Pre-test: It contains the same percentage of questions from each content area. Participants can take a pre-test of that module to access their conceptual understanding of that specific area of the GPHR Body of Knowledge. When the pre-test is completed, an overall correct percentage is provided along with the number and percentage of questions answered correctly. The answers with explanations to individual questions are also provided. Our system allows users to save the results of the pre-test so that they can improve upon that later.

Review-test: Every review test contains questions s with explanations which help to understand the concepts of that particular knowledge area for each section of the study workbook. Once you successfully finish reviewing for one section text in the workbook; you naturally get access to the next section. Every new section helps construct on the earlier concepts learnt in the previous knowledge areas. Please do step-wise study for all the knowledge areas.

Post-test: Once you complete with all the knowledge areas, have a post-test through the full length simulated practice tests under the same testing conditions as the actual exams. With 165 questions covered during the 3 hours test. These tests are designed to help you get the feel of the final GPHR Exam, with similar format and question types. Practice till you are near to 80% correct answers in the post-test. This helped you in understanding areas where you have improved since the last test as well as list down topics for which you needed more revision.

Access to the learning system is valid for twelve (12) months from the date of purchase to cover two test windows. Each practice for the pre-test, review-test, and post-test may be taken as many times as you would like within the 12 months. Access to these practice exams is for your individual use; your account is not to be shared with others. Your use of the online practice exams signifies your acknowledgment of and agreement to these terms.

This workbook is not a textbook. These materials include workbooks and practice exams are intended for use as an aid to preparation for the GPHR Certification Exam conducted by the HR Certification Institute. By using all of the preparation materials, you will be well-versed in the five key functional areas that make up the HR Certification Institute GPHR body of knowledge. Studying these materials does not guarantee, however, that you will pass the exam. These workbooks are not to be considered legal or professional advice.

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Table of Content

Introduction ....................................................................................................................................... i

Table of Content ................................................................................................................................ ii

Part One: Global Workforce Planning ............................................................................................... 1

1. Global Workforce Planning .................................................................................................. 1

1.1. Workforce Planning ................................................................................................. 1

1.2. Workforce Planning Process .................................................................................... 1

1.3. Global Workforce Planning ..................................................................................... 2

1.4. Global Workforce Planning Framework .................................................................. 2

1.5. Adoption of a global mindset .................................................................................. 4

2. Global Workforce ................................................................................................................. 4

2.1. Type of Global Workforce ........................................................................................ 4

2.2. Advantages and Disadvantages of using PCNs, HCNs or TCNs ................................ 5

2.3. Regiocentric Staffing ............................................................................................... 5

2.4. Other than above three types of global workforce, there are several types

emerging: ....................................................................................................................... 6

3. International Assignments ................................................................................................... 7

3.1. Expatriation ............................................................................................................. 7

3.2. Repatriation ............................................................................................................ 7

3.3. Inpatriation ............................................................................................................. 7

4. Type of Assignment ............................................................................................................. 8

4.1. International Assignees or Expatriates .................................................................... 8

4.2. Domestic Internationalists ...................................................................................... 8

4.3. Employees on long-term business trips .................................................................. 8

4.4. Assignees on short- term foreign postings .............................................................. 8

4.5. Assignees on intermediate- term foreign postings ................................................. 8

4.6. Assignees on long-term foreign postings ................................................................ 8

4.7. Permanent transferees ............................................................................................ 8

4.8. Permanent cadre ..................................................................................................... 8

4.9. Local hires ............................................................................................................... 8

4.10. International transferees ....................................................................................... 8

4.11. Immigrants ............................................................................................................ 9

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4.12. Repatriates or Returnees ...................................................................................... 9

4.13. Inpatriates ............................................................................................................. 9

4.14. Outsourced employees ......................................................................................... 9

4.15. Virtual International Employees (IEs) .................................................................... 9

4.16. Commuter assignment .......................................................................................... 9

4.17. Sequential ............................................................................................................. 9

5. International Assignee Allegiance...................................................................................... 10

5.1. Homebound .......................................................................................................... 10

5.2. Dual citizens .......................................................................................................... 10

5.3. Free agents ............................................................................................................ 10

5.4. Go native ............................................................................................................... 11

6. Successful International Assignment Plan ......................................................................... 11

7. Global Staffing ................................................................................................................... 11

7.2. Tactical Staffing Plan.............................................................................................. 12

8. Global Staffing Approaches ............................................................................................... 12

8.1. Ethnocentric approach .......................................................................................... 13

8.2. Polycentric approach ............................................................................................. 14

8.3. Regiocentric Approach .......................................................................................... 14

8.4. Geocentric approach ............................................................................................. 15

9. Alternative Global Staffing ................................................................................................. 16

9.1. Inpatriate assignments .......................................................................................... 16

9.2. Short-term assignments ........................................................................................ 16

9.3. Self-initiated assignments ..................................................................................... 17

Part Two: Global Talent Acquisition ................................................................................................ 18

1. Global Talent Management ............................................................................................... 18

1.1. Shortage of Talented Workers ............................................................................... 18

1.2. Changing Demographics........................................................................................ 18

1.3. Changing Attitude toward Work and Structure of Work ....................................... 19

1.4. Country Culture Differences .................................................................................. 20

2. Global Talent Acquisition ................................................................................................... 20

3. Global Recruiting ............................................................................................................... 22

3.1. Recruitment .......................................................................................................... 22

3.2. Recruiting Process ................................................................................................. 22

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3.3. Recruiting Objectives ............................................................................................ 22

3.4. Alternatives to Recruiting ...................................................................................... 23

3.5. Internal Recruiting ................................................................................................. 23

3.6. External Recruiting ................................................................................................ 24

3.7. Global Recruiting Context ..................................................................................... 25

3.8. Global Recruiting Process ...................................................................................... 26

3.9. Global Recruiting Strategy ..................................................................................... 28

4. Global Talent Sourcing ....................................................................................................... 30

4.1. Assessing the market for the talent pool .............................................................. 31

4.2. Identifying a pool of viable talent with candidate profiles.................................... 31

4.3. Sourcing candidates through your relationships ................................................... 32

4.4. Diving Deep for your right talents ......................................................................... 32

5. Global Employer Branding ................................................................................................. 32

5.1. Definition of Global Employer Branding................................................................ 32

5.2. Branding Techniques ............................................................................................. 33

5.3. Employee Value Proposition (EVP) is the Foundation of Employer Branding ....... 33

5.4. Employer Brand Framework .................................................................................. 33

5.5. Manage the Employer Brand for the Long Term ................................................... 34

6. Global Talent Relationship Management ........................................................................... 35

6.1. Short-term employment ....................................................................................... 36

6.2. Boomerang hires ................................................................................................... 36

6.3. Online presence .................................................................................................... 36

7. Global Competency Model ................................................................................................ 37

7.1. Job Analysis and Job Description .......................................................................... 37

7.2. The Use of Job Analysis ......................................................................................... 37

7.3. Steps in Job Analysis .............................................................................................. 38

7.4. Methods of Job Analysis........................................................................................ 38

7.5. Competency Model ............................................................................................... 39

7.6. Competencies in Global Environment ................................................................... 40

7.7. Global-Local Balance for Competencies ................................................................ 41

Part Three: Global Assignment and Mobility .................................................................................. 42

1. Purpose of Global Assignment ........................................................................................... 42

1.1. Corporate Agency .................................................................................................. 43

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1.2. Problem Solving .................................................................................................... 43

1.3. Competence Development ................................................................................... 43

1.4. Building Experience ............................................................................................... 43

2. Categories of Global Assignment ....................................................................................... 43

2.1. Technical Assignment ............................................................................................ 44

2.2. Functional Assignment .......................................................................................... 44

2.3. Developmental Assignment .................................................................................. 45

2.4. Strategic/executive assignees ............................................................................... 45

3. Length of Global Assignment ............................................................................................. 45

3.1. Long-term temporary assignments ....................................................................... 46

3.2. Short-term temporary assignments ...................................................................... 46

3.3. Employee requested long and short-term assignments ....................................... 47

3.4. Extended business travel and rotational assignments .......................................... 47

3.5. International transfers ........................................................................................... 47

3.6. Commuter assignments ........................................................................................ 48

3.7. Consecutive assignments ...................................................................................... 48

3.8. Developmental assignments ................................................................................. 48

3.9. Project assignments .............................................................................................. 48

3.10. Assignments in difficult locations ........................................................................ 49

4. Global Assignment Strategies ............................................................................................ 49

4.1. Local strategy ........................................................................................................ 49

4.2. Centralized strategy ............................................................................................... 50

4.3. Global strategy ...................................................................................................... 50

5. Global Assignment Process ................................................................................................ 50

5.1. Selection: Identifying Business Need and Selecting Employee ............................. 51

5.2. Preparation: Pre-assignment Planning .................................................................. 51

5.3. Relocation ............................................................................................................. 51

5.5. Support: Post-assignment Planning ...................................................................... 52

5.6. Repatriation .......................................................................................................... 52

5.7. Reassignment or Termination ............................................................................... 52

6. Selecting International Assignees ...................................................................................... 52

6.1. Selection Criteria ................................................................................................... 52

6.2. Selection Checklist ................................................................................................ 56

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6.3. Selection Tests ....................................................................................................... 58

7. Assignment Preparation .................................................................................................... 59

7.1. Gather Employee and Family Information ............................................................ 60

7.2. Draft Compensation Calculation ........................................................................... 61

7.3. Prepare for Relocation .......................................................................................... 61

7.4. Assignment Approval ............................................................................................ 61

8. Relocation and Mobility ..................................................................................................... 61

8.1. Passports, Visas, Work and Residency Permits ..................................................... 62

8.2. Travel Arrangements ............................................................................................. 62

8.3. Cross-Cultural Training .......................................................................................... 63

8.4. Language Training ................................................................................................. 63

8.5. Final Trip Travel Guidelines.................................................................................... 63

8.6. Home Country Housing ......................................................................................... 63

8.7. Home Country Automobile ................................................................................... 64

8.8. Temporary Living Expenses ................................................................................... 64

8.9. Transportation of Personal Effects ........................................................................ 64

8.10. Insurance ............................................................................................................. 64

9. On-going Support .............................................................................................................. 64

9.1. General/Work/Interaction Adjustment ................................................................. 65

9.2. Cross-cultural training ........................................................................................... 65

9.3. Mentoring and coaching ....................................................................................... 67

9.4. Peer support .......................................................................................................... 68

10. Managing Repatriation .................................................................................................... 69

10.1. Reasons of Repatriation ...................................................................................... 69

10.2. Phases of Repatriation ........................................................................................ 69

10.3. Challenges of effective Repatriation ................................................................... 71

10.4. Managing Repatriation:....................................................................................... 73

Part Four: Global Staffing Measures ............................................................................................... 76

1. Success of International Assignment ................................................................................. 76

1.1. Short-term success ................................................................................................ 76

1.2. Long-term success ................................................................................................. 76

1.3. Success Criteria ..................................................................................................... 77

2. Failure of International Assignment .................................................................................. 77

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2.1. Cost of Expatriate Failure ...................................................................................... 77

2.2. Main Reasons of Expatriate Failure ....................................................................... 78

2.3. Prevention of Expatriate Failure ............................................................................ 81

3. Accessing ROI of Global Assignment.................................................................................. 82

3.1. General Measures of ROI ...................................................................................... 82

3.2. Expatriate ROI ....................................................................................................... 84

3.3. Hidden costs and benefits ..................................................................................... 84

3.4. Evaluating international assignment value ........................................................... 84

Reference ........................................................................................................................................ 87

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Part One: Global Workforce Planning

1. Global Workforce Planning

1.1. Workforce Planning

Workforce planning is also called “Human Resources Planning” (HRP) that focuses on analyzing an organization’s HR needs as the organization’s conditions change, and then supplying strategies to help respond proactively to those changes over time. HRP helps ensure that the right numbers of the right kinds of people are available at the right times and in the right places to translate organizational plans into reality. This process becomes strategic when some attempt is made to anticipate long-term HR “supplies and demands” relative to changing conditions facing the organization, and then to use HR department programs in an effort to meet these identified HR needs.

Therefore, workforce planning needs to be closely integrated in, and aligned with, the strategic planning process. The workforce planning process also informs the human resources strategies so that these strategies can support the plan. It is also closely linked to the financial planning processes, since the cost of the NMS workforce is a substantial part of overall costs.

1.2. Workforce Planning Process

Key issues in developing the workforce plan along the lines of the sample outline are summarized below.

1.2.1. Demand analysis

Demand analysis (current and future): what is expected of the company over the next few years? What is needed from the workforce (numbers, locations, capabilities)? What are the likely funding situations over the next few years?

Alternative future analyses: are there different possible scenarios that could impact the company?

Developing a demand forecast-assessing what competencies or employees will be required to achieve organizational objectives for a specified period of time.

1.2.2. Internal supply analysis

Workforce profile: what are the existing numbers, categories, locations, age groups?

Skills and capabilities profile: what are the present capabilities and skills in the workforce?

Employee survey: optional, but this can provide useful information on current employee attitudes and interests.

Internal supply analysis (current and future): summarize the current and expected future situation of the workforce capability with existing staff, identifying current

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shortages and expected losses due to retirement, etc.

1.2.3. External supply analysis

External supply (current): what is the current availability of staff with the required skills and capabilities external to the NMS? The current workforce analysis looks at the people capabilities available inside the organization to achieve organizational objectives. This requires consulting with various stakeholders across global operations.

Future external supply: identify circumstances that may change in the future regarding supply of staff externally. Adding known variables (e.g., position openings, attrition rates, and performance review data), as well as unknown variables (e.g., transfers, terminations, separations, and competitive factors).Forecasting involves identifying expected future conditions based on information about the past and the present.

1.2.4. Gap analysis:

Summarize the gaps between what you need, what you have now and in the future. Prioritize the gaps-all gaps between the present status and the future vision of global staffing cannot be addressed at the same time or completed in the typical one to three year time frame of a typical staffing plan. Gaps must be analyzed and prioritized to determine which ones will be addressed by the tactical global staffing plan.

1.2.5. Workforce strategies development

Identify the existing and future risks to carrying out the mission of the company associated with the workforce situation; analyze the options available to address the situation, including use of existing staff, training plans, partnerships, options for closing the gap with outside recruitment, etc. Identify the availability of talent needed by the organization. Staffing a global enterprise requires a mobile global workforce. Talent may be local hires or hires from any country due to talent shortages. After that, describe the chosen action plan to implement the plan, including the expected future numbers, categories and disposition of staff.

1.3. Global Workforce Planning

A global workforce planning refers to the global labor force market, global workforce forecasting and planning. The term workforce applied to any enterprise’s employees; the term labor force applied to the pool of potential employees.

1.4. Global Workforce Planning Framework

Each organization needs to have a strategic human resources/capital plan to most effectively pursue its business strategy as well as address the implications of the global workforce for its unique workforce situation. Strategic human resource planning is increasingly being recognized as a critical source of competitive advantage and needs an embedded global strategic perspective. While a global strategic workforce plan should be based upon best enabling the implementation of an organization’s business strategy, it also

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should provide inputs towards the further development of the organization’s business plan.

A strategic global workforce planning process should include the following major efforts:

1.4.1. Develop an External Environmental Scan of Global Workforce (GWF) Threats and Opportunities on a macro, countries where have a current interest or presence, competitors presence/use, and areas of major development.

1.4.2. Assess the Organization’s Global Workforce Strengths and Improvement Opportunities including the capability to lead/manage global workforces, integrate global teams, lower cost structures, improve productivity levels, achieve desired service levels, and establish a global culture and consistent processes.

1.4.3. Benchmark human resource costs, productivity, and quality vs. leading competitors in the USA and globally, and Review the organization’s current workforce situation in terms of:

the number, cost, and location of people that support each of the core business processes

the number, cost, and location of employees, temporary/contract workers, outsourcing/offshoring arrangements, and consulting

1.4.4. Identify the Priority Global Workforce Opportunities and Needs you’re your organization and evaluate them in terms of potential impact and risk for the business.

1.4.5. Establish Clear Global Workforce Objectives and Strategies to pursue in the near and medium term as an overriding direction for the organization’s efforts.

1.4.6. Create a Global Workforce Implementation Plan for pursuing those objectives and strategies. Evaluate options to most effectively address significant global workforce improvement opportunities and further leverage competitive strengths including the location and utilization of: Employees (exempt/nonexempt), Contract/temporary workers, Outsourcing/Offshoring, or Consultants.

1.4.7. Select and pursue top priority global workforce improvement opportunities including short term quick wins and longer term high impact investments.

1.4.8. Monitor Global Workforce Performance in terms of impact and refine efforts via an ongoing global workforce planning process.

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Global Workforce Planning Framework Landberg, S. (2014). Getting Beyond Trends: Recognizing Today’s Global Workforce Implications. Claymore Partners LLC.

1.5. Adoption of a global mindset

While critical, these efforts are only ultimately anchored by the company’s mindset about workforce. Adoption of a global mindset is the first step for an organization to establish a basis for a strategic global workforce planning approach. That needs to start at the top of an organization with an increase in global executive talent, training, and experience. Organizations need to shift from viewing businesses as international vs. domestic to global businesses and further imbed a global mentality into their overall business perspectives inclusive of workforce planning and implementation efforts. There are few organizations that can avoid the implications of a global workforce today. It is time to embrace that change and determine how to leverage the opportunities and embrace being global.

2. Global Workforce

2.1. Type of Global Workforce

In General, there are three types of global workforce as Parent-country nationals (PCNs), Third-country nationals (TCNs) and Host-country nationals (HCNs) classified by their source (Where to find).

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Global Workforce

Source: industryplayer.com

2.1.1. Parent-country nationals (PCNs)-Citizens of the organization's headquarters country who reside and work abroad with the intent of returning to the home country.

2.1.2. Third-country nationals (TCNs)-Employees who are citizens of countries other than where they work or where the organization’s headquarters resides.

2.1.3. Host-country nationals (HCNs) or local nationals-Employees working in their own country.

2.2. Advantages and Disadvantages of using PCNs, HCNs or TCNs

Regarding these three types, we would say that none of the options is without its disadvantages. Some of the most frequently mentioned advantages and disadvantages of using PCNs, HCNs or TCNs are summarized in following table:

2.3. Regiocentric Staffing

MNCs following an ethnocentric staffing policy would appoint mostly parent country nationals to top positions at their subsidiaries, while MNCs following a polycentric staffing policy would prefer to appoint host country nationals (HCNs). Firms with a geocentric staffing policy would simply appoint the best person, regardless of his/her nationality and that could include third country nationals (TCNs), nationals of a country other than the MNC’s home country and the country of the subsidiary. Researchers defined a fourth approach, which they called regiocentric. In this approach, managers are transferred on a regional basis, such as Europe, and it often forms a mid-way station between a pure polycentric/ethnocentric approach and a truly geocentric approach. It is important to note that these staffing policies apply to key positions in MNC subsidiaries only. Although some PCNs or TCNs might still be found at middle management, MNCs normally appoint host country managers at this and lower levels.

Host-country nationals (HCNs)

Third-country nationals (TCNs)

Parent-country nationals (PCNs)

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