- Only 40% of HR professionals reported that HR-business alignment was a top or medium priority for their organization in 2013. This number is far too low, and creates risk for global HR operation.
- An increasingly geographically dispersed workforce is impacting how HR approaches its own role. HR co-location with employees is no longer a given, affecting interactions, policies, and processes.
- When planning for globalizing the HR function, HR may face a lack of global vision, cultural conflict, or low management bench strength.
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Our Advice
Critical Insight
- A misaligned HR function can derail globalization efforts
- Global HR functions must be fully aligned with the organization’s HR strategy to be successful. This means adopting new global HR capabilities, as well as determining the right global vs. local balance for all HR activities
- Organizations globalize to leverage new markets, lower labor and operational costs, and skills in short supply in their traditional locations.
Impact and Result
- Integrate a global mindset by embracing the idea that there are differences between the global and local levels, and that these differences should be acknowledged and leveraged as a strategic business advantage.
- Determine what will be controlled globally vs. customized locally, how to shift some HR responsibilities onto line managers or outsourcers, and identify which HR activities can be performed virtually and which require local HR presence.
- Integrate a global mindset throughout your HR function and broader organization.