Global talent management systems go 'transnational'

LAS VEGAS—“Think global efficiency; act local in responsiveness.” That was the advice given by Rick Fletcher when HR professionals choose and implement a global talent human resource information systems (HRIS) management system. Fletcher, president of HRchitect, a Frisco, Texas-based human capital management systems consulting firm, spoke at a March 20 concurrent session at the 29th annual Society for Human Resource Management Global Forum Conference & Exposition here.
An increasing number of vendors are providing global staffing systems that achieve this global-local balance with a “transnational” approach rather than a multinational, international or “mega-national” one, Fletcher said. The latter three, which are used by most global companies currently, are effective either locally or globally—not both. He encouraged attendees to look for a global talent management system that accomplishes both goals.
Transnational solutions are more robust and scalable to meet future growth, and they enable each locality to maintain unique operations while following and supporting global resourcing policies, principles and processes, Fletcher explained. Thus, maintaining local needs doesn’t come at the expense of meeting harmonized global objectives.
Vendors providing transnational talent systems are moving toward a “talent management suite” solution that bundles applicant tracking software, employee performance management and incentive compensation systems—giving users a one-stop shop for staffing needs. The leading vendors are Authoria, Kenexa and Softscape, said Fletcher.
An emerging trend in this space is providing solutions for the mid-size market. “There is an untapped market of about 40,000 mid-size U.S. companies that are expanding globally,” he said, “presenting a huge opportunity for a vendor to fill.”
Still, the transnational global talent management system comes at a higher cost. In addition, companies may encounter some system implementation and adoption issues if proper selection and deployment methods aren’t followed, he said. And companies may have to customize the system further to meet local legal compliance mandates.
This makes vendor selection and project implementation strategy very important to gaining the most return on investment with transnational global talent management systems, said Fletcher.

Selecting a vendor

Before embarking on the vendor selection journey, HR needs to do some preparation in-house. First, define the project’s scope, costs and budget fully. “This is the No. 1 risk mitigation factor in the success of implementing a global talent management system,” said Fletcher.
Next, put the right global project team together. Select stakeholders from all major global regions, countries and business functions—HR, IT, procurement and communications, Fletcher suggested. Finally, define your global talent management strategy and conduct a thorough requirements study through surveys of users. This preparation will save a lot of headaches down the road, he said.
U.S. companies looking to select a global talent management system also need to consider the following, said Fletcher:

• Language. Make sure that the vendor can accommodate country and regional dialects of the users and candidates.
• Legal issues. The applicant tracking system needs to track required data and ensure compliance. For instance, “definition of an applicant” changes are occurring in countries outside the United States. In addition, privacy laws follow the employee across borders. So, employee data are subject to the privacy laws of the country of which they are citizens—not the country in which they are working.
• Cultural issues. Local cultures hold differences on such issues as ethnicity, gender, nationality and religion—which impact the data needed to be tracked. HR also needs to consider the culture’s inclination toward new technologies.
• Technological matters. A wide range exists on the access to the Internet at home and at work in various countries. Fewer than 5 percent in China and India have access to the web, compared to nearly half in Australia and Scandinavian countries.

Implementation tips

Before implementing a new global talent management system, you must gather global team members for an in-person meeting. “This is an expense up front, but it will pay off for you in the long run,” said Fletcher. “You will build trust and get buy-in, and I have found all my successful implementations started with an in-face meeting.”
This team should include the players involved in the selection as well as a senior executive at the talent management system vendor. “I also suggest you get a ‘problem user’ involved on the implementation team—someone who really liked the old system and is showing resistance to change,” Fletcher said. “That person will end up being your best leader when he returns home.”
Create a global implementation project plan. Identify the country with the most complex needs and pilot the system there first. That will reveal kinks and allow time to work them out before going live globally, Fletcher explained.
Communication is the second risk mitigation factor in implementing a global talent management system successfully, he said. Use the technology vehicles appropriate to the individual locales. It’s important to get buy-in and to provide support after implementation, said Fletcher.

Industry consolidation

With the growing trend of offering a complete talent management suite, applicant tracking providers are buying out performance management system providers and vice versa to become best-of-breed vendors.
In addition, large enterprise resource planning vendors, such as Oracle, SAP and Lawson, are improving their talent management system components, but they have not caught up with talent management system best-of-breed vendors, said Fletcher.
Companies are reducing the number of vendor suppliers and embracing the suite concept. However, “there are too many suppliers for demand,” Fletcher said, indicating that the consolidation of vendors will speed up.
“You have to consider if the vendor will be around in the next two years,” said Fletcher.
Adrienne Fox is managing editor of HR Magazine.



Pushpam kumar
pgdm -2nd sem