Global mobility of human capital increasingly important

Citation

Nolan, S. (2012), "Global mobility of human capital increasingly important", Strategic HR Review, Vol. 11 No. 3. https://doi.org/10.1108/shr.2012.37211caa.013

Global mobility of human capital increasingly important

Article Type: Research and results From: Strategic HR Review, Volume 11, Issue 3

Story 2

The global mobility of human capital is set to become an increasingly important business issue over the next three to five years, according to Deloitte’s “Strategic Moves” survey of over 140 organizations across the globe. This is due to the complexity of doing business on a global scale and the increasing importance of emerging markets.

Findings from the study include the following:

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  A total 75 percent of companies anticipate the number of globally mobile employees will increase over the next three to five years.

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  Only 2 percent of organizations feel there is currently complete alignment between their global mobility function and business and talent strategies – although almost 90 percent feel it is important.

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  Almost 40 percent feel their global mobility program needs significant or radical improvement.

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  Nearly half of all organizations surveyed view emerging markets as a top strategic business issue.

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  “Globalization” is considered a top three strategic business issue by one in five respondents.

According to the Deloitte survey, senior business executives and HR leaders agree that, more than ever, global mobility needs to become more integrated into core HR processes – complementing a company’s strategic business objectives and talent agenda (88 percent agreed). Despite the consensus that global mobility will take priority, there are worrying findings that indicate a lack of strategic direction of the mobility function. Less than 10 percent of participants feel their organization currently perceives global mobility as a fully strategic function, while three quarters of the organizations that participated in the survey rated their mobility function as no better than adequate.

A significant finding is that nearly half of the business executives (outside HR) consider their mobility to be underperforming and not fulfilling the business and talent requirements compared to only 33 percent of HR respondents. This is the clearest indication that there is a significant disconnect between the perception of those within HR and those within the business in terms of whether global mobility is fit for purpose.

Rob Hodkinson, global mobility transformation practice leader at Deloitte, who led the research, says: “The findings reflect our understanding of the challenges facing chief executives and HR leaders. The transition from global mobility being viewed as a transactional cost center to a value-add strategic partner is a difficult one. The development of strategic expertise within global mobility functions will be an important way for companies to address the challenges ahead, as this will enable them to ensure their mobility strategy aligns with the business and talent objectives. It will also enable global mobility to deliver a more cost-effective and targeted service.”

For more information. The report can be viewed at: www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Services/Consulting/uk-c-strategic-moves-v2.pdf