I am a regular reader of the McKinsey reports and there was a recent brief in the McKinsey Quarterly that caught my eye, “Why multinationals struggle to manage talent.” There were some interesting findings cited from the research:
“Participants cited several personal disincentives to global mobility, but one of the most significant was the expectation that employees would be demoted after repatriation to their home location. ‘Overseas experience is not taken seriously and not taken advantage of,” commented one senior manager. “Much valuable experience dissipates” because companies have a habit of “ignoring input from returnees, and many leave.” The quality of the support for mobility a company provides (for instance, assistance with housing and the logistical aspects of a move) also plays a decisive role in determining how positive or challenging an overseas assignment is for expatriates.”
Apparently, there is an ongoing trend among multinationals to devalue managers who work abroad, despite the value they say they place on international management experience. When these executives return home they often expect to be demoted.
However, the same study showed that companies that embrace a strategy of global talent management are able to substantially improve performance as measured by profit per employee. The report cites 10 factors to use when managing global talent – consistent management, promoting cultural diversity, nurturing global leadership, creating internal talent pools, etc. Companies that were able to implement a global talent management strategy and promote consistency in talent evaluation demonstrated better financial performance across the board.
So what does this mean to you as a job seeker? It provides a new set of criteria that you can apply when assessing potential employers, especially if you are seeking work abroad or ways to leverage your international experience. If you are looking at multinational companies, take the time to dig into their HR policies and see how effective they are at managing their global management team. Do they have consistent relocation and repatriation policies, and is a foreign assignment considered a step up or a step out the door?
