GPHR MODULE 2

GLOBAL TALENT ACQUISITION

AND MOBILLITY

2016 Edition

© 2016 International Human Resource Certification Institute

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Global Professional in Human Resources (GPHR) Workbook

Module Two: Global Talent Acquisition and Mobility

2016 Edition

Copyright © 2016 by International Human Resource Certification Institute

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resulting from the use of the information contained herein.

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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:

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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.

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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 ................................................................................................................................ ii

Table of Content ........................................................................................................................ iii

Part One: Global Workforce Planning ........................................................................................ 8

1. Global Workforce Planning ............................................................................................. 8

1.1. Workforce Planning ............................................................................................. 8

1.2. Workforce Planning Process ................................................................................ 8

1.3. Global Workforce Planning ................................................................................ 10

1.4. Global Workforce Planning Framework ............................................................ 10

1.5. Adoption of a global mindset ............................................................................ 11

2. Global Workforce .......................................................................................................... 12

2.1. Type of Global Workforce .................................................................................. 12

2.2. Advantages and Disadvantages of using PCNs, HCNs or TCNs .......................... 13

2.3. Regiocentric Staffing .......................................................................................... 13

2.4. Other Global Workforces ................................................................................... 14

3. International Assignments ........................................................................................... 15

3.1. Expatriation ....................................................................................................... 15

3.2. Repatriation ....................................................................................................... 15

3.3. Inpatriation ........................................................................................................ 16

4. Type of Assignment ...................................................................................................... 16

4.1. International Assignees or Expatriates .............................................................. 16

4.2. Domestic Internationalists ................................................................................ 16

4.3. Employees on long-term business trips ............................................................ 16

4.4. Assignees on short- term foreign postings ........................................................ 16

4.5. Assignees on intermediate- term foreign postings ........................................... 16

4.6. Assignees on long-term foreign postings .......................................................... 16

4.7. Permanent transferees ...................................................................................... 16

4.8. Permanent cadre ............................................................................................... 17

4.9. Local hires .......................................................................................................... 17

4.10. International transferees ................................................................................. 17

4.11. Immigrants ...................................................................................................... 17

4.12. Repatriates or Returnees ................................................................................. 17

4.13. Inpatriates ....................................................................................................... 17

4.14. Outsourced employees ................................................................................... 17

4.15. Virtual International Employees (IEs) .............................................................. 17

4.16. Commuter assignment .................................................................................... 17

4.17. Sequential ........................................................................................................ 18

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5. International Assignee Allegiance ................................................................................ 18

5.1. Homebound ....................................................................................................... 18

5.2. Dual citizens ....................................................................................................... 18

5.3. Free agents ........................................................................................................ 19

5.4. Go native ........................................................................................................... 19

6. Successful International Assignment Plan .................................................................... 19

7. Global Staffing .............................................................................................................. 20

7.1. Global Staffing Plan ........................................................................................... 20

7.2. Tactical Staffing Plan .......................................................................................... 20

8. Global Staffing Approaches .......................................................................................... 21

8.1. Ethnocentric approach ...................................................................................... 21

8.2. Polycentric approach ......................................................................................... 22

8.3. Regiocentric Approach ...................................................................................... 23

8.4. Geocentric approach ......................................................................................... 24

9. Alternative Global Staffing ........................................................................................... 24

9.1. Inpatriate assignments ...................................................................................... 25

9.2. Short-term assignments .................................................................................... 25

9.3. Self-initiated assignments ................................................................................. 26

Part Two: Global Talent Acquisition.......................................................................................... 27

1. Global Talent Management .......................................................................................... 27

1.1. Shortage of Talented Workers ........................................................................... 27

1.2. Changing Demographics .................................................................................... 28

1.3. Changing Attitude toward Work and Structure of Work ................................... 29

1.4. Country Culture Differences .............................................................................. 30

2. Global Talent Acquisition .............................................................................................. 30

3. Global Recruiting .......................................................................................................... 32

3.1. Recruitment ....................................................................................................... 32

3.2. Recruiting Process ............................................................................................. 32

3.3. Recruiting Objectives ......................................................................................... 32

3.4. Alternatives to Recruiting .................................................................................. 33

3.5. Internal Recruiting ............................................................................................. 33

3.6. External Recruiting ............................................................................................ 34

3.7. Global Recruiting Context .................................................................................. 36

3.8. Global Recruiting Process .................................................................................. 37

3.9. Global Recruiting Strategy ................................................................................. 38

4. Global Talent Sourcing .................................................................................................. 41

4.1. Assessing the market for the talent pool .......................................................... 42

4.2. Identifying a pool of viable talent with candidate profiles ............................... 42

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4.3. Sourcing candidates through your relationships ............................................... 42

4.4. Diving Deep for your right talents ..................................................................... 43

5. Global Employer Branding ............................................................................................ 43

5.1. Definition of Global Employer Branding............................................................ 43

5.2. Branding Techniques ......................................................................................... 44

5.3. Employee Value Proposition (EVP) is the Foundation of Employer Branding ... 44

5.4. Employer Brand Framework .............................................................................. 45

5.5. Manage the Employer Brand for the Long Term ............................................... 45

6. Global Talent Relationship Management ..................................................................... 46

6.1. Short-term employment ................................................................................... 47

6.2. Boomerang hires ............................................................................................... 48

6.3. Online presence ................................................................................................. 48

7. Global Competency Model ........................................................................................... 48

7.1. Job Analysis and Job Description ....................................................................... 48

7.2. The Use of Job Analysis ..................................................................................... 49

7.3. Steps in Job Analysis .......................................................................................... 50

7.4. Methods of Job Analysis .................................................................................... 50

7.5. Competency Model ........................................................................................... 52

7.6. Competencies in Global Environment ............................................................... 53

7.7. Global-Local Balance for Competencies ............................................................ 53

Part Three: Global Assignment and Mobility ........................................................................... 55

1. Purpose of Global Assignment ..................................................................................... 55

1.1. Corporate Agency .............................................................................................. 56

1.2. Problem Solving ................................................................................................. 56

1.3. Competence Development................................................................................ 56

1.4. Building Experience ........................................................................................... 56

2. Categories of Global Assignment ................................................................................. 57

2.1. Technical Assignment ........................................................................................ 58

2.2. Functional Assignment ...................................................................................... 58

2.3. Developmental Assignment .............................................................................. 59

2.4. Strategic/Executive Assignees ........................................................................... 59

3. Length of Global Assignment ....................................................................................... 59

3.1. Long-term temporary assignments ................................................................... 60

3.2. Short-term temporary assignments .................................................................. 61

3.3. Employee requested long and short-term assignments ................................... 61

3.4. Extended business travel and rotational assignments ...................................... 61

3.5. International transfers ....................................................................................... 62

3.6. Commuter assignments .................................................................................... 62

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3.7. Consecutive assignments .................................................................................. 62

3.8. Developmental assignments ............................................................................. 63

3.9. Project assignments .......................................................................................... 63

3.10. Assignments in difficult locations .................................................................... 63

4. Global Assignment Strategies ....................................................................................... 64

4.1. Local strategy ..................................................................................................... 64

4.2. Centralized strategy ........................................................................................... 65

4.3. Global strategy .................................................................................................. 65

5. Global Assignment Process .......................................................................................... 66

5.1. Selection: Identifying Business Need and Selecting Employee ......................... 66

5.2. Preparation: Pre-assignment Planning .............................................................. 67

5.3. Relocation .......................................................................................................... 69

5.4. Support: Assignment Period .............................................................................. 70

5.5. Support: Post-assignment Planning .................................................................. 71

5.6. Repatriation ....................................................................................................... 72

6. Selecting International Assignees................................................................................. 73

6.1. Selection Criteria ............................................................................................... 74

6.2. Selection Checklist ............................................................................................. 78

6.3. Selection Tests ................................................................................................... 80

7. Assignment Preparation ............................................................................................... 81

7.1. Gather Employee and Family Information ........................................................ 83

7.2. Draft Compensation Calculation ....................................................................... 83

7.3. Prepare for Relocation ....................................................................................... 84

7.4. Assignment Approval......................................................................................... 84

8. Relocation and Mobility ............................................................................................... 84

8.1. Passports, Visas, Work and Residency Permits ................................................. 85

8.2. Travel Arrangements ......................................................................................... 86

8.3. Cross-Cultural Training ...................................................................................... 86

8.4. Language Training .............................................................................................. 86

8.5. Final Trip Travel Guidelines ................................................................................ 87

8.6. Home Country Housing ..................................................................................... 87

8.7. Home Country Automobile ............................................................................... 87

8.8. Temporary Living Expenses ............................................................................... 87

8.9. Transportation of Personal Effects .................................................................... 87

8.10. Insurance ......................................................................................................... 88

9. On-going Support ......................................................................................................... 88

9.1. General/Work/Interaction Adjustment ............................................................. 89

9.2. Cross-cultural training ....................................................................................... 89

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9.3. Mentoring and coaching ................................................................................... 91

9.4. Peer support ...................................................................................................... 92

10. Managing Repatriation ............................................................................................... 93

10.1. Reasons of Repatriation .................................................................................. 93

10.2. Phases of Repatriation .................................................................................... 94

10.3. Challenges of effective Repatriation ............................................................... 96

10.4. Managing Repatriation: ................................................................................... 98

Part Four: Global Staffing Measures ...................................................................................... 102

1. Success of International Assignment ......................................................................... 102

1.1. Short-term success .......................................................................................... 102

1.2. Long-term success ........................................................................................... 102

1.3. Success Criteria ................................................................................................ 103

2. Failure of International Assignment ........................................................................... 104

2.1. Cost of Expatriate Failure ................................................................................ 104

2.2. Main Reasons of Expatriate Failure ................................................................. 105

2.3. Prevention of Expatriate Failure ...................................................................... 108

3. Accessing ROI of Global Assignment .......................................................................... 110

3.1. General Measures of ROI ................................................................................ 110

3.2. Expatriate ROI .................................................................................................. 111

3.3. Hidden costs and benefits ............................................................................... 111

3.4. Evaluating international assignment value ..................................................... 112

Reference ................................................................................................................................ 115

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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?

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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 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.

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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 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.

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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.

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

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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

The extent of the firm’s internationalization and its degree of centralization or

decentralization affects its philosophy regarding the nationality of its international

managers. 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).

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.

Host-country nationals (HCNs)

Third-country nationals (TCNs)

Parent-country nationals (PCNs)

Procure UtilizeAllocate

Type o

f em

plo

yees

Human Resource Activities

Host

Home

Other

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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.

Advantages and disadvantages of using PCNs, HCNs or TCNs

Advantages Disadvantages

PCNs

Parent

Country

Nationals

• Familiarity with the home office’s

goals, objectives, policies and practices

• Technical and managerial competence

• Effective liaison and communication

with home-office personnel

• Difficulties in adapting to the foreign

language and the socioeconomic,

political, cultural and legal

environment

• Excessive cost of selecting, training

and maintaining expatriate

managers and their families abroad

• The host countries’ insistence on

localizing operations and on

promoting local nationals in top

position at foreign subsidiaries

• Family adjustment problems,

especially concerning the

unemployed partners of managers

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HCNs

Host

Country

Nationals

• Familiarity with the socioeconomic,

political and legal environment and

with business practices in the host

country

• Lower cost incurred in hiring them as

compared to PCN and TCN

• Provides opportunities for

advancement and promotion to local

nationals and, consequently increases

their commitment and motivation

• Responds effectively to the host

country’s demands for localization of

the subsidiary’s operation

• Difficulties in exercising effective

control over the subsidiary’s

operation

• Communication difficulties in

dealing with home-office personnel

• Lack of opportunities for the home

country’s nationals to gain

international and cross-cultural

experience

TCNs

Third

Country

nationals

• Perhaps the best compromise

between securing needed technical

and managerial expertise and adapting

to a foreign socioeconomic and

cultural environment

• TCNs are usually career international

business managers

• TCNs are usually less expensive to

maintain than PCNs

• TCNs may be better informed about

the host environment than PCNs

• Host country’s sensitivity with

respect to nationals of specific

countries

• Local nationals are impeded in their

efforts to upgrade their own ranks

and assume responsible positions in

the multinational subsidiaries

Source: Reiche, S. & Harzing, A.W. (2009). International Human Resource Management,

London: Sage Publications

2.4. Other Global Workforces

Other than above three types of global workforce, there are several types emerging:

2.4.1. Expatriates of host country origin / returnees – Permanent resident of the

parent country but belongs to ethnicity of the host country and is hired and/or transferred by

the parent country organization to the host location on a temporary assignment or