Talent Management Hampering Multinational Companies’ Expansion Plans
More than two-thirds of multinational companies (69%) rank talent acquisition and tracking as the workforce management strategy with the greatest impact on their organisation’s business objectives, according to new research released by the ADP Research Institute.
Yet 49% of respondents also said talent management is their top business challenge. This disconnect directly affects global organisations’ ability to achieve their top business goal of expanding into new markets.
Mark Benjamin, President of ADP’s Global Enterprise Solutions business, commented: “Successful growth requires a data-driven talent strategy that enables companies to build a better workforce. A streamlined workforce management infrastructure can help multinational organisations uncover insights on market-specific talent drivers to inform strategic staffing decisions.”
However, many multinational companies continue to grapple with a complex set of disparate HCM systems and processes, according to the new white paper by the ADP Research Institute, “Harnessing Big Data: The Human Capital Management Journey to Achieving Business Growth”.
Global employers currently manage an average of 33 payroll systems and 31 HR systems — a 40% increase from last year. The situation is even worse for multinational organisations with headquarters in emerging markets, such as Asia-Pacific and Latin America, which manage an average of 40 to 50 different systems for payroll and HR.
This high volume of disparate HCM systems, and the need to comply with evolving workforce regulations across multiple regions, continues to drive the need for consolidation. More than two-thirds of survey respondents said they want a more unified HCM system to simplify workforce management and help them unlock insights to support global expansion and business performance.
“As HR leaders take on a more strategic role in supporting business growth, their ability to simplify HCM tasks and uncover deep insights into the human side of work is critical to their companies’ success,” Mr Benjamin added.