Does global talent lead to better performance?

Is 2022 the year to adopt a global talent strategy? The trend towards virtual or remote work has decidedly impacted attraction and recruitment suggesting that there may be opportunities to explore talent on a global stage.

We were curious about this topic, so we explored the question “does it make business sense for organizations to embrace a global talent strategy?”

Our research leads us to believe that there are two main benefits to a global talent strategy: 1) it increases the supply of talent providing employers with more choice and, 2) better talent helps to create a competitive advantage that can be leveraged to improve performance.

A challenge with competitive advantages is that they tend to become ‘table stakes’ over time and as trends toward virtual work offer greater flexibility in how and where people work, organizations eventually may be forced to embrace this reality and create an organization that is dispersed across geographies with a unique blend of physical and home offices.

Tips to consider when embracing a global talent strategy

1)      Get leadership aligned with the business case

Building a business case for global talent should start with ensuring that this approach makes sense for your business and is aligned with strategy. Start with your company’s strategy and identify the type of talent that is needed to achieve results and how global talent will help achieve business goals.

Work with leadership to integrate talent planning into the business planning process as business units set their goals you can identify how and where global talent will help achieve results.

Involving leaders in talent solutions helps to create understanding and buy-in.

2)      Identify roles that can be performed 100% virtually

Global talent makes sense if you already have operations that are physically located globally or if you have a high percentage of roles that can be performed 100% virtually.

The COVID-19 pandemic taught us that some roles can be performed virtually, and for many, the percentage is typically around 30%, which offers a focal point on roles where you can target the best talent on a global stage.

Roles that can be performed virtually can be found in functions such as Finance, Supply Chain, Human Resources and Information Technology. Other roles, such as those found in manufacturing, care providers, or heavy equipment operators can only be done in a physical location.

One activity that can help inform your talent strategy is to perform a workplace assessment such as the WorkFit by Better Workplace. Workfit is an assessment that helps to identify where and how employees will be their most productive and the business case for creating a hybrid workplace where employees, based on role, can work remotely and everything in between.

3)      Ramp up Diversity and Inclusion

A global workplace, whether virtual or physical, means different time zones, cultures, and languages. These attributes make collaboration and communications more challenging, however a globally diverse workplace also has upside benefits.

Diversity and inclusion can have positive impacts on retention. A July 2021 study completed by Glass Door revealed that two-thirds of job seekers say a diverse workforce is an important factor in choosing an employer. And 83% of millennials say they are more engaged at work when their organization fosters a culture of inclusion.

Many organizations emphasize the recruiting and hiring aspects of diversity and inclusion but fall short in creating a culture that meets this promise. Attracting global talent forces organizations to overcome the sometimes-hidden biases that hinder employee engagement and encourage the adoption of the social and cultural norms that are forming outside organizations.

4)      Create opportunities for people to develop new skills

To offer an engaging culture, companies must deliver an experience that includes opportunities to grow and develop and to continuously retool skills through experience that promote growth. According to an article from Forbes magazine, 400 million workers will be displaced by emerging technologies such as artificial intelligence or process automation.

This means that as organizations are shifting towards more remote work it will also create a more blended experience between digital and human systems. A global talent strategy must also consider how employees can make sense out of this world and work seamlessly with digital and human coworkers.

While a global talent strategy expands talent supply, that talent has to be able to perform their assignments whether they are located in India, Hong Kong or North America. Global talent may mean finding better talent and expertise, this advantage is diminished if your people can’t work in harmony with each other.

5)      Redefine what value means to all employees

How does a global talent strategy increase the value that you promise to existing and potential employees? Attracting global talent can be a driver for your organization but that depends on your business strategy and if you need high demand skills that are becoming increasingly in tighter supply.

Historically, employee value comes from a balance between what your employees want, such as a rewarding career, flexibility, work-life balance, opportunities to grow and develop and competitive rewards. And what your leadership expects – a highly engaged workforce, operating efficiencies, profitability, sustainability, and positive metrics (turnover, cost of labour, ability to attract and retain, etc.)

The world of work and what it means has been dramatically altered by the COVID-19 pandemic and traditional employee value propositions may no longer apply. Employers have typically addressed what employees want and what makes sense through total rewards, (pay, benefits, and perks such as parking spaces, office space, free coffee and snacks at work).

But if your people are no longer coming into a physical office space, yesterday’s perks become today’s wasted costs filled with good intentions. What people value from their work is evolving and organizations must adapt, or risk being ignored by potential candidates.

The challenge for a remote virtual workforce is creating value that works for both the organization and the employees. A remote, global talent strategy means you will need to adjust for regional and geographic compensation, adapt company benefits to cover multiple geographies and different health systems, and implement systems that allow employees to collaborate across different time zones, languages and cultures.