Editor's Note: Manpower Inc. has a new CIO since this interview was conducted. Watch for our new audiocast discussion with CIO Denis Edwards coming in August.

September 2008

Confronting the Borderless Workforce

Talent management is a top-of-mind concern around the world. As a result of globalization and shifting human resource trends, the challenges will intensify before they ease, according to a new white paper, "2008 Borderless Workforce Survey Global Results," published in June by Manpower Inc.

The human resource management company surveyed more than 28,000 employers across 27 countries and territories in 2007 to determine how much foreign talent is being used and where skill shortages exist. Although it focuses broadly -- not on the IT market specifically -- the survey also examined what governments and businesses are doing to slow the outward migration of talent.

Smart Enterprise Exchange editor Paula Klein asked Rick Davidson, Manpower's Senior Vice President and Global Chief Information Officer, about the findings.

Q. The report concludes that businesses aren't doing enough to retain local talent, saying: "Their efforts are marginal -- tactical fixes that solve a shortage here or there without introducing real institutional change." Why is this?

A: There are four key areas that are contributing to migration patterns. These are: demographic changes that are causing talent shortages; changes in job-skill requirements, causing shifts in the supply-and-demand model for the labor market; and globalization and the Internet, which are creating a more connected and accessible world. Talent is very mobile today and businesses aren't used to this. They don't have cohesive strategies in place.

Q: What is unique at the high end of the global labor market? Why are white-collar workers taking cross-border jobs?

A: The leadership skills that professionals and managers possess are in high demand around the world, particularly in emerging markets. Therefore, it is quite easy for individuals interested in working abroad to be given the opportunity. Additionally, as large multinational corporations extend their product and service reach, they want offerings to consistently represent their brands. This typically requires the migration of individuals who understand the relevant processes, methods, products, etc. and who can train in-country employees. Also, as globalization exposes more leaders to the challenges of working in a different country and culture, some see it as an opportunity to gain valuable business skills and experience, and as a way to accelerate the growth of their careers. In fact, for many managers in multinationals, a cross-border assignment is now considered mandatory for those aspiring to the executive suite.

Q: Your research shows that engineers, IT staff and technicians are among the top 10 positions filled by foreign talent. Why is this?

A: Two factors are driving this trend. First, fewer and fewer individuals are pursuing technical degrees at universities in the U.S. and Western Europe, yet the demand for these skills continues to grow on a global basis. Many young people in these parts of the world who are interested in IT and engineering degrees have been convinced that many of these jobs are being offshored to India and China. This is just false. As an example, there are more IT jobs in the U.S. today than during the dot-com era at the end of the last decade. IT unemployment in the U.S. is also very close to zero.

Second, demographics are also affecting the numbers of individuals attending universities. As baby boomers start to retire and continuing for the next 20 years, there will be fewer individuals to fill these IT and engineering positions. Since the need for IT and engineering talent hasn't subsided, companies are using more and more foreign workers, both remotely and on-site, to fill these critical roles.

Q: What should businesses be doing from this point on?

A: To really address the problems, we advocate that companies develop a talent-mobility strategy that includes the following elements:

• Analysis of the organization's future talent needs. Employers need to review their long-term business plans and growth trends in the industry, and then assess future job/skill requirements as a result of planned business changes. Additionally, employers need to develop staffing contingencies for unexpected changes in market forces.

• Identification of critical talent deficiencies. Once a talent forecast has been made, by examining talent requirements and talent availability within national borders, you can identify potential deficits a company may encounter in the future.
• Development of strategic plans to fill critical roles. These plans should include growing a company's internal talent pool so that existing staff is retained; sourcing from contingent labor pools, sourcing from nontraditional labor pools (e.g., disabled and / or mature workers, individuals returning to work after raising a family), and actually moving people to the work and moving work to the people (e.g., cross-border migration and offshore outsourcing).