Economic Recession And Global Workforce Management

We all know that the world is becoming increasingly interconnected, which brings companies not only additional opportunities, but also an additional headache in terms of increased competition.  Staying competitive requires more and more efforts on the part of a company, and one of the biggest challenges lies in managing a company’s global workforce.  The article that I chose for my first blog is called “Special Report on Globalization: The Globe-Trotters.”  It discusses the effects of the recession on companies’ expatriate programs.  The two major goals of expatriates are to fill a skill gap and to develop a valued talent, which are crucial in a global economy where a talent is a company’s most valuable asset.  As companies start to experience a reduction of cash due to the recession, they start to look for ways to cut costs and as a result more and more companies begin to rethink their expatriate policies.  International assignments are getting shorter, fewer expenses are covered and benefits are reduced, which all makes it harder to attract potential assignees. This situation has one benefit though: companies start to be more selective in choosing candidates for international assignments. If previously a company would send anyone who was willing to go without much planning, now a company makes finding a strategic fit of a candidate an important part of the selection process.  Some companies go even a step further and require a candidate’s assessment by a psychologist.  The problem is that notwithstanding the importance of expatriates for an organization’s global success, many companies don’t help returning expatriates to reintegrate into an organization, and some companies don’t even guarantee a job upon return.  This article successfully shows how globalization affects HR, in particular the increased necessity for a global workforce and its management, and how economic forces affect that management. The article raised interesting questions: How does a company stay competitive in international markets when it is forced to reduce its costs? How does it make expatriate policies smarter, but less expensive at the same time? Basically, how does it cut off fat without damaging muscles?  

The article can be found by following the link:   http://www.workforce.com/section/hr-management/feature/special-report-globalization-globe-trotters/index.html