January 10th, 2018
Retaining talented employees within the organization
The process of talent management in organizations is noted to influence organizational outcomes. Hedger (2007) for instance notes that when appropriately carried out, talent management “can raise a company’s game to a whole new level” (p. 43). Organizations are thus not only required to make informed decisions when hiring staff but also to establish the right fit that inspires performance and indentifies leaders in the organization (Hedger, 2007). Human resource managers are increasingly being faced with a challenge of establishing a good working environment that drives employee satisfaction hence minimize turnover. Such is necessary due to the rising competition for talent and the changing form of international labor mobility (Farndale, Scullion & Sparrow, 2010; Tarique & Schuller 2010). Organizations that are unable to maintain effective talent management programs are thus faced with rising recruitment costs out of high employee turnover rates.
The recognition of effective talent management as a factor driving organization success has resulted into different proposals of how such can be achieved. Much of this has been advanced on the need to establish leadership qualities both at the top levels in the organization chart and at lower levels (Cohen, 2004). Such aspects have resulted in the advocacy for establishing working teams as ways through which organizations can drive the required change (Cohen, 2004; Burke, Stagl, Klein, Goodwin, Salas & Halpin, 2006). Though such approaches have contributed much in relation to improving working environment and motivating employee performance; such are limited to environments where leader and followers interact physically (Zaccaro & Horn, 2003). For MNCs however such interactions may be hard to achieve where management resides in a different nation from the lower workforce.
Multinational environments thus present unique challenges for human resource managers in ensuring effective talent management. Among these are availing the right skills and number of these skills where required and disseminating current knowledge throughout the environment they do business (Farndale, et al., 2010; Tarique & Schuller 2010). But also organizations are realizing the need to maximize “the talent of individual employees as a unique source of competitive advantage” (Tarique & Schuller 2010, p. 123). Remuneration, rewards, benefits and employee training have always provided a way through which companies can motivate their employees for better performance (Hedger, 2007). Despite such avenues factors such as demand-supply gap for qualified personnel, demographics, regiocentrism and international strategic alliances continues to create a challenge for MNC to attract develop and retain talent (Tarique & Schuller 2010). The success of talent management approaches adopted in MNCs thus would be influenced by their linkage to the laws, society, culture, economy and the environment in which these entities operate (Tarique & Schuller 2010).