Economist Conferences: Emerging Markets Summit, London, UK, 23-24 September 2008

Citation

Thorniley, D. (2009), "Economist Conferences: Emerging Markets Summit, London, UK, 23-24 September 2008", Strategic HR Review, Vol. 8 No. 2. https://doi.org/10.1108/shr.2009.37208bae.002

Economist Conferences: Emerging Markets Summit, London, UK, 23-24 September 2008

Article Type: Resources From: Strategic HR Review, Volume 8, Issue 2

Danny ThornileyEconomist Intelligence Unit

During the annual Emerging Markets Summit run by Economist Conferences in September last year, business executives, influencers and leading experts from organizations ranging from management consultancies to NGOs debated the changing nature of talent management across geographical borders. The primary assertion was that, failure to acknowledge the differences across geographic boarders is the biggest barrier to entry for companies of all sizes who hope to take advantage of the substantial economic growth of countries such as Brazil, Russia, India and China.

Over recent years, there has been a significant move away from the relocation of executives overseas to lead organizations in countries with different cultures and work patterns, towards the formation of subsidiary companies with local managers holding the reign. But this often poses the subsequent issue of how global HR managers based in a single (often Western) country can ensure that talent management practises are consistent yet adapted across boarders employing a genuine think global, act local mentality.

Diverse economic and social profiles

With emerging markets coming into their own in recent years, there is a genuine need to move away from the assumption that they are a coherent group and recognize that individual countries have diverse economic and social profiles. For example, a recent survey by the Economist Intelligence Unit, sponsored by SAP and including 944 executives (357 of which hailed from China, India, Russia and Brazil), revealed that when it comes to talent, the differences between the demands of individual countries can be striking.

The survey revealed that the main contributors to future talent shortages in the respective countries are one area of divergence. For example, executives in India, China and Brazil all point to “the gap between what universities provide and what industries need” as the number one problem. Respondents in Russia, on the other hand, view the “migration of talent overseas” as the chief source of talent shortages.

In addition, of all the emerging-market nations, India expects to have the toughest time when it comes to recruiting and retaining talent; 57 percent of Indian respondents feel that it will be “significantly harder” to recruit and retain talent over the next three years, compared with Brazil, where only 31 percent of respondents believe this to be the case. This clearly has an impact on what international companies will need to offer potential employees to insure that they attract the most talented individuals available.

Meeting local needs

As a result of recruitment difficulties, salary expectations are rising in India, with job candidates calling the shots. In the fore mentioned survey, 61 percent of India-based executives say that inability to meet salary expectations would be most likely to hamper efforts to recruit talented employees over the next three years, compared with 51 percent in China. In China, the workforce is expanding, relieving some of the recruitment pressures felt by companies, with only 33 percent of respondents seeing recruiting and retaining talent becoming “significantly harder” in the next three years.

The two-day summit brought home the message that best practice in this area is key to the success of any international organization and that HR professionals who respond effectively to such threats and opportunities greatly deserve their seat in the boardroom.