Today's HR professionals are taking on a more strategic role than ever before as business goes global. But how far are best practices from your company's reality?

Analyse business and HR needs together

Globalisation has added a different dimension to the importance of human resource management in companies. "It becomes even more core, because concepts or products which work in one country may not catch on in," says Mechteld Nije, an international human resource consultant for NHRC. Nije believes that only people can assess what will make the company successful in a different culture and market and help it adjust. "Therefore, an effective HR strategy in becoming increasingly important," she says. 

Align global business strategy with HR needs

A top priority should be to ensure that a clear global business strategy is identified for the organisation according to Michael Dickmann, a lecturer at the Cranfield School of Management in the United Kingdom.  "Business needs must be analysed in conjunction with HR needs and an international business strategy needs to be put in place," he says.

 This means, says Nije, "that all employees working in a global company will need to become 'global' in mindset, working with colleagues of different countries, in a working language with a willingness to be mobile." 

To achieve this says Nije, good HR tools and practices should used for international career management. "Those should include vacancy/staff matching, selection process, cross-border performance management, policies for expatriation and other forms of mobility, repatriation planning and recognition. And companies should make sure those instruments are accepted and adhered to," she says.

Lorelei Carobolante, global management consultant, agrees. "To plan effectively, HR departments must take a hard look at how the global transition is interplaying within their companies and evaluate how they see that interaction moving forward," she says.

"Most, if not all, projects involving foreign locations are closely tied to company strategic goals, and, due to intensifying globalisation, short- and long-term assignments have a more direct influence on achieving, or failing to achieve, some of those goals," says Carobolante.

"Therefore it is imperative to analyse when off-shoring truly saves costs and when the company would be better served by focusing on strengthening cross-functional global teams," Carobolante says. "Often this involves choosing the right employees for international assignments and/or longer business trips, but, to build synergistic relationships, it will always involve helping employees in all locations attain cross-cultural communication and interaction competencies," she adds. 

Include all forms of international working

The drive to reduce the bottom line has is also creating a more dynamic assignment environment as international careers come in many forms.

Chris Brewster, professor of International HRM at Henley Management College notes that we have maybe concentrated too much on the traditional long-term expatriates and not enough on those whose international careers come through short-term assignments or frequent flying.

"These groups are less well controlled, less well evaluated, and their experience less well integrated into their career progression – but they are the fastest growing group of international workers," says Brewster. "A view of international careers needs to encompass all the forms. This will be important not just for retention, not just for the careers of those involved but also for the internationalisation of thinking within the organisation," he says.

Good communication skills essential

At the heart of a more global staff is communication. Though English remains the lingua franca of the business world, it is difficult to overestimate the importance of language proficiency for an international assignment.

As Carbolante points out, "While technology has provided us with the means of operational communication, eliminating the need for face-to-face meetings, and automated translation is even available over the Internet, local language and active cultural interaction are becoming the strategic differentiators that underpin successful global assignments of any type."

And, says Carbolante, since proficiency in a language and its local culture is the essence of communication, the ability to competently express in more than one language will continue to grow in value as globalisation drives company growth.

"By taking a close look at whether employees have the communication skill-sets necessary to work abroad, HR can mitigate cost ineffectiveness while helping to support employee assignments that achieve fundamental strategic goals," she says.

Develop cultural awareness

Intercultural understanding is another important consideration for HR personnel involved with the global expansion of a company.

"HR should get to know the people they will be working with, spend time to understand the legal and regulatory environment and be sensitive to cultural differences," says Jean-Remi Bur, director of compensation and benefits for the Redcats Group.

It is equally important that employees who are sent to work in global offices understand the cultural differences between their originating and destination country. For example, both behaviour and foreign language comments used in a business meeting differ from country to country. Misunderstanding these differences may cause unnecessary misunderstandings and conflict.

Initiate flexible global policies

HR must also ensure that global policies are developed. Policies should be applied consistently and take into consideration local constraints across borders. Well-developed policies that address pre/during/post assignment needs will assist with effective repatriation and help to retain key talent ensuring long-term return on investment for the organisation.

Implementing a clear international business strategy, developing flexible global policies, ensuring local language proficiency and cultural understanding are a number of initiatives that HR professionals are undertaking today to facilitate international careers.

Keep in touch with reality

But Colin Knapp, Principle Lecturer in International and Comparative HRM at South Bank University London, reminds that, "Whilst these things are important they are also difficult to achieve." He acknowledges that we don't live in a perfect world; companies are often working in crisis or don't understand the importance of HR or have a long term view and therefore strategy in place.

"The reality of operating should also be kept in mind," says Knapp. "HR needs to be realistic and practical."

July 2004 (updated May 2005)

Caroline Mitchell is a human resources consultant, private practitioner and an international assignment manager for Pricoa Relocation France, a company of Prudential Real Estate and Relocation.