The Strategy of Talent Localization in Multinational Corporations

The Strategy of Talent Localization in Multinational Corporations

capital investment, investment income and other issues, more importantly, to resolve the various contradictions and conflicts, coordination cultural differences in cross-cultural conditions, to promote the effectiveness of human resource output. 1.2 The need for economic cost.

The conduction of the strategy talent-Localization have significant influence for multinational companies to reduce the cost.

In normal circumstances, a management staff who is sent abroad must pass through the long period of in-depth training of the relevant host country company. At the same time, these expatriates leave the familiar way of life, to a country with relatively unfamiliar economic and backward technological ,so the company must pay a fee to compensate for the psychological costs, technology costs of aging, and subsidies from the home country and host countries of Inter travel. These expenditures are necessary, and reasonable. But this kind of train greatly increase the cost of management compared to domestic enterprises. Talent localization help multinational companies reduce the high cost of cross-border operation for the expatriate , as well as promote integration with the local social and cultural, reducing foreign capital and local community crisis mood, conducive to the economic security of the host country and increase employment opportunities

The Strategy of Talent Localization in Multinational Corporations

2. Major problems Multinational corporations faced in the process of localization.

Although there are many benefits of talent localization ,now it is develop slowly in the multinational enterprises, and sometimes even drop off. And The major key issues for the process of talent localization in multinationals are as follows :

2.1 The salaries of foreign staff and local staff are significantly different.

There are statistics show that in the U.S. company, the employee's treatment, compared with their performance, U.S. employees? tend to be high, employees from Hong Kong 、 Macao and overseas Chinese have moderate salary , but the treatment of local staff is generally low. This difference easily make the local staff psychologically imbalance, thus affecting the enthusiasm. Such sentiments will cause difficulties if they are reflected into the enterprise's management, and even lead to the company?s loss of talent, impeding the process of localization . 2.2 Lacking of international talent in the local labor market. Multinational companies have already felt the problems of local talent, lacking of international talents in local market and the low international level, thus making the talent localization strategy of some multinationasl shake. talent localization, especially the qualified talent localization, people must posess the following qualities:

The Strategy of Talent Localization in Multinational Corporations

(1)Have the perspective from a strategic with the overall situation. (2) With skilled management skills and excellent knowledge.

(3)Operation with Chinese and international market experience and implementation of enterprise mergers, re-experience.

(4) Proficient Foreign language level and the ability to be good at dealing with Headquarters .Motorola is in the earliest advocates for localization of the Western multinational companies. But now, they are re-deployed to replace expatriate managers who had been \with the strong pressure from Nokia and Ericsson ,the American company found it could not find a competitive talent in the China. It cost much to Employee foreign managers, but the blind localization has underestimated negative impact on the business .

2.3 Competition between multinational companies and that between transnational corporations and local enterprises increased ,and the most important resource to support the development of multinational companies is the qualified personnel .

As a serious shortage of high-level talent ,there is an intense competition for qualified personnel, competition for talent between all transnational corporations .They compete to attract a large number of talent such as innovative technical developers, talent who is familiar with the Chinese market and Intercommunication Chinese and Western management expertise,as well introduce a series of strategies and tactics, such as

The Strategy of Talent Localization in Multinational Corporations

providing high returns, increased scientific research, to develop staff development programs. Meanwhile, the famous domestic enterprises have joined into the competition for talent among them. The First enterprise recognizing the importance of domestic talent, and compete with foreign companies for that is Lenovo. On October 1999, it corporate with the Ministry of Education National Career Guidance Centre of college graduates ,and launched the \

cross-century-find-talent\students in college to join in. As the War for talent intensifies, the investment multinational corporations put in to attract talent and retain talent increases.it will pay higher salaries and benefits, which will have an adversely affect to the localization process of multinational enterprises.

3. The strategy of talent localization in multinationals

Localization of multinational talent has become a common phenomenon worldwide, although there are problems, the trend is irreversible. MNCs, through a series of strategies, use their people where branches locate,to vigorously promote the localization of human resources to effectively reduce costs, expand market,and obtain high profits.

3.1 Coordination of the cultural differences within the company . The existence of cultural differences is an objective phenomenon, no one