Today’s global corporate benchmark is derived from multinational organisations which have abolished centralisation in favour of a more open work culture. These pioneering organisations – examples of which include but are not limited to Google, Unilever, Boston Consulting Group etc – were instrumental in challenging the status quo and venturing into a new world order where employee relations were pivotal in creating value. This is why, consistently, they have ranked as the most sought after employers all across the globe.
The nature of employee relations is such that returns from HR cannot be directly monetised and estimated. Traditional Bangladeshi businesses, since they haven’t been able to connect the dots and employ foresight, have consequently fallen behind in this area compared to their multinational counterparts. They have not entangled employee growth with company sustenance, and hence MNCs have progressed forward in this country with excellent employment options for the country’s young population.
A multinational company has an obligation not only to flourish but also, at the same time, to expand to different markets where it can cement its position and achieve long-term growth. In order to do this, an MNC must adhere to quality service and recruit employees who are well-aligned with the company’s goals.
Thus the human resources department in such an organisation would be tasked with the enormous responsibility of supervising the recruitment procedure and ensuring that the employees who are recruited comply with the standards set by the organisation.
Human resources departments have the unique challenge of setting uniform company policies and employees to form one single community where camaraderie, equality and diversity concoct to create a productive combination. HR is responsible for complying with local employment laws and to keep the workplace safe from conflict, work-place disasters and health epidemics.
In the MNCs particularly, HR is tasked with the enormous responsibility of uniting its own colleagues across international business units before it can build a global employee community. Regardless of national boundaries, policies and procedures on recruitment, hiring, benefits administration and compensation – all core HR functions – must be consistent across company divisions and aligned with the company’s long-term vision.
In “Global Challenges to Replicating HR: The Role of People, Processes, and Systems,” a team of researchers concluded that a unified HR function helps multinational companies to succeed by using the same information technology systems, business forms and processes for handling employee-related matters across the global community.
In order to unify the global workforce, HR concentrates on the integration of cultures. HR must build a global employee community that’s in step with a parent company’s values and identity. To secure this alignment, companies often send their star performers abroad to head financial divisions or sales teams.
But diverse languages, cultures and customs can prove to be a herculean cultural hindrance. Philip Berry, a global management consultant, cautions multinational firms against overlooking nationals when filling key positions.
In an article for Global HR News, titled “How Global Megatrends Are Shaping Global Talent Development Strategies,” he writes that companies risk losing the chance to develop overseas employees when they traditionally promote from within the home office.
All multinational firms encounter complex legal and ethical issues when doing business abroad. Don Mayer and Ruth Jebe, University of Denver professors and authors of the 2010 report, “The Legal and Ethical Environment for Multinational Corporations,” cite cronyism, bribery and unfair competition as some of the most challenging issues.
Multinational firms can also expect to confront human-rights, social-equity and environmental problems, which often undermine their ability to compete fairly in the global marketplace. HR is responsible for keeping companies compliant with employment-related laws and tax codes, and that includes complicated – and sometimes conflicting – laws and regulations abroad.
As organisations grow and become more prevalent, it is highly essential that these organisations remain firm to their roots in terms of recruitment and company standards and policies. Maintaining a global environment, having similar laws across all branches and having similar company policies can go a long way in ensuring that the HR department does what it is supposed to do smoothly.
Needless to say, global businesses are shaped by employing the best available practices that have been tried and tested all over the globe. This implies that these organisations have the opportunity to put these practices into effect. For HR, the horizons have increased drastically in this age of extreme competition and perfectionism.
However, at the same time the stakes are high as well. This is why multinational corporations are now focusing on building world-class employee relations that can culminate in organisations with a loyal and trustworthy workforce.
