European Businses Summit - June 2010
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Operating in an open world and fitting multiculturalism into corporate culture
The need for multiculturalism is related to the international scope of activities of an organization.
Even in local organizations, diversity is necessary. Most companies tend to hire similar mindsets. Companies need diversity (e.g., male-female, old-young, Belgian-foreigner, immigrants- local, etc…), to ensure fully open and creative organization. Diversity has to be actively managed.
People who go abroad are better prepared to work with different cultures and to manage diversity. Both educational systems and the corporate world have to take action to promote this kind of experience.
There is a difference between multiculturalism and true diversity: the latter must be represented at all levels of the organization, from the shop floor to the boardroom. Attracting & retaining talents
It is a challenge to attract talents on a global level: an employer brand may be perceived differently in different countries or geographical areas. In general, it is found increasingly difficult to locate and to attract technical skills and talents. Employer competition is global. Branding becomes an issue.
The education system, in Western Europe in general and in Belgium in particular, should communicate with the corporate world to fulfill the business needs (today and in the future).
Authorities at local and European level should cooperate more closely to take relevant short term and long term actions to adapt the education system. There is also a lack of reward and perceived recognition of the technical skills.
It is not only difficult to attract the right people but also to retain them. Competition is fierce. Companies compete through their investments in people (eg training programs) and through other values (sense of belonging to a community, enjoying a network, good work life balance, social values…). Some companies give significant trainings to individuals, with the risk of losing their investment to competition. It is therefore strategically important to define HR policies to keep the engagement in the long run.
Beyond skills, companies look for passionate people. To ensure sustainability, companies build on their corporate image, but it is not sufficient.
This is particularly true for “old industrial” companies, who work a lot on their image through for instance, supporting NGOs, universities, etc…
Branding dimensions:
What do individuals look for? Remuneration is only one dimension of attractiveness for new hires. Other dimensions may include:
- Attractiveness of the business (clean techs, new techs, etc.)
- Personal growth / development / learning opportunities,
- Freedom to act and receive increasing responsibilities in organizations, getting a sense of fulfillment
- Employment security has become increasingly important for the young generations (shift in values); the need for job security was awaken through the current financial and economic crisis, however this trend is bound to stay. Security does not mean immobility.
- Flexibility / work-life balance has also become an important factor for the young generations (shift in values). Companies must try to offer that balance. Employers, together with the regulating environment should provide for different contract types allowing for greater flexibility (“new employment deal”). Work-life balance does not mean working less but working differently, it could even mean working more with a greater motivation
- The 2.0 generation entering the workforce seeks the “community feeling”, and wants to share the networks provided by the working environment.
Furthermore, in terms of attracting and keeping talents, organizations need to keep their reputation in making sure that the management acts according to the values and principles portrayed by the organization. HR policies should be aligned to deliver the Employer Brand promise.
Organizational & Leadership Models
Production environment and service or technological industries must use different levers to increase individual efficiency and engagement.
Keeking efficiency in a production environment poses specific challenges: the organization needs to build the required competencies and must therefore involve people as early as possible in matters such as safety and quality. This is achieved by setting up non conventional workgroups and non pyramidal organizations to deal with transversal issues.
More generally, organizational structures need to adapt to allow for:
- Clear focus on what each individual does best and give clear objectives
- “Manage by progress and purpose” to create a sense of belonging
- “Hire people who could look beyond the straw”, who have the capabilities to discover their own “blind spots”
The economic crisis has increased the engagement level of employees remaining on board and their solidarity to ensure the organizations’ sustainability.
The knowledge society challenge
The largest part of the Western world is currently a “knowledge society”, where the larger part of the work force is educated. It is therefore the role of organizations to leverage the knowledge. Companies need to encourage all talents to share their knowledge to become “more efficient together”. The final objective is to foster innovation. Companies are testing the impact of internal social networks on problem solving capabilities.
Today, one may consider that companies don’t hire only an individual but a full network of resources. Social networks contribute positively to knowledge and to transparency but they could pose a threat on corporate or employer image given their “totally unchecked transparency” nature.
Role and positioning of the HR Management function
If HR management is strategic, then the HR manager / director should be a strategic partner and should be part of the Executive Committee.
Generally, this is the case if:
- People are a substantial part of the total cost
- It is strategic and critical to maintain the resources quantitatively and qualitatively
- The organization needs to be deeply transformed to maintain sustainability.
Top of Agenda HR Matters:
- Aligning talent management with the strategic objectives of the company (at global level).
- Managing the age pyramid and the impact of the technological evolution
- Opening the “lenses of middle managers” to truly seek and embrace any opportunity on the market.
- Getting a true 2.0 organization to foster and share knowledge, and spur innovation.
- Fostering intergenerational cooperation and knowledge transfer. Companies need to address this issue to identify new ways of learning using new technologies
Sustainably Managing Human Capital keywords:
Purpose: Companies will need to balance objectives to resolve potential conflicts between profit making, social responsibility, and providing personal fulfillment
Sustainability: corporate social responsibility must stay at the core of the strategic decision making
Limits & boundaries of a company: the perimeter of a company is not clear anymore. Beyond the company, all stakeholders have to be taken into account. But the Corporation 2.0 taps into individual networks. They need to create a two way process where they contribute to the networks and allow them to grow
Multi-culturality / Diversity: involve and integrate different cultures, different approaches, and different “lenses” in the decision processes. Is sustainability in the corporate world associated with some form of democracy, and is it realistic?
Leadership: contrary to management which is a technical function, leadership defines and keeps ethics and values of the company together with the vision. Leaders of sustainable organizations will go beyond the traditional ways of managing a company.
People values: help individuals go beyond the usual boundaries.