The flow of work or talent across geographies is a long-term trend, with more and more organizations adopting a working model that houses a large portion of their workforce in offshore locations. And while this provides the organization with the benefits associated with accessing a more cost-effective talent pool, it creates new challenges in terms of talent management. As such, it is essential that HR becomes a key strategic partner during the project.
An Organizing Framework for HR
Most global sourcing projects are run by business leaders and operations departments, and all too often, HR is only involved in terms of facilitating layoffs in one market and helping hire new staff in the other. However, the project would benefit greatly if HR is closely involved in the strategizing and execution phases of the initiative.
But how far should HR be involved and what value can they bring to the table? The following is a five-step framework that maps the global sourcing process from strategy to execution. HR plays a critical role in ensuring that people matters are prioritized and addressed in each step.
STEP I
Workforce impact assessment and talent-sourcing strategy aligned with overall business objectives. Global sourcing almost always requires re-allocation of resources in the parent country; therefore it is critical to have a sound assessment of how it will impact the workforce. Some of the areas to be concerned are:
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Will you need to lay people off?
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Is there a skill match with other areas of work where some of the redundant workforce can be re-allocated?
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How will the trade unions react?
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How will it impact workforce morale?
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HR plays an important role in preparing the right change management and communication plan to help mitigate the risk of a negative impact on the workforce.