Sunday, May 18, 2008

The McKInsey Quarterly: Why multinationals struggle to manage talent

The McKinsey Quarterly

Why multinationals struggle to manage talent

A McKinsey survey of managers at top multinationals suggests that the movement of employees between countries is still surprisingly limited and that many people tempted to relocate fear that doing so will damage their career prospects. Yet companies that can satisfy their global talent needs and overcome cultural and other silo-based barriers tend to outperform those that don’t.
Article at a glance:

Why multinationals struggle to manage talent

  • Global corporations are struggling to manage their talent effectively, new McKinsey research shows.
  • A survey of some very well-known multinationals reveals barriers to achieving cultural diversity, to establishing globally consistent HR processes, and to promoting mobility between countries.
  • The findings show a strong correlation between financial performance as measured by profit per employee and companies that achieved the best scores on a survey of their global-talent-management practices.
This article contains the following exhibits:
  • Exhibit 1: Companies scoring in the top third of our survey on global-talent-management practices achieved higher profit per employee than companies scoring in the bottom third.
  • Exhibit 2: Three of the ten factors show the strongest correlation with financial performance.
  • Exhibit 3: Best practices for developing global leaders differentiate effective companies from the ineffective ones.

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