HR Skills Gaps in Emerging Markets
Michael Illert, Manager, Frazer Jones
Africa, Eastern Europe, South America, parts of Asia Pac and the Middle East are classic examples of Emerging Markets.
On the one hand they are growing heavily in a variety of local industry sectors. On the other hand they have a large skills gap of locally based talent. HR as a business function is becoming increasingly important in these regions as a growing number of local companies are beginning to recognise the positive influence that strategic HR management can have on their local and global competitiveness.
There is a strong tendency at present, especially in the financial services and pharmaceutical sectors in central Europe, to introduce the Business Partner (BP) model. The level of true success that companies have experienced in introducing the Ulrich model varies considerably. Often line managers are not receptive to HR having more influence in the overall business strategy and, as such, the responsibilities of the newly introduced HR BPs often remain highly operational. In other cases, the transition to a BP model has been frozen due to limited funds in the current economic climate.
Additionally, some HR Directors are captivated by the idea of the Ulrich model when the reality is they often lack the capability to successfully implement this type of organisational change. It is also often the case that the newly titled HRBPs just do not have the technical or relational skills to handle the much more visible aspects of the role.
HR professionals who stand out in these roles have the following characteristics:
- Strong local cultural awareness
- A native background or at least several years' regional experience
- Relevant local legislative experience
- Local ER / IR experience
- Strong local networks
- A Business orientated approach and the ability to adapt global strategies to fit local markets
This presents a significant sourcing challenge as individuals with the above background are rare in these markets. They are also very likely to have moved elsewhere geographically to gain experience in other international markets and, as regional or global headquarters are based everywhere, there is not a region, or a specific city, where you can obviously start your search. Key candidates could be based anywhere in the world.
That is why talent spotting, in its widest sense, is critical if an organisation is anticipating an increasing need to hire regional and global HR professionals within their emerging markets divisions. Long term advance resource planning and tracking of talented HR specialists who fit the above description is going to be fundamental to filling an HR skills gap before it appears.