In today's interconnected world, businesses are constantly seeking avenues for growth beyond their domestic borders. International expansion presents a plethora of opportunities, not only for companies but also for talent worldwide. However, this journey is not without its challenges. From identifying and retaining top talent to fostering a diverse and inclusive work environment, companies must navigate a complex landscape to thrive in new markets.
In a recent discussion between Sabit and Emin Birsel, a Senior Executive and Board Member with extensive experience in international markets, the critical importance of talent management during international expansion was underscored. The conversation shed light on various strategies and considerations for empowering global talent in the midst of organizational growth.
Retaining and Developing Local Leaders
Emin: Retaining top talent is crucial while identifying and developing local leaders is equally important. Companies should invest in recruitment, retention, talent development and cross-cultural training programs. Recognizing the potential tension areas within the organization and ensuring a supportive and inclusive work environment is key.
Mergers, acquisitions, or international expansions can create anxiety within the organization. However, it is the lifeblood of the company to make sure that the right talent, and critical employees, stay with the company, and they see a future within the organization. So, this is the critical way for organizations to survive and prosper in the medium and long term.
Transitioning to Local Talent
Retaining top talent in competitive markets is critical. But also identifying and attracting skilled local talent can be a challenge, yet a hugely rewarding experience. If the company is new in a market, that can be a higher challenge. However, my experience is that international companies usually have greater opportunities for employees than domestic companies.
Ensuring that the policies and practices are inclusive for all employees, regardless of nationality and cultural background is quite critical. Recognizing and addressing cultural issues in work-life balance, expectations, and practices have become more and more important for a lot of the younger generation of employees. It is also desirable to identify and develop local leaders who can effectively manage teams and navigate the local business environment.
So, while many companies will find a balance between transferring employees from their home market, organizations must also develop talent from outside the organization. Hence, future leadership roles should be open for new and existing talent in a newly acquired environment.
The Role of Expatriate Teams
Sabit: This is a sensitive situation because we see many companies initially start expatriating their nationals to the target markets to have confidence in controls. Then after a while, companies eventually start adding local leadership talent or replacing expatriates with locals in those markets or geographies. Is that a general trend in how this can be most efficiently managed? Try and learn from mistakes; or benchmarking and analysing the potential in the market and then making decisions. Do you have solutions to this issue?
Emin: Transitioning from expatriates to local talent requires readiness assessment, preparation and transition management. Companies must assess if there's sufficient talent with the required competencies internally to fill positions and plan for growth opportunities. It's a phased approach that requires careful consideration.
The model that you described is very commonly used, and there are very positive sides to it. But I want to address several issues there. Usually, the model is to expatriate some employees, usually leaders, to the new organization. And this can be
not only for top management but also some critical functions such as finance and marketing.
This brings numerous benefits. First, those people know the mother company. They bring the vision and the values of that company. On the other hand, they also know the business. The third one, they would be huge assets for effective communication between the new market and the home market.
Now on the flip side, who is expatriated is an important issue. As we said before, this requires readiness on behalf of the company because the moment that international expansion is done and that expatriation must be done, you start asking yourself: Is my talent ready to make that move? Do they speak the language? Have international experience? Can they survive? Can they live not alone but also with their families in a foreign environment?
So, some companies with enough preparation ahead of time find those resources within themselves. And of course, the other growth opportunities once those expatriated talent leave. Is there enough talent in the company to fill their positions? So, coming back to the readiness of the company. I think those are some important questions to ask for.
During that journey, one of the roles of the expatriate teams has to be developing the local talent. This local talent should be ready to take over leadership at one point in time. And note that expatriation in a company ideally should be able to work both ways. I have seen examples where during the international expansion, talent from other markets move to the domestic market.
They do assignments for an extended period of time. They return to that market or go to another market, and then they become a international corporate citizen. And that I think is critical. However internal talent is not the only resource available to the companies. During that journey, you must use external experts and consultants as well.
Leveraging External Expertise
Sabit: Finally, the role of experts and consultants in international expansion, particularly in addressing people and organizational issues. How can they support companies in this complex journey?
I served one-third of my career internationally and two-thirds helping companies to go international. I've seen many times shareholders, boards, and executives seek help and guidance when it comes to going international.
Emin: Likewise, across my career, I have seen a lot of external support, experts, and consultants playing vital roles in supporting businesses on the international expansion journey. External support in the form of cultural training, leadership programs, conflict resolution, employee engagement surveys, and performance management system design are invaluable. Experts help bridge gaps, offering insights and strategies to navigate the intricate landscape of international expansion. I want to give some examples that are relevant to our conversation today.
Conclusion
In conclusion, empowering global talent is essential for the success of international expansion initiatives. By investing in talent development, fostering diversity and inclusion, and leveraging external expertise, companies can navigate the complexities of global business and emerge stronger in new markets. As organizations continue to expand their global footprint, the cultivation of talent remains paramount in driving sustainable growth and competitive advantage.
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