The Global Challenge: Recruiting and Your EVP
Most people point to exorbitant salaries as the reason they are losing the talent war in emerging markets. However, the vicious cycle of competing using salary is the symptom of a more complex problem – lack of differentiation among companies and offerings that do not resonate with the target group. When this is the case, money is the only thing setting one company apart from the next.
The only way to successfully and sustainably attract and retain top talent in emerging markets is to have a differentiated value proposition that resonates with local talent. Unfortunately, the vast majority of companies are not doing this. I am not quite sure if it is because they do not know they need to, they don’t have the resources, or if it is because they are too arrogant to realize that their “global message” won’t resonate in every market. Lack of investment in this area has led to inflated salaries and a “musical chairs” of talent.
Differentiating in local markets
In emerging markets, companies are tempted to view theirEmployer Value Proposition (EVP) as a luxury. Nothing could be farther from the truth. In emerging markets, your EVP – the unique set of offerings, associations, and values that positively influence employees and set your company apart from the rest – is even more crucial to your recruiting and retention efforts than in mature and established markets. It needs to be on the key priority list for every company. It is both important and urgent.
Your EVP is the cornerstone of any employer branding initiative and, as such, may be the only way for a multinational desperately in need of top talent to distinguish itself from the competition. However, while most large companies with multinational offices have a clearly articulated EVP, very few are able to successfully align the offering and messaging with local offices in these emerging markets. Local recruiting and retention efforts are critical to business growth – if a new market is struggling to acquire top talent, ask this question: “Does our EVP resonate locally?” You (at HQ) do not know best; give clear guidelines and training to the local team. Then let them localize.
Companies are constantly trying to find that balance between maintaining a consistent brand and allowing flexibility in local markets. As someone who has overseen businesses in China and Brazil and consulted for hundreds of regional offices of Western Multinational Companies (WMNCs), I have experienced both ends of the spectrum. For example, when I first began working in Asia, there was a great deal of alignment and input from headquarters. This was a great benefit when it came to setting up processes and infrastructure, but it was also a barrier. The combination of the command-and-control culture in China and the strong direction from HQ resulted in the global messaging simply being translated to Chinese and then considered localized. In order to do any true localization, business cases and data were needed to prove why the messaging wasn’t working in its current form. It was not until local companies surpassed western multinationals in 2010 as the more preferred places to work that the WMNCs realized they needed to change. Although companies have become increasingly more able to localize in the past several years, there is still a struggle to find that balance.
In Brazil, I’ve noticed the opposite extreme: There, we’ve found a large chasm between the global brands and the local recruiting teams. In contrast to China, these teams seemed to have the freedom to create unique branding and messaging campaigns; however, they are not doing a great job of internalizing or sharing the value proposition. This is still a very new concept. In meetings in Brazil, I find myself explaining the concepts of EVP and employer branding quite frequently. When they are familiar, some offices are starting to create their own EVPs from scratch(even though I know their HQ already has a well-established EVP!).
Why is HQ treating recruiting in China and Brazil so differently?
Striking a balance: global support, local input
Global companies often want to – and should – maintain one culture across the world. However, multinationals need to accept that the EVP cannot be exactly the same across all of the markets. Recruitment processes and preferences are different in each market. The best way to strike a balance between global and local is to build out your EVP to include all of your recruiting markets and then designate specific guidelines for each one, with input from local teams.
First of all, it’s almost impossible to be successful in emerging markets without first gaining an understanding of the preferences of the local talent market. Universum’s research indicates some notable differences among student preferences in the U.S., Brazilian, and Chinese markets:
- American students prioritize being dedicated to a cause and feeling like they are serving a greater good.Nearly half of all American students that were surveyed selected it as a top career goal, compared to only 33% in Brazil and 23% in China
- A company’s environmental sustainability is an important attribute to Brazilian students (ranked in the top three out of ten) but hovers near the bottom three for the United States and China.
- An international career is a high preference for Brazilian students, but of lower priority for the U.S.(16% of American students selected it as a top career goal, compared to 35.8% in Brazil)
Clearly, people from different cultures want markedly different things. While this may seem intuitive, many companies fail to take these different preferences into account when crafting their recruitment messaging: You simply cannot expect to attract students across different markets in the same way. Be flexible when catering to different preferences. For example, companies looking to attract top talent in Brazil could offer training programs overseas (at headquarters in the U.S. or Europe). While this isn’t necessarily attractive in other markets, it could potentially be very attractive to Brazilian students who prioritize international careers. Taking measures like these will leave you much better equipped to increase loyalty and retention in the future.
Even when preferences appear to be similar across different markets, it’s important to focus on the local nuances. For instance, work/life balance is a top career goal for Brazil, China and the U.S… Jackpot! Something all markets have in common. But not so fast: you need to consider context: Labor laws in Brazil guarantee much more extensive benefits than Americans enjoy. In Brazil, employees are given four months of paid maternity leave and employers are obliged to provide employees transportation to and from work. Clearly, “work/life balance” will mean different things in different cultures – and employers need to take this into account when localizing EVPs.
While the first step for a multinational is becoming aware of these differences across markets, they also need to offer the support of a global EVP as a framework. Companies should maintain one global culture, but allow – and fully support – localized adaptations. Employers need to ask: What is the company promoting on a global level? What are the local preferences, and what messages will resonate locally? What are the unique values for each market?
Finally, the most forward-thinking talent acquisition leaders recognize not only what local markets want to hear, but also what the future will demand. When trends arise in emerging markets, such as a qualified segment previously untapped (like educated women in China, Brazil and India ), the EVP should adapt to embrace a segment that is ready and willing to take its place in the emerging market workforce.