Established foreign multinational corporations (MNC) in developing economies face growing competition for talent as emerging market companies grow in favour with both local and global candidates.
Recently, the World Economic Forum has found that emerging companies such as Alibaba in China and Dr. Reddy in India have successfully attracted and nurtured young candidates, both local as well as from the US and Europe.
Dr. Reddy, an Indian pharmaceutical multinational, has been consistently receiving commendations in the US for being an exemplary employer. Alibaba, on the other hand, launched in 2016 a Global Leadership Academy for aspiring managers from the US and Europe. The company has also poached executives from well-established technology and financial services companies.
Less than a decade ago, most fresh graduates in China and India preferred working for foreign MNCs due to the prospect of a better pay and growth opportunities.
Now, potential candidates with managerial skills especially have found local firms to be more attractive in terms of remuneration and career development. Such employees are in demand due to their ability to negotiate and effectively navigate multicultural teams.
However, challenges remain for talent development in emerging markets. According to Mauro F. Guillen, professor of international management at University of Pennsylvania's Wharton School, here are some areas that need addressing:
- Allocation of resources to train employees in both technical and soft skills
- Sustaining improvement of employment conditions and career prospects
- To offer convenient and affordable living conditions in the larger cities
- Ensuring that employee pay remains competitive so that local firms do not have to pay a premium for talent
- Infrastructure development, which should be done in collaboration with government
Related stories:
What’s the top priority of APAC employees?
ILO highlights importance of rights protection, skills development for migrant worker
.jpg)
