Developing and Retaining Global Talents

The recent financial crisis has refocused companies' attention to the importance of developing and retaining global talents. Damien O'brien, the global head Egon Zhender International, argued that critical times called for attracting and developing talents to tide over the crisis. Given that CEO is the only controllable factor defining the success of the company, O'brien underlined the overwhelming influence of selecting talents. Furthermore, more than 70 percent of the companies' values are based on intangible assets. In short, companies are now driven by individuals on the edge.

Another reason is that the transition from baby boomer to X and Y generation means smaller demographic, thus, reduced pool of talents. The scarcity of the talent itself is driving companies to the edge. To this end, an increasing number of Western companies are fulfilling the shortfall by sourcing talents from South Korea, India and China to better operate many of their overseas operations in Asia and vice versa. As such, the labor market has definitely become a seller's market.

However, the distinct characteristics of young talents are making it more difficult for companies to achieve their goal. They are not bound by institutional loyalty, long commitment or promotion. Instead, they pledge their devotion to building a better career focused on social responsibility and ecological initiative.

Following O'brien's speech, Avivah Wittenberg-Cox, CEO of 20-first, said that countries need to tap into women's labor force which has been overlooked. She said that leaders need to broaden their perspectives in looking for new talents and breakaway from a conventional talent selection model.

The panelists also pointed out weakness suffered by many corporations which is none other than choosing talents as only 50 of 100 top executives were found to be doing their job. As business schools often neglect the importance of employing the right person for the job, it calls on the need for experienced interviewees who can better predict success. Companies cannot afford to make any mistakes against the dwindling pool of talents.

Yoshito Hori, Chairman and CEO of Globis, raised an interesting point that the labor market suffers more from a talent mismatch instead of a talent scarcity. He criticized universities for their indifference and unwillingness to change. As part of the solution, the Globis CEO suggested universities to increase competitions and develop on-site job training programs.

Bernard Fung, chairman and CEO of Aon Asia Pacific, touched on the issue of retaining the talents. He said Asian companies do not have a flexible authority system enabling them to share authority with subordinates. If young workers do not feel that they belong to their company, they will definitely leave their workplace.

Regarding a relationship between a desirable employee and cultures, the general opinion was that companies were not looking for "international citizens" but those with strong roots and interest in other cultures. At the end of the day, companies are looking for people who can communicate and embrace other cultures.

[written by Yen-mi Hong, edited by Jae-yoon Jung][ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]