In conditions of doing business internationally, there appears an issue of global staffing. The major approaches to global staffing policy include ethnocentric, polycentric, and geocentric staffing (Mondy & Martocchio, 2016).
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An ethnocentric approach, “companies primarily hire expatriates to staff higher-level foreign positions” (Mondy & Martocchio, 2016, 396). This approach is suitable for companies with foreign offices which want to have more control over affiliates or preserve corporate culture. Employees from the parent company in high positions can transfer necessary experience and company traditions. With this approach, expatriate managers guarantee the proper connection of foreign companies functioning with the parent company (Mondy & Martocchio, 2016).
The polycentric approach presupposes employment of host-country national workers “throughout the organization, from top to bottom” (Mondy & Martocchio, 2016, 396). With this approach, more power is given to the local employees of the host country. The approach is grounded on the supposition that host-country nationals have more experience in the conditions of the local market and thus can be more efficient. It also needs a separate HR department in the country of operation. The polycentric approach is usually well accepted by the local population because it provides more positions and is proof of the company’s commitment to the host country.
The geocentric staffing approach includes “a worldwide integrated business strategy” (Mondy & Martocchio, 2016, 396). It means that companies try to employ a candidate who suits the position best of all without consideration of his or her nationality or place of living. This approach is most suitable for big corporations because the search for suitable employees can be time-consuming and expensive. The geocentric approach can also be complicated for HR managers due to the challenges of dealing with international employees.
On the whole, the choice of staffing approach depends on the company’s HR policy and its global goals.
Mondy, R.W.D., & Martocchio, J.J. (2016). Human resource management, Global edition (14th ed.). Harlow, UK: Pearson Education Limited.