Identifying the Problem of Talent in Emerging Markets
The majority of companies are convinced that a popular brand and relatively high wages are everything they need to attract and retain talents. However, that is a false conclusion. Prospective employees from developing countries usually need something more than this. They want to prove to the world that their knowledge and abilities, as well as their country, can make a difference on a global scale. They strive for self-development and opportunities. They want to be valued and change the world. It is slightly more than just a desire to have a big salary and do ordinary work, isn’t it?
What is so Special about Emerging Markets?
Why such kind of employees nine times out of ten will choose an emerging market instead of a local one? The answer is obvious – local ones do not suggest the opportunities that such kind of people want, especially those companies, which operate within well-developed markets and have already forgotten that employees may need something more than just a possibility to earn a living.
The primary argument for emerging markets is that they are constantly growing and gaining more and more power. No less than for several hundred years, the West has been the strongest. However, times have changed, and as Michaelson states, such countries as China, Russia, India, and other representatives of the BRICs are growing much faster than the members of the European Union or the United States (239). It is very likely that neither the Euro Union nor the US will “represent the world’s largest economy” in the near future (Michaelson 239). Maybe the “post-American world” and the times “when China rules the world” are not so far from reality (Michaelson 240).
So, emerging markets can offer an individual an opportunity to be one of the first, to become a part of the new and growing infrastructure, to grow and develop, to face lower levels of competition, to do interesting and diverse work, and so on and so force (Pendleton par. 3). Who would not want to be a part of these?
Hypothesis Considering What Emerging Markets Should Offer
Within emerging markets, the competition for talents is rather active. That is why companies that operate at this level should follow certain strategies to win this battle. In their article, Ready, Hill, and Conger put forward a hypothesis regarding those strategies (1). As they state, there are two most important things for a company in an emerging market to do. Those are making appealing promises in order to attract talents and keeping those promises with the aim of retaining them.
The appealing promises, from the authors’ point of view, encompass a company’s brand (the reputation, which is characterized by excellence and advancement), opportunities that the company can offer (such as education, challenging tasks, and so on), and the purpose (the meaningful and worthy mission). At the same time, since it is “tempting to overpromise just to get new hires in the door”, those promises should be kept. A good company will not make promises, which it can not keep for sure. Otherwise, not only those current employees will be disappointed but also the number of potential new ones will vastly decrease.
The Need for the Study in the Article
Someone may ask why the study was necessary in this case. It is simple – emerging markets are growing and suggest more and more opportunities, the number of young and talented people who are searching for those opportunities is enormous, and the study is needed to connect the dots.
For the companies, which operate in emerging markets, this study has a significant value. The process of attracting talents is vital for such kind of organizations because it literally decides their fate. As the proof, Ready, Hill, and Conger described the Standard Chartered Bank’s situation. Several years before, its leaders were unable to find qualified employees to perform basic banking operations and barely could make ends meet (2). Now, they “easily maintain a lead in the race for Asian talent” (Ready, Hill, and Conger 2). And the reason for such a surprising change is the right strategy aimed to attract and retain new talents.
The results, which Ready, Hill, and Conger have received, are applicable to the UAE/GCC environment at least for three reasons. Firstly, we have a lot of people who strive to take part in something worthy and valuable and attract the world’s attention to their homeland. Secondly, in these territories, numerous emerging markets are located. Finally, the development of local emerging markets will help to establish strong connections with Asian countries and boost the economy as such (Augustine par. 2).
This work is appropriate for the MBA program since it covers the brand new and very subtle topic, which is urgent, demanded, and vital for both parties involved. Therefore, it has practical value. Besides, it took many efforts and time, as well as broad knowledge of management and global business. The study, which the authors conducted, cost them eight months and hard work.
The Methodology Employed in the Study
Ready, Hill, and Conger spent eight months for their research project. Nearly twenty different companies were involved, and dozens of CEO, managers, and supervisors were interviewed. So, the data collection method used in this study was an interview.
An interview is one of the most useful and efficient qualitative methods (Trochim par. 4). Firstly, it helps the researchers to examine a particular problem or a concept from the inside. Instead of reviewing and discussing theory, it is possible to learn about a practice. Secondly, due to an informal and casual atmosphere, in which interviews are usually conducted, the conversation can develop in any direction, and the information will be unique. It is impossible to get the information, which is available through the interviews, by any other method. Finally, this approach gives the researchers as many details as possible. All gathered data can be analyzed through comparison.
The data analysis has revealed four factors, which determine the success of an organization in an emerging market. Those are the brand, opportunities, and purpose, which are needed to attract talents by making appealing promises, and the organizational culture, which is necessary to keep all given promises and provide employees with the opportunities they need.
Critique of the Article
It is hard to analyze or criticize this article since a huge work has been done, the research project is really valuable, and its results are promising. However, several drawbacks still can be found since the article makes many assumptions without taking into account particular dependent variables. Additionally, further research should be conducted for a better understanding of the concept.
Every drawback that can be identified while analyzing this article is closely connected to the very nature of emerging markets, their challenges, problems, and disadvantages. First of all, the environment, in which emerging markets operate, is unstable and constantly changing. Even a little crisis or an economic slowdown will greatly affect their work and suspend the progress. That is why companies should always try to maintain the global demand for their products and services. Additionally, during a crisis, it may be impossible for a company to keep the promises it has given its employees, which can cause the loss of workers, as well as many other problems. So, maintaining the reputation and current levels of success is probably one of the most difficult problems.
Besides, while implementing the strategy provided in Winning the Race for Talent in Emerging Markets, many other problems also arise. As a prime example, gathering people from different countries, and especially those from the developing ones, is fraught with the language barrier. It turns out that relying on English as an international language is a big mistake. Many people from developing countries simply do not know it. So, such an approach can deprive companies of talented employees who do not know the language. From our point of view, this problem should be addressed in further studies since it is really a significant one.
While working with many countries, there is always a territorial problem, which, in its turn, brings a digital one – the problem of “connected cities and unconnected villages” (“Emerging Markets” par. 5). In addition to a digital barrier, there are also many others connected to long distances. Among those are the problem of different time zones and the absence of regular face-to-face communication, which can significantly worsen people’s relations and trust in business matters.
Another important problem is cultural. While working with people of many different nationalities and cultural groups, there is always a risk of misunderstandings and conflicts. Those inevitably interfere with the regular work and communication within the group and hinder success and goal achievement. To avoid all of this, companies should hire talented leaders who have experience in solving problems of global business.
Besides, they also should develop leadership skills in the rest of the employees since even when leaders are able to step back from their own culture and are free from any prejudice, most frequently, they still have to deal with those feelings in their followers. By the way, the same problem brings us back to the challenge of keeping their promises – it makes this commitment even harder since there is no all-in-one solution when talking about a diversity of cultures.
As for the directions for further research projects, one of the problems mentioned above can be chosen and addressed.
Summary and Conclusion
During the previous several decades, “talent strategies typically ran in one direction: … from developed markets to emerging markets” (Morrison et al. par. 1). However, after the developing markets gained their power and made people wonder if they would rule the world in two or three decades, the situation significantly changed.
Presently, many talented people are more likely to join small, developing, and promising companies in emerging markets than to work for huge corporations in well-developed ones. That is because developing markets still remember something that the developed ones have already managed to forget – big salaries and a famous brand are not enough to make people believe in the common goal.
To provide employees with opportunities, which they want to have, and win the race for talent in emerging markets, companies should remember about two things: making appealing promises in order to attract talents and keeping those promises with the aim of retaining them. As Ready, Hill, and Conger state, for this purpose, three components are imperative: the company’s brand, which is characterized by excellence and advancement (and not necessarily by fame), the opportunities (training, interesting and challenging tasks, self-development, etc.), and the purpose (the meaningful and worthy mission). To keep all of those promises, an organization should follow an appropriate culture.
Proving their theory, Ready, Hill, and Conger conducted the research, and nearly twenty different organizations took part in it. The data was collected through interviews with their CEO, managers, and supervisors. That enabled the researchers to gather detailed information and conclude that their hypothesis was very close to the truth.
Nevertheless, their theory still has many limitations and drawbacks, since too many assumptions have been made, and too many important variables have been ignored. Among those are a language barrier, distance, connection, and time zone issues, and probably the most serious problem, the cultural one. All of them should be considered as directions for further studies.
To conclude, this study has a significant value for the companies, which operate in emerging markets, and for people from developing countries who strive to prove to the world that they can make a difference. Considering this, the results of the research are applicable to the UAE/GCC environment because it has both such kinds of people and numerous emerging markets. Additionally, using the strategies identified by Ready, Hill, and Conger, a stronger connection with Asian countries can be established.
This work is appropriate for the MBA program since it requires deep knowledge of management and global business. What is even more important, it has a practical value and considers brand new, subtle, and urgent topics needed for both parties involved.
Works Cited
Emerging Markets: Big Challenges, Big Opportunities. n.d. Web.
Michaelson, Christopher. “Revisiting the global business ethics question.” Business Ethics Quarterly 20.2 (2010): 237-251. Print.
Morrison, Tom, Jonathan Pearce, Suzanne Kounkel, Matt Szuhaj and Ina Gantcheva. Emerging Market Talent Strategies: Creating an effective global talent model. 2013. Web.
Pendleton, Ethan. The Advantages of Doing Business in an Emerging Market. 2015. Web.
Ready, Douglas, Linda A. Hill, and Jay A. Conger. “Winning the Race for Talent in Emerging Markets.” Harvard Business Review 11 (2008): 1-10. Web.
Trochim, William. Qualitative Methods. 2006. Web.