Borderless HR: 'The war for talent is absolutely dominating everything'

Borderless HR: 'The war for talent is absolutely dominating everything'

Businesses care more about winning the war for talent than setting up operations where they can pay cheap salaries.

That is one of the conclusions from a panel discussion during ADP’s third annual 'HR question time' last week.

Anthony Hesketh is a Doctor and Senior Lecturer at the Lancaster University Management School. He was one of the six people in the panel discussing how globalisation may change HR. Representatives from Barclays, Sunrise Senior Living, and ADP also sat in the panel.

Hesketh said that the world of business is increasingly becoming more global and local – or "glocal".

He explained: “So, the days in which you had people who were shipped out from the UK or the US overseas are long gone. That is now being pushed back against by the developing economies.

“We are going to see some really big changes in the future. So, the classic one is labour arbitrage. The classic idea is that when people talk about outsourcing, the idea is that we ship some of our processes so that we can get that process done more cheaply elsewhere. We are seeing two things there.

“Firstly, the rate of which those wages are increasing has accelerated at a level not anticipated by the world of business.

“Secondly, there is, as I have already mentioned, increased pressure to hire people across local geographies.

“The war for talent is absolutely dominating everything.

“Capitalism is incredibly caprice. It doesn’t care who you are or what race you are. It will go wherever the margins are the greatest. So it will invest where it can find its greatest margin and, given that we live in this time now where we have allegedly had economic stagnation with very low levels of growth, that’s speeding up that process. Money is flowing wherever in the globe where you can find the talent and the margins."

Hesketh concluded that this means that companies will invest where talent is, not necessarily where the salaries are at their lowest.

Mike Molinaro is the Chief Transformation and Operations Officer of Human Resources at Barclays. He agreed with Hesketh and said that businesses going where there's talent is “the new norm.” Molinaro added that managers today have to be prepared to “deal with teams who are not sitting outside their door.”

He continued: “They need to be able to manage those teams remotely because you’re going to have workforces that are spread out across the globe and you are going to have individual work teams who are spread out across the globe. So, this is a great opportunity for HR to develop that core competence within our workforce.

“How do we develop managers who are used to having a team that they can put into a room to have a discussion when they now have to have that discussion remotely? How do you build those collaborations? Is it a technology answer, a management answer or is it a cultural answer within that business?"

For more, check out our story about the HR of 2020.

Be the first to comment.

You are currently previewing this article.

This is the last preview available to you for the next 30 days.

To access more news, features, columns and opinions every day, create a free myGrapevine account.