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When global companies recruit new employees for their overseas operations, what are the different options for staffing policies available to them? Which option do you think works best and why?

Business Sep 25, 2020

When global companies recruit new employees for their overseas operations, what are the different options for staffing policies available to them? Which option do you think works best and why?

Expert Solution

Explanation

There are four staffing types available for the companies who wanted to recruit candidates from overseas.

 

Ethnocentric recruitment approach:

Ethnocentric recruitment approach means we hire people from our parent country to fill positions around the globe. For instance, if we want to take on an executive position in a foreign country

In this case, the relocation of the selected people to overseas countries is considered by the company.

When the company follows the strategy of choosing only the citizens of the home country to work in the host country, this is called the racially centralized approach

The drawback is lack of awareness of these expatriates of the local culture and missing the local people services who are better in understanding cultural nuisances and work practices.

 

The polycentric recruitment approach:

The polycentric recruitment approach means we 're hiring locals to fill our positions in a host country. We might advertise on local job boards for example, or build a contract with a local recruitment agency. We use the polycentric approach when we need the local people's skills to run our business.

 

The regiocentric recruitment approach:

The regiocentric recruitment approach means that we employ or transfer people within the same region (like a group of countries) to fill our open positions. We may agree for example to move employees within Scandinavian countries. So if we want to recruit somebody in Sweden (a host country) we could move from Denmark, a host country in the same area, one of our employees.

 For example, a company looking to open a business office in Scandinavian countries selects the candidates from Scandinavian region. The regiocentric approach is practiced when the cost of hiring an employee from host country is lower than hiring them from adjacent region or from parent country. issue of regioncentric hiring is lack of cross cultural awareness among the new employees.

 

Geocentric recruitment approach:

Geocentric recruitment approach is employing the best people to fill our positions regardless of where they come from or where they live. This translates into: Hiring remote workers. When we want to hire someone at a place where we don't have offices we use this option. For instance if we want a customer service agent to help our customers there in another time zone.

 

In my Opinion the Polycentric Staffing Option works best

 1.)

Eliminates language barriers and adjustment problems for foreigners and their families (no adjustment problems).

2.)

With the support of the host government.

3.)

 Enhance ethics and professional opportunities for local employees.

5.)

Allow management continuity within the host country.

 

Each role will require a different skills set but to ensure that our employees can work together well

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